With the cash rate tipped to be cut twice this year 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 with a long term view are listed below. Here's why I would pick them:
Appen Ltd (ASX: APX)
Appen is the global leader in the development of high-quality, human annotated datasets for machine learning and artificial intelligence. It caught the eye last month when it released its full year results and smashed both the market's expectations and management's upgraded guidance. In FY 2018 Appen posted a 153% increase in underlying EBITDA to $71.3 million thanks to the combination of increasing demand for quality training data from the accelerating AI market and the acquisition of the Leapforce business. Whilst its shares have rallied significantly higher since the start of the year, I still see a lot of value in them for patient buy and hold investors.
CSL Limited (ASX: CSL)
Another quality option for investors that are willing to make a patient buy and hold investment could be this leading biotherapeutics company. I believe its CSL Behring and Seqirus businesses are well-positioned to deliver strong earnings growth over the next decade thanks to their leading products and significant investment in research and development. In respect to the latter, during the first half of FY 2019, CSL spent US$391 million on research and development. I expect this to keep it at the forefront of its key markets for many years to come.
Webjet Limited (ASX: WEB)
One of my favourite growth shares on the ASX is this online travel agent. Like Appen and CSL, it released a result last month that impressed the market. For the first half of FY 2019, Webjet posted a 33% lift in half year revenue to $175.3 million and a 42% jump in EBITDA to $58 million. A key driver of this strong half was the continued success of its WebBeds (B2B) segment. The segment's continuing operations grew bookings by 50% and EBITDA by a massive 136% to $30.1 million. Management appears confident that the segment still has a significant runway for growth thanks to its global growth opportunities.
