Your instant 5-stock portfolio of growth and winning brand names

Well-known names and steady earnings growers make the grade.

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

When you put together a portfolio, I believe about five to ten stocks is an adequate amount before it starts getting hard to keep up with an individual stock's progress. It may take an hour each week for each one. If you are working full-time, you may have a spare five to ten hours per week to devote to this. Above that and the task becomes harder.

Five is a good, round size for a portfolio to start out with. You aren't married to any of the stocks and you can review them every three to six months to make sure things are going as planned. For those that make the grade, they can get another injection of investment money. The others get adjusted or culled.

If you've figured out you made a wrong move with one of them, that's okay. Even seasoned stock pickers may be right only 50%-60% of the time. You can scale into successful gains and reduce the losers.

Here's a five-stock sample portfolio that has some good brand name companies, growth potential and diversification in different industries.

First, I want a solid brand name stock that people use everyday. That sounds like Domino's Pizza Enterprises Ltd (ASX: DMP). It is growing domestically as well as overseas in Japan. Apart from Pizza Hut, there aren't many takeaway pizza chains in Australia that can match its large store network and promotional marketing.

Another well-known brand is the retail distributor Breville Group Ltd (ASX: BRG). It has successfully gotten its electric appliance products like Kambrook and Ronson into many white goods stores and supermarkets. Its current strategy of expanding into the UK with a new premium product line sets it up for good growth also.

Another brand that many people use when they think of property is realestate.com.au, operated by REA Group Limited (ASX: REA). The number one real estate listing website is where people go to look for homes and the place where vendors want their home to be seen. That popularity means more business and potentially more earnings for shareholders.

Ramsay Health Care Limited (ASX: RHC) would cover the need for a defensive stock, yet the private hospital operator is recently growing at a healthy pace as well, so two gold stars for it. More acquisitions are expanding its hospital numbers.

Lastly, a company that has a good track record for steadily growing revenue and good margins is Mcmillan Shakespeare Limited (ASX: MMS), the vehicle fleet manager and salary packaging service provider.

The setback it experienced in 2013 was a one-off affair. When the revenue and earnings of the full-year result showing things are back to normal, investors should feel more certain things are solid.

Foolish takeaway

They each have something special that either drives growth or allows them to charge a premium for their service. That helps earnings to be more reliable and business growth comes from the excess money they generate.

Motley Fool contributor Darryl Daté-Shappard does not own shares in any company mentioned. 

More on ⏸️ Investing

A white and black robot in the form of a human being stands in front of a green graphic holding a laptop and discussing robotics and automation ASX shares
Technology Shares

Joining the revolution: How I'd invest in ASX AI shares right now

Advances in artificial intelligence (AI) could usher in a new industrial revolution. Here’s how you can invest in it.

Read more »

Close up of baby looking puzzled
Retail Shares

What has happened to the Baby Bunting (ASX:BBN) share price this year?

It's been a volatile year so far for the Aussie nursery retailer. We take a closer look

Read more »

woman holds sign saying 'we need change' at climate change protest
ETFs

3 ASX ETFs that invest in companies fighting climate change

If you want to shift some of your investments into more ethical companies, exchange-traded funds can offer a good option

Read more »

a jewellery store attendant stands at a cabinet displaying opulent necklaces and earrings featuring diamonds and precious stones.
⏸️ Investing

The Michael Hill (ASX: MHJ) share price poised for growth

Investors will be keeping an eye on the Michael Hill International Limited (ASX: MHJ) share price today. The keen interest…

Read more »

ASX shares buy unstoppable asx share price represented by man in superman cape pointing skyward
⏸️ Investing

The Atomos (ASX:AMS) share price is up 15% in a week

The Atomos (ASX: AMS) share price has surged 15% this week. Let's look at what's ahead as the company build…

Read more »

Two people in suits arm wrestle on a black and white chess board.
Retail Shares

How does the Temple & Webster (ASX:TPW) share price stack up against Nick Scali (ASX:NCK)?

How does the Temple & Webster (ASX: TPW) share price stack up against rival furniture retailer Nick Scali Limited (ASX:…

Read more »

A medical researcher works on a bichip, indicating share price movement in ASX tech companies
Healthcare Shares

The Aroa (ASX:ARX) share price has surged 60% since its IPO

The Aroa (ASX:ARX) share price has surged 60% since the Polynovo (ASX: PNV) competitor listed on the ASX in July.…

Read more »

asx investor daydreaming about US shares
⏸️ How to Invest

How to buy US shares from Australia right now

If you have been wondering how to buy US shares from Australia to gain exposure from the highly topical market,…

Read more »