Do toy stocks make good gifts for your portfolio?

ByABC News
December 22, 2011, 8:10 PM

— -- Q: Given the time of year, which toy stocks have been the best for investors?

A: Investors have suffered through another disappointing year. It's yet another reminder that investing isn't always fun and games.

But some investors may want to literally bet their money on toys and game, specifically on the companies that make them. And there are several options for anyone who wants to put some fun stocks in their portfolio.

Each of these toy and game companies take very different approaches. Build-A-Bear Workshop, for instance, is more of a retail concept while Mattel and Hasbro manufacture toys and distribute them to retailers. Yet all are the in the business of making things kids want and can convince their parents to buy for them.

Examining the stocks' performance this year, it's clear investors have their favorites:

• Build-A-Bear: 14%

• Mattel: 9%

• Leapfrog: 9%

• Jakks Pacific: -23%

• Hasbro: -32%

Hasbro, which has been an investor favorite for years, has been cooling off as there hasn't been a big movie, like Transformers, to turbocharge sales of any key lines of toys. Mattel, on the other hand, has been working to reinvigorate its toy lineup especially in the area of dolls.

Be careful, though. The toy business is infamously fickle as kids, and parents, can quickly move to the next big thing leaving toy companies scrambling.

Matt Krantz is a financial markets reporter at USA TODAY and author of Investing Online for Dummies and Fundamental Analysis for Dummies. He answers a different reader question every weekday in his Ask Matt column at money.usatoday.com. To submit a question, e-mail Matt at mkrantz@usatoday.com. Follow Matt on Twitter at: twitter.com/mattkrantz