3 tips from investors on building long-term wealth

If you’re not sure where to start on your investing journey, you’re not alone. In fact, recent data shows that 41% of U.S. adults don’t have any money invested in the stock market.

The problem: investing has been shown to be a key wealth-builder over time, and the earlier you start investing, the more time your money has to grow. 

How investing can translate to greater wealth  

U.S. stocks, as represented by the S&P 500 index, have returned a historic annualized average return of around 11.88% between 1957 and 2021, according to experts. It’s important to note that this figure doesn’t tell the whole story of how inflation and stock market swings can impact your returns and reduce that number, but it does give new investors an idea of just how much they stand to gain.

Over time, a strategic and consistent investment strategy can give you the capital you need to buy a home, create a passive income stream, retire and pay down debt to reduce your liabilities. 

Pros give their advice on setting yourself up to thrive

There’s no one formula for investing success, but we asked a few high net-worth individuals for their tips on what worked for them as they worked to build their wealth and what they’d recommend investors consider when embarking on their investing journey. Here’s what they said: 

  1. Don’t be afraid of alternative asset classes. While you shouldn’t invest solely in alternative investments like crypto or NFTs, some exposure can be a good thing and help you avoid losing big by putting all of your eggs in one basket. “Due to market conditions, I have significantly increased my allocation in Alternatives,” says Shahed Khan, co-founder of Loom, a video messaging platform for businesses. “As we are currently in a volatile interest rate environment,
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Alibaba Boosts E-Commerce Edge with AI, Despite Shrinking Market Share

Alibaba Boosts E-Commerce Edge with AI, Despite Shrinking Market Share

Alibaba Group Holding Ltd (NYSE:BABA), confronted by a fierce e-commerce market in China, is leveraging artificial intelligence to enhance its competitiveness.

On Alibaba’s Taobao platform, shoppers can utilize Wenwen, an AI chatbot, for personalized product recommendations, such as a Sony Group Corp (NYSE:SONY) camera priced at approximately $650, tailored to the user’s specifications, the Nikkei Asia reports.

Introduced in 2023, Wenwen is powered by Tongyi Qianwen, or Qwen, a large language model developed by Alibaba’s cloud division.

Also Read: Alibaba Stock Dips as Huge Investment Losses In Q4 Overshadow Revenue Growth and Dividend

In addition to aiding shoppers, Alibaba employs generative AI to streamline merchant operations, simplifying tasks like photo editing and virtual model creation.

Despite these innovations, Alibaba reported a net profit increase of 10% to 79.7 billion yuan ($11 billion) for the fiscal year ending March, with revenue growing 8% to 941.1 billion yuan.

Although Alibaba’s Taobao and Tmall platforms have seen their market share drop from 80% in 2017 to 37% in 2023, CEO Eddie Wu reported double-digit growth in gross merchandise value for these segments in the first quarter of the year.

Analysts flagged Alibaba’s double-digit year-on-year growth in GMV thanks to discounts. They expect cloud business to record double-digit growth in the back half of fiscal 2025.

BABA stock has lost over 4% in the last 12 months. Investors can gain exposure to the stock via Invesco Golden Dragon China ETF (NASDAQ:PGJ) and ProShares Online Retail ETF (NYSE:ONLN).

Price Action: BABA shares traded higher by 1.18% at $87.72 premarket at the last check on Friday.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

Alibaba Photo Via Shutterstock

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