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Lesson ID: 11479
Own a piece of your favorite brand? Learn how to invest like a pro—even as a teen.
From Sneakers to Stocks: Meet the Teen Who Turned Jordans into a Fortune
You’ve probably heard adults talk about investing like it’s some super complex world that only people in suits can enter. But what if you could start right now—as a teen—with nothing but your interests, curiosity, and a little discipline?
That’s exactly what 14-year-old Damon Williams did.
It all started with a pair of sneakers. Damon was a basketball fan who desperately wanted the newest Jordans. But instead of just saving for the shoes, his mom gave him a new challenge: buy a share of Nike stock first. So he did. And then he didn’t stop.
Damon became obsessed with understanding how companies make money and how he could be part of that success—not just as a shopper, but as an owner. By the time he was a senior in high school, he had built a stock portfolio worth over $50,000.
What Is Investing, Anyway?
When you invest, you're putting your money into something—like a company—with the goal of making more money in return. You're not just buying stuff; you're buying ownership in a business.
This is how everyday people (including teens!) can grow their wealth over time.
People invest in different things: real estate, art, businesses—but one of the most common types of investing is in stocks.
A stock represents a tiny piece of a company. When you buy one, you're a part-owner. If the company grows and earns more, your stock becomes more valuable.
How Do You Know What to Invest In?
Damon didn’t just guess. He studied!
Here are some of the things he—and professional investors—look for.
P/E Ratio (Price-to-Earnings Ratio): This tells you if a company’s stock is expensive or cheap compared to how much it earns. A lower ratio could mean a better deal.
Dividend Yield: Some companies share profits with stockholders. This yield shows how much you earn just by holding the stock.
Growth Rate: Damon looked for companies with consistent growth over the past 5 years. His benchmark? A growth rate of at least 15%.
Return on Equity and Earnings Per Share (EPS): These show how well a company uses its money to generate profits.
He also looked at stock charts to track how prices changed over time and whether a company was heading in the right direction. These charts give clues to help investors make smart choices.
Real vs. Unreal Gains
When your stock goes up in value, that’s called a gain. But if you haven’t sold the stock yet, it’s called an unrealized gain—the money’s only on paper.
Once you sell the stock and actually receive the profit, it becomes a realized gain.
Smart investors don’t panic and sell their stocks the second prices dip. Damon described himself as a “Buy and Hold” kind of guy. That means he picks companies he believes in and sticks with them, even when the market has ups and downs.
From Video Games to Fast Food: Investing in What You Love
Damon didn’t just buy random stocks. He picked companies he knew and cared about.
The brand behind his sneakers (Nike)
His favorite video game companies
The fast food chains he visited as a kid
This strategy is actually smart—if you already know the company, you’re more likely to understand whether it's doing well or struggling.
As his mom put it: "Own a piece of the company that made that Happy Meal you always begged for."
What About You?
You might not have $50,000 (yet), but you can start learning how investing works right now. By understanding the basics—how to research companies, read charts, and think like an owner—you’ll be ready to build a future where your money makes more money.
And yes, even teens can invest in real life—with a parent’s help. A custodian account allows parents to oversee your investments while you get real-world experience.
Ready to Practice?
Now that you know the basics, it’s time to sharpen your skills. In the Got It? section, you’ll analyze real stock charts and build your own imaginary portfolio.
Get ready to think like an investor!
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