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What stocks are the most efficient/affordable in 2021 right now?
Just wondering how to build generational wealth. #NYSE #stocks #investment
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5 answers
Bryson Kenny
Own 2 businesses, equity manager at NTY Clothing Exchange, and part time at an IT Firm
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Bryson’s Answer
Hey Jaiden,
If you're looking to just play it safe and generate market average returns, you can invest in a fund from your brokerage or the general market such as the DOW or S&P 500. There are several apps that let you invest dollar amounts into stocks or funds rather than share amounts, thus you only need $5 to invest in Apple compared to spending $135 to purchase one share. I would recommend signing up for one of those but make sure to do your research and the pros and cons of each platform!
If you're looking to just play it safe and generate market average returns, you can invest in a fund from your brokerage or the general market such as the DOW or S&P 500. There are several apps that let you invest dollar amounts into stocks or funds rather than share amounts, thus you only need $5 to invest in Apple compared to spending $135 to purchase one share. I would recommend signing up for one of those but make sure to do your research and the pros and cons of each platform!
Updated
Jeremy’s Answer
Hi Jaiden,
This isn't necessarily an easy question to answer. If it were, there would be a lot more people making money off the stock market.
One important thing to realize that there is really only 1 almost sure way to make money from the stock market: value investing. Value investing is the investment strategy that you invest and hold stocks for long-run gains (5+ years; ideally much longer). Other investing strategies like day-trading are much more akin to gambling. People may convince you they know how to do it or that there is some magic trick to making fast money in the market, but there's not.
If you want to have your money grow with the market, consider robo-investing by using apps like Acorns, Wealthfront or Betterment. These apps will give you a savings-like account that uses algorithmically optimized investment portfolios.
**I am not a certified financial advisor and this should not be taken as financial advice**
This isn't necessarily an easy question to answer. If it were, there would be a lot more people making money off the stock market.
One important thing to realize that there is really only 1 almost sure way to make money from the stock market: value investing. Value investing is the investment strategy that you invest and hold stocks for long-run gains (5+ years; ideally much longer). Other investing strategies like day-trading are much more akin to gambling. People may convince you they know how to do it or that there is some magic trick to making fast money in the market, but there's not.
If you want to have your money grow with the market, consider robo-investing by using apps like Acorns, Wealthfront or Betterment. These apps will give you a savings-like account that uses algorithmically optimized investment portfolios.
**I am not a certified financial advisor and this should not be taken as financial advice**
Updated
Dan’s Answer
Jaiden, getting into stocks and building generational wealth are two very different things that shouldn't get mixed up. The chances of building that wealth from just getting into stocks is very low. People can do it, but it's hard. I recommend reading Unknown Market Wizards: The Best Traders You've Never Heard of by Jack D. Schwager.
Generational wealth would likely be built over a long successful career or starting your own business while also investing in the stock market, real estate and other assets. Always living within your means will help to built that wealth.
Generational wealth would likely be built over a long successful career or starting your own business while also investing in the stock market, real estate and other assets. Always living within your means will help to built that wealth.
Updated
Nicholas’s Answer
Hi Jaiden,
As mentioned above it very difficult to analyze individual stocks. There are many metrics used to value a company. The share price alone doesn't tell you how much a company is worth. An easy but not necessarily accurate ratio is P/E or price to earnings. This tells you the company share price relative to its earnings. If a company earns $2 per share and the stock price is $10, the P/E would be 5. This number alone doesn't tell you much. It should be compared against historical P/E for the company or P/E for similar companies. Basically the higher the number, the more investors are willing to pay for a company. A higher price to earnings could mean the company's overvalued or expected to grow in the future.
As mentioned above it very difficult to analyze individual stocks. There are many metrics used to value a company. The share price alone doesn't tell you how much a company is worth. An easy but not necessarily accurate ratio is P/E or price to earnings. This tells you the company share price relative to its earnings. If a company earns $2 per share and the stock price is $10, the P/E would be 5. This number alone doesn't tell you much. It should be compared against historical P/E for the company or P/E for similar companies. Basically the higher the number, the more investors are willing to pay for a company. A higher price to earnings could mean the company's overvalued or expected to grow in the future.
Updated
Shawn’s Answer
Jaiden,
You should get a Twitter — get into “FinTwit” or Financial Twitter. Lots of information about building wealth for young people. I have had great success in following peoples stock ideas, only after doing my due diligence on the company first. There are so many people on Twitter that tell you how they invest in stocks and the process they take. I highly advise you look into it.
You should get a Twitter — get into “FinTwit” or Financial Twitter. Lots of information about building wealth for young people. I have had great success in following peoples stock ideas, only after doing my due diligence on the company first. There are so many people on Twitter that tell you how they invest in stocks and the process they take. I highly advise you look into it.