Fisho, I think that's a great idea for a newborn.I'd go BHP...

Fisho, I think that's a great idea for a newborn.
I'd go BHP personally - $1000 is $1000 - doesn't matter which stock. If it goes up 10% it's still $1100 - whichever one you're on.

The fact that it's safe, and goves dividends, and will grow with him is important - and maybe in 3 years time (or whatever) he'll decide to swap into something else.
Unless he's prepared to 'watch it' and play with it, it's better to go straight to one safe place.

If not BHP, then I'd suggest WOW. August 2007 is probably not the best time to select a bank to invest in - maybe next year.

Just tell him to assess annually if it's in the best place, so no capital gains.
It's a tiny amount of money - but unless he uses it to double in a speccy in the first 3 or 4 months - that's the safest choice imo....