With the cash rate tipped to remain on hold until at least 2021 by the Westpac Banking Corp (ASX: WBC) economics team, if I had $10,000 sitting in a savings account, I would consider putting it to work in the share market.
Three shares that I would consider investing these funds into are listed below. Here's why I would pick them:
Collins Foods Ltd (ASX: CKF)
I think that this quick service restaurant operator would be a great long term investment option. Collins Foods has a growing network of KFC restaurants in both Australia and Europe and recently announced plans to rollout the Taco Bell brand across several Australian states following a successful trial in Queensland. If this rollout is a success and its European expansion with the KFC brand continues to deliver results, then I believe it will be well positioned to deliver above-average earnings growth over the coming years.
CSL Limited (ASX: CSL)
I think this leading biotherapeutics company would be a great place to invest $10,000. I believe the solid long term growth prospects of its CSL Behring and Seqirus businesses make it one of the best buy and hold investment options on the local market. Especially given the company's heavy investment in research and development. During the first half of FY 2019 CSL spent US$391 million on R&D and opened its world class Global Hub for Research and Translational Medicine in Melbourne. I expect this to keep CSL at the forefront of its key markets for many years to come.
REA Group Limited (ASX: REA)
REA Group is the property listings company behind the realestate.com.au website and a number of international equivalents. While now might not seem like a good time to invest in a property listings company given the current housing market meltdown, REA Group's business has proven to be incredibly resilient. So much so, the company continued to generate strong profit growth in the first half of FY 2019. I believe this is a testament to the quality of its business and expect revenue and earnings to accelerate rapidly once the current headwinds ease.
