Do Stockland, JB Hi-Fi and Woolworths belong in your portfolio?

Good stocks reward their shareholders over time.

Darryl Daté-Shappard

I started investing after finding a copy of Peter Lynch's "Beating the Street" in the English book section of a library in Japan, where I was living at the time in 1997. Seeing that regular people can find investment ideas just as easily as professionals, I used the philosophy of that book to invest in stocks in Japan, and later in Australia after moving in 2001. I also have experience in property investing, and went on to complete my masters degree in Applied Finance at QUT in Brisbane. I follow the investment style of Peter Lynch, Phillip Fisher and Warren Buffett-- knowing what you invest in, doing your homework to keep up with a stock's story and holding a healthy skepticism of what the stock market calls "value".

Published May 13, 2014 1:38 pm AEST

Here are three companies that investors should have in their portfolio.

1. Woolworths

Because of its focus on staple foods and daily shopping, I still look to retailing giant Woolworths Limited (ASX: WOW) for long-term growth. It has steadily raised its earnings and share price far more than some takeover target's premium. And it will keep on going as the Australian population increases.

2. Stockland Corporation

Property developer and investment manager Stockland Corporation Ltd (ASX: SGP) right now has Australand Property Group (ASX: ALZ) in its sights with a takeover bid on the table. Australand still considers it too low, yet Stockland may not increase its offer.

If it can't get it a reasonable price, that is still OK. Stockland has enough potential growth and work in the pipeline currently to do well by itself for residential construction and it's also a major commercial property developer.

3. JB Hi-Fi

Specialty retailer JB Hi-Fi Limited (ASX: JBH) was rumored to be a potential target of Wesfarmers Limited (ASX: WES), which is selling off its insurance businesses and building up cash potentially for acquisitions.

The electronics dealer is planning more store expansion and has a good earnings track record. Here is a case where the company is a quality stock that should increase profits and has the kicker of being attractive enough to draw the big retailer's attention. That's a vote of confidence right there.

Don't speculate on weak companies — always seek out quality. Good stocks reward their shareholders over time.

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