MENU

5 essential stocks for the conservative investor

Investing in the stock market is one of the greatest ways to boost your overall wealth, but it also carries a higher level of risk than most other asset classes. While some investors are comfortable with accepting greater risk, others enjoy the peace of mind knowing that their investments are in safe hands and that their portfolio is protected.

Although no stock is completely risk-free, the five stocks listed below would be a perfect fit for a more conservative investor…

  1. Washington H. Soul Pattinson and Co. Ltd (ASX: SOL). Given that Soul Patts maintains a very similar business model to Warren Buffett’s Berkshire Hathaway empire, you’ll be able to sleep easy knowing your money is in safe hands. Soul Patts is a diversified investor in high-quality businesses with some of its most significant holdings being in TPG Telecom Ltd, Brickworks Limited and New Hope Corporation Limited.
  2. Coca-Cola Amatil Ltd (ASX: CCL). Although the beverage giant has had its fair share of issues recently, I believe the long term is still looking very bright. With some of the strongest brand names in the world under its belt, as well as a management team dedicated to restructuring operations and removing unnecessary costs, you can feel comfortable with buying Coca-Cola Amatil and holding it for the coming years.
  3. Westfield Corp Ltd (ASX: WFD). Since the controversial restructure of Westfield Group, Westfield Corp now owns and operates all of the group’s international assets – except for those in New Zealand. While shareholders should reap the rewards from its exposure to the US and UK economies, they should also benefit from the ongoing guidance of the famous Lowy family.
  4. ResMed Inc. (CHESS) (ASX: RMD), which develops and manufactures products for the treatment of respiratory disorders, boasts an incredible track record of revenue and earnings growth. As disorders such as sleep apnea become increasingly common in our society, ResMed should continue to benefit for years to come.
  5. M2 Group Ltd (ASX: MTU). While most investors would elect Telstra Corporation Ltd (ASX: TLS) as their way to gain exposure to the telecommunications industry, M2 Group poses as a far more valuable option right now. Although it is still in its growth phase, M2 Group owns quality brands such as Dodo, Commander and Primus, and thus maintains a strong customer base which should help drive earnings growth over the coming years.

The Motley Fool’s #1 dividend stock – FREE!

One of the best ways a conservative investor can boost their returns is by investing in quality stocks which offer a strong and sustainable dividend yield.

Top Motley Fool investment advisor Scott Phillips has just named his #1 dividend-paying stock for 2014-2015. With solid growth prospects and a fat, fully franked dividend, this ASX stock could be a huge winner for your portfolio. Discover the name and code FREE by clicking here now.

Motley Fool contributor Ryan Newman owns shares in Coca-Cola Amatil Ltd, Washington H. Soul Pattinson and Co. Ltd and Berkshire Hathaway (B shares).

Two New Stock Picks Every Month!

Not to alarm you, but you’re about to miss a very important event! Chief Investment Advisor Scott Phillips and his team at Motley Fool Share Advisor are about to reveal their latest official stock recommendation. The premium “buy alert” will be unveiled to members and you can be among the first to act on the tip.

Don’t let this opportunity pass you by – this is your chance to get in early!

Simply enter your email now to find out how you can get instant access.

By clicking this button, you agree to our Terms of Service and Privacy Policy. We will use your email address only to keep you informed about updates to our website and about other products and services we think might interest you. You can unsubscribe from Take Stock at anytime. Please refer to our Financial Services Guide (FSG) for more information.