Markel Corporation (MKL), Starbucks Corporation (SBUX): 5 Stock Ideas for Young Investors Today

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Moreover, the company’s ShopHouse concept is gaining traction and could be a key driver for future growth. At its only location in D.C., the Southeast Asian restaurant concept is so popular that the company plans to open two more.

5. Invest in what you know, but is painfully boring: The Clorox Company (NYSE:CLX)
Now, Clorox may not be the first investment you may think of when searching for market-beating returns. But the company that’s synonymous with bleach made our list of painfully boring stocks with great returns:

Source: Fool.com, “16 Painfully Boring Companies With Extraordinary Long-Term Returns.”

A 12.5% return is a lot better than it sounds. Compared with the 10% benchmark many investors seek to meet in their stock portfolios, a 2.5-percentage-point improvement on a $5,000 initial investment adds up to an extra $3,000 in 10 years, $19,000 in 20 years, $84,000 in 30 years, and $330,000 in 40 years. At the end of the 30 years, a 12.5% return compounded annually will return a total of about $556,000.

Past returns are never a predictor for future returns, but it’s probably a good bet that the next time you look to whiten clothes, you’ll first think of bleach, and then you’ll think of Clorox.

Get smart with your moneyu
Stock-picking doesn’t have to be a gamble. By following the best and investing in what you already know, you can make smart investments now that’ll pay in the long term — and put you in position to sit on a beach somewhere a few years early.

The article 5 Stock Ideas for Young Investors Today originally appeared on Fool.com and is written by Kevin Chen.

Fool contributor Kevin Chen has no position in any stocks mentioned. The Motley Fool recommends Berkshire Hathaway, Burger King Worldwide, Chipotle Mexican (NYSE:CMG) Grill, Coca-Cola, Markel, and Starbucks and owns shares of Berkshire Hathaway, Chipotle Mexican Grill, Markel, and Starbucks.

Copyright © 1995 – 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.



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