4 examples of why owning quality stocks could be your best bet in 2015

The strong outperformance of Ramsay Health Care Limited (ASX:RHC), Cochlear Limited (ASX:COH), Amcor Limited (ASX:AMC) and Transurban Group (ASX:TCL) is a reminder of why holding a portfolio of quality stocks can be a sensible long-term investment strategy.

| More on:
a woman

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Amongst the top performing constituents of the S&P/ASX 200 (Index: ^AXTO) (ASX: XTO) this year it's interesting to note that "quality" performed particularly well.

The following four stocks all tick the "quality" box but interestingly they also tick the "defensive" and "growth" boxes too. The one box they don't really tick is "yield" which is perhaps surprising given all the talk of investors chasing yield ever since the GFC.

The share price of Ramsay Health Care Limited (ASX: RHC) has climbed 29.5% year-to-date with the private hospital operator making a significant acquisition in France which should lead to a step-change in offshore earnings in 2015.

Hearing device manufacturer Cochlear Limited (ASX: COH) has regained much of the ground lost in 2013 thanks to its share price gaining 33% in 2014. With the release of the group's Nucleus product in 2014, 2015 should see the product gain traction in major markets such as the USA and the EU.

Having cast off a small portion of its business into the demerged Orora Ltd (ASX: ORA), packaging giant Amcor Limited (ASX: AMC) has been left to focus on what it does best without any distractions. This has certainly been good for the group's share price with the stock rallying 26%.

When it comes to defensive stocks, a toll road will usually do it! Transurban Group (ASX: TCL) is also well managed and with appealing assets which makes it a high quality business as well. What's more, the company has seized opportunities to expand its portfolio of toll roads which has provided a level of growth which would otherwise be difficult to achieve. The market has obviously been pleased with Transurban's progress with shareholders sending the share price up over 28%.

The above four stocks did well for a number of reasons in 2014 and they're exactly the sort of companies which could continue to do well in 2015, particularly if the economy and wider market struggles.

Motley Fool contributor Tim McArthur does not own shares in any of the companies mentioned.  

More on ⏸️ Investing

Close up of baby looking puzzled
Retail Shares

What has happened to the Baby Bunting (ASX:BBN) share price this year?

It's been a volatile year so far for the Aussie nursery retailer. We take a closer look

Read more »

woman holds sign saying 'we need change' at climate change protest
ETFs

3 ASX ETFs that invest in companies fighting climate change

If you want to shift some of your investments into more ethical companies, exchange-traded funds can offer a good option

Read more »

a jewellery store attendant stands at a cabinet displaying opulent necklaces and earrings featuring diamonds and precious stones.
⏸️ Investing

The Michael Hill (ASX: MHJ) share price poised for growth

Investors will be keeping an eye on the Michael Hill International Limited (ASX: MHJ) share price today. The keen interest…

Read more »

ASX shares buy unstoppable asx share price represented by man in superman cape pointing skyward
⏸️ Investing

The Atomos (ASX:AMS) share price is up 15% in a week

The Atomos (ASX: AMS) share price has surged 15% this week. Let's look at what's ahead as the company build…

Read more »

Two people in suits arm wrestle on a black and white chess board.
Retail Shares

How does the Temple & Webster (ASX:TPW) share price stack up against Nick Scali (ASX:NCK)?

How does the Temple & Webster (ASX: TPW) share price stack up against rival furniture retailer Nick Scali Limited (ASX:…

Read more »

A medical researcher works on a bichip, indicating share price movement in ASX tech companies
Healthcare Shares

The Aroa (ASX:ARX) share price has surged 60% since its IPO

The Aroa (ASX:ARX) share price has surged 60% since the Polynovo (ASX: PNV) competitor listed on the ASX in July.…

Read more »

asx investor daydreaming about US shares
⏸️ How to Invest

How to buy US shares from Australia right now

If you have been wondering how to buy US shares from Australia to gain exposure from the highly topical market,…

Read more »

⏸️ Investing

Why Fox (NASDAQ:FOX) might hurt News Corp (ASX:NWS) shareholders

News Corporation (ASX: NWS) might be facing some existential threats from its American cousins over the riots on 6 January

Read more »