4 Great Stocks For Beginners презентация

What makes a good “beginner” stock? What makes a good “beginner” stock?

Low risk The best stocks for beginners won’t make you rich overnight, but won’t make you go broke either Look for companies with a steady track record of growing revenue and low debt levels

“100-year” businesses Look for businesses will be around forever For example, people will always need groceries, ways to communicate with each other, and safe places to keep their money However, will people always buy a specific high-end brand of clothing? Or, will people always need to buy desktop computers? Maybe, but maybe not

A diverse revenue stream Ideally, stocks for beginners will make their money from a variety of products and services Geographical diversity is important too For example, companies that do a lot of business overseas are better-positioned to deal with a U.S. recession

Other things to look for… Stocks with a history of dividend increases tend to make solid long-term investments And, only invest in businesses that are easily understood, at least while you’re just getting started Basically, beginners should focus on building a good foundation. There may come a time when it’s okay to take some higher risks, but it isn’t a good idea while you’re new

4 “Beginner” stocks to get you started… 4 “Beginner” stocks to get you started…

1. Berkshire Hathaway (NYSE: BRK.B) Berkshire Hathaway one of the best all-around stocks in the market The company’s primary business is insurance, but investors get so much more than that…

Berkshire Hathaway has more than 50 subsidiary companies, as well as a diverse portfolio of the best stocks in the market Essentially, by investing in Berkshire Hathaway, you are buying an all-in-one diversified investment portfolio

Just a few of Berkshire’s subsidiaries… GEICO The Pampered Chef Fruit of the Loom Clayton Homes See’s Candies Helzberg Diamonds

Some of Berkshire’s major stock holdings… American Express Deere & Company General Motors Goldman Sachs International Business Machines (IBM) Coca-Cola Moody’s Procter & Gamble

2. Colgate-Palmolive (NYSE: CL) Colgate-Palmolive produces many name-brand products including Ajax Colgate toothpaste Irish Spring Murphy Oil Soap Science Diet Softsoap Speed Stick

Colgate Palmolive is a “dividend aristocrat”, which means that it raises its dividend year after year like clockwork In fact, Colgate-Palmolive has increased its dividend for 51 consecutive years, and has paid a dividend every year since 1895

Geographic diversity Colgate-Palmolive’s sales come from all over the globe

Colgate has steadily grown its sales over the years, and it is well-positioned to capitalize on the world’s growing middle class Colgate has steadily grown its sales over the years, and it is well-positioned to capitalize on the world’s growing middle class This steady growth has produced a 1070% total return over the past 20 years, and there is no reason to think the strong performance won’t continue

3. ExxonMobil (NYSE: XOM) The largest publicly-traded integrated oil company ExxonMobil could be an excellent way to take advantage of depressed oil prices

ExxonMobil has exposure to all aspects of the oil business So, even though its exploration and production (E&P) business suffers when oil prices are down, others – such as the refining and chemicals business – actually do better Plus, its size gives it a competitive advantage, allowing the company to run more efficiently than rivals

During tough times, ExxonMobil has the ability to capitalize on smaller, struggling companies As one of only three U.S. companies with a AAA credit rating, ExxonMobil has access to virtually unlimited cheap capital for acquisitions or other opportunities In fact, ExxonMobil has an even better credit rating than the U.S. government!

In terms of valuation, not only has ExxonMobil’s share price dropped by about 20% in the past year or so, but its price-to-book value is at its lowest level since the mid-1990’s In terms of valuation, not only has ExxonMobil’s share price dropped by about 20% in the past year or so, but its price-to-book value is at its lowest level since the mid-1990’s Now may be a great time to get into ExxonMobil cheaply

4. Johnson & Johnson (NYSE: JNJ) In addition to its portfolio of well-known brands such as Band-aid Johnson’s baby products Tylenol Neutrogena Johnson & Johnson’s largest business is pharmaceuticals

J&J’s size and brand power are tremendous competitive advantages Its size allows it to produce goods more efficiently Its well-known brands give it more pricing power than lesser-known competitors The massive pharmaceutical business is the real money maker, and the company invests aggressively in research and development, which has resulted in some innovative (read: profitable) drugs

Johnson & Johnson has an outstanding 53-year history of dividend increases The company pays out less than 50% of its earnings as dividends, leaving plenty of room for this to continue Even though many investors consider J&J to be a “boring” stock, it has handily beat the S&P 500’s returns over the past several decades

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