The UK stock market’s home to some genuinely exceptional FTSE shares including the kind of quality compounders that can anchor a portfolio for decades. And for beginner investors taking their first steps, the London Stock Exchange offers a brilliant place to start.
Here are three stocks that the pros think belong in every beginner portfolio right now.
Two powerful businesses with durable moats
AstraZeneca‘s (LSE:AZN) one of the world’s largest pharmaceutical companies, developing treatments across oncology, cardiovascular, and rare disease categories, with a pipeline that analysts at Bank of America (BofA) describe as ‘best in class‘.
The analyst team recently raised its price target from 14,500p to 16,500p, underpinned by multiple late-stage clinical trial catalysts expected to drive meaningful sales growth in the coming years. The bull case is straightforward: as a leading pharmaceutical giant with a deep pipeline, strong revenue visibility, and growing margins, AstraZeneca’s the kind of business that rewards patient long-term investors.
The risk, as with any pharma company, is clinical trial outcomes. A late-stage failure in a key programme can dent the share price sharply. And at a forward price-to-earnings (P/E) ratio of 17 times, the valuation already reflects a good deal of optimism.
RELX (LSE:REL) sits alongside AstraZeneca as another top pick from BofA for 2026. As a quick introduction, RELX is a global provider of information analytics, data, and decision tools serving professionals in legal, scientific, medical, and financial markets.
In the bank’s words, RELX is “a mis-priced AI beneficiary”.
Rather than being disrupted by AI, its LexisNexis and Elsevier divisions are actively embedding AI tools into their platforms, enhancing their value and deepening customer switching costs. And after a difficult 2025, the shares now trade at a meaningful discount to historical multiples, creating an attractive entry point.
The key risk is that the AI-driven sentiment recovery takes longer than expected. If customers perceive AI as a substitute for RELX’s tools rather than a complement, revenue growth could slow considerably.
A cash flow machine finding its stride
Rolls-Royce Holdings (LSE:RR.) completes the trio. The engineering giant powers wide-body aircraft through its civil aerospace division and supplies power systems to the defence sector – two markets with structural, long-term demand growth.
BofA believes Rolls-Royce is running well ahead of its own 2028 guidance targets and is projecting free cash flow of more than £5bn. And with capital returns expected to include at least £2.5bn in buybacks in 2026 alone, this is a business actively rewarding shareholders.
The risk for a beginner is volatility. Rolls-Royce has already risen sharply from lows and any disappointing update on engine flying hours or defence contracts could trigger a sharp pullback. But for investors with a long time horizon, dips in a business of this quality have historically proven to be buying opportunities.
The bottom line
All three of these FTSE shares combine strong competitive advantages, institutional conviction, and clear business momentum. But they’re not without risk. But for beginner investors looking to build a resilient long-term portfolio, these three blue-chips represent a genuinely compelling starting point.
So if I were starting a new portfolio today, these are definitely some of the companies I would first consider.
Should you invest £5,000 in AstraZeneca Plc right now?
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Zaven Boyrazian does not hold any positions in the companies mentioned.
