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PHILADELPHIA (CBS) — A local 17-year-old proves that hard work can pay off in a big way.
He runs his own landscaping business and makes decent money for a teenager. But it’s what he’s doing with that money that could teach us a thing or two.
It’s not uncommon to see a high school kid on the weekend working hard for a little extra cash.
But when you look at this 17-year-old, what is uncommon is that he runs his own landscaping business.
“I have about 40-60 consistent clients,” Daniel Piotti said.
And even more out of the norm, is what he does with the after-school business’ returns.
He puts his landscaping profits right into the stock market.
“Nike, Pepsi, FedEx,” Piotti said.
These are just of the many stocks he owns.
With the help of his parents, Daniel first set up a trading account at 13 years old.
“At 13, I had all these little side hustles,” Piotti said. “At first it was going into the bank but then my dad had some stock of his own and he showed me a little bit about it. I think that is the best thing he ever did.”
Four years ago, Daniel started investing with $2500. And now, he has a portfolio valued around $20,000.
Every year, it’s outperformed the markets’ average 8-10 percent annual return.
“Last year was 24 percent, which was a phenomenal year,” Piotti said.
So what is the young entrepreneur and investor’s strategy?
“Every single day I monitor the 30 DOW stocks, which start from American Express ends at Triple M,” Piotti said.
In a Word document, he tracks each stock’s earnings per share, p/e ratio, and dividend yield.
After seeing potential in the metrics, he’ll buy.
But sometimes he takes a more instinctual approach, as was the case when he bought into Nike last year.
“They don’t have the best dividend,” Piotti said. “But if you look around, half the students in school are wearing Nike. I don’t think they are going anywhere.”
“With less than 9 percent of millennials investing in the market, Piotti, a young Generation Z teen is exceptional.
But if you ask experts in the world of finance, they’ll tell you he really shouldn’t be.
“The retirement is not there for many people and we need to start young,” Finance Professor at Temple University Stephen Casper said. “Who can be a better role model than this 17-year-old who has been so successful.”
A 17-year-old certainly on track to have a nice nest egg for retirement one day, but clearly aspiring for a little bit more.
Perhaps, to be like another once young entrepreneur and investor.
“Warren Buffet,” Piotti said. “I think he is a great person. Hopefully one day I will be just like him.”