If investing was a sport, it would be like a marathon. But it would be a marathon you wouldn't run. Instead, you'd wait. And wait and wait….
The time frame is very long and most of the time you're not doing much at all.
Warren Buffett, the "Oracle of Omaha" and billionaire investor, once said,
"Much success can be attributed to inactivity. Most investors cannot resist the temptation to constantly buy and sell."
If you buy a stock that looks like it is going to shoot up, you'll have to be careful. It could have the same trajectory downward just as well.
Ideally, you are looking for solid earners with steady growth that only require the average amount of checking up and reviewing. The "zen" of investing is to make more money by doing less.
The stocks listed below have long track records of strong performance and potentially could carry that on into the future.
Ramsay Health Care Limited (ASX: RHC) has been a standout performer over the last 5 – 10 years. The private hospital operator has given shareholders a compound 26% annual total return for the last 10 years. With its sights on replicating its success in Europe and now in China and South East Asia, Ramsay Health Care could be the seasoned business you want driving your portfolio returns.
Amcor Limited (ASX: AMC) has also enriched investors for a number of years recently, especially when the market-leading packaging company spun off its non-core businesses into Orora Ltd (ASX: ORA) in late 2013. Amcor is focusing on packaging for beverages, food, personal items and medical products. At the same time, its overseas business is expanding through acquisitions. Amcor is a long-term growth play that could develop into a future blue-chip stock.
Super Retail Group Ltd (ASX: SUL) had a disappointing year in 2014 from the subdued retail environment and mining pullback. However, possibly the stars are starting to align for the retailer in 2015. Continued low interest rates coupled with incredibly low petrol prices may get more shoppers back into its Supercheap Auto, Rebel Sports, BCF and Amart Sports stores. Analysts forecast around 8% annual earnings growth for the next two years. Well off from its November 2013 highs, Super Retail Group is trading at 14 times earnings and offers a healthy 5.1% yield fully franked. This could be an opportune time to build up a position in this quality company.
