One of the best things about share market investing is that once you?ve bought your shares, you can hold them forever at no extra cost.
Whilst a ?set and forget? strategy won?t necessarily lead you to riches, it?s been proven, time and again, to be a better one than constant buying and selling.
Warren Buffett, the world?s greatest investor believes: ?Time is the friend of the wonderful company, the enemy of the mediocre.?
It’s little wonder then, why Buffett?s very own holding company, Berkshire Hathaway, owns substantial portions of some of the world?s greatest companies.
If we want to emulate his success, our…
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One of the best things about share market investing is that once you’ve bought your shares, you can hold them forever at no extra cost.
Whilst a ‘set and forget’ strategy won’t necessarily lead you to riches, it’s been proven, time and again, to be a better one than constant buying and selling.
Warren Buffett, the world’s greatest investor believes: “Time is the friend of the wonderful company, the enemy of the mediocre.”
It’s little wonder then, why Buffett’s very own holding company, Berkshire Hathaway, owns substantial portions of some of the world’s greatest companies.
If we want to emulate his success, our task appears to be a relatively simple one: Identify the greatest companies, trading at good prices and hold them with the intention of never selling.
3 Australian companies to buy right now
With that in mind, here are three ASX-listed companies I’d happily buy, with the intention of holding them forever.
1. Coca-Cola Amatil Ltd (ASX: CCL) (“CCA”) is Australia’s bottler and distributor of Coca-Cola and Beam branded products. In recent times the company has struggled to grow profits in the face of intense competition from rival Schweppes and a price war between the two supermarket giants. In addition growth in Indonesia has been hard to come by. However, an operational review and investment from its parent, The Coca-Cola Company, in its Indonesian business looks set to revive CCA and makes now the ideal time to buy in.
2. Slater & Gordon Limited (ASX: SGH) is the leading law firm in personal injury litigation throughout Australia. It has moved from strength to strength in the past five years, achieving an average annual total shareholder return of 34%, but it could be just getting started. The group is rapidly expanding in the larger UK marketplace, has strong balance sheets and competent management.
3. Cash Converters International Ltd (ASX: CCV) isn’t just Australia’s leading second-hand goods dealer, it’s growing its franchise network, expanding its payday loans business and investing in new growth areas. Last year the $470 million company suffered a setback following legislative changes to fees charged on small loans. However, recently it showed it was well on the road to recovery with revenues and profits up significantly, year-over-year. With the share price seemingly cheap, the market is offering up a compelling long-term investment opportunity.
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If you’re investing for the long term, I believe you could do a lot worse than add any of these three stocks to your portfolio. I already own each (see my disclosure below) but would gladly top up on all of them today.
However, you should know, there's one ASX stock which I think could be an even better investment today...
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Motley Fool Contributor Owen Raszkiewicz is long Jun 2016 $5.41 Warrants in Coca-Cola Amatil and owns shares of Slater & Gordon and Cash Converters International Ltd.