Take a seat, my friend. The coffee's on the house. A thrilling headline brought you here, but I'm not here to sell you the latest, greatest tulip-bulb craze.

Betting the proverbial farm on a red-hot market darling would not be the smartest thing you ever do. Sure, you might get lucky and hit the Wall Street jackpot -- but cases like that are the exception, not the rule. Oftentimes, those who chase after heavily hyped stocks are eventually left holding an empty bag of promises without much substance. That's not how successful investors build their wealth.

I do have some solid advice for you, though. The smartest thing you can do in the stock market is to make your first investment as early as you can. There are nuances to this idea, of course. You also want to select a relatively large number of high-quality stocks, hold them for many years, add more cash to your portfolio over time, and focus on long-term results. That first investment doesn't have to be a big bet, as long as you can add more money to your portfolio steadily over time.

But the most important task on that laundry list is to get started.

Whether you're gearing up for that all-important first toe-dip into the stock market's turbulent waters or you're seeking the next great idea for your existing portfolio, you can't go wrong with Google's parent company, Alphabet (GOOG 0.32%) (GOOGL 0.37%). Let me explain why Alphabet is a great pick right now for newcomers and seasoned investors alike.

The ABCs of Alphabet's long-term prospects

Once you get started, the key to money-making investing is to find companies that have many years and decades of business growth ahead of them.

Alphabet fits the bill in many ways:

  • Strong competitive position: Its Google division dominates the online search and advertising markets. It is also among the leaders in other high-growth markets, such as cloud computing and artificial intelligence. As long as the online services market keeps looking largely similar to the way it does now, Alphabet will remain a pole-position player in that robust growth space.
  • Diversified business model: Alphabet's business is diversified across a number of products and services. Google accounted for 89% of the company's total revenues in the second quarter, but the sands are shifting. The revenue contribution made by the Google Cloud platform increased to 10.7% in Q2 2023 from 9% in the prior-year period. Moreover, the "other bets" segment grew its revenues by 48% year over year. This helps to reduce the company's risk exposure and makes it more resilient to economic downturns.
  • Strong financial position: Alphabet has a rock-solid balance sheet, with $118 billion of cash, cash equivalents, and short-term investments on the books at the end of Q2, compared to just $13.7 billion of long-term debt. This gives it the flexibility to invest in new growth opportunities, and positions it to weather any economic storms that may come.
  • Culture of innovation: Alphabet has a culture of innovation that is embedded in its DNA. The company is constantly investing billions of dollars into research and development -- the lifeblood of any technology business -- and it's always looking for new ways to improve its products and services. This culture of innovation, paired with an open attitude to business ideas that don't necessarily fit the company's public image, has helped Alphabet maintain its competitive edge over the long term, and should keep doing so.

In fact, the company was restructured as Alphabet in order to boost the business prospects of ideas that don't fit the Google image. Online search and advertising won't be cash-cow services forever, and the "other bets" are preparing to grab the financial baton someday.

The next big hit could be the Waymo self-driving taxi service, the Verily and Calico healthcare research operations, or perhaps one of the smaller projects that aren't generating headlines yet. Don't forget that the company has already come a long way from the days of its near-total reliance on its browser-based business. Management doesn't publicly break out exact figures for game-changing operations such as the Android mobile platform, the YouTube video service, or the Pixel line of mobile hardware, but it's fair to say that they have become crucial revenue generators under the Google banner.

Alphabet keeps plenty of potential options in play. This company will be ready to roll with the punches as the global economy evolves. And that makes its stock a perfect pick for both new and experienced investors with a long-term mindset.

And that's why buying Alphabet stock today just might be the smartest thing you ever do. That was quick and easy, right? The coffee is still hot.