TOP 5 STOCKS FOR BEGINNERS IN THE STOCK MARKET #Best Education Page #Online Earning

how's it going today guys so today we're

going to be talking about my top 5 stock

picks for beginners in 2018 and these

are stocks that I think are suitable for

beginners for a number of reasons that I

will discuss going forward now before we

go ahead and talk about that I want to

do a bit of an accountability check here

for myself because I made this exact

same video back on April 20th of 2017 so

I picked 5 stocks back on April 20th and

I said these stocks would be suitable

for beginners and so what I want to do

is take a look at the performance of

these stocks from that point until now

and looks like I made some very good

picture because all 5 of these stocks

did very well and all 5 outperformed the

S&P 500 so first of all we had waste

management was on my list there and

waste management returns 17.4%

since April 20th second we had Microsoft

on this list and Microsoft returned

43.6%

since being added that was obviously the

top performer of this list number three

was American Express and they returned

23.5% number four with Cisco Systems

they were the second best stock

returning 34% and number five was Apple

returning twenty three point two percent

and in that time frame the S&P 500

returned sixteen point six percent so

all five of these stocks outperformed

the overall market now I still have

confidence in all five of these stocks

listed from 2017 so these might be great

picks for beginners and I will also link

up that video at the end of this one if

you guys want to check that out but I

wanted to do five completely different

picks for the year of 2018 and that's

what we're going to talk about now now I

did have one main piece of criticism

from that video and that was the fact

that as a beginner you're looking for

investments that are not very volatile

so a volatile investment fluctuates up

and down frequently and beginners who

have little experience with the stock

market might get frightened or nervous

from that volatility and this could

cause them to make emotional decisions

if they see that price falls

significantly in the short term they

might get nervous and say ok I better

sell this investment it's an emotional

response that many beginners especially

have with the market so stocks like

Microsoft and Apple those are quite

volatile investments and so for these

picks I wanted to make sure I included

low volatility investments and the way

we are doing that is by looking at the

the beta basically allows you to compare

the volatility of this investment to the

stock market and a beta below one means

that this investment is less volatile

than the overall market and if the beta

is above one it means that this

investment is more volatile than the

actual market itself so the only

criteria for these five picks here is

that these stocks have to have a beta of

less than one which makes them less

volatile than the overall market itself

and that is going to make sure these

investments are typically going to be

less volatile than the market itself and

that is something that beginners should

be looking for now I just want to

mention briefly as well that my new

stock membership site known as stock

radar where we do weekly stock analysis

is officially open

there is a huge discount going on with

this membership for the next four days

only it's going to end on March 1st at

11:55 p.m. Eastern Standard Time the

membership for this site is going to be

$19 a month but up until that day it is

just going to be $14 a month and what

I'm doing in that group is weekly stock

analysis I already did a video on Amazon

stock I posted it to the YouTube channel

here and I'll link it up in the

description if you guys want to check

that out to get a sneak preview of stock

radar but you will also get access to a

private Facebook group to talk to others

about investments you're going to get

the ability to vote on what stock I

analyze each week and you're also going

to get a lot of bonus content now I also

have another piece of news about stock

radar I'm going to be doing a free

course or it's going to be a course that

is part of that group all about

fundamental stock analysis so we're

gonna talk about analyzing the

fundamentals of a company and looking at

key financial ratios and I'm gonna start

posting lectures on fundamental stock

analysis within that group as soon as

this week so you guys are going to get

access to four weekly stock analysis

videos a whole membership group you can

have discussions with people in and also

all kinds of bonus content and lectures

it's just going to keep on getting

bigger and better with time but that

price is going to go up incrementally

with time so if this does interest you

you might want to get in while the price

is low but now let's go ahead and get

into this video and talk about my top 5

stock picks for 2018 and these are in no

particular order these are just my five

favorite investments for beginners again

all of which that have a beta of less

than one number one on my list here is

UnitedHealth they trade under the symbol

U and

they have a price to earnings ratio of

24 they pay a dividend of 1.3 percent

and they have a beta of 0.6 for so this

is a very simple company that offers

health care products and insurance

services particularly to employers so if

you are an employee and you have an

employer sponsored health care plan in

the United States there's a good chance

that your health care plan is actually

through United health now the reason I

like this is because this is a very

defensive industry and what I mean by

that is this is not a industry that is

going to be affected much by the

underlying market itself you typically

see with cyclical industries that they

outperform in a bull market and then

they underperform in a bear market just

because there is less spending being

directed to these businesses and

industries but with defensive industries

the spending is relatively consistent

and what I mean by that is people are

not going to be spending more money on

their health insurance just because they

have the extra money they tend to pay

for their health insurance plans no

matter what the underlying economy is

doing and when we're looking at stocks

for beginners one thing we are going to

be looking for is consistency over the

long term and due to the defensive

nature of this business this should be a

great pick for beginners

now there is one threat to United health

and it actually sent this stock into a

bit of a sell-off here in 2018 and we're

going to go ahead and discuss this now

so amazon berkshire hathaway and JP

Morgan Chase have announced that they

are teaming up to create a new

healthcare company with the goal of

lowering health care costs and better

serving customers now obviously because

united health is one of the largest

providers of health care insurance and

services that stock went into a bit of a

sell-off and I think that that sell-off

is really overdone because particularly

when we're looking at Amazon they take

on very long term projects so is

UnitedHealth under a threat to do to

this new idea being formed with these

large companies taking on health

insurance they may have a threat long

term but in the short term this really

will not affect United health at all and

I really don't see this happening for

the next five years or more because this

is a very large project that they are

undergoing so I don't see this as a

threat to United health in the short

term maybe in five to ten years this

would be a threat to them but in the

short term I still see United health as

a very strong investment so moving on

the second stock on my list here is the

Boston Beer Company they trade under the

symbol Sam or sa M they do not pay a

divot

they are a smaller company the smallest

one on this list they have a p/e ratio

of 26 and they have a beta of 0.76 so

the Boston Beer Company has a number of

key brands under their name my favorite

beer of course is the Sam Adams Boston

lager and that is their flagship beer or

the main product the best selling

product for them but they also do have a

couple other recognizable names under

them as well and those would be twisted

tea angry orchard then the truly brand

of spiked beverages and Seltzer's so the

Boston beverage company is one of the

leading craft breweries in the United

States and I think that a lot of people

really enjoy their product especially

Millennials I know a lot of people are

into the craft beers and craft breweries

and so I see a lot of positives for this

stock however a lot of people would not

invest in this company because this is

what we call a syn stock and since

stocks are companies that produce a

product that harmed the general public

so this would be like for example

tobacco companies and alcohol companies

are the major sin stocks out there now

if you're somebody who does not want to

invest in something that is possibly

damaging people's lives then maybe you

would not be interested in the Boston

Beer Company but I just tend to look at

things objectively I wouldn't really

have a problem with investing in that

craft brewery I would never invest in

the tobacco company that is just for

personal and ethical reasons that is not

something I would want my money invested

in just because I think that cigarettes

and tobacco products are very damaging

to people's lives but I don't really see

that same effect here with a craft

brewery but the reason why people tend

to like these sin stocks is because they

are again recession proof investments

because people tend to buy their

cigarettes in their alcohol no matter

what the underlying economy is doing

especially if they're falling on hard

times a lot of people are going to be

consuming more of these harmful products

like alcohol and tobacco and so this

might be an investment that is going to

have better durability during a poor

economic time so the third pick on my

list here is 3m they trade under the

symbol mmm they have a price to earnings

ratio of 26 they pay a dividend of 2.3

percent and they have a beta of 0.97%

so 3m stock correlates very closely with

the actual market itself looking at that

beta the reason that like 3m is because

they have a very consistent operating

and growth history and they also have

diversification across different

industries within their product segments

so the main positive here for three

is that through this investment of one

stock you're getting exposure to

multiple different sectors because they

are involved in so many different

products I'm using a 3m product right

now I don't know if you guys can see the

logo but 3m owns post-it they got the

logo in the top right there it might be

getting cut off by the camera but

personally in my room here I have many

3m products that I'm using every single

day this right here is an example of

another 3m product I'm using frequently

I have sound padding all around my

studio and this is the general-purpose

45 spray adhesive that 3m makes and I

use this to attach those actual sound

panels to the cardboard so 3m has all

kinds of different products most people

don't even know whether or not a product

is owned by 3m because they just have so

many out there but they have things like

painters tape they have solvents they

have adhesives and I'm gonna go over a

few more examples of that now so first

of all we have consumer goods we have

things like the post-it brand as well as

scotch tape things that people are using

every single day at home and also in

their offices second we have the

healthcare industry they have bandages

they have casting materials they have

dental products and other medical

technology products as well and then

third of all we have the industrial side

of the business they have a lot of auto

products they have adhesives they have

abrasives and they have filters they

have all kinds of different products

that are used in industrial applications

so the main plus for this company is the

consistent operating history there are

very old time-tested durable investment

and it gives you exposure to multiple

different sectors out there through one

investment number four on my list is

actually a REIT a real estate investment

trust and this is the American Tower

corporation they trade under the symbol

AMT now AMT has a p/e of 54 but we're

going to talk about that in just a

second they pay a dividend of 2% and

they have a beta of 0.86 so as we said

the American Tower Corporation is a real

estate investment trust meaning that

they own real estate all over the world

in this case and what they own is cell

towers so they basically rent out cell

towers to major cell carriers now they

have about 40,000 towers here in the

United States but what is more

interesting to me is the fact that they

have over 108 thousand international

cell towers and those international cell

towers are particularly in three

different areas that is Latin America

India in Africa three emerging markets

so what I like about American Tower

corporation as it gives you a lot of

exposure to global emerging markets and

as these markets are growing there is

expected to be rapid growth in the

telecommunication space as there are

more and more people looking to be

connected to data networks but the big

question you may have is why is this

investment on my list here when they

have a price to earnings ratio of 54 it

is significantly higher than any other

one on my list here and I'm going to

explain to you right now why looking at

the price to earnings ratio is pretty

much useless when you're analyzing

equity REITs or real estate investment

trusts that is because these equity

REITs have a lot of depreciation

expenses when they buy a piece of real

estate they are able to depreciate that

asset over a number of years now these

expenses are not actually costing the

company anything but they are accounting

for them each year so that inflates the

price to earnings ratio as expenses are

higher but again keep in mind these are

not expenses that are actually costing

them anything this is just them

accounting for depreciation so you

really have to throw that price to

earnings ratio out the window when

analyzing any kind of equity REIT so the

reason why I like the American Tower

corporation is because we are all using

more data there are more devices being

connected to the network and that is

putting more demand on the

telecommunications industry and more

carriers are going to need to buy space

on cell towers now when a carrier buy

space on an American Tower corporation

cell tower it is typically a 5 to 10

year contract and one of the best parts

of this is that they have inflation

protection built in so they actually

have a set rate that their rent is going

to increase every single year and it is

going to outpace inflation so American

Tower Corporation has built-in inflation

protection through that increased rate

every single year the other thing is

most of these carriers renew their

contracts they have a very low churn

rate it's about one to two percent so

after that five to 10-year contract

expires most of the telecom companies go

ahead and renew that contract with

American Tower corporation now as a REIT

90 percent of the profits are returned

to shareholders in the form of dividends

and the rest of that money is invested

into new real estate more cell phone

towers that they are able to rent out to

other companies so this is a very

appealing business to me as an investor

and I think it is a suitable investment

for beginners and then fifth and finally

on the list here we have Lockheed Martin

they trade under the symbol LMT they

have a p/e race

oh of 27 they pay a dividend of 2.2% and

they have a beta of 0.69 now for me it

was between Boeing and Lockheed Martin

but I had to kick Boeing off this list

because they have a significantly higher

beta so Lockheed Martin has a beta of

0.69 while Boeing has a beta of 1.65

meaning that Boeing stock is more

volatile than the market and that is why

I don't see this as a suitable

investment for beginners that are

looking for very low volatility Bolling

is still one of my favorite stocks and

one of my top picks for 2018 but for

that reason they did not make this list

for my top picks for beginners so

Lockheed Martin is a global aerospace

defense security and advanced technology

company and their biggest customer is

the United States government in fact 70%

of Lockheed Martin sales in 2017 came

from one customer and that was the

United States government that is what I

love about this company is they benefit

from consistent government spending now

the reason why they are on this list is

because defense spending is expected to

increase over the next two years

significantly so a 15 percent defense

spending increase has been passed for

the US government in 2018 and this is

the largest increase in over a decade

now on top of that we are expected to

see another increase in 2019 as well of

around seven percent so Trump is

requesting a seven percent increase in

defense spending on the 2018 levels for

the 2019 budget but that has not been

passed yet however that 15 percent

increase for 2018 has been passed and

when 70 percent of Lockheed Martin's

sales is coming from the US government

and they're increasing defense spending

by 15 percent I bet you guys can take a

guess what's going to happen to that

company as far as their earnings their

sales and their revenue goes so this

increase in defense spending will

significantly benefit two companies

those are Lockheed Martin and Boeing and

that is why those are two of my favorite

stocks for 2018 but due to the low beta

Lockheed Martin fits on my list here of

stocks for beginners anyways guys that

is all I got for this video if you want

me to do a monthly update on these five

stocks

leave me a comment below because that's

something I'm doing for my other series

on my best picks for 2018 I could do the

same thing but on my best picks for

beginners for 2018 where I update you

guys monthly on the performance of these

stocks and set up a dummy portfolio so

if you guys want to

that let me know in the comments section

below and again if you're interested in

my new membership site stock radar it is

just $14 a month for the next four days

only that price is going up to $19 a

month on March 1st but I thank you guys

for taking the time to watch this video

if you're new to my channel please

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great rest of your day

if you are interested in learning more

about investing in the stock market I've

created a free course just for you the

link is in the description below here

are a few other videos you might enjoy

as well

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