The risks investing in hot brands

Even if you love a company — and its products address a need in a growing market — that information won't tell you much about its stock. Rather, you should research what's happening within the company, the competitive dynamics in the industry and macroeconomic factors that affect a stock’s price and valuation
Investing in what you know has several potential downsides: You may get caught up in a feedback loop that reinforces questionable investment decisions, you may have blinders on to what’s happening elsewhere in the market, and you may be heavily concentrated in certain sectors that fall in and out of favor. Alone or combined, these factors put your portfolio’s performance at risk.