Getting started as an investor can be a bit intimidating. Everything moves quickly these days, and so many people seem to have a better understanding of how things work. It’s easy to justify staying on the sidelines.
Don’t let all the noise deter you, though. Much of what you’re hearing is just that: noise that doesn’t entirely matter. A little common sense and patience can go a long way, and it’s completely possible to earn while you learn.
To this end, here’s a rundown of three good stocks that even the most inexperienced of investors can step into and keep tabs on. Their businesses (or goals) are simple, and their success is clearly defined.
1. Procter & Gamble
You’ve heard of the name. You probably even know that Procter & Gamble ( PG 1.78% ) makes a bunch of the goods we know and buy over and over again, often without a second thought. What you may not realize, however, is just how deep and wide this company’s reach is. P&G is the name behind Pampers diapers, Tide laundry detergent, Bounty paper towels, Gillette razors, Crest toothpaste, Pepto-Bismol, and more.
Nobody can argue that these product lines are exciting, or that they market themselves. Procter & Gamble must still promote these brands cost-effectively, and as the biggest name in consumer goods for a long, long time, it has perfected the art of connecting with consumers.
It also enjoys one of the world’s biggest marketing budgets, allowing it to buy its way into consumers’ hearts and minds. Last fiscal year’s promotional spending was a whopping $11.5 billion, according to Ad Age, and this year’s is looking on par with that figure.
The upside for novice investors is the straightforward way the business works. Procter & Gamble must pay the costs of manufacturing its goods, and must sell those products at prices above that cost while staying price-competitive. Soaring inflation is making this tougher than usual right now. But you don’t have to worry about any surprises with input costs and pricing power changing from one quarter to the next.
2. Walt Disney
Like Procter & Gamble, Walt Disney ( DIS -0.67% ) is a household name. Unlike P&G, though, Disney’s business mix isn’t so straightforward. Movies, theme parks, television (cable as well as network broadcast), licensing, and streaming are all in its wheelhouse.
Some of these lines bolster one another, but some potentially cannibalize others. The availability of new releases via the Disney+ platform, for instance, may …….