10 Best Stocks for Beginners With Little Money in 2025

Investing in the stock market can be an excellent way to build wealth over time, even starting with a small amount of money. With the advent of fractional shares and commission-free trading platforms, the barriers to entry have significantly lowered, making it more accessible for beginners.

In 2025, several stocks will be available for novice investors with limited funds. This listicle will explore the best stocks for beginners with little money and explain why they might be a good fit for your investment portfolio.

Understanding the Basics of Stock Investing

Before diving into specific stock recommendations, it's essential to grasp some fundamental concepts. Stocks represent ownership in a company, and when you purchase a stock, you're buying a piece of that company. The value of your investment can increase or decrease based on the company's performance and market conditions.

For beginners, we advise focusing on long-term investing, aiming to hold stocks for several years to benefit from compound growth and to weather short-term market volatility.

Ranking the Best Stocks for Beginners With Little Money

1) Berkshire Hathaway Inc. (BRK.B)

Berkshire Hathaway's Class B shares offer access to a company with one of the most consistent long-term track records in the investing world, thanks to the stewardship of Warren Buffett and Charlie Munger. It's a conglomerate with holdings across multiple sectors, including insurance (GEICO), consumer products (Duracell), and a substantial portfolio of public stocks like Apple and Coca-Cola.

This built-in diversification makes BRK.B a suitable pick for beginners who may not yet have a diversified portfolio. Furthermore, its shares are reasonably priced, especially in B-class, making it easy for small investors to participate.

2) Verizon Communications Inc. (VZ)

Verizon is a defensive stock, meaning it tends to hold its value well during economic downturns due to its necessity-driven business —telecommunications. The company has a high dividend yield, often above 6%, which can provide steady income to investors.

It's a favourite among income-focused beginners who want exposure to a stable company in a sector with consistent demand. Its investments in 5G infrastructure make it a good long-term play in a technology-driven future.

3) Walmart Inc. (WMT)

Walmart has proven its ability to weather economic uncertainty. Its value-based business model thrives during booms and busts, appealing to a wide demographic of consumers. For beginners, Walmart offers both growth and stability.

The company's omnichannel retailing approach, which includes a robust e-commerce segment, gives it an edge in adapting to the evolving retail landscape. Additionally, its consistent dividends and reputation as a "Dividend Aristocrat" add another layer of reliability for new investors.

4) PayPal Holdings Inc. (PYPL)

PayPal is a modern financial technology powerhouse. As cashless transactions become increasingly prevalent, PayPal's services are in high demand across global markets. Its user base continues to grow, and it benefits from network effects — the more people who use it, the more valuable it becomes.

For beginners, it's an accessible tech stock that doesn't carry the price tag of giants like Apple or Amazon but still provides exposure to a growing digital payments trend. With new features like cryptocurrency integration, PayPal is also innovating its product offerings to stay competitive.

5) Airbnb Inc. (ABNB)

Airbnb represents the "experience economy" and is a massive disruptor in the traditional hospitality industry. As travel has rebounded post-pandemic, the demand for flexible, non-traditional accommodations has soared.

Airbnb's asset-light model (it doesn't own the properties listed) allows for scalability without the overhead that traditional hotel chains bear. For beginners looking for growth potential in a company that capitalises on lifestyle and travel trends, Airbnb is an excellent candidate.

6) Vanguard Total Stock Market ETF (VTI)

VTI isn't a single stock but a basket of thousands of U.S. stocks, offering built-in diversification. This ETF allows new investors to own small pieces of many companies across all market sectors and capitalisations. Its ultra-low fees and consistent tracking of the whole U.S. market make it one of the best vehicles for building wealth over time.

For investors with limited funds who lack the time or expertise to analyse individual companies, VTI offers a hands-off and highly diversified approach.

7) Johnson & Johnson (JNJ)

JNJ is a well-established healthcare conglomerate that develops pharmaceuticals, medical devices, and consumer health products. Its diversified business model and strong balance sheet make it a defensive stock that performs well in good and bad economic climates.

The company has been paying dividends for over 50 years and is known for steady growth and a reliable payout. JNJ is a low-volatility pick for beginners seeking stability with a touch of healthcare exposure.

8) Netflix Inc. (NFLX)

Netflix is a leader in streaming entertainment, a sector that continues to grow globally. With a commitment to original content, expanding international markets, and strong brand loyalty, Netflix is expected to remain dominant despite increasing competition.

Its stock may be volatile, but its long-term growth prospects are strong, especially with its recent ad-supported tier expanding its reach. Beginners interested in technology and media trends may find Netflix an exciting and rewarding addition to their portfolio.

9) Alphabet Inc. (GOOGL)

Alphabet dominates several of the world's most dominant platforms, including Google Search, YouTube, and Android. Its advertising business generates consistent revenue, and its ventures into artificial intelligence, autonomous vehicles (Waymo), and cloud computing position it for future growth.

Despite its massive size, Alphabet continues to innovate, making it a tech stock with both growth and stability. Its share split in recent years has made it more accessible to smaller investors through fractional shares.

10) Amazon.com Inc. (AMZN)

Amazon is not just an e-commerce titan but also a leader in cloud computing through Amazon Web Services (AWS), which generates most of its profits. Its logistics network, data infrastructure, and innovation in areas like AI, healthcare, and smart devices make it one of the most dynamic companies in the world.

While its price per share can be high, many platforms offer fractional share investing, making it possible for new investors with small budgets to gain exposure to one of the most influential companies of the 21st century.

Conclusion

In conclusion, investing in stocks with limited funds is achievable with the right approach and mindset. By focusing on affordable, stable companies and employing sound investing strategies, beginners can build a solid foundation for long-term financial growth from our selected best stocks for beginners with little money.

As usual in anything, continuous learning and disciplined investing are essential components of a successful investment journey.

Disclaimer: This material is for general information purposes only and is not intended as (and should not be considered to be) financial, investment or other advice on which reliance should be placed. No opinion given in the material constitutes a recommendation by EBC or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person.