In the past I have written about putting your money where your beliefs lie.  It is one thing to invest in what you support; it is another to invest in what you know.  Many don’t realize what specialty areas they do know about, and may have the ability to invest wisely in as a result.  This knowledge can come from your workplace, your friends and family, and your own hobbies.

 Food service workers would be able to discern the difference between a major distributor and a specialty company.  They would have a good sense of the quality of product, the efficiency of delivery, etc.  Receptionists may be able to distinguish between delivery service companies with ease.  Medical workers recognize the increased frequency of certain brands as the business market changes.  They may see company takeovers without realizing it for what is happening. 

Your friends and family likely work in different fields than you do.  Everyday knowledge of an industry, be it metal fasteners or retail mall sales, really gives you insight to a market.  This isn’t insider information, this is consumer information.  Gauging people’s reactions to products is a part of the human factor that the stock market can’t predict.   Your teenage son may work at an auto parts store, while your teenage daughter may work at a local gym.  Even the brands of sporting goods equipment purchased carry a lot of weight.  Feel free to ask these people what they like. 

Lastly, your own interests may hold some gems of investment.  Perhaps you are an avid sports fisherman.  You will know what stores stock the best lines, who is building where, what companies are up and coming, getting more advertising time consistently, etc.  The same goes for just about any specialty hobby; hunting, sailing, running, knitting, quilting, decorating.  If you pay attention to an industry, and a few key stocks, you will see the trends. 

This isn’t to say that you can do the investing on your own.  There are many downfalls to this, and why professional advisors are needed.  Generally, if you are too “into” one field, you are not diversified.  It is hard to invest in materials and finance if all you think about is pharmaceutical developments.  Sometimes you may fool yourself into believing you are diversified, but your different sectors (material goods, technology, etc) may be somehow tied to one type of production.  However, you should be aware of where you money is, and perhaps ask the people around you what they think of those companies you are supporting.  All the articles in business sections in the world won’t give you the human knowledge that might be right in front of you.