Earlier this year, we looked at WWE’s 4x returns in the first nine months of 2018. This stock has been crushing it on the stock exchange and more than quadrupled in value.
Though the recent pullback impacted investor returns slightly, it has still gained a staggering 142% this year.
So what if you had bet on The Rock and Stone Cold Steve Austin way back in 1999? That was the year WWE went public. What if you put aside $200/week and invested it in the WWE stock?
Your investment would be worth $1M today
Yes, your $200/week investment for the last 19 years in WWE would have made you a millionaire. However, just like any other stock, WWE has had its share of ups and downs.
In December 1999, the stock was trading just shy of $18 a share. Over the next four years, it fell to $11. Though it rose over the next couple of years, the stock slipped again to the $10 mark around the end of 2011.
WWE shares only began its staggering bull run by the end of 2014, where the stock rose from $14 to its current price of $73.6. The stock touched an all-time high of $97.69 earlier this year.
Are these returns impressive?
What if you had invested in WWE when its IPO (initial public offering) was launched in 1999? A $200/week investment amounts to an annual investment of $10.4k. This then amounts to just over $200k over the next 19 years.
With a payback of $1M, the annual rate of return is 16%. Is this enough for the amount of risk undertaken?
Despite the $1M tag it promises, any other major index or alternative investment vehicle such as REITs would have generated similar returns with a far lower risk exposure.
Imagine an investor who had actually invested during the IPO. He would have had to wait for 16 long years just to break even.
What’s the way forward for WWE investors?
WWE’s traditionally focused on male wrestlers, skewing to their male-dominated audience. But it looks like that could change.
Led by former UFC superstar and current WWE Women’s champ Ronda Rousey, the company has staged its first-ever PPV this year in an ambitious attempt to broaden their female audience base.
This event included over 50 female wrestlers from the “Raw” and “SmackDown” franchises.
Wall Street estimates WWE’s sales to rise by 60% over the next two years to $1.27B, up from $800M in 2017. With rapidly improving profit margins, earnings are also expected to grow at a significant 71% over the next five years.
In fact, WWE’s net margin is expected to rise from a mere 4.1% in 2017 to 22% in 2020.
Though WWE’s stock lost over 25% in market value since October this year, analysts are again betting big on them.
Video: Compound Interest, Explained
3 Ways To Invest From Your Smartphone For Under $5
The numbers say 80% of millennials don’t invest in stocks.
Reason? Half say they don’t have money, one-third says it’s too early and another third says they don’t know how.
In addition to that, there’s demographic gap. “The average age of a financial advisor is 55,” said Douglas Boneparth, a New York City-based financial planner. “There are more financial advisors over the age of 70 than there are under 30.”
Despite these beliefs, you don’t really need much money, nor experience, to get started. (Just look at our fearless co-founder Odunayo Eweniyi and what she’s pulled off here)
Be that as it may, here are three ways to get started for $5 or less.
What: A micro-investment app (iOS and Android) with over 30 ETFs according to industry, sector and risk tolerance.
How it works: Download the app and choose your investment.
Minimum investment: $5
Cost: Fees range from $1 a month for accounts under $5,000 to 0.25% a year.
“We help people who don’t have a lot save money on a weekly basis,” CEO and co-founder Brandon Krieg said in one interview. “Stashers look like America, they look like people you meet every day: they are nurses and teachers and Uber and Lyft drivers.”
What: iOS and Android app.
How it works: Download the app and choose one of six index funds. When you buy, say a cup of coffee for $1.75, it rounds up the change to $2 and deposits the difference.
Minimum investment: $5
Cost: Just like Stash, fees range from $1 a month for accounts under $5,000 to 0.25% a year.
“We’re not trying to preach austerity to the client, because that’s a bummer,” CMO Manning Field says. “Some people will say, ‘Don’t have the cup of coffee.’ We’ll tell you to have the cup of coffee and invest along the way.”
What: A commission-free investment app (iOS and Android).
How it works: Download and start buying stocks.
Minimum investment: Whatever stock you want to buy.
And by the way, if you want to get a fast start on real estate, here’s Forbes’ list of nine REITs with yields between 8% and 10%.
CHART: How Blockchain Powers Bitcoin
Blockchain, Bitcoin. Bitcoin, blockchain.
The two terms go hand in hand—and have become almost ubiquitous with this year’s insane rise (and fall) of Bitcoin.
But what does it all really mean? How does it come together? In this week’s chart, our friends at CB Insights break down exactly how blockchain powers Bitcoin.