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Your instant 5 share portfolio for 2014

Despite its temporary dips, the stock market proved to be the best place for investors to put their money for 2013, with the benchmark S&P/ASX 200 Index (Index: ^AXJO) (ASX: XJO) climbing over 13% since the beginning of the year.

The local market achieved a fresh five-year high of 5457.3 points during the year. This was achieved by strong performances from companies including the big four banks – namely Commonwealth Bank (ASX: CBA), Westpac (ASX: WBC), ANZ (ASX: ANZ) and NAB (ASX: NAB) – supermarket giants Wesfarmers (ASX: WES) and Woolworths (ASX: WOW), as well as biopharmaceutical company CSL (ASX: CSL).

However, as investors should know, we do not invest based on past events or performances, but rather base our investing decisions on future earnings and growth potential. Here are five companies which should be a part of your portfolio for 2014.

Core stocks

Telstra (ASX: TLS) has performed incredibly well over the last three years, jumping from a low of around $2.50 to stand today at $5.15 per share. It also offers a dividend yield of 5.5%. Despite its strong performance, the shares still have plenty of room to run as the telco continues to tighten its industry grasp. It would make a perfect addition to your portfolio for 2014 and beyond.

Unlike Telstra, Coca-Cola Amatil (ASX: CCL) hasn’t had the greatest year on record, with its shares losing nearly 12% of their value due to strong pricing pressures from the major grocers and rival Schweppes. Given the strength of the business and its various brands, this company should bounce back strongly to deliver solid results in the long-term.

Growth stocks

While core stocks are often a safer bet, growth stocks can also drive the value of your portfolio to new highs. TPG Telecom (ASX: TPM) is one such company, particularly as Australia’s telecommunications industry continues to expand. TPG recently announced the acquisition of AAPT from Telecom Corporation of New Zealand (ASX: TEL), this saw its shares climb ever higher, but there is still room for greater gains to be realised.

Receivables management group Collection House (ASX: CLH) would also benefit your portfolio’s value. The company is led by a strong management team with outstanding growth potential and represents an excellent opportunity at today’s price of $1.75 per share.

Cash Converters (ASX: CCV) experienced an excellent day of trading on Monday, with its shares soaring 10.9%. Despite the price increase, the company still makes an excellent addition to your portfolio for 2014.

Should you buy, sell or hold your Telstra shares?

If you want to know more about why Telstra should be a part of your portfolio, get a top analyst’s latest Telstra recommendation in our brand-new investment report. Click here now, your copy is FREE!

Motley Fool contributor Ryan Newman owns shares in Collection House.

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