If you’re currently constructing a $100,000 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.
Here’s why I think investing some of these funds across these ASX shares would be a smart move:
CSL Limited (ASX: CSL)
I think constructing a portfolio around this biotherapeutics company would be a very good starting point. Especially given that its shares are down almost 20% from their 52-week high. I feel this has left them trading at an attractive level for long term investors.
This is because I continue to believe CSL can be a market beater for a long time to come. This is thanks to the strong demand for immunoglobulins, its pipeline of potentially lucrative therapies, and recent acquisitions. I expect this to support solid earnings growth over the next decade and drive the CSL share price higher over the 2020s.
Xero Limited (ASX: XRO)
Xero could be a good long term option as well. The cloud-based business and accounting software provider was on form again in FY 2020. It delivered a 30% increase in operating revenue to NZ$718.2 million thanks to solid subscriber growth across all markets. Things were even better further down the income statement, with its margin expansion leading to a 52% increase in EBITDA to NZ$139.17 million.
While FY 2021 is likely to be impacted by the pandemic and could stifle its growth somewhat, its subscriber numbers continue to grow. At its annual general meeting it revealed that it added 96,000 net subscriber additions to its platform between April and through to 31 July. This took its subscribers to a total of 2.38 million at the end of the period. The good news is this is still scratching at the surface of its significant global market opportunity. And thanks to the quality and stickiness of its product, I expect it to capture a big slice of it over the next decade.
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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 CSL Ltd. and Xero. 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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