What Are Some Good Stock Options for New Traders?


Quick Answer

Stocks that are easy to understand, represent their industry and have healthy long-term strategies are the best investing options for new traders, per The Motley Fool. The available options in stock trading are overwhelming, but selecting a few reliable performers allows a trader to get acquainted with the market without taking excessive risks.

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Full Answer

Berkshire Hathaway is a great stock for beginning investors, according to The Motley Fool. The conglomerate consists of companies in the insurance, banking, electronics and food industry. With its hand in several industries, Berkshire Hathaway performs admirably in both positive and negative economic climates. Investors also get a chance to attend the company's annual shareholders meeting.

Companies that have a simple business model and products that everyone experiences make for great first investments, states the Motley Fool. Starbucks is the perfect example of such a company, because its stores are extremely visible, its business model is excellent, and it pays dividends at a growing rate every quarter.

One of the leading energy companies in the world, Chevron is another solid pick for new traders. The company deals with every aspect of the oil and gas industry, making it a strong long-term performer. Low oil prices may cause Chevron shares to decline, but energy stocks are always cyclical in their performance, notes The Motley Fool.

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