If you’re a fan of buy and hold investing, then you may want to look at the “champion” ASX shares listed below.
These are three of Bell Potter’s favourite picks for long term-focused investors that it believes could drive superior earnings growth and shareholder value over the coming years.
Its analysts believe these champion shares are must haves for ASX portfolios. Here’s why:
Amcor CDI (ASX: AMC)
The first champion ASX share is this packaging giant. The broker believes it is well-placed for growth over the long term following its major acquisition of Bemis in 2019.
Bell Potter explained: “After the acquisition of Bemis Company, the combined group is the global leader in consumer packaging with a footprint encompassing North America, Latin America, Asia Pacific, Europe, Middle East, and Africa. The group offers an attractive combination of defensive earnings in the developed countries with faster growth in emerging markets, which accounted for 26% of group sales in fiscal 2021.”
CSL Limited (ASX: CSL)
Another champion stock is CSL. Bell Potter is bullish on this biotherapeutics giant’s future thanks partly to its world class portfolio of products, the positive outlook for plasma volume growth, and its burgeoning research and development pipeline.
Bell Potter commented: “A leading global company in the development, manufacture, and distribution of plasma therapies as well as non-plasma biotherapeutic products and influenza related products. The global growth in plasma volumes is expected to be around a solid 8% per annum for the foreseeable future and, in addition, the group is planning to launch new products from its very extensive Research and Development portfolio.”
It is also worth noting that since the release of this note, the company has acquired Vifor Pharma for $17 billion. This deal both strengthens and complements CSL’s existing product portfolio and is expected to be earnings accretive.
Goodman Group (ASX: GMG)
This property giant is another that Bell Potter has among its champions. Its analysts believe Goodman’s exposure to industrial and logistics properties will support its growth over the long term.
Its analysts commented: “One of the world’s largest integrated industrial property groups with operations centred around development, management and ownership throughout Australia, New Zealand, Asia, Europe, United Kingdom, North America, and Brazil. The long term outlook for industrial and logistics properties is favourable given the continuing growth in ecommerce (or on-line retail sales) and the growing middle class in developing countries.”