Sudarshan Sridharan has made more than $43,000 trading stocks since 2013 — when he was around 13 years old.
Now 16, the high-schooler manages about a quarter of a million dollars of his parents’ retirement money, CNN Money reports.
Sridharan — who CNN reports as living in Charlotte, North Carolina — made some of his biggest gains from the stocks of large companies that are household names, according to financial documents his family shared with CNN:
- Tesla — $17,000 gain
- Google — $14,600
- Netflix — $5,600
So what’s the secret to his success?
Well, Sridharan asks himself two key questions before buying any stock:
- Will it be around in 10 years?
- Is this something that people need?
That led him to stock picks like Google, Microsoft and Adobe. Sridharan tells CNN:
“Those are three stocks that if they went down, the internet would just be in chaos.”
Sridharan has also done his homework.
His interest in the stock market started when Sridharan followed the Great Recession on the radio with his dad.
Sridharan tells CNN his dad encouraged him to listen to National Public Radio’s business news program “Marketplace,” and to read investing books.
His blog, The Prime Pick, also indicates that Sridharan thoroughly researches individual stocks.
Sridharan may remind you of Brandon Fleisher, who made headlines last year for tripling his parents’ money in the stock market — when he was 17.
Fleisher also does his homework. He told the British publication The Telegraph that he overcame fear by “learn[ing] until you’re not nervous anymore”:
If you didn’t research a stock and its shares go down, it’s your fault. Learn from your mistakes… A lot of people get scared out of stocks. A lot of them jump a bit and then go back up. My advice is do your homework and trust the numbers.
If you’re curious about the stock market, check out:
- “Ask Stacy: How Do I Invest in the Stock Market?”
- “How to Get Started Investing When You Don’t Have Much Money“
What do you make of the stock-market success of teenagers like Sridharan and Fleisher? Share your thoughts below or over on our Facebook page.
How to find cheaper car insurance in minutes
Getting a better deal on car insurance doesn't have to be hard. You can have The Zebra, an insurance comparison site compare quotes in just a few minutes and find you the best rates. Consumers save an average of $368 per year, according to the site, so if you're ready to secure your new rate, get started now.