Tulip Tree: How To Invest Inheritance Money: Good Advice For Anyone, Especially Young Adults
Dear Caribou and Squeeze,
Kiplinger just published the following article, which -- clearly -- has an eye to longevity and long-term market viability:
Stocks To Give Your Grandchildren
I think the author's emphasis on investing in ETFs is sound, especially for young investors just "getting into the game."
Over time, well-chosen ETFs (Exchange Traded Funds) have outperformed the S&P 500 (Standard and Poor's largest, most trusted "basket of 500 stocks") as a whole, and the S&P trendline has been markedly upward FOREVER. (Willard invests in ETFs.)
I also think the author's particular recommendation of Disney is a good one, since Disney is a good forever brand, whose stock is down more than half since its most recent high. Disney even offers a 1.74% dividend which is not great, but it's higher than the average S&P 500 dividend of 1.62%.
Disney Finally Spilled the Beans on ESPN. But Here's the Real Reason to Buy the Stock.
Addenda:
The Standard and Poor's 500, or simply the S&P 500, is a stock market index tracking the stock performance of 500 of the largest companies listed on stock exchanges in the United States. It is one of the most commonly followed equity indices. Wikipedia
Exchange-traded funds (ETFs) are SEC-registered investment companies that offer investors a way to pool their money in a fund that invests in stocks, bonds, or other assets. In return, investors receive an interest in the fund. Most ETFs are professionally managed by SEC-registered investment adviserExchange-Traded Fund (ETF) - Investor.gov
I should add that there is no need to be daunted by lofty share prices such as Warren Buffet's highly regarded Berkshire Hathaway which currently sells for $338.00 a share, as you can purchase so-called "slivers" of individual stocks as easily as you can buy entire shares of any equity. (Again, I recommend that you open a free Charles Schwab account, and be sure to get their free debit card which enables you to freely access any ATM machine, anywhere in the world, without any commission. Timbuktu. Addis Ababa. Hyderabad. Plus the exchange rates provided by Schwab's debit card are remarkably (if not unbelievably) good, If you're traveling abroad, DON"T LEAVE HOME WITHOUT IT. Clearly, Schwab's debit card is a so-called "loss leader" - like supermarkets selling Thanksgiving turkeys at 29 cents a pound to bring customers into the store where all their other holiday purchases will more than make up for the loss.
Capital One credit cards are an analogous "case." Disclosure: I have a Walmart CapitalOne card and two "Quicksilver" CapitalOne cards. CapitalOne offers superb customer service. Furthermore, they charge no annual fee; no foreign exchange fees (which are typically $3.00 per overseas purchase); and again the exchange rates are phenomenal. If you ever decide to open a Capital One credit card account, please let me know first, and I can get you a $200.00 enticement bonud, plus another $150.00 because I recommended you.
Speaking of credit cards, VISA and Mastercard (which sponsor CapitalOne and many, many other branded credit cards) are two highly-recommended, dependable companies.
Both companies are extremely profitable: while Visa has an EBIT Margin [TTM] of 67.14%, Mastercard's is 56.77%. Their enormous Profitability is further underlined by an Aa3 credit rating from Moody's for both companies. However, when it comes to Growth, Mastercard is slightly ahead of its competitor.Mar 9, 2023
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