Tuesday, 19 Nov 2019

3 Stocks to Invest in For Beginners

 

When it comes to investing for beginners, it’s a pretty daunting task to find which stocks are best. After all, you’re just testing the waters. 

At the same time, beginners can learn how to invest properly by trying out sure-ball stocks that will give them the insights and knowledge they need for their investing journey. 

So, here are some of the best stocks that beginners can invest in to learn the ropes of the stock investing world. 

Amazon.com

Amazon is pretty much everywhere. So, it’s not really surprising to know that its cash currently sits at $30 billion and its free cash flow is around $13.4 billion.

When it comes to other fundamental reasons why Amazon is such a good buy for new investors (albeit the expensive price of each stock), there are quite a lot. 

For one, it has an excellent network effect. As more and more merchants go to Amazon to sell their goods, more and more consumers also go to Amazon to buy. It’s a pretty beneficial cycle for the company. 

At the same time, Amazon enjoys low-cost productions. According to estimates by experts, the company has around 148 multi-million-dollar fulfillment centers in North America, and another 159 centers all over the world. 

What this means is that the company can ship its products to customers around the world with lower internal costs. 

Alphabet 

Alphabet is more popularly know by its brand Google. This giant company has cash of $119 billion and a free cash flow of 21.4 billion.

With these numbers, Alphabet can probably scoop up some smaller companies that can support it during a downturn. It can also buy its own shares back. 

Among the company biggest advantages is its low-cost production. Alphabet earns most of its profits from advertising. Ads are very much valuable because of the data it gathers on users. 

If you think about it, Google has products that have billions of active users, like Maps, Gmail, Chrome, YouTube, Play Store, Drive, and Android.  

After setting up these services, the company doesn’t spend much for maintenance. But it drives in a lot of data. 

And even if that’s not impressive for you, the sheer brand value and reputation of the company makes it fair to say that it will continue rewarding its shareholders with handsome amounts of profits. 

Facebook

Very few people in the planet probably don’t know about Facebook. Apart from having is social networking site of the same name, it also owns other popular platforms like WhatsApp and Instagram. 

It has $41 billion in cash and free cash flow of $17.5 billion.  It also has no long-term debt, which means Facebook stands at a very unique position in the business. 

Among its key strengths is its brand, which is previously named as the fourth most valuable brand in the world. This remains solid even as the company faced a series of bad publicity in recent years. 

At the same time, advertisers that want to access both Facebook and Instagram can easily handle their accounts on a single interface. 

Learn the basics of financial products and Labrich Trading Strategies by studying the historic events that have shaped our world giving you a better understanding of trading and what drives volatility.

 

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