The best ally of investors is time. Giving your investments time in the market to compound will lead to wonderful results, even if you just achieve the market’s average.
Children are the ones with the most time because they’re so young. Yet, they usually have the least money.
Investing for your children could mean you’re able to help them with a house deposit or education fees in a decade or more from now. For most investors a decade is a really long time, yet a child may not have even hit adulthood by then. There’s plenty of time to compound wealth.
Here are two of the shares I’d consider:
Costa Group Holdings Ltd (ASX: CGC)
Investing in something that’s positive for them and the world can be a good lesson. Costa grows a variety of health food like berries, citrus fruit, mushrooms, avocadoes and tomatoes.
It also helps that Costa is a high-quality business that is growing its number of farms so it can offer Australian supermarkets year-round produce. It is also looking to supply health food to the growing Asian middle class.
If it can continue to grow underlying profit after more than 20% for the next couple of years then today’s price could be good value.
Future Generation Global Investment Co Ltd (ASX: FGG)
This is a company that has been set up with two goals in mind. The concept is that its money is invested across a range of different leading fund managers which invest in global shares. I’m sure readers will recognise some of the names that are part of the group of managers, such as Magellan Financial Group Ltd (ASX: MFG).
The interesting thing about this company is that there aren’t any management fees or performance fees. The ‘fee’ is 1% of the NTA is donated to charities focused on youth mental health.
There’s a good chance it could beat the market and it donates to a very noble cause. I think the concept is a great idea to try to make the world and young people’s lives better.
There aren’t many ASX shares that offer both potential market-beating returns and are doing ‘good’ things. I’d very happy to own shares in either of these two businesses for my child for a long-term investment at the current prices.
These 3 stocks could be the next big movers in 2020
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Motley Fool contributor Tristan Harrison owns shares of COSTA GRP FPO. The Motley Fool Australia owns shares of and has recommended COSTA GRP FPO. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.