5 Safe Stocks to Invest In For Beginners

3. Alphabet Inc. (NASDAQ:GOOG)

Number of Hedge Fund Holders: 152

Alphabet Inc. (NASDAQ:GOOG) has long been one of the most affordable ways to own elite technology stocks. This is because while other members of the Magnificent Seven often trade at sky-high price-to-earnings ratios, Alphabet stock is priced significantly cheaper than peers. For beginner investors, this translates to less chances of overpaying for the future growth of the firm. Another signal for the value orientation of the company is the nearly $5 billion that Berkshire Hathaway poured into the tech giant late last year. In the investing world, when Warren Buffett’s firm buys in, it is evident that the stock meets strict value and safety criteria.

Alphabet Inc. (NASDAQ:GOOG) is also a safe stock to invest in for beginners since it does not rely on just one product. The firm has successfully diversified into three massive engines, Google Search & Ads, YouTube, and Google Cloud. Search is still the global leader with over 90% market share. It acts as the utility of the internet, a business that remains steady even during economic shifts. YouTube now accounts for over 10% of all US TV viewing time. It provides a recurring, high-margin revenue stream through ads and 300 million+ paid subscriptions. The cloud division has achieved a $155 billion backlog, providing predictable revenue for years to come.