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THE MOTLEY FOOL INVESTMENT GUIDE FOR TEENS
8 Steps to Having More Money Than Your Parents Ever Dreamed Of
Simon & Schuster. 243 pages
Reviewed by Holly Hubbard Preston
Paying out a weekly allowance to a teenage son or daughter can inspire immense trepidation in a parent. A grandparent who sends a money gift for a grandson or granddaughter’s 16th birthday can only ponder what sort of trendy electronics or clothing it may be used to acquire.
While parents and grandparents may ultimately have a little say about what a teen does with money once he or she has it in pocket, they may be able to make a compelling argument for thrift after sharing this book with their charges.
The co-authors, Tom and David Gardner, who are brothers, founded the Motley Fool, an investment information service based in Alexandria, Virginia, in 1993. It has since grown to include a popular online site, www.fool.com, as well as a host of best-selling investment guides. Selena Maranjian is a senior writer at The Motley Fool.
When it comes to investing, as the authors aptly state, “The more years you have, the better.” If there is one thing a teen has, other than angst, it is time. There has rarely been a better time to be or to have a teenage investor: Stock prices are at their lowest in years.
Open And Fund Your Brokerage Account
Once you’re ready to start investing, it’s time to open and fund a brokerage account. Anyone at least 18 years old can open an online brokerage account. Those who are younger than that will need a parent’s assistance.
Parents can either open a brokerage account on their teen’s behalf or set up a custodial account. The process is relatively simple and usually takes less than 15 minutes. If you have earned income, a Roth IRA for kids can be a great way to start investing.
Bullish On The Rails Join The Club
Billionaire investor Bill Ackman is back in CP Rail shares, with a huge $1.8 billion stake. CP is at a fresh high, and you could argue that the man is running the risk of overpaying over the near term. However, over the next three to five years, I think its apparent that he recognizes the value to be had in the neglected Canadian rails, even near their highs. There are profound tailwinds up ahead, and both CN and CP could be on the cusp of a significant upside move in 2022, as volumes bounce back and commodity prices remain robust.
Down around 7% from its all-time high, just shy of $170 per share, I view CN Rail stock as a huge bargain. The 22.9 times trailing earnings multiple seems rich for such a boring company. But given the magnitude of improvement on the horizon, Id argue that a great deal of earnings multiple compression as a result of 15-20% bounce in this years earnings that could be in the cards. So, the multiple does not do the firm justice as it looks to move on with its new CEO Tracy Robinson, a woman who could take CN Rail to the next level, perhaps even re-earning CN Rail the title of North Americas most efficient railway.
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Learn The Basics Of Investing
As with any new adventure, investing might seem challenging at first. However, it’s relatively simple once you understand stock market basics and how to invest in stocks. Read as much as you can about investing so you know how it works, what mistakes to avoid, and the best practices to follow. Also, be sure to check out our book, The Motley Fool Investment Guide for Teens.
Cn Rail Stock Could Be Ready To Lead The Tsx Higher In 2022
CN Rail stock looks undervalued, as it looks to turn a page on a tough past couple of years.
CN Rail stock has been quite the choppy ride over the past year or so. Indeed, big spikes and sharp plunges have been the new normal for the firm since the pandemic started. Undoubtedly, last years failed pursuit of Kansas City Southern did not help the cause. In any case, immense volatility may be suggestive of a higher magnitude of risk. That is hardly the case, in my humble opinion.
If anything, last years choppiness is based mainly on noise relating to activist investor involvement, the hunt for a new leader, and the bidding war for the right to scoop up KSU. I correctly predicted that CN Rails pursuit of KSU was doubtful to happen and that it was merely looking to drive up the price for its top rival CP Rail in the Canadian rail arena.
It was ultimately regulatory hurdles that proved too high for the $111 billion rail behemoth. In 2022, CN Rail is ready to move on from the noise of 2021. Undoubtedly, the operating ratio isnt at an optimal level. Still, with a new CEO at the helm and potential tailwinds that could propel earnings per share to the high teens, I think that CNR stock is one of the few bargains that are at or around their all-time highs.
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Isbn The Motley Fool Investment Guide For Teens
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- Long product name ISBN The Motley Fool Investment Guide for Teens:
The Motley Fool Investment Guide for Teens by David Gardner, Tom Gardner
- Short summary description ISBN The Motley Fool Investment Guide for Teens :
ISBN The Motley Fool Investment Guide for Teens, English, Trade Paperback, 256 pages
- Long summary description ISBN The Motley Fool Investment Guide for Teens :
ISBN The Motley Fool Investment Guide for Teens. Book cover type: Trade Paperback, Language version: English, Written by: David Gardner, Tom Gardner
Find Your Investing Identity
Another important part of the process is to discover your investing identity. Are you a risk-taker? Then growth investing might be right up your alley. Do you like getting paid ? Consider income stocks. Do you love a great deal? You might be a value investor at heart.
As you learn more about investing, you’ll discover what interests you the most, which is the key to staying invested over the long term so that you can benefit from the wonders of compound earnings.
As you discover more about how to invest money as a teenager, you’ll likely go down one of two paths: active or passive investing.
If you find that active investing isn’t your thing, don’t give up. Instead, take a little more time to investigate passive options such as mutual funds and index funds, which track stock market indexes.
There’s no shame in consistently putting some money into one of the top index funds and calling it a day. Over the long term, they’ll do a wonderful job of increasing your wealth.
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The Motley Fool Investment Guide For Teens: 8 Steps To Having More Money Than Your Parents Ever Dreamed Ofgtin/ean: 8601300413020
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Discover The Right Investments For You
If you do get bit by the investing bug, start learning how to research stocks. Then pick a few you like that align with your interests and start digging into the company. Learn how it makes money, how much it can grow, and where else it might expand in the future.
Familiarize yourself with its financial statements to see if it has the flexibility to survive the inevitable economic downturns. Go through this process for companies you like and whittle them down to a list of those you want to own.
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Make Your First Investment
Once the funds clear in your brokerage account, it’s time to make your first stock purchase. Decide which of the stocks on your list you want to buy and set up the order. We recommend using a to make the purchase.
When you’re ready, submit the order during market hours. Before you know it, you’ll be the proud owner of a small piece of what you believe is a great company, or, if you chose to go the passive route, a basket of great companies.
Now repeat the process and build out a diversified portfolio. Continue adding money to your brokerage account and buying more shares of the companies or index funds you want to own to take even greater advantage of compound interest over time.
Publishers Weeklyjul 15 2002
Budding tycoons and those with more worldly concerns will appreciate The Motley Fool Investment Guide for Teens: 8 Steps to Having More Money than Your Parents Ever Dreamed Of by David and Tom Gardner with Selena Maranjian. The editors of the Motley Fool Web site offer sound advice on everything from finding a job, investing in the stock market and avoiding financial pitfalls. “Take It from Me” and “Keep in Mind” sidebars offer brief advice from peers and the authors, respectively.
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How Parents Can Start Investing For Their Teens
Parents can play a vital role in helping their teens to start investing. The best way they can do that is to encourage them during every step of the process. If you’re already an experienced investor, show them the ropes. If not, learn alongside them.
Guide them in discovering their investing identity, which might be quite different from your own. Your teen has decades of investing ahead of them, while you have a shorter remaining investing time horizon. They can afford to take on more risk, including investing in some individual stocks that pique their interest, even if it might be a bumpier road. Encourage them to find what interests them the most so that they’ll stick with investing when times get tough, which we all know eventually happens.
Help them set up their brokerage account, but don’t do it for them. You want them to take ownership and initiative so that they continue investing. Also, it wouldn’t hurt to get them started with a gift deposit in their brokerage account. You could even offer to match a portion of their future deposits for a few years, much like a 401 company match.
The role time plays in compounding gives teens an advantage, so parents should encourage their teens to get started as soon as possible. They might complain at first, but they’ll eventually thank you for helping to get them on the path toward financial freedom.
Cn Rails New Ceo Could Propel Shares To The Next Level
CN Rail is in good hands. Ive said it before, and Ill say it again: CN looks to have the stage set for a glorious rebound after years of sluggish returns. The 1.9% dividend yield is handsome and likely to grow further, as management bets on the firms brighter medium-term future.
This article represents the opinion of the writer, who may disagree with the official recommendation position of a Motley Fool premium service or advisor. Were Motley! Questioning an investing thesis even one of our own helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.
Fool contributor Joey Frenette owns Canadian National Railway. The Motley Fool recommends Canadian National Railway.
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