Buying your first shares can be an exciting time. Whether you’ve heard about the wonders of the share market from friends or family or just from ‘I hit the jackpot’ type videos on YouTube, this is a journey you want to start as soon as you can. But many (even most) ‘starter’ investors make some serious mistakes – usually either choosing the wrong shares or buying/selling at the wrong price.
With that in mind, here are 2 ASX shares that I think are perfect for beginners.
Magellan Global Trust (ASX: MGG)
Magellan Global Trust is an internationally focused listed investment trust (LIT) run by the reputable team at Magellan. It seeks to hold the best stocks in the world that Magellan thinks will deliver superior performance over a long investment horizon – making it perfect for a beginner stock in my opinion.
Some of the companies MGG is currently invested in include Alphabet (Google), Alibaba, Mastercard, Apple, Starbucks and Microsoft. MGG also targets a 4% cash distribution each year, which can be a useful stream of passive income on the side as well.
BKI Investment Co Ltd (ASX: BKI)
BKI is another managed investment vehicle that invests on your behalf as the shareholder. However, this company focuses on Aussie investing only, and has more of a focus on stable investment returns with strong dividends – as opposed to the more growth-orientated MGG.
Still, I think this would make BKI a solid first investment – you are getting a basket of blue-chip stocks like the big four banks, Woolworths Group Ltd (ASX: WOW) and BHP Group Ltd (ASX: BHP), all in 1 share. Owning these big names means BKI has the ability to pay a solid dividend as well, which on current prices stands at 4.47%. You can’t go wrong in my view if you choose BKI as your first share.
I think we have here 2 ASX shares that would be perfect for a beginner investor and would serve well in any portfolio for at least the next decade.
As the hard work of stock picking is out of your hands, the risks of you making any serious mistakes as a beginner are mitigated somewhat – and you get exposure to some of the best companies in Australia and the world to boot!
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Motley Fool contributor Sebastian Bowen has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. 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.
The Motley Fool's purpose is to help the world invest, better. Click here now for your free subscription to Take Stock, The Motley Fool's free investing newsletter. Packed with stock ideas and investing advice, it is essential reading for anyone looking to build and grow their wealth in the years ahead. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson. 2019