I think Reliance Worldwide Corporation Aus P Ltd (ASX: RWC) shares and Platinum Asset Management Limited (ASX: PTM) shares should be on your watchlist.
There is a chance you have not heard of either of these companies since they both operate in just one field that is occupied by specialists.
Nonetheless, here's why I think Reliance Worldwide and Platinum should be on your watchlist.
Reliance Worldwide
Reliance Worldwide is a Brisbane-based company that specialises in making fittings and other devices for plumbers. For example, it makes SharkBite, a novel fitting/connection for piping that is often hidden behind a wall. It saves time and money for plumbers and is the superior fitting for most households willing to pay for it.
Reliance is a $1.7 billion company yet it rarely makes the headlines. The company has operations locally, but also abroad. It claims to be the world's largest manufacturer of push to connect plumbing fittings and water control valves. The company came to the ASX in 2016.
Platinum
Platinum Asset Management is a funds management business. It takes people's money and invests it across international markets and earns a management fee. It also earns a fee for good performance.
The company has a rich history of returns for its investors and profits for its shareholders. One of the largest shareholders is the company's founder and chief investor, Kerr Neilson.
The recent departure of some key team members saw Platinum lose a lot of traction on the investing side of its business. However, the company has mostly kept pace with its benchmarks and the outflow of money appears to have somewhat stabilised.
Pleasingly, the company pays a fully franked dividend to shareholders.
Foolish Takeaway
If these two mid-cap companies are not on your watchlist, I think they should be. I'm not rushing out to buy shares in either company at current prices. But if they fall from here, I will be tempted to add some shares to my portfolio.