Contributed Photo/Courtesy Nike Inc.: Former San Francisco 49ers quarterback Colin Kaepernick is featured in this new Nike ad for the 30th anniversary of the company’s “Just Do It” campaign.
A friend is suggesting that I buy Nike stock, which has fallen from $500 to $80 because of the ad featuring Colin Kaepernick. What do you think?
Signed, A Little Help from My Friends
Wow. This is the best example of why you should never act on a hot tip from a friend that I’ve ever seen! As you can see in the chart below, Nike stock is trading at an all-time high at $80/share! I have no idea what your friend’s motivation is in trying to get you to buy Nike right now, but I can tell you that she’s no Warren Buffett! If this was a tip from a financial planner, then she has just tipped her hand that she’s a salesman after her own interests above yours. In that situation, it’s time to get an unbiased second opinion on your entire financial plan as soon as possible. (Call 310-430-2397 to learn more about how to receive my unbiased second opinion.)
On September 4, 2018, Nike stock dropped about $2/share, but it’s still very pricey. I don’t see any compelling reason to jump in at a 68.50 price to earnings ratio, in the 10th year of the bull market. If you like the ad, a better investment would be to support the company’s controversial decision by buying Nike’s shoes and clothes… I’d wait for a truly (not hearsay) better price before buying the stock.
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Natalie Wynne Pace is the author of the Amazon bestsellers The Gratitude Game, The ABCs of Money and Put Your Money Where Your Heart Is (aka You Vs. Wall Street). She has been ranked as a No. 1 stock picker, above over 835 A-list pundits, by an independent tracking agency (TipsTraders). The ABCs of Money remained at or near the #1 Investing Basics e-book on Amazon for over 3 years (in its vertical). Natalie Pace’s great, great grandfathers James Pace and Lorenzo Wright were some of the original pioneers of Graham County. Call 310-430-2397 to learn more about Natalie Pace’s books, private, prosperity coaching, and 3-day Financial Empowerment Retreats.