Investing in the World
Growing up in a world that is run by the wealthy I always took interest in how people made money, what drove the economy, and I followed the stock market closely. A couple of years ago I decided to invest in the stock market and below is my portfolio.
Problem
During my freshman year, I really wanted a new iPad. I asked my parents to buy me one and they promptly turned me down and suggested I earn the money to buy it myself. They encouraged me to do extra chores and told me to invest the money I earned into the stock market. At first, I was really angry because I wanted the instant gratification of a new iPad but then I was intrigued by the thought of investing money and being able to buy 10 iPads in the future.
Process
I first needed to generate enough wealth to have something to put into the stock market. I started to do chores and small tasks for my neighbors and grandparents and saved money I received for my birthday and Christmas.
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The next issue to overcome was getting a stock account and at 15 years old I couldn't open an account on my own. Luckily, my grandma had an account that she didn't use anymore and I convinced her to let me use it. She helped me put in the $2,000 that I had saved and I was off and running.
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I had no clue what I was doing and wasn't familiar with stocks, funds, or where to start. I went to my Spanish teacher who was heavily into stocks and he inspired me to purchase a few individual stocks. He was my mentor and was always willing to talk about stocks after class. My Mom insisted that I put half my money in an index fund to balance out the individual stocks. I learned so much in those first few months that I decided to start the Investment Club to help other students invest in the stock market.
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Even though the start of my investment journey began before my Entrepreneurship class, I continue to trade stocks and keep 50% of my holdings in an index fund.
Reflection
I've learned a lot about being an investor in the stock market, especially with the incredible ups and downs of the past 2 years.
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I've learned about what affects individual stocks and how markets react to what is happening in the world.
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I've learned the value of an index fund and that sometimes it is safer than individual stocks.
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I've felt the high of picking the right stock and watching it sky rocket and have also felt the low of watching my hard earned money disappear.
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I've learned to be patient, not to panic, and not to act on market hype.
Results
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Even with the current market status, I am still up 50% and have a current portfolio value of $3,000.
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I was able to exit certain stocks at the right time and reinvest in other stocks.
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I enjoy learning about companies and teaching others in the Investment Club how to generate wealth through the stock market.
