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.

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

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