Money Talks for Women with Lynn Kitchen. What Would Barbie Do? s2ep113

Money Talks! with Lynn Kitchen

How Would Barbie Invest Her Movie Money Now?
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Barbie has always been a role model for girls around the world. Throughout her lifetime, Barbie has excelled at more than 200 professions, from astronaut to firefighter to rapper…. Barbie has shown that girls can dream big and aspire to be whatever they want to be.
Along the way, Barbie learned early to become SMART by investing her own money.
As a fictional hero, we can speculate that Barbie also became an ACE MONEY MANAGER parlaying her earnings into a lifetime fortune, living her biggest dreams, and being listed in Forbes as the world’s most successful woman investor, ever, in league with Warren Buffet!

It wasn’t easy at first. Born in March 1959, Barbie had early successes, however, with such high wardrobe and travel expenses, Barbie had to scrimp and save every extra penny to fill her pink piggy bank.

But one day she made an amazing discovery. She found out about “The Magic of Compound Interest” and learned that by saving just $100 every month at 4% interest starting at age 20, she would have over $150,000 by the time she was 65. She began doing just that faithfully.

Barbie then decided to use her brand’s success story to maximize her investing success too. Starting with the “Rule of 72”, she learned she could DOUBLE her money every 7 years IF she made “Quality” investments with consistent, persistent growth rates of 10% annually.

Understanding Investment Basics
This is crucial for anyone looking to invest their money. Before investing, it is important to have a clear understanding of the stock market, bonds, mutual funds, and other investment options. It’s also important to learn how to “pay yourself first” by contributing the maximum allowable amounts into retirement vehicles that grow tax-free, like IRA’s, Roth IRA’s, 401K Plans, or other tax-advantaged accounts.

Barbie’s brand success story can provide some insight into investing. Barbie’s parent company, Mattel (MAT) has been selling toys for over 75 years and has had volatile ups and downs. Although Barbie’s success has helped Mattel’s stock rise over the years, the valuation of the company went sideways for nearly 30 years at an adjusted $2 per share until the year 2000 when it reached $45 per share during the “dot-com boom” years.

Barbie’s long-term holding strategy paid off! That was a 2250% gain on Barbie’s original investment of Mattel, however, the stock swiftly collapsed back to $5 before swinging back up to $45 in 2015. Currently selling at $20 per share, Barbie has certainly been on a roller coaster ride in Mattel. Although the worldwide blockbuster hit movie should add significant revenues and profits for Mattel (and for Barbie) this “volatility” led to Barbie’s next big discovery!
Importance of Diversification

Diversification is an important concept in investing. It involves spreading your money across different types of investments, such as stocks, bonds, and real estate. This helps to reduce the volatility and the risk of losing money if one investment performs poorly.

Barbie began to create a diversified portfolio, starting with low-fee index funds, like the Dow 30, the S&P 500, the Nasdaq 100, and others. She... read more

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