Share prices change every day, indeed every minute, so different businesses can become opportunities in a matter of days.
The key thing to remember when investing is to choose a diverse portfolio of quality businesses. If you hold those quality companies for the long-term it should turn into good returns.
If I had $10,000 to invest today, this is how I'd invest it:
InvoCare Limited (ASX: IVC) – $3,000
InvoCare is the largest funeral operator in Australia. It has long-term growth prospects because Australia's death rate is expected to rise over the coming years because of Australia's ageing population. Sadly death (and taxes) is inevitable – at least for now.
I think the fact the InvoCare share price has dropped from $17.98 to today's $12.62 makes it a good long-term buy. The price has dropped due to the US' rising interest rates and because there is a lot of price competition in the UK, investors fear the same could happen here.
BWX Limited (ASX: BWX) – $2,500
BWX is the biggest natural beauty business in Australia. Its main brand is Sukin, although it has acquired a number of other brands in recent times which will hopefully allow it to expand into the large USA market.
The BWX share price has fallen from $8.08 to today's $4.70 because growth wasn't as high as expected in its recent half-year report. However, I think it has a long-term growth runway which should mean today's price is good value.
Zenitas Healthcare Ltd (ASX: ZNT) – $2,000
Zenitas is a small cap healthcare operator that provides allied care, primary care and home care. I think allied care and home care are good investment opportunities because Australia's population is ageing, the number of people over 65 is expected to grow by 75% in the next two decades.
Management are predicting organic growth will come in at 7.5% to 10% for FY18, which seems like a good result to me. The share price fall from $1.30 to today's $1.05 means it could be trading at around 18x FY18's estimated earnings.
Bapcor Ltd (ASX: BAP) – $2,500
Bapcor is Australia's largest auto parts business with its Burson and Autobarn chains. I think Bapcor is a good opportunity because expect net profit after tax to grow more than 30% in FY18 yet it's trading at under 24x FY17's earnings. When shares trading with a PEG ratio of under 1 they are normally a good value idea.
Foolish takeaway
I believe all three will soundly beat the market over the next three years at the current prices. If I had to choose two rather than four I'd pick Zenitas and BWX because I expect both to generate good growth over the next 12 months and 10 years.
