Forget ETFs, and index funds. They’re boring. So, do you have a teenager? They have some investment information for you.
In the US, there are 41, 731,233 kids and young adults between the ages of 10-19. Wait! Norman Leer in Paintball Arkansas just turned 10 this morning 41,731,234! That’s more than
the number of us old folks between 66-113. There were 40,267,984 of us in 2010. In just 15 years, the teens (they do start younger these days) will be 25-34 and spending more
than they make (just like now). So, if you dare to take a lesson from your teenager— what if we bought what they like?
In no particular order, here are 10 companies teens like Tesla: The erudite young love Space X and Hyperloop. Neither are public (yet.) But brought to you by Elon Musk, here’s his electric car. With the long awaited market meltdown Monday, Tesla goes for about $301 today up a little from about $255 twelve months ago. Watch out for volatility, though, the mountain chart looks like the Rocky Mountains. It may be a bumpy ride.
Apple.: Is that a surprise? These kids know I-pads and I-phones. Do you think some teen boasts around school that they just got a new Microsoft tablet or a Huawei Honor 6X phone? Come on. Apple is up about to $189 from $33 a year ago.
Amazon: This is where they will buy everything, including delivered groceries, in 15 years when
they have a paycheck. Is anything stopping Amazon? No. It’s around $1604, up from $800
last March.
Disney: This batch grew up on Disney Kids and Theme Parks. Still, they know DIS is more
than theme parks. Think movies, Star Wars, Marvel franchises— $101. vs $110. They OWN
movies.
Sony: (an ADR). Playstation is catching MS X-Box. Now PS4 is up to $100 cheaper. Hint:
don’t buy the one your teen doesn’t like. It is $48 versus $32 last March.
Netflix: Surprise. I didn’t think they watched television anymore: $327 from $140.
Supreme Clothes: It is THE source for Streetware and Skateboarding fashions.. $22, down
from 12 months ago’s $32.
Activision Blizzard: Video game publisher owns the World of Warcraft franchise. Now is $72
down from $40. NAP: The social media of choice among teens is NOT FB, Pinterest, Instagram or others; it’s
Snapchat. This is despite what Rihnanna and other celebrities bashing it. Currently $10 from
$24 24.
COKE: Teens prefer it. Better commercials and a reflection of their parents’ and grandparents’
generations. Did anybody ever say in the 50s, “let’s go down to the Malt Shop and grab a
Pepsi”? They still don’t. Now $42, down a little from 12 months ago when it was $44.
Spotify. They Stream music. Just for fun, watch this one. They listed on the NYSE on April 3,
2018, closing that day at $149. Today, they are at $156 and change. Interestingly, it’s a direct
listing of existing shares directly from the company. As a newcomer, it might be fun to watch,
but, for now, it’’s for sophisticated investors
Of course, the time to buy these was yesterday If you purchased one share of each (not including Spotify) your teen would have about $2400 in her “Fun” portfolio.
Buying even one or two of these would be a great way to teach your children something about investing. Forget about earnings estimates and analyst’s opinions. Make it fun. Do you think
ANY teen ever got excited and bragged (they do like to, don’t they) about owning a Spyder? No!. Forget the spelling (they will!). Not unless it was a real one, either Fiat or fuzzy. Do they walk around campus saying, “Wow, my Dad just bought me an ETF”? This is not about creating a college fund; it’s about making a fun learning experience by using one of the fundamentals of investing. Pay the price; it’s for the kids.
Final thought on teen stock buying, did you know you can still get a stock certificate?? 94% of the US companies still issue stock certificates. Call your Broker. My kids each have 1 share of
Disney framed and hanging on the wall from the 70’s, now worth 120 times its purchase price. (Note to thieves: they live in Baffin Island and Antarctica. Good luck).
Postscript: Two for Adults.
Budweiser. Dilly Dilly. Now $94.95, up and down from $104. Americans and drinking it less, but it has a big international appeal. Great super bowl commercials.
Berkshire Hathaway. Trains are cool. (Burlington Northern). Besides- Warren Buffett. It’s the biggest non tech US company. B Shares (non voting) now $200. Last March, $165.
Buy on the down. Take Profits. Flash Cadillac says,“Keep your Beta low, your Alpha high and your R squared.
The MoneyCulture Initiative is a 501C-3 that delivers personal finance and investment education to the general public for free. For more, see moneyculture.org and take the pledge
to improve financial literacy in the US.