What would be a great stock to buy for a 21st b-day? First stock purchase in portfolio.?
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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.
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.
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..
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.
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