For long-term investors, there's a certain beauty about boring stocks. For one, most of the market overlooks them, with many investors more excited about the latest hot sector – lithium I'm looking at you – or hot stocks that have soared in recent times – pick a gold miner – any will do.
That means boring stocks are usually neglected, ignored, are usually cheaper and can also provide a wonderful base for a portfolio. Investors can then add the wow-factor stocks to get the extra capital growth or income as needed.
Here are three boring companies that fit the bill…
Westfield Corp Ltd (ASX: WFD)
After splitting off its Australian and New Zealand shopping centres into Scentre Group Ltd (ASX: SCG), Westfield is now an international shopping mall owner, manager and developer, with 32 malls in the US, 2 in the UK and 1 under development in Milan, Italy. Westfield continues to develop new malls, including World Trade Centre – which is due to open this month.
In the past year, Westfield's share price has risen more than 13%, compared to the S&P/ASX 200 (Index: ^AXJO) (ASX: XJO) gain of just over 5% showing how boring can be beautiful.
Washington H. Soul Pattinson and Co. Ltd (ASX: SOL)
An investment conglomerate, Soul Patts owns stakes in several diversified businesses (both listed and unlisted), as well as its own investment portfolio. It's the closest company the ASX has compared to Warren Buffett's Berkshire Hathaway with smart management that have guided the company for decades. Despite a market cap of more than $4 billion, you won't find Soul Patts in any major index apart from the All Ordinaries (Index: AORD) (ASX: XAO).
Over the past 12 months, Soul Patts' share price is up 29%, while the All Ords is down 0.4%.
Reece Ltd (ASX:REH)
The plumbing supplies operator has extensive operations across Australia and New Zealand, but because of its illiquidity – most fund managers can't own it. The good news is that the reason for the illiquidity is that the Wilson family own 60%. They also happen to be big representatives on the board as well as the chairman, CEO and CFO.
Over the past 12 months, the Reece share price is up more than 20% and like Soul Patts, is only included in the All Ordinaries index. That;s despite the company having a market cap of nearly $4 billion.
