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Stock choices for high school grad

Posted on 5/17/22 at 4:37 pm
Posted by threeputt
God's Country
Member since Sep 2008
24791 posts
Posted on 5/17/22 at 4:37 pm
I’m looking to buy some sticks for a recent grad. Would like some companies that me be of interest to a 18 year old. Trying to start him out with a good start and will match whatever he puts on over college years. Any ideas from the gurus on particular stocks
Posted by TigerintheNO
New Orleans
Member since Jan 2004
41208 posts
Posted on 5/17/22 at 4:48 pm to
MJ and KO

give him whatever high school grad really wants
Posted by weurf3
nola
Member since Jun 2004
1171 posts
Posted on 5/17/22 at 4:49 pm to
No individual stock picks from me, but what they are interested in vs sound investments - may be two different things.

If in the same position, I would select a few stocks the grad "likes" along with an index funds that mimics that segment. Also, a total stock market fund.

This way, you expose this young person to various investment angles without selecting singular stocks. A steady widespread approach by an 18 year old will show growth potential. You may wet their appetite and they may put the time in necessary to select individual stocks.(not financial advice, just message board fodder)
Posted by AMS
Member since Apr 2016
6497 posts
Posted on 5/17/22 at 5:20 pm to
if youre thinking individual stocks see what fields he is interested in majoring. so he may be more likely to follow it ad see new developments in that field all while learning foundational concepts. I would encourage limiting to 1-2 specific stocks in the same field so he can see how competition or different aspects of either company play out. but id still put the majority in an index or something broad market so he doesnt get too lucky/unlucky in his first stocks and develop bad habits due to beginners luck or get discouraged by poor luck.

engineer/science - TSLA would be cool if he likes elon musk related stuff and would be great to follow growth stocks.

if hes studying biology a pharma company maybe cool and he could learn about clinical trials while learning foundational sciences.

finance/econ - blackrock or bershire hathaway or some banks.

if hes a cool kid stoner some weed stocks would enable successful future degeneracy.

gamer kid - see what company makes his favorite games or more successful games.
This post was edited on 5/17/22 at 5:22 pm
Posted by Diseasefreeforall
Member since Oct 2012
5540 posts
Posted on 5/17/22 at 5:33 pm to
Just buy him VT. It's a bet on his generation changing the world and increasing productivity with technology, which is a very good long-term bet, and it'll teach him that in the long, long run there's no way to know what specific businesses will survive and thrive. Plus he can set it and forget it and focus on what's important at this stage in his life.
This post was edited on 5/17/22 at 5:34 pm
Posted by TeaParty
Member since May 2022
935 posts
Posted on 5/17/22 at 8:29 pm to
Why not just buy the SPY. It's talked about daily. The returns or what everyone bases their performance by. Low fees. It's the standard
Posted by lynxcat
Member since Jan 2008
24162 posts
Posted on 5/17/22 at 8:33 pm to
SCHB
Posted by Jag_Warrior
Virginia
Member since May 2015
4112 posts
Posted on 5/17/22 at 9:38 pm to
Why not pick some sector funds in areas that interest him? That way you avoid trying to pick a single winning horse. OK, maybe a small portion in an individual equity or two. But DO NOT encourage him to bring his emotions into investing.
Posted by geauxpurple
New Orleans
Member since Jul 2014
12381 posts
Posted on 5/17/22 at 9:57 pm to
Put him in the Vanguard total stock market index.
Posted by TorchtheFlyingTiger
1st coast
Member since Jan 2008
2133 posts
Posted on 5/17/22 at 11:00 pm to
Buy an index ETF not individual stocks. Teach them the lesson that most of us aren't going to outperform the market by picking stocks.
This post was edited on 5/18/22 at 5:41 am
Posted by deathvalleytiger10
Member since Sep 2009
7599 posts
Posted on 5/18/22 at 8:15 am to
quote:

Trying to start him out with a good start



Low cost index funds. Teach him to invest in the market as a whole vs trying to beat it with the latest "stock pick". He has years and years ahead of him and this approach is proven to be the most reliable way to grow a portfolio in the market.
Posted by GentleJackJones
Member since Mar 2019
4170 posts
Posted on 5/18/22 at 4:53 pm to
I'd split it up.

-1/2 S&P 500 Index or a Total Stock Market Index
-1/2 in some "cool" individual stocks - basically, some strong companies that an 18-year-old will know and will keep an eye one (Apple, Nike, Alphabet, Disney)

Let him/her see how they do over the years compared to the index fund.

Could be a good teaching moment.

ETA: The "teaching moment" discussed above is in support of this
quote:

Low cost index funds. Teach him to invest in the market as a whole vs trying to beat it with the latest "stock pick". He has years and years ahead of him and this approach is proven to be the most reliable way to grow a portfolio in the market.


This post was edited on 5/18/22 at 4:55 pm
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