There are mixed opinions amongst analysts as to what investors should expect from the year 2014. Some believe that the gains recognised in 2013 were so strong that the market could actually go backwards this year, while others have suggested it could push on towards the 6000 point mark, which would suggest a gain of over 13% from its current level.
While there is no way of knowing for sure what to expect from the market, investors should remain focused on buying quality businesses that are trading at discounted prices and holding them for the long term.
By holding onto a company for the long run, investors can not only take advantage of their growth and any dividends paid, but are also eligible for a capital gains tax discount. Here are three companies that you could consider adding to your portfolio in 2014 and holding onto for the long haul:
Coca-Cola Amatil Ltd (ASX: CCL): 2013 was a year to forget for shareholders who watched their company lose over 12%, while the S&P/ASX 200 (Index: ^AXJO) (ASX: XJO) surged more than 15%. The decline was largely due to pressures from the supermarkets, as well as from key rival Schweppes. This resulted in a number of profit downgrades. However, the company has now re-entered the beer market and has enormous growth potential in Indonesia.
As the manufacturer and distributor of some of the world's strongest and most well-known brands, Coca-Cola will bounce back strongly and is a stock to hold for the long term.
Telstra Corporation Ltd (ASX: TLS): Unlike Coca-Cola, Telstra continued delivering fantastic gains over 2013. Despite its gains, the blue chip is still well worthy of a place in your portfolio, as it tightens its grasp over the telecommunications industry. It will continue to benefit as consumers and businesses grow more and more reliant on smartphones and the internet. Shares are currently trading at $5.22, giving the company a market capitalisation of just under $65 billion and it offers a trailing 5.5% dividend yield.
M2 Telecommunications Group Limited (ASX: MTU): M2 is another telecommunications company you could dial into your portfolio. The company has grown strongly through acquisitions and will now focus on paying off its debts and growing organically. With brands such as Primus and Dodo, M2 should grow earnings substantially in the long term. Its trailing 3.5% fully franked dividend yield is the cherry on top.
