Here are three companies that investors should have in their portfolio.
1. Woolworths
Because of its focus on staple foods and daily shopping, I still look to retailing giant Woolworths Limited (ASX: WOW) for long-term growth. It has steadily raised its earnings and share price far more than some takeover target's premium. And it will keep on going as the Australian population increases.
2. Stockland Corporation
Property developer and investment manager Stockland Corporation Ltd (ASX: SGP) right now has Australand Property Group (ASX: ALZ) in its sights with a takeover bid on the table. Australand still considers it too low, yet Stockland may not increase its offer.
If it can't get it a reasonable price, that is still OK. Stockland has enough potential growth and work in the pipeline currently to do well by itself for residential construction and it's also a major commercial property developer.
3. JB Hi-Fi
Specialty retailer JB Hi-Fi Limited (ASX: JBH) was rumored to be a potential target of Wesfarmers Limited (ASX: WES), which is selling off its insurance businesses and building up cash potentially for acquisitions.
The electronics dealer is planning more store expansion and has a good earnings track record. Here is a case where the company is a quality stock that should increase profits and has the kicker of being attractive enough to draw the big retailer's attention. That's a vote of confidence right there.
Don't speculate on weak companies — always seek out quality. Good stocks reward their shareholders over time.
