With 2019 coming to its inevitable conclusion, I’m turning my head to 2020 when thinking about which ASX stocks I’d love to add to my personal portfolio. Whilst we are entering into another year of this record decade-long bull run, I still think it makes a lot of sense to have most of one’s capital invested in ASX shares (as well as perhaps property).
Considering the paltry rates of return we now see from term deposits and the like, there’s not a lot of alternatives to keep ahead of inflation.
Here are the 5 best stock ideas I’ll be watching in 2020.
CSL Limited (ASX: CSL)
CSL remains a global leader in the blood diseases and vaccines space and I don’t see anything that might affect this position going forward. This company has proven a consistent winner this decade and, whilst CSL shares are consistently expensive, I would love to see this company in my portfolio next year.
Altium Limited (ASX: ALU)
Altium is one of my favourite WAAAX stocks due to its software-as-a-service (SaaS) business model and recurring revenue streams. Altium’s design software (used for designing printed circuit boards) continues to generate enormous popularity and customer loyalty from its users, in what is still a formidable growth sector. I see this company’s growth continuing (if not accelerating) going into next decade and thus I would love to get a slice for my portfolio.
Xero Limited (ASX: XRO)
Another WAAAX favourite, Xero has also experienced phenomenal growth through its own SaaS subscription model. Xero’s ‘beautiful’ accounting software has proved a phenomenal hit with users both in Australia and New Zealand as well as in other countries like Canada and the UK.
The UK Tax department’s requirement that businesses use online accounting software is a major tailwind for Xero and could be amplified if other countries (and maybe our own ATO) follow suit.
Ramsay Health Care Limited (ASX: RHC)
Ramsay is the biggest private hospital operator in the country with a growing international presence too. I think the healthcare system will increasingly rely on private operators like Ramsay in dealing with the demographics our ageing population and thus I view this company as a play on that inevitable tailwind.
Macquarie Group Ltd (ASX: MQG)
I think Macquarie is the best ASX financial stock to be in right now, and don’t see anything changing next year. Macquarie’s asset management and investment banking businesses and international exposure mean the company’s not facing the same kind of structural issues as our ‘big four’ ASX banks are currently grappling with.
Thus, I think this stock will continue to deliver both growth and dividend income for its shareholders in the 2020s.
I would love to see all 5 of these companies in my portfolio in 2020. I think all qualify as ‘buy-and-never-sell’ type businesses – which equals less stress and higher returns in my eyes.
The post 5 ASX stocks I’d love to own in 2020 appeared first on Motley Fool Australia.
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Sebastian Bowen 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. The Motley Fool Australia owns shares of and has recommended Macquarie Group Limited. The Motley Fool Australia owns shares of Altium and Xero. The Motley Fool Australia has recommended Ramsay Health Care Limited. 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.
The Motley Fool's purpose is to help the world invest, better. Click here now for your free subscription to Take Stock, The Motley Fool's free investing newsletter. Packed with stock ideas and investing advice, it is essential reading for anyone looking to build and grow their wealth in the years ahead. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson. 2019