Project Life Mastery

Beginner Stock Investing Portfolio (Best Stocks For Beginners)

Do you want to build a stock investing portfolio, but don't know how to start?

I've built a multi-million dollar investment portfolio. In this blog, I break down the best investments and stocks that I invest in.

Furthermore, I share exactly what I would invest in if I was starting my investment journey over again.

At the end of the day, you have to decide where you are going to invest your money.

However, I am confident what I'm going to share with you will yield you great returns for many decades.

If you're ready to invest your way towards financial freedom, read this!

Watch the video below:

(Click here to watch on YouTube)

Are you ready to start managing your money so you have more to invest? CLICK HERE to get instant access to my FREE financial tracking video and spreadsheet!

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This is the stock investing portfolio that I would start with.

It's fairly conservative, but it does have a certain level of risk. This portfolio is primarily made up of index funds, individual stocks, and companies.

Before I dive into this blog, you must know that I'm not a financial advisor. I am not here to give you investment advice. Whatever I buy or trade is based on my opinion and experience as an investor. You have to do your research and due diligence and understand the risks involved when it comes to investing in the stock market.

I'm sharing a long-term investment portfolio with you. Why? Well, the stock market is volatile. During the pandemic, there was a big stock market crash. Those who panicked and sold their stocks lost a lot of money. Conversely, those who waited it out recovered. Typically, there is a correction every year in the market.

This is when the market drops up to 10%. If you're a long-term investor, you won't be worried because you will know that things will recover. You may even be excited because it's an opportunity for you to buy more of the positions that you have at a cheaper price.

I understand that each of you is in a different financial position.

The earlier that you start investing, the more money you will make, long-term. If you're older, you may not be able to afford to take on as much risk. Where you are, age-wise and financially, will help you determine where to invest your money.

Watch the video above where I share my computer screen and walk you through the best stocks for beginners!

Index Funds

Vanguard S&P 500 ETF (VOO)

This is a stock that tracks the S&P 500, which is the top 500 companies in the U.S. This stock trades on the U.S. stock exchange in U.S. currency. The U.S. is the world's largest economy. It yields the greatest returns of any country or economy, and it consists of the biggest companies in the world.

The greatest investor of all time, Warren Buffett, has said that investing in the S&P 500 index is the best investment that a beginner investor can make. When he passes away, he plans to invest 90% of his fortune into the S&P 500 index.

The S&P 500 gives you diversification across all of the biggest large-cap companies in the U.S. Historically, the S&P 500 returns about 10% per year. That's a great return. It does pay a dividend as well.

Currently, this stock is trading at $409. The net assets are 753 billion dollars, with a dividend yield of 1.34% and an expense ratio of 0.03%.

This is a great investment to get started with. It's a staple of my portfolio. I am always adding more to it whenever there is a correction or a crash.

Vanguard Total World Stock Index Fund (VT)

This index fund gives you exposure to the U.S. and the biggest companies in the world, like China, Europe, South America, and Taiwan. The one downside of the S&P 500 index ETF is that it's more weighted in the U.S. economy.

The U.S. economy will give you the greatest returns of any other economy in the world, but it's also smart to be diversified outside of the U.S.

Currently, this stock is trading at $105. The net assets are 30 billion dollars, with a dividend yield of 1.65% and an expense ratio of 0.08%.

Vanguard Real Estate Index Fund (VNQ)

If you want dividends, the first place that I would look is in real estate. This index fund invests in real estate investment trusts (REITs). These are companies that hold real estate. I think we can all agree that real estate is a great long-term investment.

Real estate performs differently from a stock market. Currently, this stock is trading at $106. The net asset is 77 billion dollars, with a dividend yield of 2.34% and an expense ratio of .12%.

When it comes to dividends, you've got to weigh growth over income. When you have more time on your side, you want growth.

Usually, companies that are paying out high dividends are paying out a lot of their profits. However, they aren't reinvesting that money to grow the company. This index fund holds a lot of REITs that pay high dividends, but are also growing as real estate grows.

Vanguard High Dividend Yield Index Fund (VYM)

This index fund is holding a lot of dividend-paying stocks and stocks that are growing. In fact, a lot of the companies that are in this index fund are dividend aristocrats. These are large-cap companies on the S&P 500.

Currently, this stock is trading at $107. The net asset is 48 billion dollars, with a dividend yield of 2.79% and an expense ratio of 0.06%.

Individual Companies 

At this point in your investment portfolio, you may decide that you want to add some individual companies to your portfolio. You have to understand that there is a higher risk associated with doing this. You're not just buying a sector.

Rather, you're choosing individual companies out of some of the companies in these indexes. If something happens to a company, you are at risk to lose money. At the same time, you can get greater growth than 10% per year.

When it comes to investing in individual companies, I would recommend investing in large-cap or mega large-cap companies. These are the biggest companies in the world.

If you want growth, invest in tech companies.

Some of my favorite diversified tech companies that I've made the most money from are the following:

Yes, these companies are overvalued and overpriced, but there is so much upside to them. You've got to do your research to determine which tech company you want to invest in and hold long-term. However, I don't think you can go wrong with any of them.

If you don't feel comfortable with the risk of investing in individual companies you can look for indexes that invest in that sector. For example, one of them would be Vanguard Information Technology Index Fund (VGT).

You could also consider adding more dividends to your portfolio. Dividends are great if you want income. My favorite way to get dividends is in the financial sector.

I like bank stocks.

I'm very familiar with the Canadian banking system since I used to live in Canada. We have some awesome Canadian banks. They all pay incredible dividends, some of them up to 5%. If you live in the U.S., you can buy these companies on the New York Stock Exchange:

Alternatively, if you would prefer to stick to the U.S., there are some great banks in the U.S. like Bank of America Corporation (BAC) or JPMorgan Chase & Co. (JPM).

If you want to take greater risks, decide on a certain percentage of your portfolio that you're going to allocate to that.

I think that a good allocation would be 50-75% in index funds, 25-50% in individual companies, and 20% in higher-risk investments.

For the average person, index funds are the way to go. Set it, forget it, and hold it over the long term.

However, as an investor, it's also important to continue adding to your portfolio over the long term. Decide on a certain amount of your money that you're prepared to invest to get started and have some positions.

These are the BEST stocks for beginners.

If you're ready to start investing, you'll want to open a stock brokerage account, like WeBull. This will allow you to buy and sell different types of investments.

Lastly, if you're going to be an investor, you must learn how to manage your existing money.

Doing so will ensure that you have disposable income available to build your investment portfolio. This is how you'll be able to grow your portfolio over the long term.

Investing in your future is one of the best investments that you'll ever make. The earlier that you start investing, the sooner you will be able to create financial freedom. On that note, happy investing!

Are you ready to start managing your money so you have more to invest? CLICK HERE to get instant access to my FREE financial tracking video and spreadsheet!

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