Trends based on Daily Life

I wouldn't say that I'm a trend trader, but I guess I kind of am. I'm a really observant person. Observant is practically my middle name. :) When I'm just out with friends, or going shopping, or out to eat, I'm constantly looking at everything around me. I want to give people examples of how everything around you affects a publicly traded company in one way or another.

1. Starbucks (SBUX) - One time when I was walking around an outdoor mall, drinking a coffee, someone purposely flipped a U'ey to turn around and ask me where I got my Starbucks from. I realize not everyone enjoys Starbucks coffees, but one cannot deny their aggressive growth that seems pretty impressive. Total return: 71.55%
2. Walgreens (WAG) - I heard one time that every 8 seconds, a new Walgreens is built. (Something like that). If you really take a look around, you'll notice that that's probably true. The cow town that I live in, I can already think of 7 Walgreens around, and I'm not really trying. One also has to take into consideration that America's biggest generation is moving toward the age where they'll need more medication for health problems. Total return: 45.97%
3. Aeropostale (ARO) - Everytime I went to the mall, I'd see more teenagers carrying around Aeropostale bags than anything else. I think teenagers these days are moving very agressively into consumerism. So betting on what teenagers think is hot is probably a good idea. Total return: 44.83%
4. Coach (COH) - More and more high school and college kids are about consumerism. Period. I can't even tell you how many high school kids I've seen around that have more expensive Coach bags than I do. (I bought myself a little wristlet as an "I survived another tax season" gift to myself). I've read before that Coach is the reasonable way to enjoy high quality goods. I totally agree. Just look at today's youth generation. You'll understand. Total return: 34.78%.
5. General Electric (GE) - You'd actually be surprised how large the GE conglomerate is. You could even have a loan financed by GE and you may not know it. Really, just looking around at everyone's appliances, a large portion of them are GE appliances. You support GE everytime you watch NBC or a Universal Studios movie. It's really everywhere. In China, you'll see that GE is a major sponsor for the 2008 Beijing Olympics. I also like companies that are not afraid to spend major advertising dollars to place themselves globally. Total return: 11.54%.

I guess I could give more examples, but it's probably unnecessary. I'll leave on one last note: commitment to the people. When I was in China earlier this summer, I picked up a new stock: PetroChina (PTR). One of it's slogans on a billboard caught me by surprise (you'll only be able to read this with a Chinese reader on your computer):

為你加油

P.S. Don't forget to look at Financial Statements after you've spotted a trend and also take into consideration whether or not the trend will last for at least a little while longer.