The great thing about the stock market is that share prices are always changing, making different shares good value on different days.
If you maintain a watchlist then you can monitor when any of your favourites reach an attractive price for you to buy.
I believe the best way to account for share market fluctuations is to regularly invest – perhaps once a month.
But, for the fun of this article I’m going to imagine I received $10,000 and I had to invest today. This is how I’d invest it:
Challenger Ltd (ASX: CGF) – $2,500
The annuity provider has received a handy bonus from the government in the budget, requiring superannuation trustees to offer lifetime income products. This should add another pillar to support Challenger’s long-term growth over the next two decades as the number of retirees increases by 75%.
I believe it’s one of the best ways to play the ageing demographic theme of Australia.
Paragon Care Ltd (ASX: PGC) – $3,000
Another way to play the ageing tailwind is with Paragon. It’s a small cap healthcare business that generates a majority of its revenue from public hospitals by supplying healthcare equipment, devices and beds.
The number of patients across Australia’s hospitals should steadily increase over time, creating organic growth for Paragon and hopefully stronger economies of scale. Its low valuation makes it my favourite choice in this article.
Costa Group Holdings Ltd (ASX: CGC) – $1,000
The growing Asian middle class and a preference for healthier eating could drive Costa higher for a number of years. The food company grows tomatoes, berries, citrus fruit, mushrooms and avocadoes. The company is on track to grow underlying profit by 25% in this year alone. However, it is trading expensively, which is why I’d only buy a small amount.
Magellan Global Trust (ASX: MGG) – $2,000
We simply cannot find the quality of businesses on the ASX that are available overseas. Magellan Global Trust is able to invest in the best of them like Alphabet (Google), Facebook, Apple, Visa and MasterCard.
I think it’s important for at least some of every investor’s portfolio to be exposed to some of the world’s best tech stocks.
National Veterinary Care Ltd (ASX: NVL) – $1,500
The market seems to be a lot more bearish about the prospects of the pet industry stocks these days, but I think National Veterinary Care looks like a good option. It is still generating decent organic growth and most importantly it continues to expand through acquisition. There is a lot of annualised revenue that has been added over the past 12 months that won’t be reflected in the annual accounts until FY19.
I like the diversity of my above five choices and hopefully all of them beat the market over the next decade. I’m certainly hoping they turn out to be winners, that’s why they’re all in my portfolio.
If I were given another $1,000 to invest I’d definitely consider one of these top shares.
Renowned investor Scott Phillips just released a brand-new report detailing his 4 favourite stocks to buy right now.
And I don’t know about you, but I always pay attention when some of the best investors in the world give me a stock tip.
This is your chance to get in at the very beginning of what could prove to be very special investments.
Motley Fool contributor Tristan Harrison owns shares of Challenger Limited, COSTA GRP FPO, MAGLOBTRST UNITS, NATVETCARE FPO, and Paragon Care Limited. The Motley Fool Australia owns shares of and has recommended Challenger Limited and COSTA GRP FPO. The Motley Fool Australia owns shares of NATVETCARE FPO. The Motley Fool Australia has recommended Paragon Care Limited. 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 Scott Phillips.