If you're new to the stock market, it may be tempting to pour your money into "it" stocks like Netflix, Tesla, and Amazon.com. However, that's the exact opposite of what you should be doing.
Instead, the primary objective of a new investor should be to create a strong "base." In other words, you need to build a well-diversified portfolio of stable and consistent stocks that can serve as the backbone of your investments for decades to come.
Fortunately, good beginner stocks aren't too difficult to find. Here's what you should look for when choosing stocks for your new portfolio, and four great examples to help get you started.
Matthew Frankel owns shares of American Express and Berkshire Hathaway. The Motley Fool recommends Amazon.com, American Express, Berkshire Hathaway, Coca-Cola, Costco Wholesale, General Motors, Johnson & Johnson, MasterCard, Netflix, Procter & Gamble, Tesla Motors, Verizon Communications, Visa, and Wells Fargo. The Motley Fool owns shares of Amazon.com, Costco Wholesale, ExxonMobil, MasterCard, Netflix, Tesla Motors, Visa, and Wells Fargo and has the following options: long January 2016 $37 calls on Coca-Cola and short January 2016 $37 puts on Coca-Cola. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
