How to Invest in the Stock Market A Guide for Millennials (KO TSLA WFM)
Post on: 4 Апрель, 2015 No Comment
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Young investors have tons of advantages going for them. For one, they have time on their side, which allows them to invest more aggressively and gives them some wiggle room in case they make mistakes. But figuring out how to invest in the stock market and sifting through the universe of investing options can feel like looking for a needle in a haystack. Here’s a guide for making that process much easier.
Constructing your portfolio
For this portion of your portfolio, consider Whole Foods Market ( NASDAQ: WFM ). Organic food sales in the U.S. have skyrocketed, growing 16.5% annually (versus conventional food sales’ 3.3% annual growth) from 1998 to 2010. Although the organic food market is expected to grow 14% annually over the next five years, it accounts for less than 4% of today’s U.S. food sales. Those numbers alone indicate that Whole Foods has a lot of opportunities on the horizon. Now boasting $13 billion in annual sales with a presence in three countries, it plans to accelerate store openings. One strong impetus for doing so: Whole Foods’ comparable stores open less than two years have produced an average 15% return on invested capital over the last eight quarters . The organic grocer posted slowing sales last quarter, with same-store sales increasing 4.5% compared to 6.9% growth in the year-ago quarter. That news has driven its stock down more than 20% since the May 6 announcement. But Whole Foods remains a great company with committed leadership, a fantastic brand, and healthy margins. Many investors, including me, view the recent sell-off as a mouthwatering opportunity to get into the stock .
Tesla’s ( NASDAQ: TSLA ) stock returned a whopping 634% over the past two years, but that may be just the beginning for this Silicon Valley-based electric-auto maker. The company turned a profit for the first time in 2013, a feat that CEO Elon Musk aimed to achieve that year. Tesla unveiled its highly anticipated Model X crossover at the Detroit Auto Show in 2012, and deliveries began on the carmaker’s Model S premium sedan that same year. Hoping to lure affluent Chinese consumers, Tesla recently launched the Model S in China. Tesla has vastly expanded its Supercharger network of electric-car recharging stations across the U.S. Converting solar energy to electricity, the stations allow Tesla customers to charge their cars for free. In fact, Tesla plans to have charging stations within driving distance of 98% of the U.S. population by the end of next year! The interconnected system of stations now makes it possible to cruise in your Tesla from coast to coast.
With aggressive stocks you may win big or lose it all, so consider this your Vegas money. Don’t invest so much in aggressive stocks that you’ll be broke or inconsolable if you lose your investment.
Foolish takeaway