Which stocks to buy as a beginner

Which stocks to buy as a beginner? 6 stocks for new investors

In the last few months, the number of retail investors has increased significantly. Some of them prefer long-term investments, while others prefer short-term ones. If you are also a beginner, it may make sense to open long-term positions in your portfolio first. After all, the stock market brings an average annual return of about 10%. We’ll give you a list of stocks to answer the question, „Which stocks to buy as a beginner?“ in this article.

6 solid stocks for beginners:

  • Amazon (AMZN)
  • Apple (AAPL)
  • Walt Disney (DIS)
  • Facebook (FB)
  • Microsoft (MSFT)
  • Netflix (NFLX)

A 10% return may sound simple at first, but in fact not many people achieve such a return (per year). This is mainly because many of these investors do not hold on to their stocks long enough.

Which stocks to buy as a beginner – some tips in advance

Choosing the right stocks should not be done too quickly. Because even (especially) the most experienced investors do their research. We recommend you as a stock beginner to focus on companies you already know. This way you already have some know-how about the respective company, which will make your research easier.

Of course, you will not be successful with all the stocks you have chosen. Partly you will also have negative positions. Therefore, it is even more important to diversify your investment. Through this tactic, the losses of one position will be offset by the gains of another position.

More about diversification and why you should start investing can be found in our article „Why buy stocks?„.

1. Amazon – Stocks for beginners

Amazon started as an online bookseller in the 1990s and has come a long and successful way since then. Today, the U.S. company’s businesses include Amazon Web Services, Whole Foods Market, Amazon Fresh and Prime Video, which includes original content and makes the company one of the most popular streaming providers.

Of course, Amazon’s e-commerce business is also one of the main components of the company. Along with its web services division, the e-commerce business has helped Amazon stock more than recover after the market decline at the start of the pandemic. This stock is not cheap due to its price-to-earnings ratio, but it can be a solid choice for a beginner stock pick for a buy and hold portfolio.

Amazon stock for beginners

2. Apple – Stock for Beginners

Apple is a top tech stock that consistently reports top-notch revenue numbers and returns for investors. The company is best known for inventing the iPhone, iPad, iTunes, AppleTV, iCloud and Apple Watch. In addition to these products, Apple’s portfolio also includes a wide range of high-end PCs – such as the Macbook Pro and Air.

Due to the stock split in the summer of 2020, Apple’s stock is currently around 102 euros. Such a stock split usually doesn’t matter, because it’s ultimately just about cutting the same pie into more pieces. On the other hand, the split may cause investors to get excited and see the stock as more affordable.

Since the company will continue to release new products (and perhaps hyped ones again) in the future, Apple stock also seems like a solid buy and hold investment for beginners.

Apple stock for beginners

3. Walt Disney – Stocks for beginners

Walt Disney is a true classic in the entertainment industry and, as a result, is also one of the best and most solid stocks in the field. In its long history, Disney has also built a large portfolio. This includes not only theme parks, brands and cinemas, but also the company’s new streaming service; Disney Plus.

The launch of this streaming service seems to be one of the serious threats to the big players in this industry. Because even though Disney+ is relatively new, it already has 60.5 million paying subscribers worldwide. In addition, once the pandemic is over, Disney will again be able to leverage the strength of all its product and service lines. Thus, Disney could be a suitable stock for beginner portfolios.

Disney stock for starters

4. Facebook – Stock recommendation for beginners

As the world’s largest social media platform, Facebook is also one of the top tech stocks. With more than 2.7 billion active users, the American company has also become one of the most important and influential platforms for digital ads. In addition, other popular social media platforms – such as WhatsApp and Instagram – also belong to Facebook.

As you can guess, the company’s main revenue driver is digital advertising, which is expected to exceed 430 billion euros in sales by 2023. But Facebook is also no stranger to e-commerce. That’s because the social media giant is planning to introduce shopping features to WhatsApp that will allow users to buy items directly through the chat app.

This functionality may be particularly attractive in countries where WhatsApp has a strong user base. Therefore, Facebook stock could also be a solid investment for beginners.

Facebook stock for beginners

5. Microsoft – Safe stocks for beginners

When it comes to using computers, it seems that most people can be divided into two camps; Mac users and PC users. However, Microsoft now offers much more than just its Windows operating system. This is because its product range also includes well-known software applications such as Word, Excel and PowerPoint. The American company is also firmly established in the field of cloud services.

More and more people are working or learning from home, so this sector is definitely future-oriented. And even though the revenue growth for the cloud services business has slowed down, the company still recorded a revenue growth of almost 50% in the last quarter. Thus, Microsoft is also an interesting stock for beginners.

Microsoft stocks for beginners

6. Netflix – Stocks for newbies

The pioneer of video streaming generated more than 20 billion in revenue in 2020 and recently passed the 200 million subscriber mark worldwide. That may sound like a lot, however, half of Netflix’s subscribers are in the United States. So there is still a lot of potential to expand the business and thus the market share.

More and more countries – such as Brazil and India – are expanding their Internet infrastructure. Therefore, it can be assumed that Netflix will benefit from this with several million new subscribers. Because of this potential upside, Netflix can be a solid stock for beginners.

Netflix stocks for beginners

Conclusion – Which stocks to buy as a beginner

We hope we could give you a little overview with our list about 6 solid stocks for beginners. However, always remember to do your research on the respective companies before investing. This is the only way to minimize possible losses. If you want to know in advance whether you should invest at all, read our article „Why buy stocks?„. If you are unsure whether you can immediately turn your invested money back into cash, then read our article „Can a stock be sold at any time?„.

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