I think that there are some really good ASX shares that could be good investments for beginners.
Some shares are pretty complicated and hard to get your head around. If you don’t understand what some investments are about, or the business model, that’s okay. It may be a good idea to just leave those alone and go for ones that make sense. Famous investor Warren Buffett likes to say this is staying with your “circle of competence”.
So, with that in mind, here are those ideas:
Future Generation Investment Company Ltd (ASX: FGX)
This is a listed investment company (LIC), which is a company that invests in other shares. But there are no management fees involved because the fund managers’ funds that Future Generation is invested in are provided for free so that the LIC can donate 1% of its net tangible assets (NTA) to youth related charities.
Not only does this ASX share offer a lot of underlying diversification because of the various portfolios it’s invested in, but it has also provided outperformance. Since inception in September 2014, Future Generation’s gross portfolio returns have outperformed the All Ordinaries Accumulation Index by an average of 2.7% per year.
On top of decent returns and good diversification, it also has a solid, growing dividend too.
Fortescue Metals Group Limited (ASX: FMG)
Fortescue is one of the biggest iron ore miners in Australia. Usually, a good time to buy a resource business is when the commodity price (and mining company price) is down near the bottom part of the cycle. The Fortescue share price has dropped 38% in four months.
This mining ASX share may not always be known for purely being an iron ore miner. It’s exploring for other commodities in different regions around the world.
But for me, the most interesting thing about Fortescue is Fortescue Future Industries (FFI) which wants to become a world leader in the green and decarbonisation space. One goal is to make ‘green hydrogen’ the most globally traded seaborne commodity. A recent announcement has been a green energy manufacturing centre for Gladstone, in Queensland.
Betashares Nasdaq 100 ETF (ASX: NDQ)
This ASX share is an exchange-traded fund (ETF) which is invested in 100 of the largest businesses on the NASDAQ, which is one of the stock exchanges in North America.
Many of the best businesses in the world, the blue chips, are in this ETF’s portfolio like Microsoft, Apple, Nvidia, Alphabet, Adobe and Netflix. I think that’s a good portfolio to own for beginners.
Unsurprisingly, many of these businesses are tech businesses with attractive profit margins. The Betashares Nasdaq 100 ETF has done well in the last few years and the continuing global growth by these businesses is hopefully going to keep leading to good returns.
