"Wait for the fat pitch and then swing for the fences." – Warren Buffett.
Currently, there are thousands of companies listed on the Australian Securities Exchange (ASX), waiting for you to invest in them.
In fact, there are around 2,186 different securities on the market.
Clearly that means no matter how enthusiastic about investing we may be, we're never going to be able to pick all the winners.
But we don't have to…
Our job – as retail investors – means we don't have to cover every single stock on the market and, more importantly, we definitely don't have to buy them.
As Warren Buffett says, we need only buy the companies which we think will go on to be a home run.
Companies which don't meet all of our investment criteria and are not priced appropriately, can be ignored. If they rise afterwards, so be it.
Of course, not every investment we make has to go up 100% in one, two or even five years' time.
But, the fact is patience doesn't lose us money and why should we bother settling for second best?
Obviously identifying what is, and what isn't, a home run investment is easier said than done.
What's more, there's no guarantee the ball will come off the bat anything like we intended.
However, in the game of investing, consistency is what counts.
Modest growth for many years will allow our money to compound over and over and over.
3 companies in the sweet spot
Mid-cap telecommunications company M2 Group Ltd (ASX: MTU), legal eagle Shine Corporate Ltd (ASX: SHJ) and Collection House Limited (ASX: CLH), a receivables management firm, are three companies which I think could be in the sweet spot, right now.
They are profitable, pay suitable dividends and each boast solid long-term growth prospects. All of them have reputable track records (which is a credit to their management teams) and I think they are well priced.
An EVEN BETTER stock idea – Yours FREE!