Don't gamble your savings away

Due Diligence separates gamblers from investors

Too many people treat investing like gambling, and that’s consumed my thoughts lately. They throw their savings at stocks they don’t understand based on a stranger’s makeshift marketing pitch on Reddit or TikTok. 

Why do people do this?

Well, for starters, fundamentally analyzing a stock is not something we’re taught growing up (and, if you were, you’re one of the lucky ones). Even when someone knows how to read and assess financial statements, it’s not exactly a quick endeavor. Researching a company times time. A lot of time. 

So, I see why people blindly invest — it’s a daunting and time-consuming task — but it still bothers me. I wrote about this recently, but investing shouldn’t feel like gambling or splurging. We shouldn’t feel buyer’s remorse afterward. 

That’s why I launched another newsletter this morning: Due Diligence.

Woah, woah, woah. Carter, why are you starting another newsletter?

I know, it seems strange to recommend a second newsletter while you’re already reading one. 

First and foremost: Bits isn’t going anywhere. Due Diligence won’t impact this newsletter.

Second, Due Diligence serves a different purpose: educating people about specific companies so that they understand what they’re investing in. Meanwhile, as I mentioned a couple of weeks ago, Bits strives to make personal finance more personal

So, there’s some overlap, but they aren’t the same.

The goal of Due Diligence is to help people become informed, logical investors. How? We analyze, compile, condense, and share our fundamental analysis of select companies in a concise and easy-to-digest format. 

I know it’s not a novel idea — there are countless research firms that track and analyze every publicly-traded company under the sun. But I haven’t seen a single firm try to simultaneously educate their target audience. 

Here’s the first edition: GameStop.

(Consider it this week’s Savory Selection.)

While this newsletter is in its infancy, we’re accepting stock suggestions. Once you subscribe, you can recommend a company for review (here’s the link).

As a reminder, you can check out previous editions of the Bits newsletter here.

Stay sizzlin’,

Carter Kilmann