Zach Oschin: They open up the funnel, the grapes come in here.
Maggie: Fifteen-year-old Zach Oschin is too young to drink wine.
Zach: And so it’s squishing, squishing, squishing all the grapes, and they go down. And now we have juice.
Maggie: But he sure can tell you all about how to make it.
Zach: So, this right here. This is the very, very end of the harvest.
Maggie: That is because Zach is part-owner of the property that is home to California’s new custom crush and wine storage company Aldebella.
Zach: The bigger the business gets and how the value of the land goes up, the more return I’ll get each year.
Maggie: Zach is an investor. He takes his money and buys into companies that he believes will be successful in the future, hoping to make more money in return than what he originally invested.
So, Zach, why did you choose to invest in this property and in this business?
Zach: Well, I mean, I’ve always been involved with investing. But I had never owned any real estate, really. So, I figured it would be good to broaden my horizons on what I’d been investing in. And since in California, you know, the wine business is very lucrative, it was a great opportunity for me to invest in real estate and in the operating.
Maggie: But finding ways to make money is nothing new to this young entrepreneur. While most kids were just learning their ABCs, at only four years old, Zach was learning the ins and outs of the stock market.
In the stock market, buyers and sellers trade pieces of a company – stocks – at a specific price. If the company does well after you purchase the stock, its value will increase and you make money. But if the company does poorly, its value will decrease, and you lose money. In 2007, Zach made a pretty smart investment. He bought eleven shares of Apple stock at $96 each. Today, Apple shares are worth about $500 each, meaning Zach has made over $4,000 on this one company alone.
Zach: The possibilities are endless as to what you can buy and which companies you can invest in.
Maggie: And now, Zach is trying to spread the knowledge he has gained over the years to help educate his peers.
In 2011, he participated in a program called Banking on Our Future, sponsored by Operation Hope, which teaches financial literacy to people from low-income communities. Zach was the youngest person ever in the program’s history to teach the class.
Zach: I think a lot of kids have this idea that it’s hard to get into investing and it’s something only for older people to do. You can start with nothing. You can start with the hundred dollars you got for your birthday and start investing – because it’s not something that’s just for people with more money. Anyone can do it. And if you just save what you have, anybody can get involved and make money and learn how to do it.
Maggie: It is a gamble. Zach’s generation has seen a housing crisis, recession and bitter politics in Washington, making it tough for even the most experienced investors. But experts say young people can use all this to their advantage.
Expert: The amount of volatility we have had is unprecedented. So, this generation of kids that is now learning about investing, they are going to be much better investors because they’ll learn there is light at the end of the tunnel and the sky is not always falling in.
Maggie: And what is Zach’s secret to success?
Zach: I invest based off of what I know. If I like an iPod, I invest in Apple. If I like the fact that my dad drives a Prius, and I like how the Prius works and I think it is a good car, I’ll buy some Toyota. You know, I mean, it is really based off of the things I like because I know that what I like, and what other kids around me like, is what’s going to do well in the future because we are the youth. And the youth decides as they grow up what they like, what they enjoy, and what they want to buy, and that raises the values of companies when they do well.
Maggie: Maggie Rulli, Channel One News.
- How does investing work?
- Why did Zach decide to invest in a wine company?
- How does Zach make money in the stock market?
- What strategy does Zach use to pick the companies he invests in?
- If you were going to invest in the stock market, what companies do you think are good investments?