Invest while you’re still young!
That’s what every old person tells you when you’re in your early twenties.
Invest now, while you have few financial responsibilities, and in twenty years you’ll be thankful you did.
As a 45-year-old man, and a member of the once-vilified X Generation, I can tell you that nothing is further from the truth. Because make no mistake, those twenty years are going to fly by.
Of course, investing in your twenties doesn’t have to be an arduous chore, anyway. In fact, these days it’s quite easy.
As long as you have Internet access, you can buy and sell stocks with the click of a mouse.
And it doesn’t have to be boring either. In fact, if any generation can make investing more interesting and colorful, it would be the Millennials.
I would also argue that today’s Millennials are a lot savvier than folks in my generation. They’re smarter, they’re more aware of the world around them, and while some suggest they all have some sick sense of entitlement, I believe they just have extremely high expectations. That is something to be applauded, not ridiculed.
Still, few folks in their twenties ever really take the time to investigate their investment options. Especially when it comes to stocks. So here are 13 stocks every Millennial should own today.
Risk = Reward
If you’re a Millennial, you’re young enough to take on some risk. In other words, don’t be dissuaded from investing in start-ups or companies that you believe have what it takes to be profitable over the long-term.
Typically these will be the companies operating in sectors that are still young and being tested. I’m talking about things like tech, biotech, and legal marijuana. These are sectors that are growing rapidly, have little chance of slowing down anytime soon, and quite frankly just offer a lot of bang for your buck.
In the biotech space, consider the following …
- Amgen (NASDAQ: AMGN)
- Gilead Sciences (NASDAQ: GILD)
- Opko (NYSE: OPK)
In the tech space, consider Ambarella (NASDAQ: AMBA) or Twitter (NYSE: TWTR).
In the legal marijuana space, consider some of the bigger legal marijuana companies in Canada, where, inside of the next two years, marijuana will be completely legal – both for recreational and medical purposes – thanks to a major push by the government.
Some of these companies include: Canopy Growth Corporation (TSX-V: CGC), Mettrum Health Corp. (TSX-V: MT), and OrganiGram (TSX-V: OGI), a grower of organic marijuana which is in extremely high demand.
Investing in YOUR Future
Millennials should also consider investing in companies that may be young now, but will be mainstays in the coming years as they cater to the wants and needs of a new generation of Millennials. Companies like Apple (NASDAQ: AAPL), electric car manufacturer Tesla (NASDAQ: TSLA), and renewable energy companies like SunPower (NASDAQ: SPWR), First Solar (NASDAQ: FSLR), and Vestas Wind Systems (OTCBB: VWDRY).
Renewable energy companies in particular should be very appealing to Millennials as these are the companies that will power their world as they head into middle age. These are also the companies that will be needed to help limit CO2 emissions. This is something that will effect Millennials more than any generation before them.
Playing it Safe
While it’s always good to have some exposure to some of these high risk/high reward plays, Millennials should also devote a portion of their portfolios to a handful of solid mainstays that offer steady dividends and some degree of safety. These include, but are not limited to …
- GE (NYSE: GE)
- Johnson and Johnson (NYSE: JNJ)
- Unilever (NYSE: UN)
Of course, Millennials should not limit themselves to just stocks. In fact, I would suggest that stocks should maintain no more than 60% of their overall investments. 401k plans, IRAs, and real estate should round out even the most aggressive portfolios.
Also, Millennials should realize that health care costs are only going to get higher as they get older. And the best way to stay out of the doctor’s office is to not get sick.
Although no one has yet figured out a way to fully accomplish this, you can certainly limit your exposure to sickness by eating right (lots of fresh, organic fruits and vegetables), exercising regularly, and getting plenty of sleep.
I realize that this probably isn’t the kind of investment advice post folks expect to hear, but it’s sound advice nonetheless. The healthier you are the more wealth you’ll be able to create.
To a new way of life, and a new generation of wealth …