Editor’s note: This story was previously published in June 2018. It has since been updated and republished.
While several financial articles today focus on retiring well, getting there is another story. Theoretically, one could put off retirement planning and hope for a big payday down the road. However, the smartest approach is to start early. Especially when you’re in your twenties, you have a wealth of so-called millennial stocks to consider.
True, individual earnings power increases as you accumulate more skills and experience. That said, the older you get, the less time you have. And time, as everyone knows, is money. This concept makes investing in your twenties all the more critical. Through planning ahead and starting early, you have both money and a longer framework supporting your strategies.
It also opens up the chance to take on more risk for a higher reward potential. Some companies or funds may take longer to gain traction. This is obviously true when looking for millennial stocks to buy, which usually consist of promising names, but sprinkled with some speculation. Such investments aren’t appropriate for retirees but can be ideal for the younger crowd.
Although the markets aren’t particularly exciting now — unless you’re talking about cryptocurrencies — don’t let the lull fool you. Over the next few decades, you’re going to see several bull and bear market cycles. The idea, again, is to get involved and stay involved.
With that, here are my top 20 millennial stocks to buy for those in their twenties!
Vishay Intertechnology (VSH)
When I was a kid, the idea of interacting with machines was complete fantasy, something you’d only find in a Star Wars movie, or a “Knight Rider” (the original series) episode. But with the advent of the Internet of Things, or IoT, the meaningful engagement between man and machine is a reality.
Further down the road, the IoT will become even more ingrained in our daily culture. Therefore, buying companies directly or indirectly levered towards IoT is a no-brainer. I especially like Vishay Intertechnology (NYSE:VSH), which has aggressively transitioned towards developing discreet semiconductors and passive electronic components. These specialized components are critical for IoT products such as fitness trackers and portable smart devices.
In 2018, Vishay dropped about 15% but so far this year the stock is working its way back toward 2017 highs.
Cypress Semiconductor Corporation (CY)
Another great IoT company you should consider, especially as a millennial investor, is Cypress Semiconductor Corporation (NASDAQ:CY). As a specialty semiconductor firm, Cypress develops computer chips and components that go into many of today’s popular smart devices. Given their track record, I featured CY stock as my go-to IoT pick a few years ago.
Although shares have been very choppy since then, I’m still confident that Cypress Semiconductor will set its ship straight. Primarily, I’m encouraged with their high-profile clientele and partnerships, which include names like Garmin (NASDAQ:GRMN), Nintendo (OTCMKTS:NTDOY) and Sony (NYSE:SNE). Given these companies’ successes in their respective markets, I expect CY stock to move higher sooner rather than later.
Among these millennial stocks to buy, CY has the advantage of a burgeoning industry. Cypress isn’t selling Polaroid cameras; instead, they’re heavily vested in the technologies of tomorrow. As such, if you’re a twenty-something, you need to keep a close eye on this company.
Skyworks Solutions (SWKS)
Everyone is talking about the upcoming 5G network, which represents the next leg-up in telecommunications technology. Thanks to the explosive growth of cloud computing, wireless connections is no longer limited to serving hipsters at a café. People demand both faster internet speeds and the convenience of go-anywhere connectivity.
Given this trend, I like my chances with Skyworks Solutions (NASDAQ:SWKS). As manufacturers of next-generation semiconductors, the 5G rollout plays a critical role for SWKS stock. According to their website, by the year 2025, the IoT industry will facilitate 75 billion connections. You can be sure that Skyworks will play a major role as they already have an extensive clientele list.
Just as importantly, excellent financial standing backs SWKS stock. Skyworks has a robust, zero-debt balance sheet. It also benefits from industry-leading profitability margins, while also demonstrating top-tier revenue growth. This is a company that is built for the long haul, which is why every millennial should put SWKS on their stocks to buy list.
In addition to IoT, one of the biggest trends impacting the world stage is cloud computing. In prior eras, technology meant that electronic devices would become smaller and less cumbersome. Today, we’ve approached a time where we’re trying to eliminate as many physical outlets as possible. In light of this ever-growing development, millennials and the Generation-Z crowd should consider Salesforce (NYSE:CRM).
We all know Salesforce as the provider of all things cloud. Whether it’s their Software as a Solution (SaaS) services or their ability to custom-build platforms on to their network, Salesforce is a leader in how future generations will approach work and business. Furthermore, CRM stock has millennial cred, seeing as how the company is only 19 years old at time of writing.
But what I’m most impressed about Salesforce is management’s constant striving for excellence. Since its 2017 foray into blockchain technology, I have appreciated its journey in large part because the blockchain complemented their core business approach: to decentralize authority and promote data-sharing through secure networks.
Some companies simply have too much of a presence to ignore, which is why I’m picking Microsoft (NASDAQ:MSFT). I get it. Young people today hardly consider Microsoft a sexy establishment. And while their products such as the Surface laptop/tablet hybrid are popular, millennials gravitate towards Apple (NASDAQ:AAPL). So why bother at all with MSFT stock?
For a start, Microsoft has proven itself through extraordinarily tough circumstances. Prior to the much-celebrated reign of Satya Nadella, MSFT stock suffered tremendously from Apple’s onslaught. Apple was the first to introduce the smartphone concept, and later, the tablet. Whatever they did, it was magic.
But now, the tables have turned. CEO Nadella refocused Microsoft, playing to its strengths and limiting its weaknesses. In so doing, the previously embattled company also started to make waves with its own portable devices. Plus, the Windows operating system is the most popular computer platform by a country mile.
In contrast, I’m not getting the fuzzies over Apple’s recent struggles. At the cusp of being a trillion-dollar company, AAPL conspicuously struck out. So far, my premonition of the hyped firm topping has turned true.
This isn’t to say that Apple is a bad organization. However, if I’m going for an ultra-long-term investment, my money is on the proven MSFT stock.
Tesla (NASDAQ:TSLA) looks as if it always might be a controversial company. Principally, high-profile accidents and the always dicey behavior of Elon Musk have kept what could be a solid stock bouncing. However, what can’t be denied is that Tesla has overturned the automotive industry. With a fraction of the time of its competitors, TSLA has become one of the world’s most valuable automotive brands.
I don’t care about Musk’s hissy fits, and I’m not going to worry constantly over granular financial challenges. As a millennial or Gen-Z investor, you can’t overlook this company’s far-reaching potential.
Despite putting up impressive numbers this year, Nvidia (NASDAQ:NVDA) is undoubtedly having a rough few months after taking a bath in December 2018. So why am I placing NVDA in my millennial stocks to buy list?
Going back to my original point, young investors have time on their hands. Volatility over a few months, or even years, shouldn’t dissuade you from what is a groundbreaking organization. Nvidia has its footprints on everything, from the aforementioned autonomous-driving technologies to artificial intelligence and deep learning. If something involves computer technology, it likely involves NVDA.
I also dig the tech firm for its indirect play on bitcoin and the burgeoning blockchain economy. Cryptocurrency miners aggressively compete in computer-intensive mining processes that result in reward tokens. As bitcoin demonstrated, the right tokens can generate untold riches.
While some might see cryptocurrencies as a passing fad or a bubble, I believe the technology is here to stay. If so, Nvidia can count on several decades of consistent, robust revenue streams.
Bitcoin Investment Trust (GBTC)
If you’ve followed my work, you’ll know that I’ve become the unofficial InvestorPlace expert for guns, gold, weed and cryptos. Should I disappear under mysterious circumstances, please refer back to this article! All joking aside, of these investment sectors, I’m most bullish on the latter. But unlike the many permabulls, I have a soft spot for the Bitcoin Investment Trust (OTCMKTS:GBTC).
Please don’t get me wrong: from a pure profitability perspective, you should buy the underlying asset rather than the GBTC. No matter how you cut it, the Bitcoin Investment Trust charges a hefty premium over the bitcoin price.
That said, critics often blast this premium without considering why it exists in the first place.
Obviously, bitcoin is unlike any other investment class, and this distinction isn’t always positive. For one thing, if you misplace your bitcoins or forgot your password, you’re out of luck. But a more pressing concern is that your loved ones won’t have access to your account; that is, unless you’ve shared access, which an alarming number of people don’t.
The GBTC fund provides solutions for these common issues through centralizing decentralization. In other words, GBTC tracks the bitcoin price, but offers protections found in traditional investments. Should you forget your password, your brokerage can bring you back onboard. If you die, your family has a significantly easier road to inheriting your account.
An unavoidable contradiction regarding any story about Millennial stocks to buy is that Millennials don’t buy stocks. Of course, I don’t mean this as a blanket statement since many young folks do invest. But it’s also clear that they don’t embrace the markets like prior generations. Thus, my picking Nasdaq (NASDAQ:NDAQ) initially appears counter-intuitive.
That said, it’s not guaranteed that this trend will continue. Equities represent one of the easiest, most low-barrier ways to grow your investment portfolio. And once Millennials do come around, most of the companies that they’re interested in trade on the Nasdaq exchange.
I also like the fact that NDAQ remains true to its innovative heritage. In 1971, the Nasdaq became the first electronic stock market. Today, every major exchange follows its lead. But the corporation isn’t content on resting on its laurels. Instead, it has been exploring blockchain technology to further enhance its securities operations.
Based on this dynamic, I consider NDAQ not only one of the best Millennial stocks to buy, but an investment almost any demographic can benefit from.
Retail is an awfully tricky beast to predict, primarily because consumer habits can shift unexpectedly. For that reason, I’m not even going to bother providing a long-term outlook for fashion-centric companies. But no matter what happens in the consumer market, I’m virtually certain that Amazon (NASDAQ:AMZN) will still dominate.
Presently, ecommerce sales takes home 9.5% of total domestic retail sales. Back when e-commerce became a thing at the turn of the century, it accounted for only 0.6% of sales. What’s even more startling, online consumption never stalled since its introduction; it only went flat, most notably during recessions. So it doesn’t take a genius to realize that the trend is only moving higher.
Despite its steep “paper price,” having one share of AMZN could be worth infinitely more than buying several junk stocks. Amazon is one of those rare companies that always carry an underdog mentality despite its unprecedented dominance. Plus, they’re disrupting traditional sectors, including groceries, and making everyone submit to the “Amazon way.”
That being said, one of the major sticking points about African, and particularly South African, investments is political corruption. For the time being, the problem is getting worse, which serves to drag the entire country down. However, against a longer-term framework, it’s more than reasonable to believe South Africa will eventually find a way.
This is a country that managed to claw its way out of the Apartheid era successfully. Surely, any other challenge pales in comparison.
Market Vectors Africa ETF (AFK)
African stocks can be a tricky affair in the best of circumstances; therefore, some investors opt for exchange-traded funds like the Market Vectors Africa (ETF) (NYSEARCA:AFK).
Over the next 20 to 30 years, I expect massive changes in how we view the African continent. Principally, a significant tailwind for Africa-based investments is the continent’s population trend. In 2040, experts predict that the region will feature a perfect, demographic pyramid: the youngest demographic will be the most populous, while the oldest will be the least.
In the coming decades, western nations will increasingly rely on Africa to provide necessary labor. This will boost the continent’s economic leverage, which is also critical for global consumption. After all, Africa’s population will continue to grow into the 22nd century, while many other nations’ demographics will dwindle.
I’m not certain which specific Africa-based stock will win out over the next several decades. But if you can read a chart, you’ll want to invest somewhere in this region. The AFK fund gives you a solid chance.
Sociedad Quimica y Minera de Chile (SQM)
Currently, the biggest commodity that the world fights over is oil. Despite substantial innovations over the years, our transportation networks are still dependent on fossil fuels. However, companies like the aforementioned Tesla have successfully challenged this hegemony. As a result, the next commodity battle won’t be over oil, but for rare elements like lithium.
This accelerating trend benefits mining companies such as Sociedad Quimica y Minera de Chile (NYSE:SQM). Indeed, we’re already seeing aggressive international overtures for either Sociedad’s assets or to secure any supply contracts. The reason for this is obvious to mining insiders, but the fundamental enthusiasm for the mining company hasn’t reflected in SQM stock this year.
Shares are down more than 19% YTD, which would ordinarily raise red flags. However, its longer-term potential can’t be ignored. SQM is simply one of the most promising Millennial stocks to buy.
Wal-mart de Mexico (WMMVY)
I want to be crystal-clear about my next idea. As a decades-long investment, I’d rather put my money in Wal-mart de Mexico (OTCMKTS:WMMVY), not the more familiar Walmart (NYSE:WMT). American Walmart is a safe, but admittedly pedestrian affair. Mexican Walmart, on the other hand, is where the action is.
Forget the fact that currently, the American consumer market has no equal rival. Trends are meant to change. Consider that in the year 2050, most Mexicans will be between the ages of 30 to 54. This demo represents the sweet spot in purchasing behavior, as people in this category will buy stuff for themselves and their families.
Of course, I don’t mean to suggest that Mexican consumption will outpace us. But as Mexico’s economy improves, it bodes well for WMMVY stock as it soaks up the surging demand. In contrast, the U.S. market has deeply matured. It’s not about growth opportunities, it is about making sure you don’t bleed customers.
Put another way, WMT is a Baby-boomer stock. WMMVY is much more appropriate for the emerging generation.
Sooner or later, the U.S. will further reexamine its marijuana policy. When it does, I’m sure it will come to the same rational conclusion that so many others have reached: marijuana doesn’t merit a Schedule I classification.
Despite tremendous legislative victories, marijuana is only legal in the states that voted for green initiatives. But the Schedule I classification means that the federal government could theoretically put a stop to this budding industry. Such overhangs have dissuaded traditional financial institutions from lending to cannabis-related companies.
These fears also prevent investments like Americann (OTCMKTS:ACAN) from reaching their true potential. But in the next decade or so, our domestic policy should mirror that of Canada, which recently became the first G7 nation to legalize recreational weed.
When we finally get over ourselves, Americann offers a lucrative play as a one-stop shop for all things cannabis. Whether you need business licensing, facilities management, or venture capital, ACAN provides expert guidance and solutions.
A common theme among popular films is the marriage between man and machine. But thanks to the emergence of medical-device manufacturer Cyberdyne (OTCMKTS:CYBQY), that once-farfetched concept is now reality.
Cyberdyne’s claim to fame is its exo-suit HAL, which is short for Hybrid Assistive Limb. Specially designed for spinal-cord injury patients, HAL facilitates mobility to those who otherwise cannot stand or walk on their own.
What separates HAL from other robotics-based medical devices is that patients can control the exo-suit with their mental inputs. HAL utilizes a sensor that picks up nerve signals transmitted through the patient’s skin. From there, the device “translates” the signal to a requested motion.
Undoubtedly, HAL is one of the greatest medically related technical achievements in recent memory. Cyberdyne devices have already been used in Japan since 2011, but I expect more far-reaching integration in the years ahead.
Therefore, you’ll want to keep tabs on Cyberdyne and CYBQY stock.
Generally speaking, I’m cautious towards Chinese stocks, especially under the Trump administration. With his hardball approach, U.S-China relations stand on shaky ground.
That said, some of China’s mega-trends can’t be denied. One of them is that Chinese is the most spoken language in the world; eventually, it will become the language of the internet.
So as much as I love Alphabet (NASDAQ:GOOG, NASDAQ:GOOGL) and its Google search engine, Baidu (NASDAQ:BIDU) probably has more upside potential. According to global-demographics experts, China’s population won’t peak until approximately 2030. That’s ample time for BIDU stock to rise higher in anticipation of greater volume and engagement.
Moreover, today’s Chinese millennials will become tomorrow’s doting, middle-aged parents. They’ll be constantly online, searching for the best deals on all the things they must purchase. Also, an entire generation of Chinese kids will grow up knowing nothing but internet technologies.
With their massive population, BIDU stock is a serious long-term investment.
Any real list of millennial stocks to buy will feature at least a few tech firms. But as much as technology has improved our lives, we’ll always have people who use it for nefarious purposes. And as anyone who has ever had their credit-card information stolen — which is probably all of us — you know that cybercrime is big business.
That’s why cybersecurity firms like FireEye (NASDAQ:FEYE) are no-brainers. Near the top of this list, I mentioned the 5G network rollout. While this enables greater internet connectivity across a wider spectrum, it also raises security concerns. Thus, FireEye and the entire cybersecurity industry will be kept busy for quite some time.
For young investors, I especially like FEYE stock because it’s a recovery play. Since you have more time at your disposal, you can afford to take some risks. While most conservative investors shy away from FireEye due to its comparatively poor financials, I think the cybersecurity industry is strong enough to overcome these qualms.
Carriage Services (CSV)
What’s the one thing that millennials and old people have in common? They’re all going to die. Every. Last. One.
On that happy note, why not profit from this inevitability? That’s the key selling point for Carriage Services (NYSE:CSV). The Grim Reaper is an equal-opportunity offender: it doesn’t care about safe spaces, or how you feel about something. When it’s your time, it’s your time!
And honestly, isn’t retirement planning about dying a relatively pleasant and comfortable death? If you’re at all thinking about saving for the future, you’d be remiss not to consider “final planning.”
Moreover, studies suggest that common millennial stressors, including housing and employment instability and soaring college debt, could shorten their lifespans. In other words, this could be the first generation that matures to poorer health than their parents.
If that really is the case, you’ll definitely want to buy CSV stock. The death you’ll profit from could be your own.
As of this writing, Josh Enomoto is long SNE and bitcoin.