As we round the corner and head into the final straight the day before the 'race that stops a nation', investors are as excited as race-goers thanks to US markets hitting new all-time highs last week and Australian markets enjoying a superb October with gains of over 4%.
Exciting times
Just as no one knows for sure who will win Tuesday's Melbourne Cup, who would have predicted that just five-and-a-half years after the world was awash with worries of how to deal with a US and European banking crisis, a US property crisis, a global financial crisis and a potential global depression, now investors are discussing how long until the Dow Jones hits 18,000 points?
Got to be in it, to win it
One thing that's for sure about having a punt on the horses is that you've got to be prepared to back a winner, to have any hope of winning.
The same can be said of the stock market, if you're not prepared to step-up and invest for your future then don't be surprised if you end up uncomfortably retired!
3 horses worth backing
When it comes to top horses – or in our case businesses – here are three that have strong and steady pedigrees, great track records (pardon the pun) and plenty of potential to be winners for your portfolio.
Coca-Cola Amatil Ltd (ASX: CCL) meets the criteria many investors look for when they are seeking a stock to back. Perhaps the one question mark over Coca-Cola Amatil shares in recent times has been its growth potential – this concern has seen the share price sold down to a multi-year low of $8.19. With the recent announcement that parent, The Coca-Cola Company, will inject $500 million into the struggling Indonesian operations, there's a reasonable chance the growth factor has just returned to the stock.
In contrast to Coca-Cola Amatil, the share price of Lend Lease Group (ASX: LLC) is trading at a multi-year high as the property and infrastructure company continues to report impressive results and win major new business. The company has produced a total shareholder return of 19.1% per annum (pa) since 2009, in comparison the S&P/ASX 200 (Index: ^AXJO) (ASX: XJO) has achieved 10.6% pa.
Ramsay Health Care Limited (ASX: RHC) looks to be a third horse worth backing. Based on past performance alone you would certainly back this one for sure! Since April 1999, even before considering the benefit of dividends, the share price has provided shareholders with gains of 3,373%! Importantly, this leading private hospital owner and operator shows no signs of slowing down as the group continues to benefit from increased economies of scale and a successful growth by acquisition strategy.
