The problem with owning stocks you don't understand is that it's hard to know what to do when bad (or even good) news arises. Should you sell? Or maybe hold? You might not have enough context to make an informed decision, and at that point, you are really just guessing.
That's not the best way to invest your hard-earned money. Here are three companies you may already be familiar with as a customer that are easy to understand and might just deserve a place in your portfolio.
It started as a simple concept: have a limited menu of fresh ingredients and build a made-to-order burrito quickly with an efficient serving line. Chipotle Mexican Grill (NYSE: CMG) has been executing this model since it was founded, and the metrics are easy to grasp: More burritos means more revenue. Serve more customers per store and margins improve. Add more stores and revenue grows even more. This was the story of this fast-casual restaurant for its first 22 years of operation.