An old investment saying, “Buy what you know”, shouldn’t be taken so seriously, especially by the up and coming generation of young ones trying to invest.
Do your homework
Just because a product seems familiar or because an older investor has advised buying what you can see and hold in your hands. Because a product is well known and used everywhere, it doesn’t necessarily mean that you should invest in it.
Before investing in any product, do your homework. Research the highs and lows of each product and gather as much information as you can about it before dipping into the investment game. While some may seem enticing enough to just throw all your money at, remember that nothing is ever guaranteed.
If you’ve invested in Tesla last year, you’ll know that due to missed and delayed Model 3 production goals, your investment is has lost 13%.
If you’re invested in Facebook stock, you’ll come to realize that due to the recent Cambridge Analytica situation, your investment is down by at least 8%.
Research, Research, Research
Scott Gamm of TheStreets held a seminar on the 18th of April called “Investing Strategies for Millennials.”
During the seminar, joined by many other experts, discussions about how to handle the correct stocks, what to invest in and what to avoid as well as why having 401(k) plan isn’t merely enough.
The discussion continued towards how by adjusting a few things in your financial plan during your early years, retirement could come early enough and land you millions of dollars instead of relying on the 401(k) plan for everything.