2 shares for ‘Mum and Dad’ investors

It’s a great idea to put some of the family money into the share market. It has proven to be the best place to create wealth over the long-term.

I think it’s a particularly good idea because you don’t need to take on hundreds of thousands of dollars of debt to invest, unlike property.

If you’re investing for your family, you don’t need to take huge unnecessary risk. Nor should investing in ‘big’ businesses be the only consideration. Commonwealth Bank of Australia (ASX: CBA) is the biggest, but it isn’t the safest and definitely doesn’t offer much growth.

You could take the simple route and go for a quality exchange-traded index fund (ETF) like the iShares S&P 500 ETF (ASX: IVV).

There are also perfectly good smaller businesses that are household names and have good growth potential. For example:

a2 Milk Company Ltd (ASX: A2M)

The products of a2 Milk are everywhere. Milk, ice cream and of course formula are popular with families across Australia.

Somehow a2 Milk has turned basic staple products into quality branded items. This gives the business good pricing power and commands loyalty due to its a2 protein offering, unlike most milk products out there.

It has been a tremendous growth business over the past few years and Chinese demand has sent the profit skyrocketing.

However, a2 could continue to do well thanks to expansion in the USA, UK and other countries it enters over time.

It’s currently trading at 31x FY19’s earnings.

Costa Group Holdings Ltd (ASX: CGC)

Costa is one of the largest food-producing businesses in Australia. You can feel good owning this share because of the healthy food that it produces including berries, avocadoes, mushrooms, tomatoes and citrus food.

Due to packaging I know that my household buys four out of Costa’s five main categories, so it’s quite reassuring to know I’m economically supporting myself in a tiny way with each weekly shop.

Costa is increasing its food output every year and is developing farms in China. The Asian region could be a very large opportunity for Costa over the long-term.

The business is predicting that underlying profit can grow by more than 10% a year in the near future, which is solid compound growth.

It’s currently trading at 25x FY19’s estimated earnings.

Foolish takeaway

Both of these shares would make pleasing investments for any portfolio in my opinion. I’m currently drawn to Costa, but if a2 Milk started paying a dividend it would be an even more attractive investment idea.

Want some more share ideas? These top stocks have all been carefully selected by our top investment analysts.

3 Top Shares To Buy In October

For many, blue chip stocks mean stability, profitability and regular dividends, often fully franked..

But knowing which blue chips to buy, and when, can be fraught with danger.

The Motley Fool’s in-house analyst team has poured over thousands of hours worth of proprietary research to bring you the names of "The Motley Fool’s Top 3 Blue Chip Stocks for FY19."

Each one pays a fully franked dividend. Each one has not only grown its profits, but has also grown its dividend. One increased it by a whopping 33%, while another trades on a grossed up (fully franked) dividend yield of almost 7%.

The names of these Top 3 ASX Blue Chips are included in this specially prepared free report. But you will have to hurry. Depending on demand – and how quickly the share prices of these companies moves – we may be forced to remove this report.

Click here to claim your free report.

Motley Fool contributor Tristan Harrison owns shares of COSTA GRP FPO. The Motley Fool Australia owns shares of and has recommended COSTA GRP FPO. The Motley Fool Australia owns shares of A2 Milk. 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.

Two New Stock Picks Every Month!

Not to alarm you, but you’re about to miss a very important event! Chief Investment Advisor Scott Phillips and his team at Motley Fool Share Advisor are about to reveal their latest official stock recommendation. The premium “buy alert” will be unveiled to members and you can be among the first to act on the tip.

Don’t let this opportunity pass you by – this is your chance to get in early!

Simply enter your email now to find out how you can get instant access.

By clicking this button, you agree to our Terms of Service and Privacy Policy. We will use your email address only to keep you informed about updates to our website and about other products and services we think might interest you. You can unsubscribe from Take Stock at anytime. Please refer to our Financial Services Guide (FSG) for more information.