Before I tell you the names of the five ASX stocks I'd buy right now, I feel it's vital to mention that every investor should keep a well-diversified portfolio. Not only a diversified stock portfolio but spreading your investments across bonds, property and cash is essential.
Cash is a vital part to any investment strategy because it gives you liquidity. Just as you'd expect a CEO or manager of a business to keep cash on hand, so too should an investor.
Although to some it may seem counterintuitive, the higher the S&P/ASX 200 (INDEXASX: XJO) goes, the greater the proportion of cash I choose to hold, regardless of the interest rates on offer in savings accounts (although I am keeping a watchful eye on inflation). Currently my personal portfolio consists of around 33% cash.
However, I'm always on the lookout for new investments and generally use a dollar cost averaging strategy.
I choose a bunch of well-researched stocks to put on my watchlist and at the end of the month, whichever I feel is the most impressive buying opportunity, I move into. Here are five stocks I'd consider buying today, if I had $10,000 to invest.
- M2 Group Ltd (ASX: MTU) is the name behind Dodo, Primus and Commander brands. M2 continues to grow its product offering and capitalise on its huge customer base.
- BigAir Group Limited (ASX: BGL) also provides internet connections, but its niche is wireless campus and business environments. Although it's a small-cap growth stock, it pays a modest but growing dividend.
- Collection House Limited (ASX: CLH) is a small-cap receivables management company which pays a solid dividend of 3.7%. Despite growing strongly over the past few years, the company continues to impress me and still trades at a more than reasonable price.
- Shine Corporate Ltd (ASX: SHJ) is a personal injury law firm currently expanding outside its native Queensland. In addition to a cheap share price and solid outlook for the near term, it is forecast to pay a growing dividend stream.
- Northern Star Resources Ltd (ASX: NST) is a top gold mining stock which I've considered buying on a number of occasions. However with a recent pullback in its share price, the long-term investment case has just got even better.
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