2 stocks I’d buy with $10,000 today

Buying quality is the secret to successful investing so here are two of the best quality stocks around I would look to buy today.

Sirtex Medical Limited (ASX: SRX) supplies its liver cancer treatment SIR-Spheres to over 1,000 hospitals in 40 countries. Despite this, 2016 sales represented a market penetration of just 2% for SIR-Spheres and so Sirtex is only just getting started in its potential growth trajectory.

Earnings-per-share (EPS) have risen from 30.7 cents in 2012 to 93.7 cents in 2016 and shares are up 485% over the past five years. Although Sirtex currently trades on a demanding historical price-to-earnings ratio (PER) of 29, I believe it presents a good long-term investment opportunity given its defensive nature and exceptional growth profile. It also pays a 1.9% dividend yield.

Altium Limited (ASX: ALU) is fast becoming the global leader in printed circuit board (PCB) design software. Like Sirtex the stock has recently been sold off and currently trades 20% below its recent highs. It also shares attractive qualities with Sirtex of having low capital requirements, high growth prospects and defensive earnings.

Altium trades on a PER of 34 based on 2016 results, but sales were 7% higher than revenue last year indicating that higher profits are likely in 2017. The company has been successful in winning market share in an industry that is likely to grow for many years due to the emergence of the internet of things (IoT). The stock pays a 2.5% dividend yield.

Buying high quality business like Altium and Sirtex is how Warren Buffett made 100x his money after 50

Few know, that as he blew out the candles on his 50th birthday cake, Warren Buffett had just 1% of his current fortune. Think about it: At an age when most give up hope, Buffett was just getting started on the remaining 99% of his fortune. Goes to show you that it's never too late for you to potentially get rich. Which is why we've gathered the strategies we learned from Buffett, distilled them down to 11 simple lessons, and put it in an exclusive report for you to claim. Just click here to learn more about this handy investing guide.

Motley Fool contributor Matt Brazier has no position in any stocks mentioned. The Motley Fool Australia owns shares of Altium. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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