You don’t need a huge five or six-figure amount of cash to get started investing, especially with commission-free trades offered by various brokers. Though some bank brokers may still charge anywhere from $5 to $10 per trade, some of the lower-cost ones out there charge fees that will barely eat into your investable cash pile.
Indeed, it may take no more than $1,000 to get started in the investing game. While it’s a good idea to go for an index fund or ETF (Exchange-Traded Fund) with your first purchase if you’re looking for instant diversification, those keen on picking their own may wish to consider a few Canadian blue-chip stocks.
Of course, it can be tough to beat the markets consistently. The efficient market hypothesis makes index funds the optimal choice for fee minimization. However, I do think beginner investors should embrace stock picking, not just for a shot at outperforming the averages (if you have the right mindset, I do believe it’s possible to beat the market over a lengthy duration), but for treating stocks as partial ownership of a company, rather than just something to be bought and sold regularly for a quick profit.
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How should beginners invest in the early days?
Whenever you treat a stock in your portfolio as a piece of a business (as Warren Buffett does) and not just another ticker symbol to be sold soon after you’ve bought, I do think you’re on track to becoming a disciplined investor who can fare well over the long run. Indeed, it’s those who don’t put in the homework and don’t view stocks as pieces of businesses to be held for years or decades that tend to risk the most in the investing world.
Let’s check out two stocks Canadian beginners may wish to consider picking up right now while the market’s still volatile and investors are still wobbled by the recent surge in early-September market choppiness. So, if you’re looking for a first stock idea, perhaps the following name is worth checking out, as it’s still relatively cheap. As always, ensure you’re diversified, and don’t put all of your eggs in one basket! Your first stock should not be your only stock!
Restaurant Brands International
Restaurant Brands International (TSX:QSR) is a fast-food company that’s simple enough for new investors to understand. It’s behind legendary restaurants such as Tim Hortons, Popeye’s Louisiana Kitchen, Burger King, and Firehouse Subs. Recent speculation suggests Restaurant Brands is going after another chain amid recent turbulence in the industry.
For now, it looks like a pizza chain could be next to be bought. Either way, I think QSR stock has more than enough growth opportunities to keep itself occupied for the next decade or more. Whether we’re talking about menu innovation and store renovation over at Tim Hortons and Burger King or global expansion of Tim Hortons and Firehouse Subs, there’s no shortage of growth levers for management to pull. As rates come down and Restaurant Brands can borrow at a lower cost, I think it could take growth into overdrive.
Additionally, watch out for the firm to double down on digital innovation. We’re talking mobile app ordering, digital kiosks, and perhaps robot cashiers and kitchen helpers. All of these tech efforts could enhance margins and enrich the customer experience over the long haul. With a nice 3.5% dividend yield, QSR stock is a great buy, while it’s still under $95 per share.
