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3 shares for a beginner’s portfolio

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:


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 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.

Want some more investing ideas? These top growth stocks could be a great way to start your 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 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.

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