Which individual stocks to buy teen for xmas gift?

[Anonymous]

Where is it legal for a minor child to trade stocks independently?

[Anonymous]

Anonymous wrote:Buy one stock each of the Magnificent Seven (minus Tesla if you don't like Musk). They are the ONLY companies in the S&P 500 that lifted the entire stock market and gave it the returns it has had in recent years. There is no reason to think that they will not continue to do well, unless, of course, we all go down with the AI bubble. In which case, we'll have bigger problems.

NFLX and AVGO have been beast in the stock market. They have both outpaced all the Mag 7 stocks this year, but NFLX is currently in a battle against the Ellison's to purchase WBD, so the stock price has been dropping.

[Anonymous]

If you are trying to help your DS learn, AVGO is not a good choice. I also thought about this stock.

Disclaimer: not financial advice

There is a lot of financial engineering and difficult to understand income streams. Unless you are a wall st analyst, you are buying because number go up.

To be more specific… The p/e is around 100 with a forward p/e around 40. The discrepancy is because the cash flow is high and there are also a lot of short term inpairments to earnings.

Buying something you don’t understand is exactly not the lesson you want to teach.

If you want stuff in the semi space, I suggest TSM. Not crazy valuation and critical to the supply of high end chips. Reading about what exactly they do and 3 nm euv photolithography tech would be an awesome thing for a hs kid to do.

Same would go for ASML, but if they don’t split their share price is over 1,000.

[Anonymous]

SPY

[Anonymous]

Suggestion for you if you aren’t doing this already- since the kid is working you should open up a Roth in their name and put your gift money in that, up to the amount they earn.

Honestly they’re young, I’d give them the money and let them research and pick their own stocks with your help (if they’re interested in that sort of thing). They’d have more buy-in that just being given the stock already chosen for them.

And more unsolicited advice, I’d sit them down and show them a compound interest calculator. Play with the figures and show them what their money would look like if they just left it to grow with no additional deposits or if they made it a priority, especially when they’re young, to add as much as they can. I wish someone had done that for me. I did it with my son and he’s taken every penny he’s ever been given and he is thinking about that as his retirement plan. He’s 23, saving to his employer match but not planning on touching any of the gifted money.

[Anonymous]

Just put money in a brokerage account and let them pick. It’s probably what they want.

[Anonymous]

Anonymous wrote:Suggestion for you if you aren’t doing this already- since the kid is working you should open up a Roth in their name and put your gift money in that, up to the amount they earn.

Honestly they’re young, I’d give them the money and let them research and pick their own stocks with your help (if they’re interested in that sort of thing). They’d have more buy-in that just being given the stock already chosen for them.

And more unsolicited advice, I’d sit them down and show them a compound interest calculator. Play with the figures and show them what their money would look like if they just left it to grow with no additional deposits or if they made it a priority, especially when they’re young, to add as much as they can. I wish someone had done that for me. I did it with my son and he’s taken every penny he’s ever been given and he is thinking about that as his retirement plan. He’s 23, saving to his employer match but not planning on touching any of the gifted money.

+1 to the compound interest calculator

Also +1 to, if you have the cash, matching their summer earnings in contribution to a Roth IRA.

[Anonymous]

A low cost S&P500 index fund or ETF.

[Anonymous]

Anonymous wrote:If you are trying to help your DS learn, AVGO is not a good choice. I also thought about this stock.

Disclaimer: not financial advice

There is a lot of financial engineering and difficult to understand income streams. Unless you are a wall st analyst, you are buying because number go up.

To be more specific… The p/e is around 100 with a forward p/e around 40. The discrepancy is because the cash flow is high and there are also a lot of short term inpairments to earnings.

Buying something you don’t understand is exactly not the lesson you want to teach.

If you want stuff in the semi space, I suggest TSM. Not crazy valuation and critical to the supply of high end chips. Reading about what exactly they do and 3 nm euv photolithography tech would be an awesome thing for a hs kid to do.

Same would go for ASML, but if they don’t split their share price is over 1,000.

ASML is in my opinion the ultimate tech stock. Without their EUV photolithography machines there are no advanced chips, no TSM, no NVDA, no AI, etc. It’s a Dutch company but many critical parts come from US such as the EUV lasers. They have a monopoly in this technology. The Chinese, if they haven’t stolen it yet, are about 10 years behind.

[Anonymous]

Anonymous wrote:Where is it legal for a minor child to trade stocks independently?

Nowhere. Do paper trading or let them use your account under your supervision.
One of my Roths was opened just for that occasion. I will also leave it to them as I don't need all my Roths.

[Anonymous]

Let him choose his own stocks

[Anonymous]

Anonymous wrote:

Anonymous wrote:Where is it legal for a minor child to trade stocks independently?

Nowhere. Do paper trading or let them use your account under your supervision.
One of my Roths was opened just for that occasion. I will also leave it to them as I don't need all my Roths.

Why don’t you need all your Roths? Despite what many say, use your Roths (tax free) to live and leave your taxable accounts to your children. They will step up in basis when you pass and your heirs can then sell the assets tax free.

[Anonymous]

Anonymous wrote:

Anonymous wrote:Terrible idea. If anything then do an index fund.

+1000 - give him the gift of smart financial fundamentals and do not buy him individual stocks, much less a large-cap growth stock, an asset class that has historically underperformed the market over time.

+10000

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Where is it legal for a minor child to trade stocks independently?

Nowhere. Do paper trading or let them use your account under your supervision.
One of my Roths was opened just for that occasion. I will also leave it to them as I don't need all my Roths.

Why don’t you need all your Roths? Despite what many say, use your Roths (tax free) to live and leave your taxable accounts to your children. They will step up in basis when you pass and your heirs can then sell the assets tax free.

My taxable accounts are tax free to me and will be for years to come. I'd rather deal with those accounts myself.
The Roth is better for buying and selling stocks short term without worries about taxes.
A family member inherited Traditional IRA, Roth, and investment accounts. Roth was the easiest account to inherit.

[Anonymous]

VGT