Today I will be giving you my top 2 stocks that I think are the Best Stocks for Beginners in 2025. These stocks can also easily be used by investors of any experience for incredible gains.
What Makes a Great Beginner Stock?
The criteria I will use to narrow down the best stocks for beginner investors are simple: the stock shouldn’t be too risky—meaning no small-cap, high-growth stocks; it should preferably pay a dividend; and it must pass my checklist as a value investor: Great fundamentals and a huge moat being the most important factors.
Best Stocks for Beginners | BRK.B
Berkshire Hathaway is a holdings company run by chairman and CEO Warren Buffet. Warren Buffet is perhaps the most praised investor of all time. He popularized his signature “value investing” strategy that is used worldwide and is what I primarily use to pick my stocks.
BRK.B is extremely similar to an ETF since it is a holdings company, meaning it holds and owns other companies. It is pre-diversified into the best companies on Earth by Warren Buffett himself and changes positions as needed, quarter by quarter. Because of this, BRK.B has been beating the S&P 500 for the majority of its time as a stock.
BRK.B has a carefully thought-out company-picking process engineered by Warren Buffett, which uses earnings growth, the P/E ratio, and the DCF method (discounted cash flow) to predict future growth. This makes BRK.B a perfect stock to buy and hold for many years without any worry, and one of the best beginner stocks to buy right now. Find BRK.B earnings here.
Best Stocks for Beginners | MSFT
MSFT is the next stock I will be talking about and is personally the 4th largest position in my portfolio.
Microsoft is the 2nd largest company in the world, behind Apple. Also, Microsoft boasts an incredible $3.24 Trillion in market cap. On top of that, Microsoft has been growing its revenue 12% for the past 10 years. Because of this the level that MSFT grows earnings at a consistent rate is unparalleled. For example, MSFT just absolutely crushed earnings and is up 9% on the day following them!
MSFT also gives a pretty solid 0.76% dividend yield that is known to grow year over year. On top of that, Microsoft just has too big of a moat to be stopped, it has market shares in an insane amount of different products like AI, cloud services (Azure), Microsoft office online ecosystem and more. Consequently, analysts say that Microsoft is one of the best stocks to buy and hold for the next 20 years.
Best Stocks for Beginners | Conclusion
I know that holding these 2 low-maintenance stocks for 5+ years will definitely compound your money and possibly beat the S&P 500. I will definitely be making a part 2 to this post with more stocks similar, so you can arm the ultimate beginner portfolio.
Hope You Enjoyed!
P.S. One stock I believe is absolutely incredible for beginners and any investor I breakdown in depth here.
