Ask just about every investor for advice and they will very likely say: “get started as early as possible.” One of the key secrets to a successful retirement is having a long-term investment portfolio. Because they have the benefit of time, long-term portfolios can ride out a stock’s ups and downs, while investors with more of a short-term plan cannot.
Millennial stock investors have the advantage of time; investment options available to them now could make them very comfortable down the road.
Investors of any age share the excitement of watching the stock market go up and lament when it is on a downward track. Once a person is invested in the market, terms like NASDAQ, New York Stock Exchange (NYSE), Dow Jones Industrial Average (DJIA), actually mean something instead of just producing little understood, dizzying headlines. For people investing in their 20s, investing is not only exciting, it is a brilliant financial move.
Millennial stock investors quickly come to appreciate their forward-thinking strategy with good investments for millennials over the “spend it when you get it” attitude of their peers.
Younger investors can look toward the future with stars in their eyes and as such pick flexible companies capitalizing on what is currently in vogue. Of course, all investors must realize, no matter how stable the investment, it will very likely go through periods of ups and downs.
Even though young investors have time to invest in more risky stocks, they should not count on them entirely. An investor aiming for a well-balanced portfolio should also consider some dependable dividend-paying stocks as well.
Facebook is a big part of the millennial social life; it is also a smart stock to invest in for the future.
Facebook Inc (NASDAQ: FB) is poised to become more than just a social media platform titan. It is projected the company will expand into an even greater technical marvel than it already is over the years.
The company is huge, which gives it a sizeable advantage in the technical world. It has not even begun to make money from Messenger and WhatsApp, the two most popular messaging apps that it owns. Most analysts forecast Facebook has even bigger aspirations for these apps than merely allowing businesses to communicate with customers, which would yield huge profits.
Facebook has plans in development aimed at making its advertising more profitable. They are focusing on allowing businesses to charge for the services allowed through the platform. This would make FB’s advertising more profitable due to advertisements more quickly and easily translating directly into sales. The profits will be even more substantial should Facebook opt to collect a fee for processing these sales.
Millennials have grown up with the iconic coffee; Starbucks is also a favorite long-term stock to invest in.
Starbucks Corporation (NASDAQ: SBUX) has shown itself to be a flexible staple in many worldwide markets. The company is in tune with its customers’ desire to patronize non-chain, stand-alone restaurants willing to provide local products as well as outlets that reflect the local character of their cities and towns.
Taking a few pointers from the craft beer trend, SBUX presents its passionate coffee lovers with the opportunity to sample different types of coffee while learning about the process of bringing it to their cups. To further their revenues, the company has on its horizon a late night menu featuring alcoholic beverages.
Starbucks’ biggest sell is its rule over how it uses mobile technology. Their app is an unparalleled example of how best to enhance a business through mobile tech. Customers can order and pay for their food and drink in advance which keeps them from waiting in line. Due in part to customer’s ability to upload money to the app on their phones, up to 30 percent of the company’s transactions take place through mobile orders, and that percentage is likely to increase. SBUX will continue to invest in its mobile tech which means more convenient transactions and higher investment profit potential.
Starbucks has cultivated a fast food image that appeals to millennials as well as made it far more convenient than other options through their mobile app; the company is an investment people in their 20s believe in.
In the grand scheme of things, Netflix is just getting started in its expansion, making it a prime opportunity as a stock to buy for savvy millennials.
Among the various aspects of life people in their 20s do differently than many older folks, key is how they choose to watch television. Unlike people who grew up with solely broadcast television and then the marvel of cable, millennials have always had some degree of control over what they watch and when.
Many people have had enough of cable prices and are opting to cut the cord with the help of streaming services like Netflix, Inc. (NASDAQ: NFLX). This is only good news for the company which has shown rapid growth over the last decade. Moreover, the popular streaming company has room to grow with a market cap under $1 billion. NFLX could end up with a market cap of $150 billion in 15 years if it gains about 10 percent a year, especially when factoring in that it is still reasonably young in foreign markets.
Even though millennials find it commonplace, streaming entertainment is still somewhat of a novel concept to a lot of people. As the technology continues to increase its popularity across more populations, Netflix will be positioning itself as a stable market leader all over the world.
Not only a part of daily life for many millennials, these three companies could be stocks to invest in as long-term dividend payers.
Investment in sipping coffee, watching movies, and connecting with friends could be smart steps toward shaping a young person’s future financial success.