It's an unfortunate fact for most investors that their first shares are often the worst investment they will make. Like anything, investing takes time and practice to perfect. Sadly, there's nothing that makes you learn faster than losing money due to a poor investing decision.
Thankfully, one of the best ways you can get started is by doing research and understanding why a stock might make a great first investment.
So, on that note, here are 2 shares that I think would be well worth checking out for your starter portfolio.
Argo Investments Limited (ASX: ARG)
Argo is a listed investment company (LIC), which basically means it's a company that owns other shares – essentially, you're paying Argo to invest on your behalf. This makes Argo a perfect starter share in my view. Not only does Argo have a reputation as a strong, conservative investor, it's also committed to paying a solid dividend yield (currently sitting at around 4%).
Some of the company's top current holdings include big four banks like Westpac Banking Corp (ASX: WBC) and miners like BHP Group Ltd (ASX: BHP). Fun fact – Argo was once chaired by cricketing legend Sir Donald Bradman, so its safe to say you'd be in good company with this one!
iShares Consumer Staples ETF (ASX: IXI)
Exchange traded funds are another great option for beginners as they (like LICs) also invest in a basket of stocks on your behalf. IXI focuses on 'consumer staples' stocks from around the world, which means it owns everything from grocery stores like Walmart to food companies like Nestle.
Owning these types of companies is a great starting point. We are all going to keep buying the type of 'staple' products they sell, regardless of what the economy is doing at any time. This means that these companies are amongst the most crash-proof businesses money can buy.
Some more of IXI's top holdings include Proctor & Gamble, Coca-Cola and Philip Morris International.
Foolish takeaway
I think either of these investments are amongst the best shares out there for beginners. In my opinion, there is very little risk of netting a huge loss with these investments compared with picking your own shares straight up, so if you're ready to dip your toes in the waters of the stock market, be sure to check them out!
