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4 shares for a beginner’s portfolio

The share market can be a daunting place to someone just starting out on their investing journey. The most important thing to do is just to start, even if that means you’re beginning with $500.

The share market has generated a long-term return of roughly 10% per year. Good investors can beat that, but a compounding 10% return will turn most people into millionaires over a period of decades.

Even so, it’s hard to know where to start. Here are four ideas.

Vanguard MSCI Index International Shares ETF (ASX: VGS) is a exchange-traded fund run by Vanguard, the leader of low-cost funds. Essentially, investing in this share gives you exposure to hundreds and hundreds of the world’s biggest companies such as Apple, Toyota, Tencent and Facebook. It’s harder to find a simpler way to invest in global shares than this on the ASX.

If you want to start your investing journey with individual shares, it could be best to start with companies you know in the Australian business world like one of these:

Telstra Corporation Ltd (ASX: TLS) is Australia’s largest telecommunications business by far. Its share price has suffered a lot in recent times due to NBN troubles but the current low share price of $3.58 could be an opportunity. The large dividend and future arrival of 5G could see Telstra beat the market over five or more years from here.

Domino’s Pizza Enterprises Ltd (ASX: DMP) has delivered piping hot returns over the past five years for investors, growing by 343% in that time. Its international growth into Japan and Europe was a good move by management. Same store sales growth, increasing margins and more outlets should be large boosts to future profit.

Greencross Limited (ASX: GXL) is an easy-to-understand business for anyone. Its Petbarns and Greencross vets are both growing revenue at a pleasing rate thanks to a growing pet industry and Greencross’ scale should mean profit margins start growing in due course.

Foolish takeaway

I’m not so confident about Telstra’s future over the next few years, but I expect Domino’s and Greencross may both be able to handsomely beat the market by 2020.

I also think these top growth shares would be good additions to a beginner’s portfolio.

Top 3 ASX Blue Chips To Buy In 2018

For many, blue chip stocks mean stability, profitability and regular dividends, often fully franked..

But knowing which blue chips to buy, and when, can be fraught with danger.

The Motley Fool’s in-house analyst team has poured over thousands of hours worth of proprietary research to bring you the names of "The Motley Fool’s Top 3 Blue Chip Stocks for 2018."

Each one pays a fully franked dividend. Each one has not only grown its profits, but has also grown its dividend. One increased it by a whopping 33%, while another trades on a grossed up (fully franked) dividend yield of almost 7%.

The names of these Top 3 ASX Blue Chips are included in this specially prepared free report. But you will have to hurry. Depending on demand – and how quickly the share prices of these companies moves – we may be forced to remove this report.

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Motley Fool contributor Tristan Harrison owns shares of Greencross Limited. The Motley Fool Australia owns shares of and has recommended Greencross Limited and Telstra Limited. The Motley Fool Australia has recommended Vanguard MSCI Index International Shares ETF. 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 Bruce Jackson.

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