If you’re currently constructing a $100,000 portfolio, you’ll no doubt be on the lookout for investment ideas.
To help you on your way, I have picked out a few shares which I think could be excellent core holdings.
Here’s why I think investing some of these funds in these shares would be a smart move:
Aristocrat Leisure Limited (ASX: ALL)
This gaming technology company could be a top option for investors. Although the closure of casinos and social distancing practices are likely to weigh on demand for its pokie machines in the near term, I expect demand to rebound strongly once the crisis passes. In the meantime, I believe its growing Digital business is well-positioned to benefit due to the growing popularity of mobile gaming. Eventually, both side will be pulling together and its growth should accelerate.
CSL Limited (ASX: CSL)
I think building a portfolio around this biotherapeutics giant would be a great idea. I continue to believe CSL can be a market beater for some time to come. Especially given the strong demand for immunoglobulins, its pipeline of potentially lucrative therapies, and recent acquisitions. I expect this to support solid earnings growth over the next decade and drive the CSL share price higher.
Kogan.com Ltd (ASX: KGN)
Another option to make as core holding could be Kogan. I think the growing ecommerce company is well-positioned to deliver strong long term earnings growth. This is thanks to the increasing popularity of its website and the seismic shift to online shopping. At present approximately 10% of all retail spending is online. I expect this percentage to grow materially over the next decade and for Kogan to benefit greatly. It is also looking to accelerate its growth through acquisitions following a capital raising.
SEEK Limited (ASX: SEK)
Another option to consider as a core holding is this job listings giant. While the pandemic is pressure on near term job listings, I expect things to return to relative normal once the crisis passes. In the meantime, I’m optimistic that price increases and its growing international operations will support its growth. Looking further ahead, management is aiming to grow its revenues to $5 billion later this decade. This compares to the revenue of approximately $1,575 million it expects in FY 2020.
5 stocks under $5
We hear it over and over from investors, "I wish I had bought Altium or Afterpay when they were first recommended by The Motley Fool. I'd be sitting on a gold mine!" And it's true.
And while Altium and Afterpay have had a good run, we think these 5 other stocks are screaming buys. And you can buy them now for less than $5 a share!
*Extreme Opportunities returns as of June 5th 2020
James Mickleboro owns shares of SEEK Limited. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of CSL Ltd. and Kogan.com ltd. The Motley Fool Australia has recommended Kogan.com ltd and SEEK 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.
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