The Top Stock Picks From the Harry Potter Franchise

The most pre-ordered product at Amazon.com is the latest Harry Potter book, written by J.K. Rowling, whose books have sold more than 325 million copies.

This latest book in the series about the young wizard is so popular that it's been under guard at a secret warehouse, although it has leaked out onto the Internet despite security precautions rivaling those of Fort Knox.

Rowling wrote her first book as a single mother receiving government subsidies and became the second richest female entertainer in the world after Oprah, and the first person to become a billionaire from writing books.

The Harry Potter phenomenon is a worldwide one that hits all age groups and both sexes and has created a $10 billion industry of books, dolls, games and even glasses and watches -- it's such a mini-industry of its own that you can plausibly build a portfolio of stocks to catch a little magic from this pubescent warlock.

And that's what we've done: the Harry Potter Stock Index at Stockpickr.

The Potter books are published in the U.S. by Scholastic (SCHL Quote), which specializes in children's and educational book publishing. The stock has a price-to-earnings ratio of 25.4 and a PEG of 2.02. Scholastic shows up in the portfolio of the Royce Opportunity Fund (RYPNX), which has generated an average return of 15.4% per year for the last five years.

But, that said, I wouldn't go with Scholastic here.