South Florida Kids Learn To 'Buy Low Sell High' In Stock Market Investment Club
MIAMI (CBSMiami) – While some kids may have been playing video games or watching movies all day when everyone was asked to stay-at-home during the coronavirus pandemic, there were four kids, all under the age of 10, who learned to play the stock market.
"My stock is Royal Caribbean and I have four stocks," said Brooke.
"My best investment is gold," explained Penelope.
"AMC Theaters are up 90%," said Reese.
Gibson likes Royal Caribbean as well.
Brooke, Penelope, Reese and Gibson are members of the Tick Investment Club and are learning stock market basics at an early age.
"They decided to learn about stocks during COVID and have been investing in stocks," said Mason Harris, father of Penelope and Reese.
Each has their own account, with seed money from mom and dad plus their own savings. They figured out a basic market truism; buy low and sell high and coronavirus provided a lot of 'buy low' opportunities.
"After a few weeks, months people are gonna get sick of coronavirus and start going on cruises so they will start making money," said Gibson.
That's not a bad long term investment strategy but there are still a lot of hurdles before the first cruise ship sails again.
The kids include hotels, restaurants and movie theaters in their mini portfolios.
"Once COVID is over still everyone is going to go straight to the theaters where they can watch movies, with popcorn, slushees, candy; one room on the big screen," explained Brooke.
These kids are investing in companies they can see, watch, maybe even experience while learning about budgeting and the future.
"Investing is very important. They need to start learning from the very beginning of their career that they need to invest part of their salary and invest part of their 401K'Ss and other retirement assets," said Joyce Caines from Brightstar Credit Union.
"They got in on Royal Caribbean very low and it has been doing well since. I think up 100% on that," said Harris.
Then there is the hard lesson that eventually will come, "What goes up, usually comes down. It's best to learn that lesson early as well.