CNBC’s Jim Cramer explains why Disney and Nvidia are two perfect stocks to put in a young child’s portfolio. The “Mad Money” host also hears from Starbucks CEO Kevin Johnson about why the coffee giant continues to hire veterans. Later on, Cramer talks about other companies that hire former service members and argues that TJX and Burlington Stores are retail winners.
Want stocks for your kids? Start with Disney and Nvidia
Tourists watch the celebration show marking the first anniversary of the Shanghai Disney Resort at the 196.8-foot Enchanted Storybook Castle on June 16, 2017 in Shanghai, China.
Feature China | Barcroft Media | Getty Images
If your child wants to start picking stocks, and are the two places to start, CNBC’s Jim Cramer said Friday.
As always, the “Mad Money” host reminded viewers that an index fund should serve as your “bedrock” investment. Specifically, your first $10,000 should go into an index fund or an exchange-traded fund that mirrors the S&P 500, Cramer has advised.
“When you’re just starting to build a portfolio, your first step should never be to buy individual stocks, even great ones like Disney and Nvidia,” Cramer said.
But when you’re ready to start picking stocks, Cramer said Disney and Nvidia offer “tremendous” long-term growth potential.
Starbucks’ CEO explains why the coffee giant hires veterans
Kevin Johnson, CEO, Starbucks
Scott Mlyn | CNBC
After meeting its goal to hire 25,000 veterans and military spouses six years ahead of schedule, Starbucks has committed to hiring 5,000 each year, Johnson told Cramer.
“They make us a better company,” Johnson said.
Johnson also highlighted other efforts the Seattle-based company has undertaken to improve the lives of U.S. service members and their families, such as an “adopt-a-unit” program to provide coffee to those overseas and opening stores near military bases.
It’s worth owning shares of companies that hire a lot of vets
U.S. service members walk off a helicopter on the runway at Camp Bost on Sept. 11, 2017 in Helmand Province, Afghanistan.
In 2011, Dimon formed a coalition with 10 other companies to create jobs for 100,000 veterans, Cramer said.
“Do you think it’s a coincidence that J.P. Morgan’s the best run bank in America, with a stock that’s up more than 30% for the year? I know I don’t think so,” Cramer said.
Go shopping and buy shares of discount retailers like TJX
A Marshalls store in New York
Scott Mlyn | CNBC
CNBC’s Jim Cramer on Friday highlighted one segment in the retail industry he believes will work well in a portfolio whether the economy is slowing or thriving.
The off-price retailers of TJX Companies, Ross Stores and Burlington Stores satisfy both consumers looking for bargain deals and real estate investment trusts, or REITs, looking to lease space to brands with a track record of drawing shoppers into stores, the “Mad Money” host said.
“Something like TJX or Ross Stores has got a treasure hunt atmosphere, where you can search for incredible, unmatched deals,” he said. “That’s why shoppers keep coming back. When TJX or Burlington or Ross generates more traffic, that benefits their neighbors in the same shopping center. They are all the winners from the roadkill losers in the mall.”
Cramer’s lightning round: Microsoft is on its way to $150
: “Nike at $90 I think it’s a buy.”
: “I think it’s going to trade between $70 and $80, $70 and $80, until we get a couple really big contracts, like a huge contract or the contract. So now we are all depending on McDonald’s saying that that test of 20 stores in Canada is going to be a winner, and I think it will be.”
: “One of the reasons why the Nasdaq was up so much today was because Microsoft really broke out. I think that (CEO) Satya Nadella’s doing a fantastic job. … I like that stock going at least to $150 very, very quickly. Stay long that one.”