I was surprised that not everyone at this age (25’s) have a stock portfolio yet. The market has been doing amazing this year, and I feel confident that in the long run, the market will continue to do good as well.
If you do not have a stock portfolio and you are parking your money in a bank, you are losing out on all the possible upside gains.
I know many people around me with a stock portfolio, and they’ve been able to gain additional funds from all the growth in the companies they invest in.
Time and time again, there are so many stocks that have gone from a dollar to more. (Microsoft, Coca Cola, etc.)
We live in one of the best countries for growth, with great intellectual property rights, with many consumers with a lot of capital. Additionally we are building a lot of new inventions everyday which is resulting in real actual growth, especially in tech. The market is still a safe time to invest and I for see that over the long run we will only be moving up.
Invest yourself or use a fund manager?
It’s better to park your money into a diversified portfolio that you have full control over, rather than leaving it up to others to manage your funds. You do not lose out on unnecessary fees, you keep all your gains, and the learning required to get started is minimal.
How to Get Started
Procrastination sucks. I know many people who thought of starting a portfolio and take no action. Three years later, they still haven’t taken any action, and now they are three years behind, and they’ve missed out on a lot of gains.
You don’t need a lot to start. You can start small. I recommend starting with just $500 – $1,000 and following the news of the stocks you’re investing in until you feel comfortable. Ideally if you are comfortable with it, you should deposit at least $10,000 into your account. You don’t need to use it all right away, but once you see a good opportunity or a dip in a stock you like, you can act right away without waiting for funds to transfer.
Note: If you use my link, you will get $100 in your account after you link your bank account and deposit $10,000. This is a limited time promotion from Schwab, and it’s important to act fast before it’s gone, as they may close it at any time. By signing up through my link, I will also provide you with:
- The three buy and hold stocks I currently invest in that has brought me over 50% in gains since the beginning of this year.
- A $10,000 portfolio allocation break down of the top twelve recommended stocks I personally provided to help get a friend started.
- You can reach me by email with questions, and if I have some thoughts or suggestion, I can provide you my insights (note: I am not an investment advisor, and you should always do your own research as well)
Signing up through my link will help provide support for this blog, so I can continue to provide more valuable information to you!
- Message me at hanson [at] problems.com for your Charles Schwab sign up link.
- Check your email, confirm, fill out your account details.
- Link your bank account, transfer some funds.
- After 3 days when funds come in, purchase some stocks.
- Review your stocks once a month for any major news and adjust your portfolio accordingly.
I’m going to show you in this article some evergreen stocks that as of November 2017, I would feel confident recommending them.
You should ALWAYS build a diversified portfolio so that you are not overexposed to one particular sector.
Otherwise if you are all in on tech, and tech takes a hit, you will lose a lot of money.
I chose some champions from some of the categories to share below.
I like companies that have strong revenue growth, increasing profit margin, increasing profit margin (if possible), strong team, strong barrier to entry (makes it challenging for competitors to take any market share). A company with strong revenue/profit & the right team will continue to invest in innovation that will grow the company, explore new areas, and eventually capture the market.
Ask yourself, is this a product you like to use yourself? If you don’t even like to use the product yourself, then it shouldn’t be in your portfolio or you will have trouble holding during tough times.
My top 5 picks are:
- Google – Google has a stronghold on how user discover information through their search engine, and the phone. A large majority of their revenue comes from high intent visitors clicking their relevant advertisements. Many have tried to disrupt their model and have failed. Only Facebook has been able to challenge how user discover new information, and they have barely taken any market share from Google, allowing the two to co exist.
- Amazon – Their retail sector is not that strong, yet their cloud earnings have contributed to a massive revenue growth for the company. Their Amazon AWS product is being used by many companies out there and producing high margin cash flows.
- Visa – My heavy weight champion favorite. High barrier to entry, one of four existing payment processors, high free cash flow that can be used for reinvestment. Entry into China & rapid expansion into Europe is fueling its growth.
- Clorox – Strong consistent consumer company producing cleaning & household products with a wide distribution outside of the United States and growing.
- Colgate – Strong consistent consumer company producing oral care products with a growing international presence.
|Stock Name||Stock Ticker||IPO Price||Price in 2000||Price in 2010||Price in 2017||Reason|
These are companies I wouldn’t mind buying them blind, closing my eyes, and never looking at them/reading any news (unless something major happens) for many years to come. These are what I call evergreen stocks.
Remember your goal is to save capital, invest, build side businesses/side hustles/gigs, retire early, and pursue your passions. It starts with opening up a brokerage account so that you can start investing.
Please email me if you have any questions. Thanks!