If you're planning on retiring – and let's face it who isn't….one day at least – then building a nest egg large enough to fund a comfortable retirement is key.
The share market is used by many people with many different objectives. Some use it to access an asset class such as mining which is harder to do in the unlisted space, others in an attempt to get rich quick, while other Fools use it to compound their wealth over decades.
Taking a long-term approach to investing, as billionaire Warren Buffett has done, often leads investors to seeking out high quality, growing companies with sustainable competitive advantages.
These types of businesses are rare, and even rarer is getting the opportunity to buy them at attractive prices. Here are three examples of the types of stocks investors should arguably be looking to add to their portfolio.
Brambles Limited (ASX: BXB) has built a pooling logistics business which offers significant economies of scale. This position allows Brambles to offer customers a reliable service at a price point which makes it hard for any new market entrant to successfully compete.
InvoCare Limited (ASX: IVC) – It might seem a little morbid suggesting a funeral operator makes for a good addition to a portfolio aimed at planning for a comfortable retirement but as they say "nothing in life is certain, except death and taxes." This home truth, coupled with a market leading position are two reasons InvoCare is one of the best performing ASX-listed stocks over the past decade, and also why the business is set to continue to be over the next decade.
Woolworths Limited (ASX: WOW) is a company that investors can keep tabs on during their everyday lives. By shopping at independent stores, as well as Woolworths and competitor Coles, owned by Wesfarmers Ltd (ASX: WES) investors can gain insights into just why Woolworths retains a market-leading position in Australia and why competitors will struggle to ever shake it off its perch.
