We want to buy our son something meaningful for his 21st b-day. What would be a good stock to buy to start his portfolio? Any suggestions as to how to buy it without the fees costing more than the gift? Which company has small-investor friendly account?
2007-01-11 09:06:52 · 5 answers · asked by Cindy W 3 in Business & Finance ➔ Investing
Okay, I think the key here isn't to give nececearilly a quality investment, asset allocation or the best return. I'm assuming this gift isn't going to be the cornerstone of his retirement, but just a 'starter', something fun, and that has value.
For that, I suggest looking to the giftee's personality and finding a quality company that matches it. Disney for the film buff. Harley-Davidson. Music geek? BMG, Sony, Bose. You get the idea.
For the investment, the giftee gets a quality stock, as well as a shiny annual report every year (Disney has cool annual reports).
Again, this isn't investment advice - it's gifting advice. If you are gifting a large sum that is really meant to be a cornerstone of an investment plan, go with a diversified portfolio of stocks, using good asset allocation, in an IRA or Roth IRA fund.
2007-01-11 21:47:42 · answer #1 · answered by great_and_mighty_adam_levine 4 · 0⤊ 0⤋
I would not recommend a particular stock. If I were to I would pick BRK.B (Buffets' Berkshire Hathaway) which trades around $3000.00/per share. Very expensive but hey - it's Buffet. Another would be MKL(Markel) which is similar to Berkshire and a little cheaper (around $468.00/share). I would instead recommend a low-cost mutual fund FAIRX (Fairholme) which has exposure to BRK.B and MKL and SHLD(Sears Holding- which is run by a pretty shrewd Eddie Lampert)) in addition to many other companies including some Canadian energy -which might be a temporary drag on the fund. But if you buy it I am sure he will thank you in 15 years.
2007-01-11 09:30:50 · answer #2 · answered by Jeremy H 1 · 0⤊ 0⤋
Maybe just open the account on E-trade...send in the money...get an accnt #....then you can decide ( together?) what to put it into...a fund?..a stock.?.an ETF? Do everything on-line after that....
Otherwise....21st birthday ?...DEO ..the liquor distributor....
( ... and the lesson could be " don't be one of those goofs at the bar ! ...but make money everytime one of them hoists a few!!)
Way down in the right hand corner of "moneycentral/msn" web page is a little box about beginning investing....point him there.
.....also go to www.finishrich.com and go to the "latte" link...and see how little it takes to add up to a lot.
Best of luck...you can lead 'em to water.....
2007-01-11 09:53:15 · answer #3 · answered by jebediabartlett 6 · 0⤊ 0⤋
Microsoft (MSFT)
Nokia (NOK)
Oracle (ORCL)
American Eagle Outfitters (AEOS)
McDonalds (MCD)
Whichever one has Dividend Reinvestment Plans (DRIPS)
Or you could invest in a No-Load Mutual Fund:
Vanguard
T Rowe Price
You don't pay commissions on those.
Look for Growth fund, or, if you prefer, a value fund, or an international fund in one of those families.
2007-01-11 11:21:11 · answer #4 · answered by ? 6 · 0⤊ 0⤋