The fifth grader got a 5000% return on his mom’s investment
by Julie Scagell, ScaryMommy.com
Amateur investors on Reddit made headlines this past week by driving up GameStop’s stock prices sending many Wall Street hedge fund owners who were selling the stock into a frenzy. While many lost millions, one ten-year-old got a 5000% return on his mom’s original investment in GameStop and cheers to the real winners amongst this chaos.
Jaydyn Carr was gifted ten GameStop shares, each bought at $6.19, as a Kwanzaa present from his mother in December 2019. His mom, Nina, said she bought the stock for her son because it was his favorite store to buy video games and she wanted to teach him a little bit about the stock market. This week that investment paid off big time, when his $60 stake in the retailer grew to $3,200.
“Is this really happening right now?” Nina told The Washington Post of her first reaction to seeing the stock soar. “I couldn’t believe it was true.” She ran to her son’s room to ask him if he wanted to hold onto his stock or sell it. “She was saying that stocks hardly ever go up this way, so if I wanted to sell it, we should sell it now,” Jaydyn said.
Nina left the decision up to her son. “It wouldn’t be fair for me to make the decision on his behalf,” she explained. “If he lost the money, it would have been a lesson learned,” a hard but important lesson to learn. In the end, he decided to sell and now has $3200, which he will both reinvest and put into a savings account.
“We’re African American. You don’t see a lot of that in our community,” his mom told CNN. “I wanted to give him a step up when it comes to learning these things because I learned it later in life and I wish I had known sooner.” She also explained Jaydyn’s dad died in 2014, which made her even more determined to teach her son about being financially responsible
“He’s my legacy,” she said. “I have to make sure that he’s prepared for the future.”
She also explained that purchasing the stock was meant to teach her then eight-year-old son about Ujamaa, which means, “cooperative economics.” It’s one of the seven principles of Kwanzaa, she explained. “The goal was to ensure he knows the value of a dollar and how to manage money,” Nina said, explaining that Ujamaa is the idea of sharing wealth while also building your own personal wealth.
Jaydyn told The Post this is just the beginning of his investment career. “I am now looking for companies that pay dividends,” he said.
Good job, mama.