The Reserve Bank of Australia may have held firm with rates this month, but I suspect it won’t be long until rates go lower again.
In light of this, if I had $10,000 sitting in a bank account I would consider putting it to work in the share market.
Three shares that I would consider investing these funds into are listed below:
REA Group Limited (ASX: REA)
Earlier today this property listings company released its third quarter update and once again demonstrated the resilience of its business model. Although the company experienced a notable decline in listings in Sydney and Melbourne, it still posted a 7% increase in third quarter revenue to $198.6 million and a 6% lift in EBITDA to $110.7 million. The drivers of this growth were increased demand for premium advertising products and the benefits of the recently acquired Hometrack business. When conditions in the housing market inevitably improve, I expect REA Group’s growth to accelerate materially. This could make it a great buy and hold option.
SEEK Limited (ASX: SEK)
Another company which I think could be a good option for a $10,000 investment is SEEK. Although the job listings company is on course to deliver a soft profit result in FY 2019 due to its heavy investment in future growth opportunities, I think investors need to focus on its revenue, which management expects to grow 16% to 20% in FY 2019. Once this investment phase is over, I believe SEEK will be well positioned to grow earnings at an above-average rate for many years to come. In fact, management is aiming to double the size of the business over the next five years.
Webjet Limited (ASX: WEB)
Last but not least is this online travel agent. If you had invested $10,000 into the company’s shares 10 years ago, that investment would now be worth a staggering $133,000 today. Whilst I wouldn’t necessarily expect the same level of return over the next decade, I believe the growing popularity of its booking platforms, sizeable market opportunity, and the shift to online booking means it has the potential to provide market beating returns once again.
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Motley Fool contributor James Mickleboro owns shares of SEEK Limited. The Motley Fool Australia has recommended REA Group Limited, SEEK Limited, and Webjet Ltd. 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