Any amount is enough to get started investing, since these days, most brokerages offer fractional shares. If you have $50 today and can set aside $50 every month, over time, your nest egg can become quite comfortable.
Clearly, though, if you have $50,000 to invest today, the market is your oyster. If you have that much to invest, you can create a full, diversified portfolio that could lead to millionaire status if you hold for many years and consistently add funds.
I recommend a mix of excellent low-risk growth stocks, value stocks, and safe stocks. Walmart (WMT +0.46%), MercadoLibre (MELI +0.45%), and Taiwan Semiconductor (NYSE: TSM) are great stocks that can be a valuable part of a wealth-generating portfolio.
Image source: Walmart.
1. Walmart: The biggest company in the world
Walmart is the largest company in the world by sales, and it has done a fabulous job of protecting its lead and generating sales amid high pressure over the past few years. It's a solid, reliable company with excellent future prospects.
Although Walmart's dominance comes from its size and stability, it's always changing to keep up with the times. It has recently concentrated its efforts in e-commerce, and these efforts are bearing fruit. E-commerce has become a significant growth driver, and Walmart benefits from the advantage of having the largest retail network in the world, with more than 10,000 stores globally and nearly 5,000 of those in the U.S. alone.
NYSE: WMT
Key Data Points
Indeed, 90% of Americans live within 10 miles of a Walmart store, which makes it easy for many people to pick up orders faster than ordering to their door from pure-play e-commerce companies like Amazon.
Walmart isn't a high-growth stock, but if you have $50,000 available to invest, it's important to put a substantial portion of that -- how much will depend on your risk tolerance -- into safe stocks that can shield your portfolio when there's volatility. Walmart hits the mark. It's also a Dividend King, since it has raised its dividend for the past 52 years, which means it's one of the most reliable dividend stocks you can find.
2. MercadoLibre: Large opportunities in an underpenetrated region
MercadoLibre is for the growth part of your portfolio, but it's already a strong and stable presence in Latin America, even though it's still growing at a rapid pace. That makes it less risky than many young growth stocks
It's the dominant e-commerce marketplace in Latin America, serving 18 countries, and it has remained in the top spot, fending off competition from the likes of Sea Limited and Amazon. E-commerce is still underpenetrated in this region, and MercadoLibre has been upping its value proposition to attract more users to try it. This is resulting in high numbers of new active users; they increased 26% year over year to 76.8 million in the third quarter. On top of that, users tend to increase buying frequency and amount of items per purchase, which means this untapped opportunity can be multiplied over time as these users engage more with the platform.
NASDAQ: MELI
Key Data Points
MercadoLibre also has a large and growing fintech business that complements the e-commerce business with a range of financial services like digital payments and credit products. It's looking to disrupt entrenched banking systems with high barriers to entry and low savings rates. Monthly active users increased 29% over last year in the third quarter, and assets under management were up 89%. This is another huge long-term opportunity for MercadoLibre, and it can add significant growth energy to a well-protected portfolio.
3. Taiwan Semiconductor: Varied clients, varied industries
Taiwan Semiconductor, also known as TSMC, is another fantastic company that's already a giant but continues to grow quickly. It holds a leading position in its space, but still has incredible long-term opportunities.
The company is a chip manufacturer that works with the chipmakers you know and love, like Nvidia, Advanced Micro Devices, and Broadcom, in addition to many others. These clients design their chips, and TSMC makes them.
NYSE: TSM
Key Data Points
Obviously, it has strong tailwinds in artificial intelligence (AI) today, and high-performance computing makes up 57% of its revenue. But one feature I love about it is that it's not all AI; it makes the chips used in smartphones, autonomous vehicles, and other devices, which means it's not counting on AI as its sole industry.
The company recently opened its first facility in the U.S., where it plans to expand over the years. That makes it less exposed to tariffs, which is another great feature.
TSMC is an excellent company that offers growth opportunities, but also safety for your portfolio.
