Legendary investor Peter Lynch championed the idea of buying what you know. His premise was that investing in companies that you understand and are familiar with helps you to better estimate their growth prospects.
That’s one reason why I really like Amazon (NASDAQ: AMZN). Like millions of Americans, I use the company’s products and services regularly. Not a day goes by when my life doesn’t intersect with Amazon in some way.
That doesn’t automatically make Amazon’s stock a smart pick. However, I emphatically believe it is a smart choice for investors. In fact, I view Amazon as the ultimate growth stock to buy with $1,000 right now.