New to the stock market? Here are 2 great startup stocks to consider buying

The stock market can be a scary place. And while the FTSE 100Up 6.3% in 2024, its growth has been uneven.

We have seen an increase in turnover over the past few months. Naturally, that can deter new investors from dipping their toes into the market. However, it shouldn't.

Keeping it simple

With more volatility comes more noise around the markets. But I like to block it all. Instead, I like to remember what investors like Warren Buffett have to say. Without a doubt he is one of my favorite stock pickers.

His long-term approach to buying companies matches my investment strategy. In addition, in his eighty years of investing, he has given retail investors a lot of great advice.

One piece that has struck me is making investing as easy as possible. To achieve that, he says we should buy companies where we easily understand how they make money and add value. Over time, these companies tend to have strong players. In times of volatility, and for new investors, I think that message is very important.

Marks & Spencer

That's why I think Marks & Spencer (LSE: MKS) is a good stock to consider. The stock is up 61% over the past 12 months and 77% over the past five years, performing better than ever. FTSE 100.

That's not to say that business hasn't faced challenges along the way and won't continue to do so. The weak economic environment has posed a constant threat to M&S over the past few years. For example, we are not out of the woods for inflation. In addition, it was announced today that the UK economy failed to grow in July. That could affect consumer confidence.

However, as long-term shopping, I like the look of Marks & Spencer. First, as a retail giant, it is easy to understand how a business makes money.

In addition, it has made great progress in recent times in accountability. After falling behind its competition, a new strategy focused on improving both in-store and online presence revived the business.

Trading at a price-to-earnings ratio (P/E) of 17.1 and a forward P/E of 13.3, I think the stock also looks like a decent value.

Diageo

My second choice Diageo (LSE: DGE). Unlike Marks & Spencer, the drinks giant has suffered in recent times. It's down 24% over the past 12 months and 26% over the past five years.

The main driver of its fall was a profit warning issued last year, which came after a decline in sales in Latin America and the Caribbean.

With the ongoing cost of living crisis, many consumers have decided to switch to cheaper alternatives from top-selling brands Diageo or to stop drinking altogether. Going forward, this will continue to be a threat.

But for investors with the big picture in mind, I think Diageo shares could be a steal. With top brands under its umbrella, I am confident that the business will thrive for years and decades to come. This is especially when we start to see some price cuts, which will improve spending.

Along with that, the stock looks cheap with a P/E of 18.4. That's below the historical average of 22.4.