Millennials swell to 73 million as Boomers decline to 72 million
This year millennials have overtaken baby boomers as America’s largest living adult generation, according to population projections from the U.S. Census Bureau. This will have implications for how financial services are consumed now and in the future.
A new report called the Apex Millennial 100 takes a deep dive into the “unique investment behavior of a new generation.” It analyzed over 658,000 accounts held by millennials, which had more than 8,000 different stock holdings.
Apex CEO says that as “millennials mature into savvy investors, their evolving interests and values will shape a new wealth management industry, one that looks a lot different from the traditional model.”
Top 10 stocks held by Gen Y
Here is a list of the top 10 stocks most favored by millennials. Notice how heavily its concentrated on the high tech industry. 🙂
Maybe it shouldn’t be surprising how many digital companies are on the list. As famous investor Peter Lynch suggests, you should always invest in what you know. You must value the business in order to value the stock. And these are the type of companies you would expect millennials to know most intimately about. I personally interact with several of these companies on a regular basis. 🙂 You can see the entire list of 100 stocks here.
Some trending stock themes from the report include:
- An increased focus on Canadian cannabis companies, which demonstrates the growing role marijuana may have on the medical and lifestyle decisions of millennial investors.
- Chinese companies are leading the pack as millennials, who consider themselves to be global citizens, take the long view on international investments.
- IPOs: Millennials consistently show support for companies that mirror their personal ideologies and offer products and services they understand and value, and will jump to invest in companies like Uber, Lyft and Slack as soon as they go public.
I can understand why other millennials are choosing these companies since I have a similar inclination to do so. I have fewer than 100 stocks in my portfolio. But somehow I hold most of the top 10 companies from the report. One of the most recent stock I purchased was Alibaba Group (BABA) which is already 15% higher since I bought it a couple of months ago. 😀 I guess I’m an example of your typical millennial investor. 🙂 The only stocks I don’t own on that top 10 list are Tesla, Berkshire Hathaway, and Microsoft.
Random Useless Fact:
According to Reuters, California and Texas are the 2 states with the highest number of school shootings.