Tiffany James began investing in 2019 while working in fashion and hospitality in New York. Her coworker, a “Tesla bull,” kept pressing her to acquire stock.
James had a tiny portfolio back then, a small nest egg that she’d begun back in 2016 — and largely ignored. It had grown since, but she hadn’t paid much attention to it.
In late 2019, Tesla's stock price was between $65 and $70, so she finally acquired some of it. She invested $4,000 and gained $6,000 by the time Tesla shares were worth $1,000.
Overall, James has invested $10,000 in stocks since 2019. In two years, she traded that money into equities, options, and futures. Now the 20-something investor and financial advisor has created Modern Blk Girl MBG to teach Black women more about stocks.
Maybe she's on time! Over 59% of Black women don’t own stocks, mutual funds, bonds, cryptocurrency or property, according to a CNBC research study. Comparing that to just 34% of white women and 23% of white men without stocks, MBG has a worthy charge ahead.
Here are four proven principles that James built upon to make her money grow fast:
Begin with what you know
Because of her success with Tesla stocks, James spent a lot of time researching new concepts. She chose Blink (BLNKW), a maker of EV chargers. She chose safe and low-risk options, including the S&P 500 (SPY), which follows the top 500 US corporations. James has about 60% of her money placed in secure growth products. Because of her background and knowledge, she also picked up tiny ULTA and profited on it, as well.
Ditch the idea that you need a lot of money to invest
James told friends, who spent $4,000- $5,000 on leisure each year, to imagine making it grow instead. If you invest 20% of that in the stock market, she explained, you could make a fortune.
On Clubhouse, an audio-based social media app, James engaged her increasing community of Black female investors and shared the trades, long-term LEAPS, and options that grew her $2,000 to $250,000 in seven months. That instilled in them the idea and belief that "Oh! I can do that!"
Listen to stories and advice from individuals you know to learn about investment.
Do not be scared to listen to other investors who share your language and experiences, James advises. Rich white guys may be unable to connect with a regular investor.
The stock market was made to appear terrifying or unachievable for Black women. The stock market may be learned for free, she claims. It's vital for people of color to enter the market.
Find a group.
Aligning with a group of people who share your ideals is important to success. For James, she struggled to keep accountable and motivated until she met a group of Black artists who shared her enthusiasm for the stock market.
Interestingly, she’s also motivated to invest more by being generous with her money. "When you learn about the market, your attitude toward money is that you can always get it back. I don't really think about money as much because I know I can always get it,” James told Black Enterprise. “That's the kind of flexibility I want for every Black woman."