Peter Lynch, the former superstar manager of Fidelity’s Magellan Fund, has written two of the best investment books out there: One Up on Wall Street and Beating the Street.

In Beating the Street, he tells stories of his hit and miss investments and gives a number of investing tips called “Peter’s Principles.” Principle #14 is: “If you like the store, chances are you’ll love the stock.”

What he is saying is simply: Buy what you know.

How many people living in Atlanta in 1985, shopped at Home Depot, and loved the store? But how many bought the stock? Ditto for Wal-Mart or Cheesecake Factory or, heck, even Applebees (in its early days.)

It is us, the consumer, who really know the superstar stocks long before they’re superstars. Are your kids begging to shop there? Is it the only coffee your college daughter will drink? Does your husband drive 50 miles just to get a cheeseburger there?

These are all signs.

Who wouldn’t be investing in Culvers if they could right now? (It is still private.) Or Potbelly’s? (also private.)

Open Your Cupboards

“How do I invest in tampons?”

Don’t laugh. A reader actually asked me this question. But it makes some sense, right? Tampons are a product that women use the world over. They use them for 30 to 40 years nearly every month. And it’s a product you would think is not going to go out of business any time soon.

Buy what you know.

There are several companies that make tampons- the most famous of which is Tampex. Tampex, the first modern day tampon, was created in the United States in 1936. The brand is now owned by Proctor & Gamble (ticker PG).

One of its main competitors is Playtex, which has just been acquired by Energizer (ticker ENR.) Another popular brand is o.b. which is owned by Johnson & Johnson (JNJ).

All three companies are making money off of this product and have been for decades. It doesn’t get much better than that.

Look around you. What products do you use? Who makes the latest hot anti-wrinkle cream? What is the latest best selling wine? Who makes it?

This investing technique can really work if you trust your instincts. That is the key. If you’re using the product or shopping at the store and dozens of your friends are too, open up your eyes.

How many years have you been shopping at Costco? Do you own it?

Now is the time to start.