How I would build the ultimate beginner portfolio with $10,000 (7 ASX shares mentioned)

Beginners can get started with these compelling picks.

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It can be tricky to know which ASX shares to invest in as a beginner as there are thousands of options to choose from on the ASX. There are a few names I'll point to that could be good opportunities if I were starting with $10,000 to invest.

I'm going to talk about a mixture of companies and exchange-traded funds (ETFs). So let's get into it.

Washington H. Soul Pattinson and Co. Ltd (ASX: SOL)

This is an investment company that's been going for over 100 years. It has a diversified portfolio across a number of sectors like telecommunications, resources, building products, agriculture, swimming schools and financial services. It has grown its dividend every year since 2000.

The ASX share continues to grow its investment portfolio with new investments and it has performed well compared to the S&P/ASX 200 Index (ASX: XJO) over the long term. I think this is a good foundation investment.

Wesfarmers Ltd (ASX: WES)

Wesfarmers is the business that owns a variety of leading businesses like Bunnings, Kmart and Officeworks. It has been a steady long-term performer, and I like the growing diversification of the business – it recently expanded into healthcare and the ASX share has a 50% stake in a lithium mine that will soon be operational that could boost earnings.

Vaneck Morningstar Wide Moat ETF (ASX: MOAT)

This has been a high-performing ETF that's focused on (US) companies that are expected to have competitive advantages that endure for at least the next two decades. The businesses that have made it into the portfolio are deemed by analysts to be at a good price at the time of investment.

I think it's good for everyone, beginners or not, to get diversification away from Australian companies because Australia is only a small part of the global economy.

Betashares Nasdaq 100 ETF (ASX: NDQ)

Another good ETF to consider is this one, which is invested in 100 of the largest businesses in the US.

I think it's a good idea to be invested in some of the world's strongest businesses like Apple, Microsoft, Alphabet (Google), Amazon.com, Meta Platforms (Facebook and Instagram), Berkshire Hathaway, Nvidia and Tesla. As a group, they have performed well over time and I think it can continue in the long term as they invest in new and improved products and services.

Temple & Webster Group Ltd (ASX: TPW)

Temple & Webster is a leading online retailer of homewares and furniture. I like to think of this ASX share as the Amazon of home products because of the large number of items it sells online. In five years I think it'll be a much bigger business as more people shop online more often, and as the company achieves scale benefits. It's utilising technology and AI to improve margins and lower costs, which physical retailers may find hard to match.

Betashares Global Cybersecurity ETF (ASX: HACK)

This is another ETF that looks to me like it has a promising long-term future. The world is seeing more cyber attacks – this is increasing the need for cybersecurity. I don't think governments, businesses or other organisations would cut their spending in a recession, so I see the HACK ETF as a defensive and growth option.

Metcash Ltd (ASX: MTS)

I view Metcash as another defensive business. Its role is to supply IGA supermarkets around the country, as well as various liquor stores like IGA Liquor, Bottle-O, Cellarbrations and Porters Liquor. It also owns the hardware brands Mitre 10, Total Tools and Home Timber & Hardware.

This business could continue to benefit from Australia's growing population and the growing store network. It also currently has a grossed-up dividend yield of 8.8%.

Foolish takeaway

Spreading the money across these ASX share investments offers good diversification both geographically and in different sectors. The ETFs and Temple & Webster probably have more capital growth potential, while Wesfarmers and Metcash may provide good dividend income. Soul Pattinson could deliver a nice mixture of capital growth and dividends over time.

Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool's board of directors. John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Motley Fool contributor Tristan Harrison has positions in Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Alphabet, Amazon.com, Apple, Berkshire Hathaway, BetaShares Global Cybersecurity ETF, BetaShares Nasdaq 100 ETF, Meta Platforms, Microsoft, Nvidia, Temple & Webster Group, Tesla, Washington H. Soul Pattinson and Company Limited, and Wesfarmers. The Motley Fool Australia has positions in and has recommended BetaShares Global Cybersecurity ETF, BetaShares Nasdaq 100 ETF, Washington H. Soul Pattinson and Company Limited, and Wesfarmers. The Motley Fool Australia has recommended Alphabet, Amazon.com, Apple, Berkshire Hathaway, Meta Platforms, Metcash, Nvidia, Temple & Webster Group, and VanEck Morningstar Wide Moat ETF. 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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