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About 10 months ago, someone shared their investing journey on Reddit’s r/investing community (with over 2.7 million members), telling how they started from nothing and reached about $200,000 in 10 years.
The Redditor said that after graduating from college, he decided to set up automatic contributions from his bank account to his newly created stock investing account on eTrade in 2013. At first, these contributions were as little as $100. On Dec. 1, 2020, the combined value of the investor’s Roth and traditional brokerage accounts was just over $100,000.
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But here is the most interesting part of the story: it took this investor about seven years to go from $0 to $100,000 and just three years to reach $200,000.
“You read about the power of compound gains all the time, but to go from $100k to $200k in three years when the first $100k took seven years is a testament to that fact. My goal is $1 mil by 47 and eventually to hit $2.5 mil before I retire,” the Redditor added.
“Don’t Rush the Process”
The investor said the secret to a successful investing journey is patience and holding on to quality investments.
“For all you youngins out there, stick with it! But also, don’t rush the process and try to hit home runs every day. For the most part, I am a buy and hold investor after a year or two of trying my hand at day trading with options and futures. When you chase the money, you won’t make it. But if you’re patient with a decent risk tolerance, anything is possible.”
The investor said he’s still sticking with his goals, contributing about $1,000 monthly in stock investments. He said he tried day trading for some time, but it often resulted in “nasty losses.”
“Stick to Profitable Companies”
The investor said he found success by buying individual stocks based on technical and fundamental factors.
“I try to stick to profitable companies with a stock price that has a history of moving in the right direction, however, I also like to buy at a discount price. I keep my eyes on charts and when there are opportunities to buy at historically undervalued prices, I jump on it. There’s really nothing super special to it.”
While this investor did not share the exact details of his latest portfolio, he mentioned a few stocks he currently owns or has owned in the past.
Apple
Apple Inc. (NASDAQ:AAP) was one of the stocks in the portfolio of the Redditor who increased his wealth from $0 to $200,000 in about 10 years. Over the past five years, Apple shares have gained about 327%.
Wall Street analysts have voiced concerns about an expected lackluster demand for the new iPhone. However, T-Mobile’s Chief Executive Officer Mike Sievert recently said that the new model’s sales are higher than last year’s and further activity is expected when the company launches Apple Intelligence.
Meta Platforms
Meta Platforms Inc. (NASDAQ:META) was one of the key stocks in the portfolio of the 35-year-old Redditor who saw his wealth rise over 10 years. Over the past five years, Meta Platforms Inc. (NASDAQ:META) has gained about 196%.
D.A. Davidson recently started covering Meta Platforms with a Buy rating, saying the company can become a leader in the open source world thanks to its AI Foundation Compute and Spatial Compute.
Costco
Costco Wholesale Corporation (NASDAQ:COST) is a defensive stock popular among investors looking to build an all-season portfolio. Costco Wholesale Corporation (NASDAQ:COST) shares are up 216% over the past five years. The company has increased its dividends for nearly two decades.
However, Redburn Atlantic earlier this month downgraded the stock to Neutral from Buy on valuation concerns.
Home Depot
Home Depot Inc. (NYSE:HD) is another solid dividend growth stock in the portfolio of the Redditor whose wealth rose from nothing to $200,000 in a decade. The home improvement equipment company increased its dividend for 15 straight years and its shares rose about 74% over the last five years.
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McDonald’s Corp
McDonald’s Corp (NYSE:MCD) has raised its dividend for 49 years while its share price has gained about 41% over the past five years. McDonald’s Corp (NYSE:MCD) is ramping up promotional efforts and extending its cheaper meals to woo customers who remained on the sidelines amid rising inflation. Evercore said in the latest note that the company’s foot traffic rebounded in the back half of August because of these efforts.
Draft Kings
DraftKings Inc. (NASDAQ:DKNG) is another interesting stock that helped the 35-year-old Redditor achieve wealth growth over 10 years. The gaming company’s shares are up about 300% over the past five years.
Advanced Micro Devices
Advanced Micro Devices Inc. (NASDAQ:AMD) was one of the multi-baggers in the portfolio of the Redditor who saw his wealth grow in 10 years as the chipmaker’s shares rose a whopping 418% over the past five years. Thanks to its AI-focused chips like MI300 and EPYC, Advanced Micro Devices Inc. (NASDAQ:AMD) is seen as the second-biggest beneficiary of the AI boom after Nvidia.
Bank of America
With a dividend yield of about 2.5%, Bank of America Corp (NYSE:BAC) is a notable dividend stock in the portfolio of the Redditor who increased his wealth from scratch to $200,000. Bank of America Corp (NYSE:BAC) has increased its dividend yearly since 2009.
Interest Rates Are Falling, But These Yields Aren’t Going Anywhere
Lower interest rates mean some investments won’t yield what they did in months past, but you don’t have to lose those gains. Certain private market real estate investments are giving retail investors the opportunity to capitalize on these high-yield opportunities and Benzinga has identified some of the most attractive options for you to consider.
Arrived Homes, the Jeff Bezos-backed investment platform, offers a Private Credit Fund. This fund provides access to a pool of short-term loans backed by residential real estate with a target of 7% to 9% net annual yield paid to investors monthly. The best part? Unlike other private credit funds, this one has a minimum investment of only $100.
Don’t miss out on this opportunity to take advantage of high-yield investments while rates are high. Check out Benzinga’s favorite high-yield offerings.
Wondering if your investments can get you to a $5,000,000 nest egg? Speak to a financial advisor today. SmartAsset’s free tool matches you up with up to three vetted financial advisors who serve your area, and you can interview your advisor matches at no cost to decide which one is right for you.
This article 35-Year-Old Who Went from $0 to $200K in 10 Years Shares His Stock Picks – ‘There’s Really Nothing Super Special To It.’ originally appeared on Benzinga.com
