New to investing? These 5 Stocks Make an Outstanding Beginner’s Portfolio
If you’re just beginning your journey as an investor, deciding where to start can be daunting. There are several ways to dip your toes in water; the important thing is to start and make adjustments along the way if necessary.
To help new investors on this journey, I’ve selected five stocks that would make an excellent starter portfolio. They understand Amazon (AMZN -5.60%), waltz disney (SAY -3.77%), Airbnb (ABNB -5.88%), Procter & Gamble (PG -0.38%)and McDonald’s (MCD -1.97%). These stocks represent a diverse set of companies serving a diverse group of consumers around the world.
Amazon has become a store of everything
Amazon started out as a small bookstore but has grown to sell everything from groceries to electronics. The company has grown revenue at a compound annual rate of 25.6% over the past decade while increasing profit margins.
Amazon gives the wallet an international presence as well as several revenue categories, including e-commerce, cloud computing and advertising.
Disney has been delighting consumers for generations
The House of Mouse has existed for over 100 years. During this time, he developed a connection with his fans around the world. Parents take their children to Disneyland. These children, in turn, carry their children for generations. This is possible thanks to the timeless quality of Disney intellectual property. Mickey Mouse never goes out of style.
Luckily for investors, Disney has turned it into a great business with revenues growing from $42 billion to $67 billion over the past decade.
Airbnb is a popular travel facilitator
Airbnb is quickly becoming one of the best-known travel agencies in the world. The company runs the platform, which brings together people who want to travel with people who want to rent space. Airbnb is bouncing back quickly as people plan to travel again after delaying trips at the start of the pandemic.
Indeed, Airbnb sales jumped 77.4% in 2021 and are off to a strong start in 2022. The global hotel and resort industry generated a massive $1. $5 trillion in 2019, so if Airbnb grows to take a meaningful share of that market, it could reward shareholders handsomely.
P&G is a staple in many homes
Procter & Gamble has a portfolio of household products including Tide laundry detergent, Crest toothpaste and Pampers baby diapers. Above all, they are essential items that people use on a daily basis, whether their incomes go up or down. Holding P&G in your portfolio gives it a defensive stock that can perform well even during recessions.
Additionally, P&G is no slouch when it comes to revenue and operating income, generating $76 billion and $18 billion, respectively, in 2021.
McDonald’s expands its reach
McDonald’s needs no introduction. The iconic brand has been serving fast, affordable meals to families around the world for years. The restaurant franchise is expanding its reach due to the innovation it has been forced to implement during the pandemic. With its restaurants closed to in-person dining, McDonald’s has developed a robust mobile app where consumers can order food for pickup or delivery. The move boosted McDonald’s earnings per share by 59% to record highs in 2021.
Now is the perfect time to start investing
If you’re new to investing, you might not know that the stock market crashed in 2022. The chart above shows what percentage each of the stocks mentioned is down from all-time highs. Without going into the details of the market fall, I will say that stock market crashes are not rare historical events.
The good news is that the market rebounded to record highs after each crash. The recovery may take a few years, but patient investors are rewarded for buying during stock market crashes. So if you’re looking to start investing, now is the perfect time to start.