All investing should be regarded as longer term. The value of your investments can go up and down, and you may get back less than you invest. Past performance is no guarantee of future results. If you’re not sure which investments are right for you, please seek out a financial adviser. Capital at risk.
Invest in makeup stocks
Find out how you can add a bit of a highlight to the foundations of your investment portfolio with makeup stocks.
If you’re looking for a colourful addition to your investment portfolio, then makeup stocks might fit the bill. Makeup stocks are part of a wider category of stocks in cosmetic companies that produce makeup, lotions, perfumes and hair products.
A lot of makeup companies are owned by larger parent companies, so it will take a bit of research to find out how to invest in makeup stocks.
How to invest in makeup stocks
- Choose a share dealing platform. We’ve listed some below for you to compare. As a lot of cosmetics companies are based in the US, you’ll need to choose a provider that lets you trade US stocks.
- Open an account. You may need to provide details about your employment, your national insurance number and your address.
- Fund your account. Some providers let you fund your account with a debit card, by bank transfer or by Apple or Google Pay.
- Choose your makeup stock and search for it. We’ve listed some below, make sure you look at the some of the key financials like its performance, market capitalization and price-to-earnings (P/E) ratio.
- Submit an order. Choose how many you want to buy and review the price. When you’re happy, hit buy.
- Keep an eye on your investments. It’s as easy as that!
Compare investment services
List of makeup stocks
Here are some examples of makeup stocks or parent companies of makeup brands.
Why invest in makeup stocks?
Cosmetics are, to some extent, considered to be a staple. This means that, like other staples such as food, electricity and water, people will still continue to buy them even when stocks are falling.
This is helped by beauty bloggers and beauty vloggers on Instagram, TikTok and YouTube increasing the popularity of makeup and even influencing consumers to use more expensive brands. Makeup is now considered to be art, and its ability to improve confidence makes it an integral part of a self care routine.
In 2019, the global cosmetics market grew by an estimated 5.25% compared to the previous sales year. Research has discovered that those who use cosmetics aren’t willing to decrease what they spend on beauty products, even with less disposable income on hand.
The cosmetics industry has staying power — makeup has existed for hundreds of years and if recent market trends are anything to judge by, the industry isn’t going anywhere.
Risks of investing in makeup stocks
While makeup is considered a staple, it’s not necessarily an essential item. While these stocks did continue to perform well during the coronavirus pandemic, it may have been helped by a need for self care during such a difficult time.
Makeup isn’t immune to volatility – a shift to online shopping could give smaller independent companies a boost while hindering larger, well known brands. Make sure you look at long term plans for the companies you want to invest in, such as future innovation and product launches.
The bottom line
Makeup stocks can be a way of adding some diversification to your investment portfolio, even if you don’t highlight, contour or blend yourself. Cosmetics companies tend to perform well, and have done even during the coronavirus pandemic, so it’ll be exciting to see what’s next for them.
More guides on Finder
Why it pays to be a patient investor
One way to develop healthy investing habits is to make regular contributions to your investment pot over a period of time, instead of investing a large lump sum. This is called “pound-cost averaging”. It’s a way of investing without trying to time the market.
Best shares to buy now
We’ve compiled the top trending stocks from leading investment platforms to see which stocks people are buying today.
How to invest in electric cars
Find out how to invest in electric cars and see some electric car stocks to consider. We’ve listed the 6 steps to get started and the risks.
Stocks for after coronavirus
We’ve compiled some stocks that might bounce back in the coming months during Boris Johnsons’ roadmap out of lockdown.
ESG investing: Can investments help save the planet and make money?
Find out how your investments can contribute to saving the planet. Paid content.
Coronavirus vaccine stocks to watch
Our round-up of companies in the race to develop a COVID-19 vaccine, and their share price.
Coronavirus: Stocks to watch in Lockdown 2
The UK went back into lockdown on Thursday 5 November. We’ve compiled some lockdown stocks that might see some growth over the next month.
Artificial intelligence stocks
You might think that AI is just something you’ve seen in sci-fi movies, but it’s slowly working its way into our day to day lives. Find out how you can invest in it.
Best big data stocks to invest in
Big data is a large set of data, and it’s not named big for nothing! Discover how you can invest in companies that source and manage this type of data.
Cloud stocks | Top cloud companies to invest in 2020
Cloud computing stocks have skyrocketed during 2020. In this article we look at the best performers, how to invest in them, and also take a quick look at cloud computing ETFs for you to invest in too.
Ask an Expert