Despite compelling reasons for pessimism, the stock market continues to push higher. One might think that geopolitical tensions in the Middle East and Eastern Europe, strained relations with China, sticky inflation, higher-for-longer interest rates in the U.S., and a simmering global trade war would be enough to derail the secular bull market U.S. equities have been enjoying for more than a decade, but such is not the case.
Retail and institutional Investors are cautious about the short-term outlook but appear very optimistic about the long term. On July 22, the S&P 500 — considered a good representation of the broad stock market — finished the day at 6,309.62, recording a new all-time closing high and achieving a 7.28% year-to-date gain so far in 2025. While stocks carry unique risks, it’s becoming clear — even to beginner investors with limited capital — that being on the sidelines of the market is probably a bad idea.
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Because no one can accurately predict the short-term direction of the stock market and prolonged bear markets can and do happen, equity investing may not be suitable for individuals without a reliable income and some cash reserves set aside in deposit accounts like savings accounts or certificates of deposit. That said, once you’ve determined that you can afford to take some risks with your discretionary funds, stock market investing is a good idea.
Shares of stock represent an ownership stake in the underlying companies. When the economy, the market and those companies do well, shareholders will share in the rewards. Stocks fluctuate with the market and other factors, but equity investing has a proven, long-term record of success. Even if you’re brand new to investing, buying stocks is an excellent way to build wealth over time.
The five companies on the following list are all uniquely suitable for beginners with little money to invest. They have well-diversified product and service lines within their respective sectors, they’re all very well run and, historically speaking, they’re proven winners:
| Stock | Sector | Market Cap |
| JPMorgan Chase & Co. (ticker: JPM) | Financial | $814 billion |
| Walmart Inc. (WMT) | Consumer staples | $764 billion |
| T-Mobile US Inc. (TMUS) | Communication services | $263 billion |
| Microsoft Corp. (MSFT) | Technology | $3.7 trillion |
| Berkshire Hathaway Inc. (BRK.A, BRK.B) | Financial | $1 trillion |
JPMorgan Chase & Co. (JPM)
JPM is one of the most admired financial companies in the world, and one of the most dependable stocks on the market for long-term revenue and earnings growth potential.
The company provides deposit and lending services to individuals and businesses through its extensive network of more than 5,100 Chase Bank branches in the U.S. and many additional retail banking outlets around the world. It also has an investment banking and wealth management segment that provides capital solutions, asset management and brokerage services to corporations, institutions and high-net-worth individuals globally.
Why Is JPM a Good Stock for Beginners?
JPM is a blue-chip U.S. company with roots that go back to the 18th century. It serves virtually all financial consumers from small depositors to the largest, most sophisticated institutions on Earth. It has a vast product portfolio that includes deposit accounts, consumer credit, small business lending, investment banking, mutual funds and exchange-traded funds (ETFs), Wall Street brokerage services, and much more. JPM is a large-cap stock with a market cap of about $810 billion and boasts a dividend yield of almost 2%. And finally, the company is under the leadership of one of the most capable CEOs in the corporate world, Jamie Dimon.
Walmart Inc. (WMT)
Wall Street estimates Walmart will generate about $700 billion in revenue in its fiscal 2026 and grow that number 4.9% to $734 billion in FY2027, making this company the world’s second-largest retailer by revenue behind only Amazon.com Inc. (AMZN).
Walmart operates over 10,500 department stores, neighborhood markets and warehouse clubs in 19 countries worldwide. It stocks a wide variety of groceries and other items, including apparel, small and large appliances, electronics, household goods, health and beauty supplies, and much more.
Why Is WMT a Good Stock for Beginners?
WMT is the premier brick-and-mortar retailer in the U.S. and in every country it operates in. Its Sam’s Club big-box warehouse stores compete head-to-head with Costco Wholesale Corp. (COST), and its thriving online shopping division rivals Amazon in customer service and range of products offered.
In short, Walmart offers the best of both the brick-and-mortar and e-commerce spaces. Additionally, this consumer defensive stock has a forward dividend yield of just under 1%.
T-Mobile US Inc. (TMUS)
TMUS is a $263 billion communications services company that is an established leader in the wireless telecom industry. The company offers mobile phone service on a contract or pay-as-you-go basis, consumer and enterprise Wi-Fi, and related equipment and accessories to customers in the U.S. and around the world.
The size and geographic reach of T-Mobile’s wireless network is rivaled only by Verizon Communications Inc. (VZ). In recent years, this company has become one of the most recognized names in the wireless industry.
Why Is TMUS a Good Stock for Beginners?
As of March 2025, TMUS had 131 million mobile phone service subscribers in the U.S. That number is comparable to Verizon’s 140 million subscribers, with similar customer loyalty and retention numbers. The stock pays a reliable forward annual dividend of $3.52 a share, which equates to a current yield of 1.5%. TMUS operates over 5,000 brick-and-mortar locations and has a thriving online presence. The communications services sector is a vital part of the U.S. economy, and TMUS is an industry powerhouse.
Microsoft Corp. (MSFT)
Microsoft has been a leading technology company since its founding 50 years ago. With a market cap of $3.7 trillion, Microsoft is one of the very few companies that qualify as “mega cap.”
Microsoft designs and produces a large variety of computer hardware and advanced software. It is a premier gaming company as well as a prominent cloud computing firm. This company serves millions of individuals and institutions worldwide. Its subscription-based Office Suite of products is preeminent in the realm of operating system enterprise applications.
Why Is MSFT a Good Stock for Beginners?
Whether they have decades of investing experience or are just starting out, no investor can afford to ignore the technology sector. Microsoft is a well-established tech company involved in many facets of that critical industry. It produces software and hardware, it has one of the most comprehensive and loyal customer bases in the world, and is at the forefront of new and emerging technologies such as cloud computing, artificial intelligence and quantum computing. Additionally, its dependable annual forward dividend of $3.32 equates to a yield of 0.65%.
Berkshire Hathaway Inc. (BRK.A, BRK.B)
Berkshire Hathaway is a multinational conglomerate holding company that owns large equity interests in other prominent public companies. Buying Berkshire Hathaway is a way to secure indirect exposure to some of the world’s greatest companies through the purchase of a single stock.
Berkshire has equity interests in banks, insurance companies, transportation and logistics companies, utilities, technology firms, food and beverage companies, and more. And the company has plenty of resources to be able to make more great investments. According to the firm’s most recent financial statements, Berkshire has over $347 billion in cash or cash equivalents.
Why Is Berkshire Hathaway a Good Stock for Beginners?
Two features make Berkshire an excellent stock for beginners with limited capital. The first is diversification and the second is high-quality professional management.
Small investors can find it hard to achieve proper portfolio diversification; buying Berkshire goes a long way toward solving that problem. Currently, Berkshire holds about 36 publicly traded stock positions. A shareholder — even a small one — has exposure to all of those holdings. Further, the company is managed and the stocks it buys are selected by one of the greatest investors of all time, Warren Buffett. Though Buffett is retiring at the end of 2025, his hand-picked successor, Greg Abel, is a 25-year veteran of the firm and is committed to ensuring Buffett’s legacy of success continues well into the future.
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5 Best Stocks for Beginners With Little Money originally appeared on usnews.com
Update 07/23/25: This story was previously published at an earlier date and has been updated with new information.
