The ultimate aim of any long-term investor should be to create a portfolio that can withstand any global shocks or downturn, provide a great, consistent income, and grow earnings over time. This can be achieved in many ways but some of the best performing portfolios are those that have taken advantage of times when companies are on 'sale'.
Build A Watchlist
My watchlist is chock full of companies that I would love to own but are currently just a little too expensive for me to buy; remember, fortunes are made by being greedy when others and fearful and fearful when others are greedy.
Like some of my Foolish colleagues have alluded to, there will come a time when we see a 10%, 20% or maybe even 30% fall in the ASX. Investors should be ready to take advantage of a sale like this by having a watchlist of quality companies ready to buy at the right price.
3 Ripper Watchlist Stocks
Here are three of my favourite companies that have refused to come back to a great buying level where I'm happy to jump in:
Domino's Pizza Enterprises Ltd. (ASX: DMP) is in my opinion one of the very best companies listed on the ASX. The group has made an artform of finding ways to improve business efficiency and is building a dominant global presence. The share price is up over 50% this year already, and over 90% over 12 months, meaning I probably should have bought a while ago. This would be a great stock to pick up after a 30% fall.
Crown Resorts Ltd (ASX: CWN) recently fell to a 12-month low of around $14.60 after concerns surfaced about growth at its Macau-based joint venture. It has since bounced back above $15 after it reported full year earnings, but the group's huge pipeline of projects should see the share price and dividend rise much higher over the long term.
Finally, Ramsay Health Care Limited (ASX: RHC) almost always looks expensive and is trading at around 36 times this year's earnings, but 'only' 26 times forward earnings. I'd love to own this private hospital operator after a decent dip in the share price but I feel I may be waiting a little while.
