2 no-brainer ASX 'beginner' stocks I'd buy

These would make a great core for a starter portfolio, I think, but really that should also be positive for veteran investors too.

| More on:
Young girl starting investing by putting a coin ion a piggybank while surrounded by her parents.

Image source: Getty Images

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

Yes, the headline does say "beginner" stocks.

And I will certainly fulfil that mission by revealing two ASX shares that would make an excellent starting core for a portfolio.

But, you know, I think it's a bit of a misnomer to call them beginner stocks.

Because if they're outstanding all-round investments, they should be great for every portfolio, not just for novices.

Whether you are a veteran or a rookie, you have the same goal — to maximise reliable returns over the long run.

And I believe these shares could meet that aim:

What do Mickey Mouse, Google, and Michael Jordan have in common?

A fantastic place to start for any portfolio are exchange-traded fund (ETF) stocks, because of the instant diversification effect that will reduce volatility.

And for me, one that ticks a lot of boxes is Vaneck Morningstar Wide Moat Etf (ASX: MOAT).

This fund simulates the Morningstar Wide Moat Focus NR AUD Index, which keeps track of US stocks that the research firm deems to have the widest "economic moats".

That is, it invests in businesses with the best competitive advantage over its rivals or potential challengers.

Currently the Wide Moat ETF holds names like Walt Disney Co (NYSE: DIS), Alphabet Inc (NASDAQ: GOOGL) and Nike Inc (NYSE: NKE).

As well as paying out an irregular dividend, the ETF has gained 90% over the past five years.

The Internet also needs somewhere to live

The second stock that I like for the core of the portfolio is Goodman Group (ASX: GMG).

The industrial real estate group both develops and manages properties, which means it has future growth potential while also raking in revenue from existing assets.

Despite its involvement in a traditional sector, the types of real estate it manages — warehouses, logistics centres, and business parks — are all critical for e-commerce.

For example, one of its major clients is Amazon.com Inc (NASDAQ: AMZN), which requires ever more warehousing space as the demand for online shopping grows.

Goodman Group is also delving into developing properties to house data centres, which is also a huge growth area with the insatiable demand for cloud computing and artificial intelligence (AI).

Goodman shares have returned 123% over the past five years, excluding a small dividend each year. 

Professional investors are still bullish despite a 42% rocket since late October.

According to CMC Invest, eight out of 12 analysts currently rate Goodman shares as a buy.

John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. Motley Fool contributor Tony Yoo has positions in VanEck Morningstar Wide Moat ETF. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Alphabet, Amazon, Goodman Group, Nike, and Walt Disney. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has recommended the following options: long January 2025 $47.50 calls on Nike. The Motley Fool Australia has recommended Alphabet, Amazon, Goodman Group, Nike, VanEck Morningstar Wide Moat ETF, and Walt Disney. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Investing Strategies

a woman wearing a flower garland sits atop the shoulders of a man celebrating a happy time in the outdoors with people talking in groups in the background, perhaps at an outdoor markets or music festival, in an image portraying young people enjoying freedom.
Dividend Investing

How ASX dividend stocks can be the key to financial freedom

Passive income can be a great tool to create financial independence.

Read more »

Woman looking at paper bill and counting expenses.
Dividend Investing

2 ASX dividend shares I'd buy to pay for my bills

Here’s why these stocks could be compelling options for dividends.

Read more »

Woman relaxing at home on a chair with hands behind back and feet in the air.
Dividend Investing

Got $10,000? Buy this ASX dividend stock for $3,173 in total passive income

This business could pay a lot of cash flow in the coming years.

Read more »

two children squat down in the dirt with gardening tools and a watering can wearing denim overalls and smiling very sweetly.
Growth Shares

Why I wouldn't want to miss these 2 explosive ASX growth stocks

These two investments are two of the most exciting options, in my view.

Read more »

Couple looking at their phone surprised, symbolising a bargain buy.
Cheap Shares

2 dirt cheap ASX shares to buy for 2025

Analysts see big returns on offer from these buy-rated shares.

Read more »

Close up of woman using calculator and laptop for calculating dividends.
Dividend Investing

Analysts say these ASX dividend stocks are buys

Let's see what sort of dividend yields they are forecasting for these buy-rated stocks.

Read more »

Man holding Australian dollar notes, symbolising dividends.
Dividend Investing

Buy these fantastic ASX 200 dividend shares for 5%+ yields

These shares could be good options for income investors according to analysts.

Read more »

Dividend Investing

How I'd start earning passive income to replace my wages

Want to give up work? Here's a long term plan you can put into action.

Read more »