Chocoholics: Invest in Nestle?

How do you get kids interested in investing? Link top stocks to their favourite hobbies 

Holly Black 27 August, 2021 | 9:55AM
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Holly Black: Welcome to Morningstar. I am Holly Black and its back-to-school week. That means we've got our team of young investment experts back and this year we're asking, how do you get kids interested in investing. 

Edie Willson: Hi. My name is Edie. I love every single chocolate, except some dark chocolate. My favourite chocolate is Snickers. I like chocolate more than vegetables because it's a nice treat and it's very yummy. Although, I think I (indiscernible) vegetable than chocolate.

Black: Okay. So, there's a chocoholic in the house. How do you win their appetite for investing rather than for sugary snacks? You could invest in Nestle.

Ioannis Pontikis: So, Nestle is the largest food and beverage company in the world with about $350 billion in market capitalization and more than $90 billion in sales. As a largest food company in the world Nestle bought broad portfolio of products across multiple categories and regions, with more than 30 brands generating more than 1 billion swiss francs in sales annually. Spanning beverages, dairy products, nutrition and healthcare, readymade meals, confectionary and pet care. Global market position that is really tough to match. 

The pandemic has been a net positive for the company, as people were really forced to consume more food at home with sales growing strongly. Although we believe Nestle has a wide economic moat, supported by some transposition with retailers and a durable cost edge, sales currently trading at 2-star territory. So, will the wise investors wait for a better entry point? 

Black: Getting kids interested in investing is not easy. But one of the things that professionals advise trying to link it to something they already know and love. So, whether they're a gaming addict or a chocoholic, there's a stock that can tie into whatever your child's interest or hobby is and that's a great way to get them started. For Morningstar, I'm Holly Black.

The information contained within is for educational and informational purposes ONLY. It is not intended nor should it be considered an invitation or inducement to buy or sell a security or securities noted within nor should it be viewed as a communication intended to persuade or incite you to buy or sell security or securities noted within. Any commentary provided is the opinion of the author and should not be considered a personalised recommendation. The information contained within should not be a person's sole basis for making an investment decision. Please contact your financial professional before making an investment decision.

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About Author

Holly Black  is Senior Editor, Morningstar.co.uk