In this article, we discuss the Top 10 Kid-Friendly Stocks to Buy According to Billionaires.
The market has been undergoing a volatile spell these past few days. Economic data from the Federal Reserve Bank of New York indicates a pattern in which stock markets reacted negatively to President Trump’s tariff announcements against China in 2018 and 2019. Current market behaviour in 2025 suggests a similar, potentially more widespread, response to new trade policies. Markets have been underperforming for the first quarter of 2025, considering that the wider market fell by over 10% and the tech-heavy NASDAQ plummeted by more than 15%. The Cboe Volatility Index (aka VIX) is currently at 52.33%, compared to 17.93% at the start of the year.
The year 2025 began with the revelation of DeepSeek, an AI program developed in China, which rivalled AI technology in the US Tech sector. DeepSeek requires lesser processing power, which means lower costs and improved results for users. The market immediately saw investors take on a bullish outlook, short-selling stocks before any further impact on their portfolios.
In the second month of 2025, the US government’s first round of Tariffs was aimed directly at China in an effort to curb the impact of DeepSeek on the United States’ tech industry. In March, President Trump announced a rate of 54% tariff on Chinese goods, while China retaliated with 34% tariffs on US goods and services.
DW (Deutsche Welle) reported that President Trump approved 20% tariffs on European goods & services in the latest round of “Trump Tariffs”. Foreign investors, specifically from European countries, were quick to divest their portfolios. The US economy is considered to be entering “continuous stagflation”, which is defined as continued inflation with very low growth and high unemployment.
This scenario has prompted investors to reconsider their future investment strategies. Several reports point out a growing trend among parents who are actively setting aside funds to safeguard their children’s financial future. Survey results of 2000 UK investors over 18 years of age, published by the international adviser, stated that 44% of parents were stressed about making the right investment decisions regarding their children. 35% worry that they have not saved sufficiently to ensure their children’s financial future. In an interview with CNBC, Stacy Francis, the President & CEO of Francis Financials in New York, spoke on how parents can educate their children on investing:
“Make sure that money can be talked about, that there’s no taboos…so that your children are learning those really good financial literacy skills that they need to set themselves up for success for the rest of their life.”
Investing in the markets for your children’s future has the advantage of time. In a report by MorningStar, investments in stocks have the added benefit of compounding return, which means the earlier you start, the more time your investments have to grow exponentially. CNBC reported on billionaire investor Mark Cuban and how he made billions from his first few million with a long-term view on his investments. Given this, we will take a look at some of the best kid-friendly stocks to buy.
Pixabay/Public Domain
Our Methodology
To compile this list, we thoroughly reviewed reputable sources and gathered the stocks they collectively favored. These stocks have a long-standing history of performance, with strong balance sheets and sound financials. Then, we used Insider Monkey’s proprietary database of billionaire stock holdings to arrive at our list of 10 best kid-friendly stocks to buy according to billionaires as of Q4 2024. For the stocks with the same number of billionaire holdings, we have used the total value of billionaire holdings as a secondary metric to rank the stocks. Billionaires are founders or managers of some of the world’s leading hedge funds and companies.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
10. Mattel, Inc. (NASDAQ:MAT)
No. of Billionaires: 10
Value of total Investment by Billionaires: $0.229 billion
Mattel, Inc. (NASDAQ:MAT) is a toy and family entertainment powerhouse with operations worldwide. The company designs, manufactures, and markets a vast portfolio of iconic toy brands, including Barbie, American Girl, Disney Princess, Monster High, Polly Pocket, Hot Wheels and Matchbox, Fisher-Price, and Thomas & Friends. It also produces action figures, building sets, and games featuring brands such as Masters of the Universe, MEGA, UNO, Jurassic World, and WWE, alongside licensed properties from Disney, Microsoft, and NBCUniversal. With a rich history and a diverse array of beloved brands, Mattel, Inc. (NASDAQ:MAT) is perhaps one of the best kid-friendly stocks.
For the period ending Q4 2024, Mattel, Inc. (NASDAQ:MAT) reported a revenue of $1.65 billion, $20.3 million above expectations, with an EPS of $0.35. Ynon Kreiz, Mattel’s Chairman and Chief Executive Officer, commented on the company’s performance, stating:
“Execution on our toy strategy was strong and we grew global market share in key categories of dolls, vehicles, and games. We also made meaningful progress on our entertainment strategy across film, television, digital, consumer products, and live experiences.”
Mattel, Inc. (NASDAQ:MAT) is expected to have a turbulent 2025, with inflation forecast to slow down consumer spending on toys. Trade tariffs will also hit sales, as major manufacturing hubs China and Vietnam are slammed with tariffs of 54% and 46%, respectively. It must be noted that despite these ongoing tariff wars, analysts continue to have a positive outlook on the stock. Mattel, Inc. (NASDAQ:MAT) has a twelve-month average trading share price of $25.58, an upside of 74.55%.
9. Roblox Corporation (NYSE:RBLX)
No. of Billionaires: 10
Value of total Investment by Billionaires: $2.269 billion
Roblox Corporation (NYSE:RBLX) is a video game developer that allows users to explore 3D experiences. Roblox Studio is a free toolset that allows developers and creators to build, publish, and operate 3D experiences and other content. The company is popular among users as a gaming platform & connecting with other users online. It is among the best kid-friendly stocks to invest in.
For the final quarter of 2024, Roblox Corporation (NYSE:RBLX) reported an average of 85.3 million daily active users (DAUs) worldwide. This represents a 19% increase year-over-year compared to the 71.5 million DAUs in the fourth quarter of 2023. In terms of financials, the company had a topline of $1.36 billion (up 20.84% YoY) and an EPS of $0.11.
Roblox Corporation’s (NYSE:RBLX) business model utilizes in-app advertising to boost revenue. The company announced an advertising promotion in collaboration with Google, which will allow brands and agencies to purchase the new Rewarded Video ads on Roblox. This new revenue model is expected to further boost the company’s topline in the year 2025. The company provided guidance on revenue for the upcoming first quarter of 2025 revenue to range between $5.2 to $5.3 billion, a growth rate of 20% YoY. Roblox Corporation (NYSE:RBLX) attributes this to international markets, including Asia, Latin America, Europe, and Japan, along with their “Aging up” campaign. This is aimed at the company’s strategic push to retain its original audience- now entering their teens and early twenties. Analysts following the stock on Wall Street have a positive outlook on the stock, with a consensus on the twelve-month trading price at $66.78, an upside of 30.92%.