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Want to Help Your Loved Ones Grow Wealth? Steal This Cool Gift Idea From Kanye West

The Motley Fool logo The Motley Fool 10/1/2021 Christy Bieber
Want to Help Your Loved Ones Grow Wealth? Steal This Cool Gift Idea From Kanye West © Provided by The Motley Fool Want to Help Your Loved Ones Grow Wealth? Steal This Cool Gift Idea From Kanye West

Man hands young girl a gift in an envelope. © Getty Images Man hands young girl a gift in an envelope.

While Kim Kardashian and Kanye West's relationship is on the rocks, there's still plenty to be learned from their love story. And, surprisingly, one of the lessons is a financial one that comes from a gift Kanye gave to Kim.

Kardashian told Vogue that for Christmas one year, Kanye "gave me a box, and I opened it and it was Mickey Mouse and Adidas socks and Apple headphones." The real gift, however, wasn't these consumer items. Instead, Kim went on to explain, "he told me that he bought me major stock in all of those companies.”

The gift was an ingenious idea -- one that you may be able to steal for your own loved ones for the upcoming holiday season -- at least if you're interested in improving their personal finances by helping them to grow their wealth.

Why stock could be the ideal holiday gift -- and why it may be more affordable than ever

Often, holidays are a time when people spend a lot of money and end up giving consumer items that people don't really need just because they want to mark a festive occasion.

But Kanye's gift isn't one that will be forgotten or just sit on the shelf. A gift of stock shares provides the potential to build future wealth. When money is invested in companies with a solid business model, a strong track record of success, and good potential for future growth, there's a very good chance the value of the investment will go up over time.

Investing in stock is one of the best ways to build wealth -- as long as you do the research carefully. That's because you have the potential to earn a generous return on investments with limited risk. This is especially true if you build a diversified portfolio and hold your investments for the long term. The money you've invested can earn returns that are reinvested, and your portfolio balance can keep growing and growing even without any additional money being deposited.

Now, buying stock for someone in a bunch of companies may seem expensive -- and the Disney, Adidas, and Apple stocks that Kanye bought Kim would have a collective cost of several hundred dollars even to buy a single share. But many brokerage firms now offer fractional shares. That means it is possible to specify the amount to invest in a company and buy part of a share even if you can't afford a full one.

Thanks to fractional shares, almost anyone can copy Kanye's gift and give a loved one stock in a few different companies they feel have solid potential for growth. Whether you invest $25 in each company, $100, or whatever amount you are comfortable with, you can buy your loved one the chance to build more wealth if their stock performs well.

Packaging that up with a cute token such as socks or a tee-shirt with the company's logo on it gives your loved one something tangible and fun to open. Meanwhile, the real gift will be the chance to improve their net worth and become more financially secure over time.

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