Argo Investments Limited (ASX: ARG) is a Listed Investment Company (LIC) that's been around since 1946. Since then, Argo has carefully built a reputation for conservative capital management and for providing a solid stream of fully-franked dividends for its ever-patient shareholders. It was even chaired by Sir Donald Bradman for a time.
Such experience (and management pedigree) leads this writer to take seriously what Argo's management tells us about the ASX and which shares are no, no, no or go, go, go.
So, when reporting from the Australian Financial Review (AFR) this morning featured Argo managing director Jason Beddow talking about the best opportunities to invest in this week's shaky markets, I think it's worth a good discussion.
Where to invest?
According to the AFR report, Mr Beddow is naming healthcare stocks as places of high interest this week.
"I think health stocks will do relatively well if things get a bit shaky on world markets," Mr Beddow was quoted as stating – naming healthcare giants CSL Limited (ASX: CSL) and Ramsay Health Care Limited (ASX: RHC) as favourite picks.
CSL was Beddow's favourite stock to watch – noting the ASX's biggest healthcare company has only taken a minor hit in the market turbulence gripping global markets this week – and is still up 36% in the past four months.
"We all wished we owned more", he was quoted as stating – a sentiment I'm sure most ASX investors indeed share. Other healthcare shares on Beddow's watchlist include Healius Ltd (ASX: HLS) and Sonic Healthcare Limited (ASX: SHL)
Beddow also names consumer staples giants Woolworths Group Ltd (ASX: WOW) and Coles Group Ltd (ASX: COL) as top stocks to weather any upcoming volatility, noting their primary focus on the domestic market.
ASX banks like Westpac Banking Corp (ASX: WBC) are also of interest to Beddow, who said of bank share prices: "I think we're close but we're not there yet. We're happy to hold what we own".
In terms of the future, Argo is watching the coronavirus closely, but also has one eye on the upcoming 2020 US Presidential Election, due to be held in November.
President Donald Trump has made no secret of his regard for the stock market as a measure of his success as a leader. That makes the US government and the Fed's movements well worth watching, according to Argo.
Foolish Takeaway
I think Argo and Mr Beddow's comments are well worth taking note of. Experience does mean a lot in the investing world, in my opinion.
However, I also think that any investor who's buying shares for the long-term shouldn't get caught up in too much short-term thinking. It's easy to get rattled by global events like these. Just don't let them scare you into selling your shares at the wrong time!
