Millennial Money

June 23, 2014
Portfolio manager O’Shaughnessy looks at the unique opportunities available to the millennial generation—those born between 1980 and 2000. First, he strongly advocates that millennials invest as high a percentage of their income as possible “in the global stock market rather than ‘low-risk’ alternatives like cash or bonds.” According to the author, investing in equities enables investors to share in “business growth around the world.” Viewing investment as a form of financial protection from future risks, he argues that to do it successfully, you must often make counterintuitive decisions. He identifies three common mistakes investors make: favoring their native country’s companies; settling for a market-matching return; and letting emotions cloud judgment. He also offers strategies that can serve as an investing framework and examines the power of delayed gratification, risk, and what it takes to gain an edge. O’Shaughnessy provides sound advice that will give millennials the advantages they need to improve their financial future. Agent: Wesley W. Neff, Leigh Bureau.

August 1, 2014
O'Shaughnessy, portfolio manager and contributor to financial media, aims to explore every facet of investment opportunities for millennials, whom he defines as those born between 1980 and 2000. With youth, these investors have time on their side. O'Shaughnessy presents three investor tendencies to avoid: ignoring great international companies in favor of investing locally, building a unique portfolio rather than earning a return that matches but never exceeds the entire market, and financial discipline by making an investment plan automatic. His challenge: go global, be different, and get out of your own way. He offers his investment strategy for outperforming the market, based on five key attributes that, implemented together, become powerful. They consist of identifying companies that have beneficial shareholder practices (pay dividends, pay down debt, etc.), get good returns on their own investments, have strong cash flows, are attractively priced (cheap), and whose market expectations are improving. Only by investing in stocks can you build a fortune, O'Shaughnessy tells us.(Reprinted with permission of Booklist, copyright 2014, American Library Association.)