Back

14 great companies for investments for children

Wish your parents had bought you Apple stocks when you were young? It might be tempting to try to pick “the next big thing” for your own children, or any other long-term investment. But there’s a big problem here:

stocks to buy for children

In fact, it’s almost as hard as winning the lottery!

When thinking about great stocks to buy for kids, focus on creating a portfolio that’s diversified across 30 to 40 companies – ranging across different industries, geographies, currencies, and company sizes. This way, you avoid being over-exposed to downturns in individual companies or particular industries (remember the Dot Com Bubble?).

If you have a well-diversified portfolio, your overall investment will remain stable even if some of those companies underperform. On the other hand, if you invest in only one or a handful of companies, you take on a lot of unnecessary risks.

The same applies to the period of your investment. An investment in the stock market only makes sense if it is planned long term and if the invested money is not needed in the near future. This is the safest way to survive financial crises, stock lows and come up on top with a stable investment at the end.

With that in mind, what’s the best way to approach the stock market for kids?

Let’s take a look …

Stock investing for children

Young investors feel more engaged when they invest. In the table below, we have included a variety of publicly-traded companies that many children know and love – or that simply impact the world in the interest of children. And by the way, some of these companies are from Germany.

This is just a small sample of the companies which Inyova impact investors can invest in for their children. In the last section of this article, you will find more information on creating a free, personalised investment strategy.

Generally, it’s also better to avoid so-called stranded assets. These are assets that were once highly valued in the past, but have become worthless over time: due to new regulations, changing environmental factors or new preferences. You can find out more about stranded assets in our article How to Make Money & Invest Ethically.

14 Company stocks that offer opportunities for children

Company Industry HQ Notes
Tesla Electric vehicles, energy storage and solar panel manufacturing Palo Alto, California Tesla was founded by a group of engineers keen to prove that electric vehicles can be better, quicker and more fun to drive than gasoline cars.
Today, Tesla is at the forefront of electromobility.
Infineon Semi-conductor manufacturing Neubiberg, Germany Infineon supplies parts for the world’s first “eyes off” driverless car.
It is breaking new ground to protect the world from cyber attackers in the age of quantum computers.
Alphabet Technology & life sciences Mountain View, California Founded on the motto of “Don’t Be Evil”, Google’s holding company is the world’s largest corporate buyer of renewable power.
In 2017 the company has officially achieved the 100% renewable energy target for its global operations.
Xylem Water technology provider Westchester County, New York This company develops technology to purify and transport water (unclean water is one of the leading causes of sickness and death in the developing world).
Xylem’s Essence of Life program helps the world’s poorest people gaining access to clean water.
Vestas Renewable energy Aarhus, Denmark As the world’s second-largest manufacturer of wind turbines, the company has a mission to reduce the environmental impact of energy.
It implemented strong action upon discovering that turbine production could have negative impacts on the environment.
Nibe Heating technology Markaryd, Sweden The company helps to reduce emissions and energy consumption by designing and producing ultra-efficient air-conditioners, heaters and heat pumps.
Nibe products can be found in homes, hotels and public buildings all around the world.
Xcel Energy Utility company Minneapolis, Minnesota This American electricity provider was the first major U.S. company to commit to becoming completely CO2-free.
Xcel broke a world record for wind energy in 2011: 56% of the electricity for its 1 million customers came from wind energy on October 6.
Renault Car manufacturer Boulogne-Billancourt, France Renault is the market leader for electric cars in Europe.
It is focused on producing affordable electric cars. Around 25% of the electric cars on European streets are made by the company.
Stryker Corp Medical devices Kalamazoo, Michigan This American company for orthopaedic and surgical implants is relatively unknown outside its industry. Yet, it’s been an innovation leader for decades.
Chances are, you know someone who has one of its hip and knee replacements.
Ørsted Renewable energy Fredericia, Denmark This electricity company transformed its business from fossil fuels to renewable energy.
It has a goal to only offer green energy by 2023, which will represent a 96% emission reduction.
Daimler AG Car manufacturer Stuttgart, Germany Daimler is a German carmaker, best known for the Mercedes brand. The company is emerging as a key innovator in electric vehicles. In addition, the company is on track for all its European manufacturing plants to be carbon-neutral by 2022.
Nordex SE Renewable Energy Rostock, Germany Nordex designs, sells and manufactures wind turbines. Nordex delivers more than 18 GW of sustainable energy worldwide. It is active in nearly all geographical regions, excluding China.
Beyond Meat Food production El Segundo, USA On a mission to create “The Future of Protein”, Beyond Meat makes meat alternatives made from plant-based products. As well as addressing climate change, plant-based meats have the potential to improve human health and improve animal welfare.
Lindt & Sprüngli Chocolate Kilchberg, Switzerland Lindt is one of the most successful chocolate producers in the world. The aim of the company is to improve the livelihoods of their farmers in the countries of origin and contribute to an intact environment.

It is clear that companies must constantly question and, if necessary, adapt their business model (see above “stranded assets”). This also applies to the companies listed here. This list was last updated on 18.5.2021.

There is always the possibility that a company may perform worse than expected or even have to file for insolvency. As a shareholder you can lose money. That’s why it’s better to invest in as many companies as possible rather than just a few.

How can I start a stock market investment for my child?

The first step is to get your personalised impact investing strategy – it’s free and non-binding. With our online tool, you can select impact topics that are important to you and your family. Your child’s Inyova strategy will be fully personalised, professionally diversified and designed for an attractive financial return. You can have a look at this article to understand how to open an Inyova for kids account in three easy steps.

With Inyova, you and your children are fully flexible. You can create different investing strategies for each of your children – with different impact themes and exclusion criteria and open Inyova sub accounts that are entirely independent of your own investment. Additionally, should a financial emergency arise, the investment can be withdrawn at any time and at no additional costs

If you have any questions or suggestions regarding this topic or Inyova in general, we would be happy to hear from you!

 

Advertising notice: The information and evaluations presented here are an advertising announcement which has not been prepared in accordance with legal provisions promoting the independence of financial analyses and is not subject to any prohibition of trading following the dissemination of financial analyses. The acquisition of this investment involves considerable risks and may lead to the complete loss of the invested assets. Inyova receives an all-inclusive fee of 0.9 - 1.2 & p.a. for its services, depending on the amount of assets under management. The exact calculation can be found at www.inyova.de/en/fees.

Risk notice: All information is only intended to support your independent investment decision and does not represent a recommendation by Inyova. The product information and calculation examples presented do not claim to be complete or correct. Only the specifications in the asset management contract incl. the further legal documents, which are made available to customers of Inyova via the complete customer documentation, are authoritative. Please read the asset management contract and the other client documents carefully before making an investment decision. The following applies to all shares and ETFs: Past performance is no guarantee of future performance. Information on past performance does not permit forecasts for the future. Investments in securities include the risk of a loss in value. Other securities services may achieve different results. The results for individually managed portfolios as well as the different time full stops may differ due to market conditions, different entry times, different portfolio sizes, individual restrictions and the respective composition of the portfolio.

Disclaimer: Past performance of financial markets and instruments is never an indicator of future performance. The statements or information contained in this document do not constitute a recommendation, offer, or solicitation to buy or sell any security or financial instrument. Inyova GmbH assumes no liability whatsoever with regard to the reliability and completeness of the information contained in this article. Liability claims regarding damage caused by the use of any information provided, including any kind of information which is incomplete or incorrect, will therefore be rejected. Furthermore, the statements contained in this document reflect an assessment at the time of publication and are subject to change. References and links to third party websites are outside the responsibility of Inyova GmbH. Any responsibility for such websites is declined.

EU Sustainable Finance Regulation: the terms and categories from this post do not correspond to the terms and categories of the EU Sustainable Finance Regulation. You can find the disclosures and explanations required under the EU Sustainable Finance Regulation at https://inyova.de/en/sustainable-finance-disclosure-regulation..

Erik Gloerfeld

Erik Gloerfeld

Founder – CPO

Erik has been involved in sustainable business for 7 years. Before founding Inyova, he was an independent entrepreneur, launching the 'Lapel & Tie' project and expanding the GreenBuzz initiative.

Close icon

Select your language and country

Choose the country of your residence to learn more about our offering for you.