Apple (NASDAQ: AAPL)

Apple's products are so widespread that it's easy to gauge whether a new product line is well-received by consumers. Typically, the company launches new iPhones and other devices a few months before the Christmas shopping season.

Apple's market capitalization makes it one of the largest companies in the world, and it holds a significant amount of cash on its balance sheet, providing investors with a degree of protection during economic downturns.

Bank of America (NYSE: BAC)

Before the current cycle of rising interest rates, the banking industry faced several challenging years with very low rates. The difference between the rates they charge on loans and what they pay on savings determines their profit margins, which were squeezed due to near-zero benchmark rates.

However, as inflation surged in the past couple of years, interest rates have reached levels not seen in years, increasing bank revenues.

Traditionally, the banking industry offers a low risk-reward proposition, but establishing long-term positions in major companies when they are undervalued can yield substantial returns. Bank of America's current dividend yield is an added benefit for novice investors.

Visa (NYSE: V)

Visa has a long history of sustained growth, which has been consistently stable thanks to the continuous adoption of new technologies, expansion into new markets, and the introduction of new products and services.

As the world's largest payment processing company, Visa holds a dominant position, with its network being used by billions of people worldwide, translating into a strong balance sheet.

Overall, considering the company's dominance, solid financial status, diversified revenue streams, and dividend payments, Visa is a stock worth considering for beginner investors.

Amazon (NASDAQ: AMZN)

Amazon's online shopping platform is almost unassailable and generates billions of dollars in revenue annually. Additionally, its AWS (Amazon Web Services) division is thriving, with profit margins higher than those of the online shopping segment.

Amazon does not pay dividends to investors, as the management team believes reinvesting profits into new ventures will drive future stock price appreciation. Thus, Amazon is classified as a growth stock, and while it may exhibit higher price volatility compared to other stocks on this list, the company's critical mass suggests a continued upward trend in stock price over the medium to long term. Its significant position in the e-commerce market and on-demand cloud computing makes it worth considering for new investors.

Johnson & Johnson (NYSE: JNJ)

Johnson & Johnson, a large multinational company, has proven the value of its product range, achieving steady stock price growth over the past few years despite changing macroeconomic conditions.

For a stock considered to be in a more defensive industry, such performance is impressive, and healthcare and pharmaceutical stocks typically maintain their value well during market sell-offs. The products they sell benefit from a 'sticky' level of demand.

JNJ's market capitalization and impressive current dividend yield make it a stock that can be expected to provide some returns while offering a degree of stability for new investors, who may also have higher-risk positions in their portfolio.

Why Invest in These Stocks?

For any new investor, the market and choosing the right investments can be daunting. Many seasoned investors recommend investing in index funds. However, some new investors prefer selecting individual stocks they believe can yield higher returns. Each of the listed stocks has a record of solid growth and stability, which should reduce the potential risks that new investors might encounter.

While all investments carry some risk, holding positions in companies better equipped to weather economic headwinds can mitigate these potential risks. These stocks are giants in their respective fields and possess the critical mass to endure economic downturns and maintain steady revenue streams.

Things to Know Before Investing

Understand Your Risk Tolerance: All investments carry a degree of risk, so it is crucial to understand how much risk you can accept before you start investing. Investing involves the possibility of losing your principal, so you should only invest money you can afford to lose. Everyone's risk tolerance is different, so ensure you assess your own level before making any investment decisions. Once you understand your risk tolerance, you can choose investments that align with your comfort level.

Set Long-Term Goals: Investing should be approached as a strategy to build wealth and achieve financial goals, which takes time. Before you start investing, identify specific, measurable, achievable, relevant, and time-bound goals. Clear goals will help you stay focused and make investment decisions that align with your long-term objectives.

Do Your Research: Conducting thorough research and understanding the risks involved is essential before investing in any asset. For stocks, this includes reading the company's financial statements, researching the industry, and understanding the competitive landscape. Also, evaluate the costs associated with different investments to make more informed decisions that align with your risk tolerance and financial goals.