3 Stocks I'd Build My Portfolio Around if I Were Starting Over Today

I've made my fair share of mistakes over the years when it comes to picking bad stocks. The first stock I bought was Nokia, back in 2007 when it was a leading cellphone maker. It was soaring and looked like a great buy. In hindsight, I picked an amazing time to buy it -- right when it was approaching its peak. Luckily, I sold it quickly when it began to crash, and it has never gotten anywhere close to those levels since.

What I think is crucial with investing is to get off to a strong start, build confidence, generate solid gains, and then consider riskier options. That way, there's less risk, and profits can be used to fund riskier stock purchases. While Nokia may have been a hot buy 20 years ago, it lacked the financial strength and track record of the stocks on this list.

If I were starting over today, the three stocks I'd build my portfolio around are Microsoft (NASDAQ: MSFT), Alphabet (NASDAQ: GOOG)(NASDAQ: GOOGL), and Enbridge (NYSE: ENB). Here's why this can make for a solid mix of investments.

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Microsoft

Microsoft is a stock that has tremendous value and growth potential. Its software is used all over the world. Businesses rely on the Windows operating system and the Office suite of products on a day-to-day basis. It's a trusted name in the corporate world, and I don't believe artificial intelligence (AI) will disrupt its business; rather, it will enhance it by making its products more effective and efficient.

The stock has been rallying since reporting earnings last month, but at a price-to-earnings multiple of 26, it looks like a reasonably valued investment for what it offers. While it is in the tech sector, its business isn't nearly as risky as the average tech stock.

The market overreacted to concerns and risks related to AI earlier this year, which sent Microsoft's stock reeling to its worst start in years. It was a bargain back then, and it's still a great buy now. It's a stock I wouldn't hesitate to buy if I were getting started right now.

Alphabet

Another top tech stock I'd buy is Alphabet. This may be the ultimate all-in-one investment. It gives investors exposure to robotaxis and AI, and the business has exceptional assets such as Google Search and YouTube. What Alphabet has shown the market over the past year is just how adaptable it is in being able to incorporate AI into its services. It has enhanced Google Search with AI-powered results. That adaptability is why I wouldn't be worried about Alphabet in the long run, as it has the power and deep pockets to adapt to changing market conditions.

The company also generates strong profit margins, typically around 30% of its top line. That ensures that as the business grows its revenue, a good chunk of it will flow through to the bottom line, which Alphabet can then reinvest back into its growth.

At $4.6 trillion, Alphabet is among the most valuable companies in the world, and rightfully so. Yet, with tremendous earnings power, its valuation still isn't all that high, trading at 17 times its estimated future profits (based on analyst expectations). This is another excellent growth stock to buy right now.

Enbridge

I wouldn't go all in on tech right away. Having a top dividend stock is important for adding recurring cash flow and overall stability. That's where pipeline giant Enbridge comes in. It plays an important role in the oil and gas sector. Best of all, since it's transporting oil rather than drilling for it, it won't be highly dependent on commodity prices; its earnings are much more stable.

The company's stability and solid growth over the years have enabled it to consistently raise its dividend. Enbridge has a 31-year dividend growth streak going, during which it has increased its payout at a compounded annual growth rate of about 9%. The stock already offers a fairly high yield of 5.1%, ensuring investors don't have to wait long to generate substantial dividend income. Best of all, it's also likely to rise significantly over the years.

Enbridge can be a good safe-haven stock to hang on to, providing investors with excellent diversification. It's one of the better dividend stocks to own for the long haul.

David Jagielski, CPA has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Alphabet, Enbridge, and Microsoft. The Motley Fool has a disclosure policy.