3 shares for a beginner's portfolio

These 3 shares could be good for a beginner's portfolio.

| More on:
a woman

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Investing in shares is one of the best things you can do for your wealth. But sometimes it's really difficult to know where to start.

There are thousands of different shares you can buy on the ASX, it can be quite overwhelming for a beginner to start with shares. But, don't let that put you off investing. If you genuinely want to learn then if you just keep reading various media you'll get the hang of it over time.

But, if you want some quick suggestions that are easily understandable, here are three ideas:

BETANASDAQ ETF UNITS (ASX: NDQ)

This is a fund where you get quick exposure to a broad group of top US tech companies with one investment. Its top holdings include shares like Apple, Alphabet (Google), Facebook, Amazon and Microsoft. It also has other recognisable holdings in its holdings like Netflix, Adobe and Paypal.

Some investors may question the individual valuations of some of those businesses, but as an overall group it's hard to look beyond these global names for where the growth is going to be generated over the next five years.

REA Group Limited (ASX: REA)

For people wanting to get into owning individual shares, there's few better businesses on the ASX than REA Group, the company that owns realestate.com.au. Its market-leading position allows it to increase prices at a good rate, plus the company regularly adds new features.

Plenty of websites advertise property, but the power of being number one is a strong moat for REA Group. It continues to grow at a nice double digit rates and its overseas investments could drive future growth.

It's currently trading at 35x FY19's estimated earnings.

DuluxGroup Limited (ASX: DLX)

DuluxGroup is the owner of several of the country's home improvement brands like Dulux, British Paints, Selleys, Cabot's and Yates. It could be a pleasing experience walking around a local hardware store, knowing you make a small bit of profit from each tin of paint sold.

The company has delivered slow-and-steady growth over the last few years and it should be able to continue to do so as the number of properties in Australian cities increase – therefore more products can be sold to more property owners.

DuluxGroup is currently trading at 20x FY19's estimated earnings.

Foolish takeaway

If I were starting investing today it would be a good long-term move to own shares of the NASDAQ index or DuluxGroup at the current prices. REA Group is a great business, but its high valuation doesn't leave much margin of safety – I'd wait for the price to come down a bit first before buying.

Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended BETANASDAQ ETF UNITS. The Motley Fool Australia has recommended REA Group Limited. 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. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on ⏸️ Investing

A white and black robot in the form of a human being stands in front of a green graphic holding a laptop and discussing robotics and automation ASX shares
Technology Shares

Joining the revolution: How I'd invest in ASX AI shares right now

Advances in artificial intelligence (AI) could usher in a new industrial revolution. Here’s how you can invest in it.

Read more »

Close up of baby looking puzzled
Retail Shares

What has happened to the Baby Bunting (ASX:BBN) share price this year?

It's been a volatile year so far for the Aussie nursery retailer. We take a closer look

Read more »

woman holds sign saying 'we need change' at climate change protest
ETFs

3 ASX ETFs that invest in companies fighting climate change

If you want to shift some of your investments into more ethical companies, exchange-traded funds can offer a good option

Read more »

a jewellery store attendant stands at a cabinet displaying opulent necklaces and earrings featuring diamonds and precious stones.
⏸️ Investing

The Michael Hill (ASX: MHJ) share price poised for growth

Investors will be keeping an eye on the Michael Hill International Limited (ASX: MHJ) share price today. The keen interest…

Read more »

ASX shares buy unstoppable asx share price represented by man in superman cape pointing skyward
⏸️ Investing

The Atomos (ASX:AMS) share price is up 15% in a week

The Atomos (ASX: AMS) share price has surged 15% this week. Let's look at what's ahead as the company build…

Read more »

Two people in suits arm wrestle on a black and white chess board.
Retail Shares

How does the Temple & Webster (ASX:TPW) share price stack up against Nick Scali (ASX:NCK)?

How does the Temple & Webster (ASX: TPW) share price stack up against rival furniture retailer Nick Scali Limited (ASX:…

Read more »

A medical researcher works on a bichip, indicating share price movement in ASX tech companies
Healthcare Shares

The Aroa (ASX:ARX) share price has surged 60% since its IPO

The Aroa (ASX:ARX) share price has surged 60% since the Polynovo (ASX: PNV) competitor listed on the ASX in July.…

Read more »

asx investor daydreaming about US shares
⏸️ How to Invest

How to buy US shares from Australia right now

If you have been wondering how to buy US shares from Australia to gain exposure from the highly topical market,…

Read more »