Three investment strategies we can learn from former stockbroker Lauren Simmons, who is on her way to earning $1 million
At 22, Lauren Simmons became the youngest full-time female trader on Wall Street and the second African-American female trader in the history of the New York Stock Exchange (NYSE). She left the NYSE to become an entrepreneur. After earning $650,000 last year, Simmons is on track to earn $1 million this year.
As a trader on the New York Stock Exchange, she earned $12,000 while her male counterparts earned some $120,000. Feeling underpaid, she vowed to take no less than $120,000 a year and quit the business to start an LLC.
Since starting her business, she’s gotten deals on a book, movie, TV shows and two podcasts, according to CNBC do it. She’s also landed speaking engagements and brand deals that can bring in six figures. She recently landed a hosting gig with the streaming series “Going Public.”
Here are three investment strategies from the young female entrepreneur who is on her way to becoming a millionaire, as reported by CNBC Make It.
Live a moderate life and invest
Simmons invested some of her money while working at the NYSE. At the time, she was earning around $12,000 a year and saving 85% by living a frugal lifestyle. Simmons wasn’t interested in investing, but that all changed in 2020 when she opened a brokerage account with around $300. In February, he held about $6,000.
Its investment is guided by two principles. First, she made sure her basic expenses were covered before she started investing. Second, she did extensive background research on the companies she wanted to invest in.
Not investing in crypto
Cryptocurrency has become one of the fastest growing investment platforms for millions of people. Although cryptocurrency is largely not backed by the central bank or government in most parts of the world, it is gradually gaining acceptance.
But for Simmons, staying away from cryptocurrency is one of his investment tips. While she thinks it will eventually become an acceptable, centralized platform in the near future, she thinks its time hasn’t come yet.
“I refuse to spend money on crypto,” Simmons said. “I believe that a digital currency will be permanent and will remain in our infrastructure. But right now, that’s highly speculative to me.
Invest in startups
Simmons has invested in several women- and black-owned startups in tech and beauty. Her advice is to look for a good product to back or a strong founder, underscoring how people pay attention to Tesla because they believe in Elon Musk: “They invest in his vision,” she said.
“I have the same mindset. Do I believe in this person’s potential to be able to grow their business where they say they are going, while still believing in the product?”
Simmons grew up with his mother and two siblings in Marietta, Georgia. In 2016, she graduated from Kennesaw State University with a bachelor’s degree in genetics and a minor in statistics. A report on Forbes notes that Simmons originally aspired to undergo genetic counseling, but changed her plans when she moved to New York.
With his qualification, Simmons worked as an associate business analyst and director of sales at Saks Inc. and joined investment banking and institutional brokerage firm, Rosenblatt Securities, in New York in 2017.