You want your portfolio to perform better than the market, right?
If not, then you might as well just buy passive ETFs and be done with it. The whole point of owning a basket of company-specific stocks is because you want better returns than the average.
So if that's the case, then there is no point in buying ASX shares that everyone has. If you're just buying the 100 biggest stocks then that is the market.
Somewhere within the portfolio, it could be an idea to hold some more obscure stocks that make your investment different to what everyone else is doing.
With that spirit in mind, here are a couple of buy suggestions:
'Well positioned' company in defensive industry
Capitol Health Ltd (ASX: CAJ) is a diagnostic imaging services provider, in a sector that still sees demand during tougher economic times.
Sequoia Wealth senior wealth manager Peter Day was a fan of what he saw during reporting season.
"First half 2023 revenue of $98.1 million was up 3.4% on the prior corresponding period," Day told The Bull.
"In the near term, we forecast a recovery in face-to-face general practitioner consultations as a catalyst for improving imaging volumes."
The more than 17% drop in the share price so far this year is not putting off Day.
"We believe Capitol Health is well positioned relative to peers given strong specialist recruitment and exposure to recovery locations in Victoria."
Capitol Health shares currently pay out a dividend yield of 3.8%.
Higher inflation is actually good for this business
Steadfast Group Ltd (ASX: SDF) is also lucky enough to be in an industry that doesn't suffer too much through tougher parts of the economic cycle.
"Steadfast has the biggest general insurance broker network in Australasia," Seneca Financial Group investment advisor Tony Langford told The Bull.
Accordingly, the stock price has risen 22.6% over the past 12 months.
But Langford, who rates Steadfast as a buy, believes there's more to come.
"Underlying net profit after tax and amortisation of $111.1 million in the first half of fiscal year 2023 was up 18.8% on the prior corresponding period," he said.
"Expect higher inflation to lead to increasing insurance premiums and higher commissions."
Steadfast shares currently pay out a dividend yield of around 2.3%.