The Daily Telegraph

The 11 stocks we put in your child’s Christmas stocking and how they have performed

Chosen for their appeal to youngsters, our festive selections have endured mixed fortunes

- RICHARD EVANS

‘Man Utd is another business to offer enduring appeal thanks to its vast global fan base’

Readers may need large reserves of Christmas goodwill when they hear how our earlier festive picks for their children have performed, since profits are as rare as white Christmase­s in central London.

To recap, two years ago we named 10 stocks chosen to appeal in various ways to readers’ offspring. The idea was that, by selecting businesses such as football teams or fashion brands, an interest would be sparked in the idea of stock market investment as a means to save for future goals – and that actual profits would be generated that would help recipients buy a house or car, or pay their way through university, when they came of age.

This time last year, we updated on progress and added a further stock to the list; today we will look at how all are performing.

Our choice of three video game companies has proved, at least so far, to be our least inspired. Shares in all three have fallen severely, one to the point that it is almost worthless. Following a 98pc fall in its share price, there would be little point in selling that stock, tinybuild, so parents and children alike may as well hold on and use the shares as a reminder that things can and do go wrong on the stock market. The other two gaming stocks, Team17 and

Prosus, bought for its stake in Tencent, the publisher of the Fortnite game, have also fallen severely, by 75pc and 64pc respective­ly. In these cases, there is scope for recovery over the long investment periods that go with investing on behalf of children, so we will stick with them.

Another very poor performer has been Ceres Power, the fuel cell designer chosen to appeal to children keen to invest in a cleaner future; its shares have lost 81pc since our tip two years ago. But Ceres remains a company with enormous potential thanks to its proprietar­y technology and partnershi­ps with establishe­d players such as Bosch and Shell. It now seems that this potential will take time to come to fruition but again we have time on our side.

An investment in Hipgnosis Songs Fund gives readers’ children part ownership of the rights to many of their favourite songs from artists such as Ed Sheeran, Taylor Swift and Lady Gaga. Unfortunat­ely, this is another stock whose potential has not yet been realised, this time thanks to a series of management mistakes. The fund’s problems are being addressed and we retain high hopes for it in the longer term, even if currently we are nursing a 44pc loss on our recommenda­tion. Nike has been another disappoint­ment; its shares are 35pc lower than when we tipped them for readers’ Christmas stockings. It is another business to boast leading technology and a globally popular brand so we will stick with it.

Finally, we turn to our more successful selections. Shares in Manchester United stand 46pc higher than two years ago. We are disincline­d to take profits when investing for the long term and Man Utd is another business to offer enduring appeal thanks to its vast global fan base.

Hermès, maker of Birkin bags and other highly desirable fashion objects, has made us a gain of 26pc but is a classic cross-generation­al brand that enables the business to make exceptiona­lly high profits relative to the value of its assets; a key sign, according to many profession­al investors, of a good investment.

Greencoat UK Wind, an investment trust, is another investment chosen for the appeal of its sustainabl­e credential­s to younger investors. Although it has benefited from high electricit­y prices, it has suffered from the rise in inflation and interest rates, which make its future earnings less valuable in today’s money. Overall, we come away with a paper gain of 8.5pc.

Also in the black, if only marginally, is Vestas Wind Systems, the wind turbine company, on which our paper gain is about 6.6pc. As a leader in its field, it is worth keeping.

Finally, the stock we added to the list last year, Formula 1, has made a good start from the grid with a 6pc rise in the share price. In view of the brand’s worldwide recognitio­n and the opportunit­ies for growth, we will stay on board for further accelerati­on.

Read Questor’s rules of investment before you follow our tips: telegraph.co.uk/go/questorrul­es

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