A while back I wrote a post called Investment Economics for Young Professionals. In it I promised a follow-up post on the four areas where I feel young people would be wise to invest. To reiterate – I am not an investment professional – so please do your own homework and take these suggestions with a grain of salt.
Shipping. It would seem to me that premium shipping companies such as UPS and FedEx are prime for long-term sustainability and growth. The amount of goods sold online continues to climb year over year. This growth will continue as more people get high speed connections and become comfortable with online ordering. However the place to invest in NOT in companies like Amazon and eBay. Invest in the supporting services rather than taking a risk on any one company. After all, who is going to deliver all the goods?
Oil. It doesn’t take a rocket scientist to see how imperative oil is to the economy. It’s also clear the US Government and OPEC both firmly believe that oil at $100+ a barrel is reasonable, otherwise someone would have intervened by now. That means that while the profits being raked in by oil companies may be egregious, they are legitimate and bound to continue. Following suit with my reasoning from above, invest in the supporting services such as exploration companies, refining and drilling firms. Still not sold? Consider the fact that we are currently running out of oil and car usage is still in its infancy in India and China.
Google. I still really like the upside to Google. Google has done a great job thus far of diversifying itself; it no longer relies on on search and ads. Google is making solid investments and innovations in fields from clean tech to mobile hardware. Looking at the big picture, I believe that the Internet will continue to be the primary global communication and collaboration platform for years to come and Google is the biggest player, bar none. Competitors and newer innovations will also be snatched up thanks to Google’s war chest of cash.
Yourself. It’s amazing how often people over look the obvious. At the smallest level, buy your own domain name (ex: samhuleatt.com). Some day in the near future the ability to have your name come up in search engines associated with the content/context you want people to see will be invaluable. At a higher-level, consider getting an advanced degree or learning a new skill such as programming or graphic design. Higher education reaps so many rewards: from promotions, to connections to new life directions. Finally, buy a gym membership and solid health insurance. Taking care of your physical and mental health is perhaps the most essential long-term investment you can make.
Other areas you’d suggest? Post to the comments