2 stocks for my kids' portfolios
Portfolio: I want to excite them about investing for the long term
I have two amazing kids. My daughter is a wicked-smart, creative, social-justice-focused, college freshman - she is a talented writer who wants to “make bank” and travel the world. My son is a baseball-crazy, high school freshman who works out 6 days a week and is one of the kindest people I know.
They have both grown up in an environment where they never lacked for anything. They have always been encouraged to try new experiences, to do their best at everything, to not give up at the slightest hint of adversity and to be aware of global events and socio-economic issues.
As they become young adults, who will soon have to make personal life and career choices, I think it is important for them to learn about investing and even make some informed financial decisions.
I setup an investing account for my daughter and will soon do this for my son. I often ask them about mobile apps they use, stores where they shop, stuff that is trending amongst their peers…what’s the word on the street?
Snapchat is an app that they use all the time, every day, to keep in touch with their friends. They are constantly hooked into this large, social network - “snapping” back and forth, updating their online “story” and keeping “streaks” alive. They use other apps too - Instagram, Tik Tok. But Snapchat seems to be the life-blood of their peer-to-peer interaction. And SNAP’s Q4 earnings report (I will post about it soon) yesterday showed us how they are continuing to dominate with these younger age groups and have become a cashflow generating, profitable business while doing so…and they are just getting started.
Nvidia is another company that will enable almost every aspect of my kids’ lives for the foreseeable future. They are already gaming on platforms using those chips. They will be driving electric cars using Nvidia chips and software. They will be ordering food using NVDA bots. Artificial intelligence and natural language processing technology will be embedded in most careers that they might pursue. Their houses will be powered and managed by IOT devices - lights, temperature, security etc.
We bought SNAP shares in my daughter’s account last year and added more recently (including yesterday - the 20% drop during regular hours was too good to pass up). Nvidia will be our next purchase when my daughter saves up her next tranche this Summer.
We are on the lookout for a third company. Any suggestions? Would like this company to be involved in a climate change solution - energy, water, plastics etc.
No time like the present to talk to kids about money matters, ask for their opinions and slowly get them interested in saving and investing. It is a life skill that is not taught in many schools, yet could have a profoundly positive impact on their future.