Buying your first ASX shares should be a wonderful experience. And yet you almost never hear of an investor's first foray into the share market being a positive one. That's because many would-be investors have the wrong idea about the share market, or else take up some lousy-in-hindsight advice.
Since losing money on your first investment has the potential to put you off investing for life, I think it's of utmost importance that your early share purchases be relatively safe and secure investments. On that note, here are 2 investments that I believe fulfil these criteria so are perfect shares for beginners.
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2 ASX shares for beginners
CSL Limited (ASX: CSL)
CSL is the largest company on the ASX and for good reason. It's a highly successful healthcare company that is involved with research and development of blood medicines as well as vaccinations. CSL started life as a public company back in 1994 (before then it was a government-owned business). But since then, CSL shares have climbed to almost immeasurable heights. When it first hit the ASX boards, it was asking around $2.30 per share. Today those same shares will set you back more than $280.
Due to CSL's dominance of its industry on a global scale, as well as its world-class R&D division and growing dividend, I think CSL shares are a great pick for a beginner investor.
MFF Capital Investments Ltd (ASX: MFF)
MFF is a listed investment company (LIC), which means it's a company that invests in other shares on behalf of its own investors. In this way, it requires very little ongoing effort as an investment – which in my view makes it a perfect share for beginners.
Rather than investing in ASX shares like CSL, MFF instead primarily invests in United States-listed companies. Some of its current top holdings include the payments giants Mastercard and Visa, as well as Warren Buffett favourite Coca-Cola and the ubiquitous Microsoft. These kinds of companies are some of the best in the world, in my view, and I think any investor would be pleased to have their financial fortunes tied to any of them. MFF is managed by Chris Mackay, whom I think is one of the best fund managers in Australia. If you're a beginner investor, I think this company is not a bad choice at all for your first investment (or even your 100th).
Foolish takeaway
Choosing your first shares can be scary, but in my view, the two shares for beginners named above are both businesses that will prove to be great choices and which can remain in your portfolio for at least the next decade.
