How To Invest Like A Millennial

Is there any enigma quite like the millennial?

Companies across different industries are desperately trying to figure out how to get the attention of millennials -- and how to make money off of them.

Millennials, however, are worrying about their own finances as well.

How Millennials Invest

Believe it or not, millennials are fans of low-risk, long-term investing.

Growing up watching their parents deal with the stress of a financial crisis, they were strictly taught not to fall for “get rich quick” type schemes. Thus, they are uninterested in high-risk, fast trading.

Yet, millennials are extremely trusting in one thing -- technology. They’ll gladly put their money in algorithmic auto-trading platforms, with little to no concern about the security of the platform.

Millennials value simplicity and transparency when it comes to spending their money on services. This is why ridesharing services Uber and Lyft are hugely popular among millennials -- because they’re comfortable with the map tracking their route and with the low-cost, no-cash-necessary transaction.

Studies show that millennials, who grew up with the internet, are more comfortable with it and normally believe that all of their information is safe online.

Will millennials learn their lesson about the importance of cybersecurity and start investing in it, or will they continue the lack of caution?

TD Ameritrade’s latest statistics also revealed that Walt Disney Co DIS is one of the most popular stocks uniquely among millennials, while Intel is uniquely unpopular among millennials. Apple Inc. AAPL and Facebook Inc FB are popular stocks for all generations to invest in.

Where They Spend Their Money

Millennials are big foodies.

If the abundance of food themed blogs and instagram accounts didn’t make that evident, perhaps Chipotle Mexican Grill, Inc. CMG’s share price will.

Studies show that millennials spend 43% of their money for food at restaurants, compared to baby boomers who only spend 37% of their food budget at restaurants.

Millennials also prefer the simple, fast, casual atmosphere of restaurants like Chipotle, Shake Shack Inc SHAK and Wing Stop Inc WING.

Despite the food obsession, millennials are advocates of an active lifestyle – or at least fans of the clothing it requires.

Lululemon Athletica inc. LULU has become quite the cult brand among athletic and non-athletic millennials. This is because millennials care about the quality and value of the things they buy – not unlike Chipotle’s reputation of high quality food – they would rather buy the more expensive option, if they believe it is higher quality.

Lululemon recently launched the kid’s spin off “IVIVVA,” betting that millennials will grow up and want to buy the brand for their kids.

The buying behavior of millennials has already begun affecting markets and is sure to do so even more as they continue to grow older.

More and more companies are working towards capitalizing on the millennial generation. Traders and investors should too.