Punters are always told diversification is the only free lunch in investing.
Well, there is no better manifestation of that idea than picking three shares from the S&P/ASX 200 Index (ASX: XJO) involved in mining, retail and real estate.
Let's take a look at these buy recommendations:
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The unanimous pick
Both Shaw and Partners senior investment advisor Jed Richards and Morgans investment advisor Jabin Hallihan are bullish on conglomerate Wesfarmers Ltd (ASX: WES).
The ASX 200 share is currently in a dip, down just under 6% since 26 April.
Richards thinks it's a buying opportunity as the company "posted strong first half 2023 results".
"Statutory net profit after tax of $1.384 billion was up 14.1% on the prior corresponding period," Richards told The Bull.
"A key quality is the company's diversified earnings streams."
Indeed both experts like how hardware chain Bunnings is performing, as well as stationery retailer Officeworks. Department store Kmart has some work to do, especially with the economy slowing down.
"Kmart is improving more rapidly than first expected," said Richards.
"Earnings should remain solid during the expected tougher economic environment."
Hallihan said his analysts continued to back Wesfarmers' "proven management team" and noted that retail was not its only game.
"The company has diversified via its lithium and health divisions."
Copper miner and warehouse manager both going places
A mining stock that Richards currently loves is copper producer Sandfire Resources Ltd (ASX: SFR).
The share price has rallied an impressive 13.3% since 26 May, but that still leaves it more than 11% short of its 19 April high.
"This copper producer is getting stronger as it delivers on its mine development plan," said Richards.
"We applaud when management meets or exceeds expectations."
Outside of the company, copper demand could be on the way up.
"We also expect copper prices to improve during the next 12 months, which paints a bright outlook."
Many of Richards' peers agree with his bullishness on Sandfire.
According to CMC Markets, eight out of 14 analysts currently rate the stock as a buy.
Hallihan likes the look of industrial property manager Goodman Group (ASX: GMG).
After an 18.6% rally so far this year, his team has "initiated research" on this company that boasts $80.7 billion of global assets under management.
"Goodman operates in 14 countries across the Asia Pacific, Europe and the Americas," he said.
"It can grow assets under management and add value from an active buy, build and manage strategy."
In the short term, Hallihan's team reckons there's an 18% upside from the current share price.
Again, the wider professional community is in sync with our expert.
A whopping nine out of 12 analysts that currently cover Goodman currently think it's a buy, as surveyed by CMC Markets.
