2 Stocks for Beginning Investors
Invest in what you know. That was a guiding principle of investing legend Peter Lynch, the former Fidelity portfolio manager. What he meant by that was, do your research and know the company you are investing in.
Lynch also said to invest in what you're good at, whether that is finding value, investing in smaller companies, identifying growth stocks, or focusing on a particular industry or sector. This second part can only come from experience, after you have invested for a while and can draw conclusions on where your successes lie.
These two simple lessons can help guide beginners along their investing journeys. But knowing where to begin from the universe of more than 5,000 stocks traded on U.S. exchanges can be a daunting task. A good place to start is with large, stable companies that you probably know something about, such as Bank of America (NYSE: BAC) and Walt Disney (NYSE: DIS). Let's find out a bit more about these two stocks.
Source Fool.com
