What Are the Best Stocks to Buy For Beginners?

Stocks offer an opportunity to generate large returns and build wealth over the long term, but certain stocks may be more volatile than others and scare off novice investors.

Beginners can focus on selecting stocks with reliable earnings and low risk, such as AT&T, Broadcom or Johnson & Johnson.

1. Microsoft

As a novice investor, it’s essential that you find stocks for beginners that match both your risk profile and desired returns. After all, this is why 95% of investors fail – they simply didn’t pick companies with enough potential.

Microsoft is one of the largest technology companies worldwide and regularly ranks among the top five stocks on NASDAQ. Microsoft is well known for successfully making the switch from desktop computing to cloud computing and as such its stock has seen significant gains as a result. Furthermore, they’re industry leaders when it comes to artificial intelligence with large investments being made into future development plans for their business.

As an investor, it is crucial that the company you invest in has an efficient plan in place for expanding revenue, which will affect its stock price and your return. Review its expected growth over the next few years to ascertain if it fits with your portfolio.

Mastercard, one of the world’s premier payments companies, stands to benefit immensely from our increasing reliance on digital transactions over cash ones. And now that they offer Apple Pay too – making Mastercard an even more appealing investment opportunity.

Netflix is an ideal investment choice for novice investors. Renowned for producing original content that engages millions of viewers worldwide, its immense reach and diverse user-base have cemented Netflix as a solid blue-chip stock with which you can grow your portfolio over time.

2. Netflix

Beginners may wish to diversify their portfolio with investments that are both safe and predictable. A good place to begin would be purchasing some NYSE or Nasdaq stocks that have proven themselves reliable over time without taking too much risk, while dividend-paying stocks might even provide regular and predictable income streams.

Netflix is one of the best stocks for beginners looking to invest in stocks. As one of the leaders in online streaming media, this tech titan boasts millions of global subscribers to its services. Not only has its revenue been consistently increasing over time; Netflix also has the capability of expanding into different regions and markets as it produces original content – showing they had foresight when investing early on in this company that saw future potential and invested early.

Nike is another ideal stock for beginners to consider investing in. This NASDAQ stock has steadily been rising over recent years and currently reigns supreme as the world’s most valuable company, as evidenced by revenue increases as profits doubled within four years and strong brand recognition that could lead to expansion into other territories and markets in future.

Before investing in stocks, it is essential that you first understand who you are and your goals. Deliberate on whether you wish to be an investor or speculator as well as what type of return you seek before selecting appropriate stocks to match those criteria and help reach financial success and become wealthy.

3. Alphabet

Alphabet, Google’s parent company, is an extremely profitable global business. Overseeing multiple revenue streams like search, maps, advertising, YouTube, Chrome OS and Android OS; Alphabet’s profit growth is impressive while they expand into new markets.

Shopify is another booming tech stock that makes an ideal starting investment. A pioneer in online retail, its shares have skyrocketed over the last four years and offer attractive valuation and long-term potential.

Pinterest, an image-focused social media platform which went public in 2019, provides users with an easy and visually-driven way to share travel experiences, design/decor ideas, artworks and recipes with family and friends. As visual content becomes an ever-more-important market factor, Pinterest represents an excellent addition to a diversified portfolio.

Beginners should remember that even the safest stocks come with the risk of losing money at any moment. Investors must conduct an in-depth analysis of any stock’s history and forecast before making their purchase decision. In particular, beginners should pay attention to personality traits of stocks they select – such as high returns stocks that may experience more wild price swings; or those characterized by extreme price gyrations which make sticking with plans difficult; ultimately the appropriate stocks for beginners are specific to each person and his or her goals.

4. Apple

Beginners looking for stocks to buy should invest in stocks which offer steady profits, pay dividends and have low price volatility. Such stocks can typically be found on major exchanges like NASDAQ and London Stock Exchange and must meet specific criteria such as paying out at least one dividend per year and possessing a market cap over $10 billion – this indicates they have enough revenue justify listing on such markets and are unlikely to engage in fraudulent activities as most are heavily regulated.

Apple is one of the largest tech companies, consistently outpacing revenue numbers and returns for investors. Their diversified business model and loyal fan base make them ideal stocks to purchase and hold long term. Recent investments into solar panels and self-driving cars further broaden its potential growth.

Spotify is an iconic music streaming service with a strong following in the music industry, having established itself as an indispensable service. They’ve found an effective way to monetize their service without alienating its core userbase and have even recently made headlines by hosting Michelle Obama podcasts exclusively – cementing their position as one of the premier streaming services.

Johnson & Johnson may not be the flashy sports car of your dreams, but it remains reliable and trustworthy in every respect. Established in 1887, this iconic company has endured financial storms and health crises to become one of the most secure stocks available today. Their portfolio boasts iconic products like Neutrogena, Band-Aid and Listerine ensuring people will always need its products. While taking risks over time is essential to building wealth effectively, beginning your investing career safely may be ideal.

5. Johnson & Johnson

Stock markets may seem intimidating at first, but with proper research and an effective plan in place, newcomers can reduce risk and see their investments thrive over time. A key rule to follow as a beginner investor is selecting stocks which align with both your risk tolerance and investment horizon; Stock A may offer high long-term returns but be susceptible to sudden price swings that force early selling while Stock B might provide lower long-term returns but be less volatile than its counterpart.

Once again, another crucial consideration when investing is your goals for holding or short-term gain. Beginners may benefit from opting for safer blue-chip stocks that have long-term growth potential rather than high-risk tech stocks that might experience sudden spikes and drops over short timeframes.

Johnson & Johnson is an excellent option for beginners looking for long-term holding. As one of the largest healthcare giants, this healthcare titan offers everything from surgical sutures to Tylenol. Additionally, it has made significant investments in new technology by purchasing companies such as Ethicon, McNeil Laboratories and Janssen Pharmaceutica.

Shopify is an e-commerce platform specialized in offering businesses customizable online storefronts and sales tools that enable them to maximize sales online. Their customer base comprises mostly small and midsized companies operating within the US and Latin America; furthermore, its partnership with leading Latin American marketplace MercadoLibre makes Shopify an excellent long-term option.