The Best Holiday Gift Under $20

[The Best Holiday Gift Under $20](#) I’m staring down a holiday gift list longer than a CVS receipt... Garrett {NAME} DEC 5 [Icon]([Icon]([Icon]([Icon]( Dear Fellow Expat: If your relatives are begging you NOT to send more plastic toys for your grandchildren, nieces, nephews, cousins, and so on... Then, give something that actually matters. My basement already looks like a Toys "R" Us blew up. And every new piece of plastic that enters my house has an expiration date. So, what other options are there? Cash feels lazy. Checks get lost. And gift cards? They’re the ultimate "I had to get you something" gesture. So, how about a gift that could be worth 10x more by the time they're old enough to appreciate it? Give them shares in great American companies. Today, I've got a specific recommendation that's trading for under $20 that's like buying Warren Buffett's genius at a Black Friday discount. Why Gifting Stocks Is the Ultimate 'Power Move' I give my daughter one share of Berkshire Hathaway B (BRK.B) stock every year. It didn’t take her long to realize what that meant. She’ll ask me regularly how Uncle Warren’s stock is doing. I just wish it paid a dividend since it would be fun to see her talking about those while other kids her age still learn to tie shoes. I know it’s unconventional. But think of the benefits of giving a young person stock each year. First, they get a real-world money education without a dramatic, boring lecture. Nothing teaches investing like having actual skin in the game. When young investors own shares, quarterly earnings reports will eventually become more interesting than a drone in the sky. They'll ask why a stock went up. Or want to learn about a company’s new products. Think of it like you’re sneaking vegetables into their mac and cheese. They’re learning and benefitting without realizing it. Second, there’s compound interest. If you had given a $20 gift of an S&P 500 fund 20 years ago, it would be worth around $100 today. And if the recipient had checked the "reinvest dividends" box in their brokerage, it would have grown to almost $150... a 620% total return. A $20 Microsoft Xbox video game might be a lot of fun, but it won’t appreciate over time. Microsoft (MSFT), on the other hand, is up more than 1,500% in the same time period. Third, you’re teaching a young person to have an ownership mindset. There’s something special about wearing the latest Abercrombie & Fitch (ANF) jeans or walking into a McDonald’s (MCD) or Chipotle (CMG) and thinking, "I own a piece of this." Owning stock changes how young people view business, commerce, and their role in the economy. Instead of solely being consumers, they become stakeholders. That's a perspective shift worth way more than another Apple (AAPL) application. Budget Bargain: What’s Under $20 Let me show you how to tap into Warren Buffett for under $20 a share. The SRH Total Return Fund (STEW) is a closed-end fund currently trading at a massive 22.4% discount to its net asset value ("NAV"). In plain English? You're buying a dollar's worth of assets for about 78 cents. Plus, it pays a solid 4% distribution yield – meaning your gift pays them to own it. The fund's portfolio is a who’s who of blue-chip powerhouses. Just take a look at its top holdings... Nearly 44% of the fund is in Warren Buffett's Berkshire Hathaway (BRK.A and BRK.B)... 12% is in banking powerhouse JPMorgan Chase (JPM)... 6% in Yum Brands (YUM), which owns Taco Bell, Pizza Hut, and KFC... [then one of our favorite midstream companies Enterprise Products Partners (EPD)]( has a 5% allocation... and software giant Microsoft (MSFT) rounds out the top 5. A new PlayStation game doesn’t offer that sort of diversification during the holidays. The Long-Term Play Twenty years from now, which gift will they appreciate more? Another gadget that ended up in a landfill or their first step into building real wealth? This isn’t just a Christmas present. It’s a lesson in delayed gratification, compound interest, and business ownership... wrapped in a stock certificate. And, as I do myself, I recommend you make it an annual tradition. Add another share or five every holiday. By the time they're ready for college, they'll have a portfolio that could help pay for it. You'll be the relative who helped them build their first investment portfolio instead of their 10th pile of soon-to-be-forgotten toys. And you’ll also likely get a text every earnings season. Stay positive, Garrett {NAME} Secretary of Lost Toys [Icon]([Icon]([Icon]([Icon]( [Logo Image](#) Postcards from the Republic 1125 N. Charles St. Baltimore, MD 21202 This email was sent to you because you subscribed to this publication via FinPub. 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