Investing in stocks can be a great way to build wealth, but it can also be intimidating for new investors. After all, the stock market is complex and ever-changing, and there are so many different types of investments to choose from. But don’t worry – investing doesn’t have to be complicated! There are plenty of stocks that are perfect for beginners. In this article, we’ll take a look at twelve of the best stocks for beginner investors.
12 Best Stocks to Invest in Right Now for Beginners
First, we’ll look at 4 super solid big tech companies. You surely know these are already massive winners, they have great business models and stable revenues. These are commonly thought of as some of the best stocks to start investing. Because of their investments in future technology, they are likely to stay for a while, so the fact that their stock prices went down in 2022 can and should be seen as an opportunity.
Apple Inc (AAPL)
Apple is an exciting investment option and has shown to be a sound decision financially in recent years. Founded in 1976, this company has become one of the most recognizable brands in the world and one of the typical first time stocks to buy for many investors.
One big benefit of investing in Apple is that their products are extremely popular, meaning that even during periods of economic downturn, people continue to buy iPhones, MacBooks, and use their streaming and other services. This stability is beneficial for investors, as it means that even if other stocks go down, Apple usually remains strong.
Microsoft Corporation (MSFT)
Microsoft is an iconic tech giant and one of the most widely traded stocks on the market. Investing in their shares provides investors with a number of advantages including diversification, regular dividend payments and access to various technology services, which makes it one of the best stocks to buy for beginners.
The historical trend on the Microsoft stock price shows that the company continues to be reliable when it comes to long-term returns. Owners of this company can benefit from their ongoing success as they launch innovative products and expand into new markets, like gaming, cloud, and AI.
Amazon Inc (AMZN)
In addition to being one of the world's largest online retailers, Amazon is considered a tech business for a reason — its AWS services power about a third of the Internet.
Amazon had seen tremendous growth in years before the whole tech market went down in 2021-22. Their stock has the potential for great returns on investment because of the company’s forward-looking strategy, which makes it one of the hot stocks to buy for beginners.
Alphabet Inc. (GOOG)
Investing in Alphabet can be a great way to tap into the potential of the tech giants and grow your portfolio.
Not only do you have access to a broad range of industries, including internet services like Google and YoTube, but also biotechnology, AI, and finance.
Alphabet's impressive performance and strong fundamentals make it an attractive choice for investors who want to buy a stable business.
Google is a lucrative investment option at any price but the discount it’s trading at now possibly makes it one of the best stocks with high returns for beginners. With this in mind, now seems like an ideal time to investigate the potential of Alphabet shares — it could be the perfect addition to any portfolio!
While it’s too early to dismiss tech stocks altogether, they have been a disappointment to many in 2022. So let’s look at some stocks that have less potential for growth but will be more stable because they are tied to “real-world” industries such as Retail, Food, Energy, and Banking.
The first three of the following companies are part of the Inflation-Proof TTF in Gainy. Download the app to find out more and protect your portfolio against inflation!
Costco Wholesale (COST)
Even though inflation is hitting retailers hard, Costco has what it takes to perform in this environment. They have seen steady market growth in the last decade, with their stock price increasing steadily over the years.
Costco is a membership warehouse club, and there are several benefits to owning Costco Wholesale stock beyond just having a solid business in your investment portfolio. With an annual membership and other exclusive perks available only to shareholders, such as discounted items and special rates on insurance or travel services, holding Costco Wholesale stock can really pay off.
Compared to other retailers like Walmart, Costco trades at a premium. But the company’s membership model, member retention rate, and business track record make it very attractive. That’s why buying it low might make it one of the best and safe stocks to start investing as well as a great decision to make for the long term.
NextEra Energy Inc. (NEE)
Investing in NextEra Energy is a wise choice for investors looking for steady, long-term returns. Not only does the company have a strong track record of providing reliable traditional and renewable energy for customers all over the country, but its stock price has been consistently on the rise.
Beyond monetary benefit, investing in sustainable energy companies like NextEra Energy makes it possible to invest with a social conscience, helping pave the way to a more sustainable future. As these trends continue, those investing in NextEra Energy now will likely enjoy great success into the future.
Bank of America (BAC)
Bank of America is one of the largest banks in the country and one of the most popular banks for investors. Banks are a clever investment to make during high inflation, and BAC is a top pick in this category, which makes up over 10% of Warren Buffett’s portfolio. Although the stock fell by 27% in 2022, the bank should benefit from increasing interest rates and it might actually be a good time to buy a stock like this.
As a nice bonus, the company pays dividends with a decent yield of 2,66%, providing another way for investors to earn money off of their original investment.
Johnson & Johnson (JNJ)
At a time of economic uncertainty, people may cut down on the latest iPhone, but actually they might end up needing more band-aids.
J&J is a leader in consumer health and pharma and remains resilient during economic downswings. The JNJ stock is relatively stable, making it an attractive option for any investor looking for some stability to balance out more risky investments. They also pay decent dividends at around 3% yield. This is a solid buy-and-hold stock for beginners.
Invest in trends
One could say this is not for beginners as this is more advanced than buying top blue-chip stocks. Trends come and go and this may be an approach for more advanced investors looking to get some returns off short to mid-term investments.
But let’s take a look at some trends you could look into for 2023 that could be good options if you want to try this approach to see how it works. But let’s agree that this is not investment advice but just something to explore. Okay? Okay.
Many analysts believe 2023 is the time for Chinese stocks to shine. While nobody likes to see a descending graph, for those who like to take more risk buying low may be an amazing investment opportunity.
Wall Street analysts are giving this stock very strong Strong Buys, although this should be seen with caution, as this is not a prediction but simply a reflection of the strength of the business.
If the stock price does recover as the bulls suggest, this will bring substantial profits to any investor who purchased the shares before this growth spurt. The Chinese economy is on the rise unlike many economies in the West, so buying Alibaba shares also grants its owner a valuable piece of this profitable and expansive empire.
Pinduoduo is another Chinese e-commerce stock that’s showing a clear upward trend and it might still be a great time to jump on the bandwagon. The stock grew around 80% in 2022 and the company’s revenue rose 36% YoY, beating analysts’ estimates by $1.25 billion.
Although not as famous as Alibaba, Pinduoduo is one of the world's leading online marketplaces that is expected to continue on its positive trajectory well into the future. China is one of the fastest-growing economies in the world and it may as well be a good time for investors to consider this stock.
Deutsche Bank (DB)
Another trend to look at for 2023 is European banks. Last year, the European economy took a hit from the war in Ukraine but is set to recover in the new year.
A top company to look at is Deutsche Bank, a multinational investment bank and financial services company. It is a major player in a variety of financial markets and is very popular with hedge funds and analysts.
Power & Gas Utilities TTF
Remember that time Russia invaded Ukraine and the prices on oil and gas went up? Power & Gas Utilities is a thematic collection in Gainy with all the top US energy companies that considerably outperformed the general market in 2022 and are likely to do the same this year.
This includes companies like PG&E, Nextera, NRG, and other top companies in this field. The portfolio is dynamic and is automatically rebalanced and readjusted without you having to do anything.
What Stocks Should Beginners Avoid?
Penny stocks and other low-priced investments are not suitable for beginners. These stocks are known to be extremely volatile and unpredictable, making it difficult for novice investors to effectively analyze the market. In addition, penny stocks don't provide solid dividend yields or reliable capital gains potential that can be seen with more established companies. These are definitely not among the best shares for beginners.
Low-cap stocks, also known as small-cap stocks, are shares of companies with market capitalizations between $300 million and $2 billion. These companies are typically younger than their blue-chip counterparts and generally have a shorter track record, making them more difficult to predict in terms of future performance and risk. Smaller companies tend to be more vulnerable to market fluctuations and changes in the overall economy, making them a risky type of stocks to buy for beginners.
Initial public offerings (IPOs) are the initial sale of shares for a company that is going public. These stocks can be volatile and risky, as they are often driven by speculation rather than actual performance metrics. Even though they may provide lucrative returns, they are not good stocks to buy for beginners.
So unless you just want to speculate a bit, it is best to avoid IPOs and focus on established companies with a proven history of performance.
Hopefully, you’ve enjoyed this list of some of the best stocks to buy for beginners. Please don’t consider this investment advice but just some ideas to get you thinking. These are not all made equal, some of these come with much more risk attached to them but may come with more reward, especially at an uncertain time like this.
A good type of investment for beginners is to buy an index fund like the S&P 500 (SPY), which is safer because it tracks the whole market.
If you want to invest in themes you believe in or want to support without spending too much time on research, download Gainy to discover thematic stock collections that make investing easy and convenient.
What are the best stocks to invest in for beginners?
For beginners, it is best to start with blue chip stocks, large companies with proven business models and stable revenues as these are safer investments.
What Stocks Should Beginners Avoid?
Beginners should avoid things like penny stocks, low-cap stocks, and IPOs. These investments tend to be more volatile and risky, making them unsuitable for novice investors who lack experience in the stock market.
Get More Value!
You will get from us best tailored content that will help your business grow. Early bird news, bonuses — only for subscribers!