Congratulations to the Duke and Duchess of Sussex, who welcomed a baby boy to the world this week.
The baby, who is seventh in line to the UK throne, ushers in a new age of responsibility for the former party Prince Harry, whose wild merrymakings are likely to be swapped for midnight feeds and storybooks.
But while the new family in Windsor may be deluged with gifts from around the world, how can an investor look to make gains from what a newborn baby needs (and avoid sleepless nights)?
First up, babies need a lot of stuff. We are born with nothing and leave with nothing, but along the way – and certainly in the first few years – we gather a lot.
The first thing babies need is clothes and for new parents without the public purse to cover the Babygros, bibs and bootees, an inexpensive option is key.
Mothercare, once the go-to on the high street has followed many of its retail company peers into a slump over the last few years. Its share price has tumbled from 289p in July 2015 to just 20p at the end of April.
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But there are other options. Primark, which is owned by London-listed Associated British Foods (ABF), carries a wide range of babywear that won’t break the bank and allows a wardrobe to keep pace with the growth spurts of a new-born. ABF’s share price is up 23% since the start of the year.
Next, the baby will need washing and where better to start than with the range from Johnson & Johnson that we (probably) all grew up with? The company’s stock, which is listed on the New York Stock Exchange – Meghan is American after all – has risen almost 12% since the start of the year.
Staying in the US, nappies are a key expense for a new family and whether the Sussexes will head down the fabric route is so far unknown. For most busy new parents, however, disposable nappies are the most common way forward and Pampers are the most recognisable brand.
Proctor & Gamble, the New York-listed company that owns it, has seen its stock rise by almost 16% this year.
Finally, Boots – where would new parents be without Boots? The once UK-owned company was bought out at the end of 2014 by US conglomerate Walgreens, whose stock price is not having the best year… But with a new era of UK-US baby fever erupting on either side of the pond, it might be time for the stock to see a change of fortune and put on a growing spurt of its own.
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