Stocks for kids?

[Anonymous]

I help my DD buy a few stocks just learn from and learn how to do research on.

Thinking Disney at the moment. Price seems low compared to prior years and it will pay a dividend starting in 2024. P/E ratio is a bit high though at 68.

Any thoughts or ideas?

[Anonymous]

Anonymous wrote:I help my DD buy a few stocks just learn from and learn how to do research on.

Thinking Disney at the moment. Price seems low compared to prior years and it will pay a dividend starting in 2024. P/E ratio is a bit high though at 68.

Any thoughts or ideas?

Every analyst I look at is still very bearish on DIS, but learning that stocks go down is valuable too. I would recommend buying fractional shares of equal dollar amounts for a kid. Even if you were just investing $100, buy $10 of 10 stocks. That way gains and losses are clear and easily comparable.

I would also buy the S&P500 or Total Market Index just to teach her the idea of benchmarking.
As for individual stocks that might be appealing to a kid that seem to have a chance of doing okay:

GOOG
BBW (Build a Bear)
COKE (Coca-cola)
DPZ (Domino's Pizza)
TOL (Toll Brothers--chocolate chips!)
CPB (Campbell Soup--not sure if that's appealing to a kid )
PEP (Pepsi)
KHC (Kraft Heinz)
VZ (Verizon--if you have that for internet or phones--it has a high dividend payout)
TM (Toyota--if you drive one) and/or F (Ford) -- might be fun to compare.

[Anonymous]

Ha shows what those analysts know. Disney was up big today.

[Anonymous]

Anonymous wrote:

Anonymous wrote:I help my DD buy a few stocks just learn from and learn how to do research on.

Thinking Disney at the moment. Price seems low compared to prior years and it will pay a dividend starting in 2024. P/E ratio is a bit high though at 68.

Any thoughts or ideas?

Every analyst I look at is still very bearish on DIS, but learning that stocks go down is valuable too. I would recommend buying fractional shares of equal dollar amounts for a kid. Even if you were just investing $100, buy $10 of 10 stocks. That way gains and losses are clear and easily comparable.

I would also buy the S&P500 or Total Market Index just to teach her the idea of benchmarking.
As for individual stocks that might be appealing to a kid that seem to have a chance of doing okay:

GOOG
BBW (Build a Bear)
COKE (Coca-cola)
DPZ (Domino's Pizza)
TOL (Toll Brothers--chocolate chips!)
CPB (Campbell Soup--not sure if that's appealing to a kid )
PEP (Pepsi)
KHC (Kraft Heinz)
VZ (Verizon--if you have that for internet or phones--it has a high dividend payout)
TM (Toyota--if you drive one) and/or F (Ford) -- might be fun to compare.

I'm sure it was just a brainfart, but Coke's ticker is KO, and Toll Brothers is a homebuilder. Homes are fun, but not as fun as the chocolate chips made by Toll House (owned by Nestle, ticker NSRGY).

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I help my DD buy a few stocks just learn from and learn how to do research on.

Thinking Disney at the moment. Price seems low compared to prior years and it will pay a dividend starting in 2024. P/E ratio is a bit high though at 68.

Any thoughts or ideas?

Every analyst I look at is still very bearish on DIS, but learning that stocks go down is valuable too. I would recommend buying fractional shares of equal dollar amounts for a kid. Even if you were just investing $100, buy $10 of 10 stocks. That way gains and losses are clear and easily comparable.

I would also buy the S&P500 or Total Market Index just to teach her the idea of benchmarking.
As for individual stocks that might be appealing to a kid that seem to have a chance of doing okay:

GOOG
BBW (Build a Bear)
COKE (Coca-cola)
DPZ (Domino's Pizza)
TOL (Toll Brothers--chocolate chips!)
CPB (Campbell Soup--not sure if that's appealing to a kid )
PEP (Pepsi)
KHC (Kraft Heinz)
VZ (Verizon--if you have that for internet or phones--it has a high dividend payout)
TM (Toyota--if you drive one) and/or F (Ford) -- might be fun to compare.

I'm sure it was just a brainfart, but Coke's ticker is KO, and Toll Brothers is a homebuilder. Homes are fun, but not as fun as the chocolate chips made by Toll House (owned by Nestle, ticker NSRGY).

Oops -- yes, I was just scanning my lists quickly. I have owned NSRGY as a company for a long time and always thought they were really well-managed, but they haven't been doing great for awhile. They are fairly valued right now.

[Anonymous]

Anonymous wrote:Ha shows what those analysts know. Disney was up big today.

Down slightly at close, after hours are up about 3%. Doesn't mean it's good buy --it's been nothing but down for 2 years now--maybe it's bottoming out, maybe not. Streaming is a bust and lots of management issues.

[Anonymous]

You can start a play money account not practice first.

Be sure to create a random portfolio as a control.

[Anonymous]

We buy Roblox stock for dd, based on the invest in what you consume logic (dd’s a big Roblox fan). It’s a speculative stock pick for sure, but we’ve had good returns this quarter. We love Disney but it’s had a challenging run, could be an opportunity to buy the dip but I’m not convinced that it’s bottomed out yet.

[Anonymous]

Roblox here as well. My son loves following it.

[Anonymous]

We bought Roblox when it went under $27 in mid September. Sold it yesterday after the earnings when it went over $41.
The kid knew the purchase price, the amount of shares, and the earnings date. Since we bought 20, every dollar it went up, DC could get twenty robux.
We did a lot of math over the last almost two months if nothing else had come from it. Ofcourse it ran up way too much yesterday and I sold it while DC was at school.
I told him about short-and long-term taxes and that we want to use the money to buy again once it goes under certain price.
I'm not into dividend stocks, but they are great for math and learning about different types of stocks.
Also, there's not need to even buy all the stocks. I would ' buy' each stock for $1000 simply on the paper and then do monthly, quarterly, yearly review to see if money was made or lost.
There is also list of financial terms suitable for different ages I would go through as they come up.
DC inherited a lot of money so this is partly why I have to get them involved in learning. I would be scared to hand it all to them at 18/21 without much financial knowledge.

[Anonymous]

By investing in Disney or Roblox, or anything else your kids like, you are teaching them to invest with their heart and not their head. That is a really bad lesson to teach.

[Anonymous]

Anonymous wrote:By investing in Disney or Roblox, or anything else your kids like, you are teaching them to invest with their heart and not their head. That is a really bad lesson to teach.

I don't think that's what kids take away from it--the point is that it gets them to understand how to do the math, how to evaluate, how to even think about what a stock is. But this is why I also advise to always compare against the indexed benchmark--that's what gives you the mindset.

[Anonymous]

Anonymous wrote:We bought Roblox when it went under $27 in mid September. Sold it yesterday after the earnings when it went over $41.
The kid knew the purchase price, the amount of shares, and the earnings date. Since we bought 20, every dollar it went up, DC could get twenty robux.
We did a lot of math over the last almost two months if nothing else had come from it. Ofcourse it ran up way too much yesterday and I sold it while DC was at school.
I told him about short-and long-term taxes and that we want to use the money to buy again once it goes under certain price.
I'm not into dividend stocks, but they are great for math and learning about different types of stocks.
Also, there's not need to even buy all the stocks. I would ' buy' each stock for $1000 simply on the paper and then do monthly, quarterly, yearly review to see if money was made or lost.
There is also list of financial terms suitable for different ages I would go through as they come up.
DC inherited a lot of money so this is partly why I have to get them involved in learning. I would be scared to hand it all to them at 18/21 without much financial knowledge.

Bought around the same time but we try to hold stocks for at least a year to avoid short term taxes.

[Anonymous]

Fisher Price used to make a good ETF playset for preschoolers. Not sure it’s still available.

[Anonymous]

Anonymous wrote:

Anonymous wrote:We bought Roblox when it went under $27 in mid September. Sold it yesterday after the earnings when it went over $41.
The kid knew the purchase price, the amount of shares, and the earnings date. Since we bought 20, every dollar it went up, DC could get twenty robux.
We did a lot of math over the last almost two months if nothing else had come from it. Ofcourse it ran up way too much yesterday and I sold it while DC was at school.
I told him about short-and long-term taxes and that we want to use the money to buy again once it goes under certain price.
I'm not into dividend stocks, but they are great for math and learning about different types of stocks.
Also, there's not need to even buy all the stocks. I would ' buy' each stock for $1000 simply on the paper and then do monthly, quarterly, yearly review to see if money was made or lost.
There is also list of financial terms suitable for different ages I would go through as they come up.
DC inherited a lot of money so this is partly why I have to get them involved in learning. I would be scared to hand it all to them at 18/21 without much financial knowledge.

Bought around the same time but we try to hold stocks for at least a year to avoid short term taxes.

Sure. I hardly pay any taxes being alone with two kids earning low income. But yes, next one up is talking about the tax rates for short/long-term capital gains. I have no patience for a year with small amounts that are for DC. The almost 20 percent up in one day was too much for me. I wanted DC to see how we can use the money we made and maybe buy 30 shares now.
DC ofcourse said we sure can afford some Robux from Amazon. We have spent a lot over the years buying robux. This money better come from the company from now on. First try went well.
I'm hoping for even better fourth quarter since a lot of kids get robux for holidays. Will see. We are talking about less than thousand her being invested.