Patrick O’Shaughnessy: Investment for Millennials
With the realization that the tech bubble of the 1990s and the financial meltdown of 2008 had jaded an entire generation of potential investors, stock investment expert Patrick O’Shaughnessy, son of James O’Shaughnessy, wrote “Millennial Money: How Young Investors Can Build a Fortune”. The purpose of the book is to outline in a clear and simple manner how the stock market works and how to invest for a younger generation.
Buying in the Face of Fear:
O’Shaughnessy is a value investor and his book explains how value investing works. In clear language, he lists five criteria for investing in a stock:
• The company pays dividends, pays down debt and/or buys back shares;
• Strong return on investment;
• High earnings potential;
• Attractive (low) price; and
• Improving market expectations (will go up).
Patrick believes that being a successful investor depends on three qualities:
1. Spend less than you earn,
2. Make consistent investments in the global market and
3. Be patient.
He believes value investing is difficult because it means buying when prices are low (troubled times) and being patient.
O’Shaughnessy’s Background and Credentials:
Patrick O’Shaughnessy has a BA in philosophy from the University of Notre Dame, Indiana, and is a chartered financial analyst (CFA). He’s currently a portfolio manager and principal at O’Shaughnessy Asset Management.
→ Read more about Patrick O’Shaughnessy’s investing strategy on meetinvest and see how a portfolio would have performed using his strategy.