Getting started with investing can be overwhelming. There’s a lot to learn, a lot of noise, and a real risk of losing money if you make the wrong moves. Between complicated strategies, conflicting opinions, and market volatility, it’s easy for new investors to feel intimidated, or worse, to put it off entirely.
But while investing does come with risk, it also offers some of the best opportunities to build wealth over time. And the good news is you don’t have to master every technical detail or predict the market to be successful. You just need a solid foundation, a clear strategy, and the right mindset.
The truth is, investing isn’t about guessing which stock will double next week. It’s about building a portfolio of quality businesses, being patient, and letting time do the heavy lifting. Yes, mistakes happen. But the biggest mistake is doing nothing at all and letting your money sit idle.
So, if you’re a new investor and want to put your money to work with confidence, here’s how to get started the right way.
New investors should start with what they understand and stick to a long-term mindset
One of the best things a new investor can do is keep it simple. Start by focusing on businesses you understand, for example, companies that you interact with, use daily, or already believe in. This keeps you inside your circle of competence and helps you make more confident, informed decisions.
It’s also paramount to do your research before buying any stock. Understand what the company does, how it makes money, what gives it a competitive edge, and what could go wrong.
You don’t need to read every earnings report start to finish, but you should feel comfortable explaining why you own the business in a sentence or two. If you can’t, you probably shouldn’t own it yet.
It’s also equally, if not more important, for new investors to manage their emotions. Markets go up and down. In fact, even the best companies face rough patches. But if you panic and sell every time a stock dips, you’ll never give your investments a chance to grow.
Confidence comes from understanding what you own, knowing it’s a high-quality business and trusting your strategy.
And remember, investing is a long game. You’re not buying lottery tickets. You’re building a portfolio that can grow and compound over time. So, it’s essential to look for high-quality companies you’d be happy to hold for years, not stocks you hope will pop next week. That mindset shift alone can make all the difference.
One of the best Canadian stocks to buy now
If you’re a new investor with cash you’re looking to put to work, one of the best stocks to buy now is Brookfield Infrastructure Partners (TSX:BIP.UN).
Brookfield is one of the best stocks to buy for new investors because it’s a high-quality company with an incredible management team, defensive operations, and a business model that’s easy to understand.
For example, Brookfield owns different infrastructure assets all over the globe, from utility businesses to ports, railroads and even data centres and telecom towers. Brookfield owns these essential assets and therefore, the majority of its revenue is highly resilient.
This makes it an ideal stock to buy and hold with confidence over the long haul. Plus, in addition to its resiliency, Brookfield also has tonnes of growth potential and is constantly looking for its next acquisition.
Furthermore, on top of its long-term growth potential, Brookfield also pays a growing dividend, currently yielding 5.2%.
So, if you’re a new investor looking to buy stocks with confidence, it’s essential you have the right mindset, manage your emotions and find high-quality companies like Brookfield that you can plan to hold for years or even decades to come.
