• Subscribe
  • Log In
  • Home
  • Daily Diary
  • Asset Class
    • U.S. Equity
    • Fixed Income
    • Global Equity
    • Commodities
    • Currencies
  • Sector
    • Basic Materials
    • Consumer Discretionary
    • Consumer Staples
    • Energy
    • Financial Services
    • Healthcare
    • Industrials
    • Real Estate
    • Technology
    • Telecom Services
    • Transportation
    • Utilities
  • Latest
    • Articles
    • Video
    • Columnist Conversations
    • Best Ideas
    • Stock of the Day
  • Street Notes
  • Authors
    • Bruce Kamich
    • Doug Kass
    • Jim "Rev Shark" DePorre
    • Helene Meisler
    • Jonathan Heller
    • - See All -
  • Options
  • RMPIA
  • Switch Product
    • Action Alerts PLUS
    • Quant Ratings
    • Real Money
    • Real Money Pro
    • Retirement
    • Stocks Under $10
    • TheStreet
    • Top Stocks
    • Trifecta Stocks
  1. Home
  2. / Investing
  3. / Consumer Discretionary

The Daily Dose: Some Uncomfortable Truths Revealed

Here's what I've gleaned from talking to some fresh-faced interns.
By BRIAN SOZZI Jun 11, 2014 | 11:00 AM EDT
Stocks quotes in this article: RSH, WMT, UPS, FDX, HSY, CMG

While I've basically lived in front of a camera for the past four years, speaking live in front of a group of people is an entirely different ballgame. So it wasn't without a bit of nervousness that I recently assumed an elder-statesman position and presented to 40 eager summer interns at TheStreet's headquarters.

The topic was how to invest and make it in financial journalism -- and I certainly wasn't going to discuss price-to-earnings multiples and discounted-cash-flow analyses in front of 19-to-21-year-olds. The next generation of financial-services professionals has grown up watching news via streaming videos and television, and they are attracted by the glitz and glamor. Either they want to learn how to really move a stock, like I do with research notes, or they want to really figure out the secrets of developing and appearing in on-air segments.

I am here to help, because there is no school of financial media, nor is there an incubator that gives people the knowledge on precisely how to push a stock higher or lower. It's an art, I think. That said, I did also learn a great deal from fielding questions. Here are the specific investing takeaways that I've gleaned:

Many people are still trying to attain riches in the shortest amount of time. It's so sad. Folks still have a mindset that says it's OK to scoop up penny stocks in the hopes they'll all appreciate 95% in a single session. Or some will believe it's a can't-miss opportunity of a lifetime to buy a stock after it has plunged 50% for three months -- even though the move likely occurred for good reason. Just look at the horrific story of RadioShack (RSH)!

People are not connecting the dots. I see this sort of thing on a daily basis among new clients: a lack of thinking beyond one company. If I am researching developments at Wal-Mart (WMT), you'd better believe I am also pondering the resultant financial outcomes for UPS (UPS), FedEx (FDX) and Hershey (HSY). Yet, from what I've gathered during my presentation, many people are paying little attention to such important matters.

The pursuit of knowledge is dying. Investing involves way more than scrolling through the daily 52-week highs and lows list, and then reading up on the news for the top 10 names on each of those lists. In this day and age, you need to be searching for obscure information wherever it may exist, be it on social-media platforms or anywhere else. Over the past two months I have actually made huge stock calls after studying Instagram feeds for retailers. A picture speaks 1,000 words, and it can serve as a starting point for deeper financial analyses.

As for the stock I suggested they put in their model portfolio: that name is Chipotle (CMG). This is a company that resonates with many people, and the fundamentals of the business are such that the stock's premium valuation is warranted. Better still, there is room for further multiple expansion, I think, as earnings growth accelerates from menu-price increases and the introduction of new items and catering.

Get an email alert each time I write an article for Real Money. Click the "+Follow" next to my byline to this article.

At the time of publication, Sozzi had no positions in the stocks mentioned.

TAGS: Investing | U.S. Equity | Consumer Discretionary

More from Consumer Discretionary

I've Got Qualms About Giving Toll Brothers a Ringing Endorsement

Stephen Guilfoyle
May 25, 2022 10:45 AM EDT

The high-end builder just posted solid quarterly results, but there are internal and external factors that could weigh on its shares down the road.

Apple's Price Charts Are Getting Badly Bruised

Bruce Kamich
May 12, 2022 1:10 PM EDT

Here's what the odds favor.

RH and Its Charts Don't Have That Homey Feeling Right Now

Bruce Kamich
May 12, 2022 8:32 AM EDT

The technical signals of the home furnishings provider indicate more downside to come in its stock.

Crocs Is Still Slipping to the Downside on Its Charts

Bruce Kamich
May 11, 2022 7:44 AM EDT

The footwear maker isn't seeing a lot of technical support at this point.

Screening for Deep-Value Stocks Turns Up a Pair of Possibilities

Jonathan Heller
May 9, 2022 10:00 AM EDT

A producer of small appliances and a maker of fishing, camping and kayaking gear pop up as possible value plays.

Real Money's message boards are strictly for the open exchange of investment ideas among registered users. Any discussions or subjects off that topic or that do not promote this goal will be removed at the discretion of the site's moderators. Abusive, insensitive or threatening comments will not be tolerated and will be deleted. Thank you for your cooperation. If you have questions, please contact us here.

Email

CANCEL
SUBMIT

Email sent

Thank you, your email to has been sent successfully.

DONE

Oops!

We're sorry. There was a problem trying to send your email to .
Please contact customer support to let us know.

DONE

Please Join or Log In to Email Our Authors.

Email Real Money's Wall Street Pros for further analysis and insight

Already a Subscriber? Login

Columnist Conversation

  • 11:33 AM EDT PETER TCHIR

    Thoughts Ahead of the Fed Minutes

    Recent economic and earnings issues are convincing...
  • 02:24 PM EDT PAUL PRICE

    An Interesting Chart

    I'm betting heavily that stocks will be way up aga...
  • 10:10 AM EDT JAMES "REV SHARK" DEPORRE

    This Weekend on Real Money

    "Market Timing for Dummies"
  • See More

COLUMNIST TWEETS

  • A Twitter List by realmoney
About Privacy Terms of Use

© 1996-2022 TheStreet, Inc., 225 Liberty Street, 27th Floor, New York, NY 10281

Need Help? Contact Customer Service

Except as otherwise indicated, quotes are delayed. Quotes delayed at least 20 minutes for all exchanges. Market Data & Company fundamental data provided by FactSet. Earnings and ratings provided by Zacks. Mutual fund data provided by Valueline. ETF data provided by Lipper. Powered and implemented by FactSet Digital Solutions Group.

TheStreet Ratings updates stock ratings daily. However, if no rating change occurs, the data on this page does not update. The data does update after 90 days if no rating change occurs within that time period.

FactSet calculates the Market Cap for the basic symbol to include common shares only. Year-to-date mutual fund returns are calculated on a monthly basis by Value Line and posted mid-month.

Compare Brokers

Please Join or Log In to manage and receive alerts.

Follow Real Money's Wall Street Pros to receive real-time investing alerts

Already a Subscriber? Login