The S&P 500 Is Not Enough: My 3-Stock Starter Portfolio for New Investors
An S&P 500 index fund is a fine foundation -- Amazon, Meta Platforms, and Alphabet give beginners three quality growth stocks on top of it.
Overview
Amazon (NASDAQ: AMZN), Meta Platforms (NASDAQ: META), and Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL) are my three-stock starter portfolio for new investors in October 2026. I think these stocks offer more long-term growth potential than an S&P 500 index fund.
The S&P 500 has delivered an average annual return of 9.98% since 1928 through 2025, according to The Motley Fool's research. All three of these tech giants have a track record of beating the market, and they're still posting the kind of growth that can sustain that outperformance.
Details
Index funds have their place as an anchor investment. But adding a few quality growth stocks from companies people use every day is a practical way to aim for above-average returns without taking too much risk.
Source
Originally published at www.fool.com.