Let's make a 5-6 stock portfolio!

[stockguru]

(03-28-2021, 06:48 AM)NilesMike Wrote: I'm looking to buy 1 stock as a starter for my 1st Granddaughter, born yesterday.

Suggestions/consensus needed.

V or MA. Is she's a girl she will do plenty of spending when she gets older   lol

[ChadR]

(03-28-2021, 06:48 AM)NilesMike Wrote: I'm looking to buy 1 stock as a starter for my 1st Granddaughter, born yesterday.

Suggestions/consensus needed.

Congratulations.  Like the others have said, you can't go wrong with JNJ, MCD, PEP, or DIS as her first stock.

[fenders53]

(03-28-2021, 02:14 PM)stockguru Wrote:

(03-28-2021, 06:48 AM)NilesMike Wrote: I'm looking to buy 1 stock as a starter for my 1st Granddaughter, born yesterday.

Suggestions/consensus needed.

V or MA. Is she's a girl she will do plenty of spending when she gets older   lol

Don't forget a shoe and purse manufacturer. 

[NilesMike]

I was thinking maybe something sexier.

HRL

[crimsonghost747]

(03-28-2021, 08:05 PM)NilesMike Wrote: I was thinking maybe something sexier.

LB? 

No but I do think that later on it's a good idea to pick companies which have products that she knows. I do think it's one of the best ways to motivate someone to get into stocks. Even works for me to this day.
(for example, I do prefer to be on an Airbus a320 rather than a Boeing 737. Honestly I probably couldn't tell the difference while inside the plane and I didn't care at all before I bought Airbus)

[fenders53]

(03-28-2021, 08:05 PM)NilesMike Wrote: I was thinking maybe something sexier.

HRL

LOL, Who doesn't like a Spam sammich. BTW I bought shares of Motorola and Lucent for my Godson. I think he sold them to a guy flipping shares out of a minivan in Chicago.

[ken-do-nim]

If tracking fun stocks is the way to go ...

HSY - Hershey Co., 2.02% dividend and 5 year performance is up over 50%.
RMCF - Rocky Mountain Chocolate Factory, 8.70% dividend which is great but 5 year performance it went from 10 down to 5.52 currently
TR - Tootsie Roll Industries, 1.07% dividend but 5 year performance is up only 10%.

The fact that I'm on a diet and trying to be off chocolate may have played a part in this post

[fenders53]

(03-29-2021, 02:01 AM)crimsonghost747 Wrote:

(03-28-2021, 08:05 PM)NilesMike Wrote: I was thinking maybe something sexier.

LB? 

No but I do think that later on it's a good idea to pick companies which have products that she knows. I do think it's one of the best ways to motivate someone to get into stocks. Even works for me to this day.
(for example, I do prefer to be on an Airbus a320 rather than a Boeing 737. Honestly I probably couldn't tell the difference while inside the plane and I didn't care at all before I bought Airbus)

Same.  I have always lived near an area with a lot of important corporations to the local company.  Infatuated with my vacation stomping grounds which is Minnesota.  Minneapolis has a large quantity of excellent quality companies.  Military lifer so familiar with defense products (LHX for example).  I use their products, drive by corporate HQs, friends working for some of the companies.  It gives me more motivation to stay informed beyond the money aspect.  I have some connection, real or perceived, to half my port over the years.  Being interested in your investments is helpful IMO.  I am certain I paid more attention to those holdings.  I still trim them when they need trimmed though.

[NilesMike]

I always wanted to buy HRL and sadly never did.

Also considering GS

[fenders53]

(03-29-2021, 08:41 AM)NilesMike Wrote: I always wanted to buy HRL and sadly never did.

Also considering GS

HRL is now like KO but even more boring and a better balance sheet.  It perpetually looks over priced because that balance sheet is crazy good.  It will never make me rich but I always own 100 or so shares.  The annual Div raises are always there and intermittently very good.  When I can sell a few puts with a 45-46 strike I sell 2-4 spreading out the strikes.  When it gets around 50 I sell a call or two on my long shares.  A lot of very low risk $50 bills over the course of a year add up enough to make it worth my trouble.  I got nothing better to do with my low risk basket.  It's been easy to make 10% annually.  That's little money lately but I'd lose no sleep if I got stuck with HRL shares.  They have cash to buy something cheap if the market ever crashes. That's likely their only path to future growth.

[crimsonghost747]

Update time!

Current portfolio:
JNJ
LHX
TMO
UI
S&P 500 index fund

Some explanations here.

TMO - she wanted this. Looks like a very solid company for the long-term actually, but it's quite expensive right now. (covid has been a massive boost to earnings, and that boost will likely fade away in the coming years). She wanted it anyway, and as I said, solid company long-term so why not.

UI - this came down to MSFT or UI. Basically I told her all tech is highly valued, and there is nothing cheap here. MSFT was my recommendation, it's safe and probably about as stable as tech gets. But since tech is a bit risky anyway, she wanted to make this the one really risky bet in the portfolio, so what's better than UI for crazy ups and downs while still actually owning a good, very profitable, company with good long-term prospects? It's certainly a risky bet, always has been, but hopefully it still has quite a bit of room to run.

Future additions:
-PEP
-One of those utes one day. XLU would have been perfect, but I can't get the one that distributes the dividend out. (she prefers to get the dividends in hand) I might wait a while and hope for a correction and then just pick a random one out of your recommendations.

[fenders53]

Not a bad port considering deals are hard to find. UTEs are a lot more fun on a dip when you are likely to get a 10%+ pop in a hurry and a bit better yield. At some point interest rates will spike some and scare them down.