Many ‘mum and dad’ investors like to know what blue-chip shares the leading investment management professionals are buying in order to potentially give them some guidance as to what they should think about buying too.
As the thinking goes if the shares are good enough for leading professionals and research analysts to own, then they should be good enough for your average investor.
Of course professional investors can make mistakes like anyone else though and will often fail to beat the market over the short or long term once you adjust for the fees they charge.
Still, Wilson Asset Management is one of the most well regarded fund managers in Australia, so let’s take a look at five of its holdings as at June 30 3019 in its WAM Leaders Limited (ASX: WLE) fund. The fund is mandated to invest in Australia’s leading companies.
Transurban Group (ASX: TCL) is the toll road operator that offers defensive cash flows thanks to its monopoly like assets and the regular dividend streams loved by professional and retail investors alike. It’s also investing heavily in new toll road networks that may help it grow its dividend long into the future.
Macquarie Group Ltd (ASX: MQG) is the asset manager and investment bank that offers investors a reasonable mix of value, growth and income. It also earns the majority of its income overseas which could be a good thing given the softening outlook for the local economy as rates tumble to just 1%.
National Australia Bank Ltd (ASX: NAB) is the smallest of the big four banks that recently cut its dividend around 16% to 83 cents per share. If we assume it maintains that level for its final dividend the bank offers a yield of 6.14% plus full franking credits based on a $27.03 share price.
Santos Ltd (ASX: STO) is the LNG giant that has even this week been rumoured to be interested in a merger or takeover of Oil Search Limited (ASX: OSH). However, given its balance sheet and mixed track record it would have to launch a seemingly unlikely blockbuster offer to get Oil Search holders over the line in agreeing to a deal. As such this rumour looks unlikely to get off the ground.
Woolworths Limited (ASX: WOW) is the supermarkets and liquor chain retailer that recently announced plans to sell its drinks and pubs businesses Endeavour Group and ALH Ltd. Its supermarkets business is also posting stronger same-store sales growth recently to send the shares around 10% higher over the past year.
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You can find Tom on Twitter @tommyr345
The Motley Fool Australia owns shares of and has recommended Macquarie Group Limited and Transurban Group. The Motley Fool Australia owns shares of National Australia Bank 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.