HARLINGEN, Texas (KVEO) — After shares of GameStop surged earlier this week, interest in investing is on the rise.
“The time to invest is when you have the money available,” said Humphrey Thomas, CEO and founder of HG Thomas Wealth Management.
Thomas has always been smart with his money and turned it into a career.
“People here have been Intimated by that, they miss opportunities to create wealth in their estate and in their family. I find it to be very gratifying for me to help one family and the family see the big life,” he said.
Thomas’s business is based in Brownsville. He says beginner investors should focus on two types of investments.
“ETF’S which stands for exchange traded funds which is similar to mutual funds. The concept is you’re pooling money together with other investors and your investments can be as low as 23 dollars a month systematically. That 25 dollars you have participation in a pool of 500-700 stocks,” he said.
This Wednesday, GameStop was on everyone’s mind after their stock price rose astronomically. Before you attempt to become a trader, Thomas has some advice.
“Know what are you investing for. For the fun for the thrill or for a boat in a couple of years or retirement,” he said.
He said investing isn’t about the now but the future.
“Look how we are today we’re not happy if our page doesn’t load up fast enough,” he said “Let’s say, Wal Mart, what determines the value of Wal Mart is the projected revenue of the next 12 months and the projected dividends. That determines the stock price of a company.”
Economist Teo Sepulveda said what happened to GameStop isn’t normal.
“Very limited to what happened this week because a social media group figured out a large number of investors for whatever the reason is they made the promise to buy the stock this week at any price,” said Sepulveda.
The future of the company is grim.
“They have to figure out a service or a product that they can quickly develop so the company can start increasing its profitability in a couple of years which sounds very unlikely but it would be nice if they could,” he said.