A message from our CIO, Scott Phillips:
"G'day Fools. If you're like us, you're dismayed by the events taking place in Ukraine. It is an unnecessary humanitarian tragedy. Times like these remind us that money is important, but other things are far more valuable. And yet the financial markets remain open, shares are trading, and our readers and members are looking to us for guidance. So we'll do our best to continue to serve you, while also hoping for a swift and peaceful end to war in Ukraine."
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COVID-19, inflation, rising interest rates, plummeting indices, and now war in Europe.
2022 is off to an awful start not just for ASX shares, but for humanity generally.
It can be hard to summon optimism in times like this.
If you're looking for stocks to buy at the moment, many businesses will decline to give a forecast or will reserve their judgement about how the world pans out.
But according to Prime Value portfolio manager Shih Thin Wong, there are some companies out there that will keep doing their thing — regardless of what's happening outside its walls.
"I can't predict when the Ukraine-Russian crisis will end — whether it has a fat tail or a number of scenarios," he told Switzer TV Investing.
"I want to be comfortable owning companies which I think will give me earnings profile growth regardless of the macro environment."
Bus contracts that get paid regardless of patronage
One Australian business that fits the bill, according to Wong, is Kelsian Group Ltd (ASX: KLS).
What he particularly likes about the company formerly named Sealink is its resilient contracts with local government clients.
"Those services are not dependent on passengers," Wong said.
"Whether you've got one passenger or 30 passengers alighting onto the bus, Kelsian still gets paid — because they're paid to provide essential services to the community."
They're also the types of contracts that will endure different parts of the economic cycle.
The other attraction for potential buyers of Kelsian shares is that Wong reckons it has been oversold in this year's correction.
The stock has fallen more than 4% so far in 2022, but the loss is close to 30% from its August peak.
"We look at the share price, it's probably been sold down for the last 6 months," he said.
"But fundamentally, as a bus business, it's really solid."
Kelsian shares closed Friday at $7.12.
Despite the heavy losses in the second half, the stock still rated among the top 5 best ASX 200 travel shares of 2021.
