Catherine Avery Investment Management reveals holiday stock lists
Published 1:16 pm, Tuesday, November 22, 2011
Catherine Avery Investment Management LLC has announced its second annual holiday list of stocks for children. The New Canaan-based, woman-owned investment firm believes investing in companies can make a compelling holiday gift for young people: children, grandchildren, nieces and nephews, for a number of important reasons.
"Investments help promote financial literacy and lay the foundation for future savings," Catherine Avery, owner of CAIM, LLC, said.
"This year, stock gifting makes more sense than ever with money markets and savings accounts paying little to no interest, and many high quality dividend paying stocks yielding 2 percent or more."
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Avery notes one of the best gifts adults can give the children in their lives is the gift of financial independence and she said it's always best to start early as it sets a precedent.
"With children, the key is repetition -- introducing them to companies that have products they can relate to and talking about them throughout the year reinforces the idea that they have a vested interest."
Avery explains buying stocks for children is also an opportunity to teach them about money on a practical level. Statistics show that the average high school graduate lacks basic skills in personal money management. Many of them cannot balance a checkbook and have no understanding of basic concepts involved with earning, spending, saving and investing.
Avery believes parents can play an active, positive role in shaping their children's future simply by involving them in every day, real-world money transactions from the time they're young, and that includes investing.
"Sitting down with them at the end of the year and going over their portfolio, they might not get it at first but as you repeat the scenario for five, seven or 10 years, they will begin to understand," she said.
CAIM emphasizes three key elements when selecting investments for children. They advise choosing companies that have products kids can relate to. They recommend companies that have a history of paying dividends. And they suggest selecting companies that are attractively priced based upon the company's fundamentals. Companies like McDonald's Corp., Johnson and Johnson and Emerson Electric meet all of these criteria and make CAIM's recommended holiday list of stocks for children.
"Of all the gifts we normally give, how many actually have a permanent lifespan?" Avery said.
"Wouldn't it be nice to be able to give our children, or our grandchildren, nieces and nephews something with a meaningful and permanent impact?"
To see the full report and CAIM's holiday list visit www.caimllc.com or call 203-966-2712.