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.
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.
Where to invest $1,000 right now
When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*
Scott just revealed what he believes are the five best ASX stocks for investors to buy right now. These stocks are trading at dirt-cheap prices and Scott thinks they are great buys right now.
*Returns as of June 30th
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.
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