As a 28 year old millennial looking to increase my net worth I have been researching sectors that have future growth potential. I currently have a brokerage account and Roth IRA with E*trade and have chosen high risk stocks with long term potential. The stocks I have are considered high risk because they are in fairly new sectors or young companies. Since I am young and have years of investing ahead of me, it is safe for me to have a higher risk tolerance vs someone who is close to retirement. I also have a traditional 401k/Roth 401k with my employer so I am able to utilize my personal account with E*trade to have a much more aggressive portfolio than I have in my employee sponsored retirement account.
My goal is to retire before the age of 45. If I am able to acquire a certain amount of wealth by 35 to where I have enough passive income to live on I would consider leaving the work force sooner to pursue my own passions. At this time, my investment accounts include young companies in the marijuana/cannabis sector such as Canopy Growth, CV Sciences Inc and others. I also have invested in Chinese companies that are still fairly young. Bili , Uxin & Huya are a few of the companies I have decided have the possibility of providing high returns in the future. As you know with investing nothing is guaranteed so doing as much research on a company and reviewing their financials is extremely important. I do have other stocks in my portfolio and will continue to give updates on the blog and give my stock picks each month. I am not day trading or holding for the short term. A famous phrase by one of the most brilliant investors Warren Buffet said “The stock market is a device for transferring money from the impatient to the patient.” I believe the stocks I have chosen will be what we call “multibaggers” in the future. A multibagger is a stock that provides returns over 100%. At this time CV Sciences Inc, which is my stock of the month, has provided me with a return of over 100% so it would be considered a two-bagger stock. When you invest in stocks that are considered risky you must be able to handle the volatility of them. If seeing a possible 20% or more drop in price of a stock causes you angst even when the fundamentals of a company remains in tact, you may not be able to handle the risks. If you decide to choose a blue chip stock, like Coca Cola, expect a less volatile stock but average returns. You wouldn’t expect to have increasingly high returns with those stocks.
If you are new to investing and looking to grow your money look to companies that have growth potential. Visit financial sites, online financial message boards and learn as much as you can. The sooner you start the better. Time is everything with investing and if you have years to hold stocks that have good fundamentals you will almost always be guaranteed a high return.