Part 2 : Start Investing While You Are Young!

Short-Term vs. Long-Term Investing

 While it’s true that day-trading is trendy, and that an expert day-trader can make a lot of money in a short time, a smart university student (you) will look to invest long term in assets that have the longest and most substantial periods of long term growth ahead of them. Day-trading is RISKY, and while you might make some money, there is also a good chance that you could lose everything. The reason I am suggesting that you invest when you are young is that you can take a long-term approach to things. Invest long-term!

Identifying Companies with Long Term Promise

 Companies like Microsoft, Google, Apple and Tesla don’t come along all the time. Investment opportunities like that only happen once or twice in a generation. In order to take advantage, you have to identify and invest in those companies early on in their life cycles. Take a look at the world. Keep an eye on industry. When a company comes along that looks like it has the potential to change an industry, or even create a new one, BUY IT!

 Because I have had some success investing, many people ask what to invest in these days. Stocks like Microsoft, Google, Apple and Tesla have already experienced their big growth periods. So, what should someone invest in today?

Crypto Currencies

 While it would have been nice to invest in Bitcoin 5 years ago, crypto is still in the very early stages of its life cycle. So early, in fact, that we don’t even know what it’s going to become. Truth be told, the future of crypto is still a mystery. For that and other reasons, its price is very volatile. If I was a university student with W1,000,000 to invest, and I didn’t mind a high level of risk, I would invest it in Bitcoin. Again, it’s risky and volatile, but Bitcoin still has tremendous potential for future long-term growth. What if you DO min risk and volatility?

Exchange Traded Funds (ETFs)

 ETFs present a great high growth opportunity that also minimizes risk. Exchange traded funds are like mutual funds, but like stock, they are bought and sold on the stock exchange. ETFs have a theme. For example, ARK Investments, a popular fund manager, has ETFs like ARKK, which trades in “innovative” companies that are creating change in their industries; ARKQ, which invests in the “autonomous technology and robotics” industries; and ARKW, which invests in next generation internet companies. They also have a “space exploration” ETF coming soon.

 ETFs like these present a great opportunity for young investors because while they offer high growth, risk is minimized because you are not buying just one company stock. The ETF buys stock in all of the most promising companies in that industry. If one, two, or three of those companies goes bankrupt, it’s ok because you are diversified within the industry. Give them a good look.

In conclusion, investing is something that you should all be looking into. If I could give one piece of advice to myself at 20-year-old, it would be to invest now! Study the markets. Find something you believe in, or something you care about. It’s a great way to make your future brighter.