3

It's often easier to see that a single product is doing well, than that a large company is doing well. For example: A quick skim of Amazon's top 100 Video Game products shows that PS4 is absolutely clobbering XBox One right now.

But these products are both owned by giant companies, with many more lines in the water. You could invest in Sony, or short Microsoft, but the relative contribution of these two products to their bottom lines would be swallowed by their other ventures.

Any of you know an effective way to invest in a single product, not the entire megacorp that owns it?

4
  • 2
    wouldn't this increase your risk. If you invest in a single product, it could be abandoned and the "stock" would be bankrupted. Plus how would the next version be handled. They could make the PS5 a new product and heap all the development expenses onto the PS4. Jun 3, 2015 at 19:04
  • Why not look into companies that have only a single product or service?
    – JB King
    Jun 3, 2015 at 19:37
  • 1
    This is what Nike traders do.... but typically the markets aren't liquid enough for any large operations on a consumer level. There ARE large arbitrage opportunities between factories on another continent and sells in yours. This is the same thing, but you have to hold and store the physical products yourself now.
    – CQM
    Jun 3, 2015 at 21:23
  • 2
    Just to clarify, it sounds like you are asking how to invest in Sony's or Microsoft's video game divisions, without investing in the rest of the corporation. Is that right? That's different than investing in a single product.
    – Ben Miller
    Jun 4, 2015 at 0:29

2 Answers 2

2

The answer to the question as posed is "you can't." The closest you can come is investing in another company that sells into the market this product creates, eg a game publisher that targets this platform.

0

If you're investing in a single product, to me that implies that you think the price of the product will go up. That seems unlikely in this case, since video game consoles tend to start at the highest price and fall as time goes on/they get older and this is compounded by the fact that they become better in some ways, like increasing capacity while having a smaller footprint on newer revisions without necessarily increasing price (see PS3 slim).

Of course, in the case of scarcity (see first generation PS3 with PS2 compatibility), while the retail price of the new product may not go up, you might command a higher price in secondary markets (eBay and the like).

If you actually think the price would go up, then "investing" in the product would be easy: buy now, then sell when the price is higher.

3
  • 1
    Haha no way @Knuckle-Dragger. I think this is a terrible idea, personally. I'm a boring index fund kind of guy. But he asked how this could be done, and I think I've outlined what it really means to do what he's asking.
    – briantist
    Jun 3, 2015 at 21:03
  • 1
    @briantist there are two kinds of answerers on this site, people that answer the question and people that give advice (while adding disclaimers that they aren't giving advice). The latter tend to believe the former are also giving advice.
    – CQM
    Jun 3, 2015 at 21:24
  • 1
    I don't think investing in the product necessarily means you think the price will go up. It just means you think it will be successful. For instance, the price could go down but more units could be sold.
    – BrenBarn
    Jun 4, 2015 at 3:03

You must log in to answer this question.

Not the answer you're looking for? Browse other questions tagged .