Costco Stock For Me?

I am 15 years old and I have been saving my money for a while. I have around $1,200 saved up. My parents are willing to help me with buying stocks. So, I would buy the stocks under my parent’s name, most likely my Mom because my Mom studied finance in university, so she knows quite a bit about investing and the stock market. Also, she gave me her investment book from university, so I have been reading a little bit of that, mostly the stock market part of the textbook. I have been thinking about Costco stock. I know I have to diversify my money, so I am only going to spend about half of my $1,200 and I will keep the rest of my money in my savings account. So, I would like to buy 4 shares of Costco share. One share of Costco last traded for $170.62. So I would invest $682.48 into Costco. Some reasons I would invest in Costco, Costco’s revenue has been increasing, and another reason is that Costco is headquartered near me, so they have their annual shareholder meeting near me! So it would be cool to go there. So I was just wondering if you guys think it would be a good start to just try to see how it is like to have a couple of shares of a company?
Thank you!

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  1. Just buy VT and own everything to minimize idiosyncratic risk. It’s only like $65, so you can get like 18 shares (each share gives a dividend of $1.49/yr). Ask your mom to lend you $1,200 too so you can buy twice as much! (it’s called leverage). So if your mom lends you the money you can gain almost a whole share over the course of the year if you reinvest the dividend (provided it stays the sameish price).

    THEN, once you pay her back, ask to borrow slightly more money (now that you are creditworthy and have assets) and buy more… and so on and so on……

  2. With all due respect you clearly are not very knowledgeable at this moment on the stock market. If you want to get into it to learn, and losing the money doesn’t matter much to you, then go for it read up and try to be a stock picker. Expect to under perform the market if you are lucky, likely you will lose quite a bit of money. Otherwise buy a total stock market index fund and skip all the learning. Then maybe lower the risk by diversifying into some bonds, possibly international stock funds (pick your favorite country), or alternative investments like REITs or gold.

  3. Canadian medical marijuana. Take a hour or two and look at different companies. And I would say your money will grow at least 5 times or more by July 2018

  4. Hey good for you!! Don’t listen to these people. Weed stocks are a bet, and have just as much of a chance of going down as they do to go up. Since you’re young, you want to build a foundation for your portfolio, and you’re off to a better start than I am!

    Costco is a good option. One of few retailers doing things right, and like you said, has some killer financials to back it up. However, because of proximity, you should take a look at Amazon. See if it fits your strategy. They are certainly growing (as I’m sure you’ve seen downtown!)

    Alternatively, you should also look at an index fund that simply follows the market. SPY is what my portfolio’s foundation is built upon, and is a bit more resilient to big moves than Costco is. It follows the S&P 500 pretty closely, so is very representative of the market as a whole.

    PM me if you have any questions! I’m 26, and I work in Bellevue, live in Seattle (I have a co-worker who used to work at Costco HQ too), so I think we have the same mentality for investing. Good luck!!

  5. If I were you I’d put most of your money (60-70%) into an index fund like VTI or SPY, and put the rest into COST (if that’s the specific company you want to buy)

  6. I like costco a lot, but I don’t envision long term growth for them. At the moment, a lot of the younger generation go to costco purely because their parents do. Are they likely to continue this trend as they adult?
    Definitely do research for weeks before investing. Download seekingalpha and create mock portfolios.

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