Congratulations! You've done the hard work of setting aside cash that can be put toward your future. Taking money that you won't need for several years and investing it in stocks is a great way to build your wealth over time, but you need to be smart about it. Rather than buying the hot-tip stock you heard about from your uncle, investing in well-run companies you are familiar with is a better way to build a solid foundation for your portfolio.
Three stocks that can help you get started investing this year are Amazon (NASDAQ: AMZN), Mastercard (NYSE: MA), and Home Depot (NYSE: HD). Let's take a look at why these three can be a great way to start your investing journey and I'll wrap up with a thought that can improve your odds of success.
Amazon has grown considerably since it started selling books online 25 years ago. It has built a fast and reliable fulfillment network, with just about anything you want to buy available on its website (including groceries), and also has a massive cloud hosting business (Amazon Web Services). In recent months, the pandemic has made it clear that e-commerce is here to stay, and Amazon leads the way as the go-to choice for consumers.