New to the stock market? Here are 2 great beginner shares to consider buying

It’s been a volatile few months for global stock markets. But that shouldn’t put off new investors from getting started.

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The stock market can be a daunting place. And while the FTSE 100‘s climbed 6.3% in 2024, its rise hasn’t been plain sailing.

We’ve seen increased volatility in the last couple of months. Naturally, that can deter new investors from dipping their toe into the market. However, it shouldn’t.

Keeping it simple

With more volatility comes plenty of noise surrounding the markets. But I like to block it all out. Instead, I like to remember what investors such as Warren Buffett would say. He’s without a doubt one of my favourite stock pickers.

Should you invest £1,000 in B&M right now?

When investing expert Mark Rogers has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for nearly a decade has provided thousands of paying members with top stock recommendations from the UK and US markets. And right now, Mark thinks there are 6 standout stocks that investors should consider buying. Want to see if B&M made the list?

See the 6 stocks

His long-term approach to buying companies aligns with my investment strategy. On top of that, over his eight decades of investing, he’s provided retail investors with plenty of brilliant advice.

One piece that has resonated with me is to make investing as simple as possible. To achieve that, he says we should buy companies where we easily understand how they make money and add value. Over the long run, these companies tend to be strong performers. During times of volatility, and for new investors, I think that message is especially important.

Marks & Spencer

That’s why I reckon Marks & Spencer (LSE: MKS) is a good stock to consider buying. The stock’s up 61% in the last 12 months and 77% in the last five years, far outperforming the FTSE 100.

Created with Highcharts 11.4.3Marks And Spencer Group Plc PriceZoom1M3M6MYTD1Y5Y10YALLwww.fool.co.uk

That’s not to say the business hasn’t faced challenges along the way and won’t continue to do so. The fragile nature of the economy poses a constant threat to M&S over the past couple of years. For example, we’re not out of the woods yet with inflation. On top of that, it was announced today that the UK economy failed to grow in July. That could impact consumer confidence.

However, as a long-term buy, I like the look of Marks & Spencer. Firstly, as a retail giant, it’s easy to understand how the business generates money.

Furthermore, it has made great strides in recent times to turn itself around. After falling behind its competition, a fresh strategy focused on boosting both its in-store and online presence has revived the business.

Trading on a price-to-earnings (P/E) ratio of 17.1 and a forward P/E of 13.3, I think the stock also looks like decent value.

Diageo

My second pick is Diageo (LSE: DGE). Unlike Marks & Spencer, the alcoholic beverage giant has suffered in recent times. It’s down 24% in the last 12 months and 26% in the last five years.

Created with Highcharts 11.4.3Diageo Plc PriceZoom1M3M6MYTD1Y5Y10YALLwww.fool.co.uk

The main catalyst for its downfall has been a profit warning issued last year, which came after a drop in Latin American & Caribbean sales.

With an ongoing cost-of-living crisis, many consumers have decided to switch to cheaper alternatives from the higher-end names Diageo sells or stop drinking altogether. Moving forward, this will continue to be a threat.

But for investors with the bigger picture in mind, I think Diageo shares could be a steal. With premium brands under its umbrella, I’m confident the business will excel in the years and decades to come. That’s especially when we begin to see further rate cuts, which will boost spending.

Alongside that, the stock also looks cheap with a P/E of 18.4. That’s below its historical average of 22.4.

Should you buy B&M shares today?

Before you decide, please take a moment to review this first.

Because my colleague Mark Rogers – The Motley Fool UK’s Director of Investing – has released this special report.

It’s called ‘5 Stocks for Trying to Build Wealth After 50’.

And it’s yours, free.

Of course, the decade ahead looks hazardous. What with inflation recently hitting 40-year highs, a ‘cost of living crisis’ and threat of a new Cold War, knowing where to invest has never been trickier.

And yet, despite the UK stock market recently hitting a new all-time high, Mark and his team think many shares still trade at a substantial discount, offering savvy investors plenty of potential opportunities to strike.

That’s why now could be an ideal time to secure this valuable investment research.

Mark’s ‘Foolish’ analysts have scoured the markets low and high.

This special report reveals 5 of his favourite long-term ‘Buys’.

Please, don’t make any big decisions before seeing them.

Claim your free copy now

Should you invest, the value of your investment may rise or fall and your capital is at risk. Before investing, your individual circumstances should be assessed. Consider taking independent financial advice.

Charlie Keough has no position in any of the shares mentioned. The Motley Fool UK has recommended Diageo Plc. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.

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