Tech Buying Tip: Buy Stock Before Buying The Gadget

by Randy Murray on July 23, 2010

Are you excited about some new gadget that you absolutely must have? Do you think it will change your life, the world, or at least make either of them a bit better? Do you believe in your heart of hearts that this new device will win out over all of the other competing items?

If so, before you go and plunk down your hard earned cash to buy the widget, take a moment and ask yourself this: do I believe enough in this thing to invest in the company that makes or sells it?

If you don’t, then that’s a good reason to pause and reconsider your purchase. If you aren’t required to buy this thing for a pressing business or life reason, then what’s driving your desire to buy it? If you really believe in what this thing can do, becoming an investor is a good way of demonstrating it.

Please don’t take this as investing advice to buy or sell any given company. You have to make those decisions and place those bets all on your own. I will tell you that I’ve made far more money off of Apple stock than I have spent on their hardware. And other companies as well.

An investment doesn’t always pay off profitably, but it does keep you focused on the real dollars involved. When you buy some new gadget, it’s easy to forget about what you’re spending in the excitement of a new device. Buying stock in a company before you purchase their products helps to clarify your motivations and desires.

I’m hoping you’ll use this little thought exercise to help you delay or carefully consider technology purchases. And if you’re lucky and persistent, you might even make money!

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