Birthday Bonanza, Part 4 of 8

Hi, everyone.  I hope you’re all having a good weekend.

In this series over the past week, I’ve been posting about the benefits of investing $1000 in a single stock at the time your child is born, or soon after, and holding onto the investment for the next 18 years.

I’m going to delve into more of the nuts and bolts on getting things set up tomorrow.  This morning, I’d like to discuss a very important piece of preparation for a child’s financial freedom that many parents, conscientious and well-meaning as they may be, do not consider.

And that is this:

Knowledge is an investment, too.

Investing money in your child’s future, of course, is great.  If you do this, your child will have a significant advantage!

However, you also want your child to know how to manage these funds when he or she becomes an adult and assumes control over the account.

Introduce your children to the stock market as they get older and can start to understand.

For example, if you own shares of Starbucks (NASDAQ: SBUX), you might say to them whenever you see or walk into a Starbucks, “We own shares in Starbucks.”

When they reach 10 years old or so, you can actually show them the brokerage account with the shares of Starbucks you own.

You should also talk to them about publicly traded companies they are familiar with.  If it’s possible to buy shares in a company they know, like Disney (NYSE: DIS), Apple (NASDAQ: AAPL), or Activision Blizzard (NASDAQ: ATVI), you may improve the likelihood of them being more engaged in the investing process.

Until next time!

 

My book, The Stock Market is For Everyone, is a short guide for the beginning, inexperienced investor that is easy to understand and can be put into action immediately.

Click the image of the book at left to be taken to its Amazon page.  (Disclosure: As a participant in the Amazon Services LLC Associates Program, I earn a small commission on each sale generated through these links.)

The $500 Fortune, Part 2

Yesterday, I listed some stocks that, had you invested $500 in them years back and held, would have increased your wealth exponentially.  Of course, I was then asked, “What stocks can I do that with today?”  Here is a list of five that I like:

  1. Tencent: In case you didn’t know this, China is the most populous country in the world.  They will soon have a middle class that consists of 500 million people.  It makes a great deal of sense to have some exposure to China in your investment portfolio, and one of the best ways – if not THE best way – is thru owning shares of the largest video gaming company in the world!  Tencent is already a big company, worth half a trillion dollars.  I think that it has the possibility to one day be worth multiple trillions of dollars.  I firmly believe that this company can make you rich!
  2. The Trade Desk is a small digital advertising company with a market value of $1.4 billion.  Trade Desk uses artificial intelligence (AI) to aggregate and analyze data from different websites in order to help companies improve their marketing.
  3. Match: My selection of Match.com may surprise some people…however, did you know that Match owns Tinder, OKCupid, and Plentyoffish?  Tinder is the third highest grossing app in Apple’s App Store, behind Pandora and Netflix.  The truth of the matter is online dating has been a huge trend and will continue in the future.
  4. Activision Blizzard: It may be hard for non-gamers to believe this, but the gaming industry is HUMONGOUS.  One of the major players is Activision Blizzard.  Although the company has been one of the best investments over the last 20 years, the next 20 years look absolutely just as bright!  Esports, which are organized video game tournaments, are on track to be an absolutely colossal moneymaker for Activision Blizzard.
  5. Roku is a small company with a market value of under a billion dollars.  Roku is the fastest growing streaming platform in the United States.  Streaming video on demand is obviously the direction the world is moving toward, as evidenced by the phenomenal success of Netflix.  Roku has the platform that could eventually make it the dominant streaming video company.

If you’re just getting started or you’re looking to add to your portfolio, these five companies are ones you may want to watch!

If you haven’t checked out my ebook yet, head over to Amazon.  And please, please, share your thoughts and questions in the comments!

 

My book, The Stock Market is For Everyone, is a short guide for the beginning, inexperienced investor that is easy to understand and can be put into action immediately.

Click the image of the book at left to be taken to its Amazon page.  (Disclosure: As a participant in the Amazon Services LLC Associates Program, I earn a small commission on each sale generated through these links.)