When I first began investing in stocks, the toughest thing for me was new finding investment ideas.
Having done a few courses in finance, I felt confident I could choose the right stocks to buy. The problem was, I couldn't find any.
I ended up saying to myself, "that's good enough" too many times.
Looking back, it's no wonder my first year of investing was a big eye opener.
Now, after a number successful years' investing on the ASX, I know exactly what stocks I'd start with, if I were to do it again. Hopefully these next five stocks will put you on the front foot to investing success, over the long term.
1. BHP Billiton Limited (ASX: BHP) is an obvious choice for first-time investors because of its defensive characteristics. It is Australia's biggest mining company with operations primarily across copper, petroleum, iron ore and coal.
2. Computershare Limited (ASX: CPU) is a dominant force in shareholder services for individual investors and companies worldwide. As a result of its numerous competitive advantages, it maintains enviable profitability margins, providing ample cash flow.
3. Coca-Cola Amatil Ltd (ASX: CCL) is the exclusive bottler of Coca-Cola products to Australia, New Zealand, Indonesia and more. After a rocky couple of years, it shares trade at a discount and I think it's a good long term buy and hold at today's prices.
4. Independence Group NL (ASX: IGO) is my pick in the mid-tier diversified mining space. With an emphasis on nickel and gold production as well as exposure to zinc and copper, it's one of the few ASX-listed mid-cap miners who aren't reliant upon a single commodity.
5. Yellow Brick Road Holdings Ltd (ASX: YBR) is a junior diversified wealth management business which is led by an experienced management team. With a growing branch network, increased awareness of its brand, as well as reliable products and customer service, YBR hopes to steal market share away from the big banks.
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I'd be happy to start fresh with each of these stocks in my long-term portfolio. However, it's important to understand that none of these stocks will bring instant wealth creation to shareholders within a day, month or year. Instead, by focusing on the long-term, the best investors, like Warren Buffett and Peter Lynch, started out with limited amounts of money and made fortunes for themselves.
