Step 3: Invest In Your Addictions.
On the simplest level, you need the answers to three questions:
- How does the company make money?
- How will they make more money?
- Why can no one stop them from making more money?
And you're already a third of the way there, if you invest in your addictions, because you have given so much time and money to this company that you have tried to quit and failed.
What have you tried to quit and failed?
Look under the hood of this defeat and consider what this tells you about the company:
- Their product is so satisfying you can't stop using it.
- Their brand is so strong that you won't turncoat to a competitor.
- Their distribution is so powerful that you have no trouble accessing their product, ferociously and frequently, to fan the flames of your addiction.
- Their merchandise exists (and is not vaporware).
- The company makes money.
- Their revenue from you is recurring and reliable—and it has probably been escalating.
- Thousands (and probably millions) of others binge, purge, and spend in the same way.
Consider what this addiction tells you about you:
- You understand this product—this is not your drunk uncle's stock tip.
- You are an established expert on this company who has conducted hundreds of hours of field research.
- You are an illuminating analyst with a vision for the future of this industry: you can see this company changing the world, because this company has changed your world.
(And you have instinctively completed more than half of the Find Fat Fish Imbalance Sheet®—just by virtue of addiction.)
There's a lot of money to be made from investing in addiction.
- If you spend $10 a day on something, you're investing ten grand every three years.
- If your Marlboro-smoking grandmama, or your Skoal-spitting grandpapa, had picked up one Altria (MO) stock with every pack of tobacco that they bought, those shares would be worth dozens of millions of dollars if they bought-and-didn't-sell.