You want to buy stock in a company with high growth potential. Businesses tailored to a narrow niche you can relate to are understandably intriguing, but they’re not a wise choice for your money.
Instead of investing in the company, continue to support the brand by purchasing its products and services. If the company eventually expands into more diverse offerings, you might consider revisiting your decision not to invest, but proceed with caution.
For example, GoPro, which makes high-end action video cameras, has struggled to produce a high-quality mass-market camera at an affordable price. The Motley Fool’s Leo Sun advised against buying GoPro stock after the company unveiled its new $200 Hero camera. In an April 2018 article, Sun said releasing a cheaper camera was a failed strategy that had already been tested by GoPro with “disastrous” results, which could eventually sink GoPro’s stock to zero.