If you’re looking to construct a $100,000 share 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 from different areas of the market which I think could be excellent core holdings.
Here’s why I think investing some of the funds in these shares would be a very smart move:
Altium Limited (ASX: ALU)
In the tech sector you’ll find Altium. It is the electronic design software provider behind the Altium Designer platform. Demand for its platform has been growing strongly in recent years thanks to the growing Internet of Things (IoT) and artificial intelligence (AI) markets, which are causing a proliferation of electronic devices globally. In addition to this, the company has a number of other businesses supporting its growth including workflow solution platform NEXUS and electronic parts search engine Octopart. Given the favourable industry tailwinds and its leadership position in the electronic design market, I believe Altium is well-placed to achieve its revenue target of US$500 million in FY 2025. This compares to its FY 2020 revenue of ~US$189 million.
My favourite share in the healthcare sector is this biotherapeutics company. I think it would be a great option, especially after a recent pullback in its share price. As of Friday’s close, the CSL share price is trading 20% lower than its 52-week high. I see this is a buying opportunity for investors due to its very positive long term outlook. While plasma collection difficulties could weigh on the performance of its CSL Behring business in FY 2021, I’m optimistic that strong demand for vaccines will go some way to offsetting this. Beyond FY 2021, I believe CSL is well-positioned for growth. This is thanks to its lucrative portfolio of therapies and vaccines and CSL’s pipeline of therapies under development. Combined, this pipeline has the potential to generate billions of dollars in sales over the next decade.
Finally, in the property sector I would be buying Goodman Group. It has a focus on commercial and industrial property and appears very well-positioned for growth over the long term. This is due to the strength of its portfolio and future developments. I’m particularly positive on Goodman Group due to its focus on high-quality properties in key locations that it believes will deliver sustainable returns for investors. These include logistics and warehouse facilities which have exposure to the rapidly growing ecommerce market through agreements with Amazon, DHL, and Walmart.
These 3 stocks could be the next big movers in 2020
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James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of and recommends Altium. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of CSL Ltd. The Motley Fool Australia has no position in any of the stocks mentioned. 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.