Cash App has become a popular investing app for beginners due to its user-friendly interface and zero commission trades. However, with thousands of stocks to choose from, deciding what to invest in can be overwhelming. This article provides tips on how to select the best stocks to invest in through Cash App.
Consider large cap stocks that pay dividends
Many of the best stocks for beginner investors are large cap companies that have an established track record of financial success and pay regular dividends. Look for companies like Coca-Cola, Apple, Microsoft, Johnson & Johnson and Pepsi that provide needed products and services and have dependable cash flows. These stocks offer both growth potential and income that can help compound returns.
Invest in innovative and fast growing tech stocks
Growth stocks like Amazon, Tesla and Google can be great additions for investors seeking higher return potential over time. These tech leaders are pioneering innovative products and services and rapidly expanding their market shares. With strong competitive advantages and leadership in high demand areas like e-commerce, electric vehicles and online advertising, they have solid runways for future growth.
Stick to brands you know and understand
One of Warren Buffet’s top investing principles is to invest in companies whose products and brands you know and regularly use. Familiar brands like Starbucks, Nike, Netflix, Disney and McDonald’s cater to mass consumer markets and benefit from powerful branding and stakeholder loyalty. Focusing your stock purchases in companies you understand helps minimize investment risks for novice investors.
When deciding what stocks to invest in through Cash App, target industry-leading companies with trusted brands, solid balance sheets and growing sales and profits. Stick to your investment plan, diversify across sectors and let your money compound over time through reinvested dividends.