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 couple of shares which I think could be excellent core holdings. This is due to their strong business models and positive long term outlooks.
Here's why I think investing some of the funds into these two shares would be a very smart move:
Altium Limited (ASX: ALU)
The first ASX share to consider as a core holding in your portfolio is Altium. It is an electronic design software provider and the company behind the Altium Designer platform. Subscriptions for this platform have been growing at a rapid rate over the last few years and recently surpassed the 50,000 mark. This strong growth has been driven by the Internet of Things (IoT) and artificial intelligence (AI) markets, which are underpinning an explosion of electronic devices globally.
But Altium isn't a one-trick pony. It also has a number of other businesses supporting its growth. These include 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 2025/26. This compares to its FY 2020 revenue of US$189 million.
CSL Limited (ASX: CSL)
Another ASX share that I think would be a perfect addition to this portfolio is CSL. I believe the biotherapeutics company is one of the best blue chip shares that Australia has to offer. This is due to the quality of its CSL Behring and Seqirus businesses.
Although plasma collections are difficult at present because of the pandemic and are likely to weigh on immunoglobulin margins in FY 2021, I'm optimistic that increasing demand for influenza vaccines because of COVID-19 will help offset this. Looking further ahead, thanks to its lucrative portfolio of therapies and vaccines and lucrative research and development pipeline, I believe CSL is well-placed to deliver solid sales and earnings growth over the 2020s.
