If you have read my book, or seen some of my tweets, you will know that when starting your investing journey I believe it is best to lay your foundation with high-quality ETFs and Dividend Stocks

I like to call these "Foundational Stocks"

Let me Explain

THREAD

1/

As I mentioned, Foundational Stocks are some of your highest quality stocks.

These are positions you can count on year in & year out

2/

An S&P 500 ETF is always a great place to start

These ETFs track the S&P 500 Index, and in fact, many active managers over the years struggle to beat the index on a consistent basis

These ETFs include: $VOO $SPY $IVV

3/

Let's look at $IVV since that is the one I have a position in, but they are all the same

When you own $IVV, here are the top stocks in that fund

$AAPL
$MSFT
$AMZN
$FB
$TSLA
$GOOGL / $GOOG
$BRK.B
$JNJ
$JPM

These top stocks make up 27% of the fund

4/

When looking at individual Foundational Stocks, I like to look for consistency, strong management team, and an evolving business.

I will share a few of my favorites now

5/

Let's start with Johnson & Johnson $JNJ

The company has an array of products that are used on a daily basis in almost every household

Band-aid
Neutrogena, Clean and Clear
Aveeno, Johnson's Baby
Rogaine
Tylenol, Motrin, Zyrtec, Benadryl
Listerine

And MORE

6/

Another Foundational stock over the years has been The Coca-Cola Company $KO

They have some great brands, sometimes too many, which they are in the process of consolidating

7/

Let's counter $KO with $PEP, who also has a well established drink lineup but also mixes in everyday snacks

Aquafina
Pepsi, Mountain Dew, Gatorade
Tropicana
Doritos, Tostitos, Lays, Cheetos, Ruffles
Quaker Oats

AND MORE

8/

Last but certainly not least is $AAPL

The company continues to innovate, and although they pay a small dividend now, I expect it to grow consistently over time

iPhone
Cloud
Apple Watch
Apple Tv+
MacBook
Apple Car??

To name a few

9/

All of these stocks I believe are worthy of a position in every portfolio. Having exposure to safety allows investors to sleep well at night

Don't underestimate the importance of maintaining a solid portfolio foundation

Then you can mix in growth for higher return potential

10/

Right now, these stocks are trading at the following earnings multiples

$IVV 37.8x (5yr Avg = 15x)
$JNJ 20.8x (5yr Avg = 17x)
$KO 25.3x (5yr Avg = 22.9x)
$PEP 25.1x (5yr Avg = 22.8x)
$AAPL 38.5x (5yr Avg = 32.7x)

11/

These are all great stocks to build a portfolio around. When first starting, refrain from chasing after the "Get Rich Quick" schemes as those could end poorly