Investing can seem like a dangerous business. Sure, it can be exciting too, but investors have been reminded in recent weeks that the stock market carries far greater risks than other assets, including government bonds and term deposits. While some investors can stomach the market's volatility, others enjoy the peace of mind knowing their investments are in conservatively managed companies with defensive revenue streams.
While it is important to remember that no stock is 100% risk free, the four stocks listed below would be a perfect fit for the more conservative investor. Better yet, they're trading at significant discounts compared to just a couple of weeks ago!
- ResMed Inc. (CHESS) (ASX: RMD) develops and manufactures products for the treatment of various respiratory disorders. ResMed not only has an incredible track record for revenue and earnings growth, it also has a very promising future with the sleep apnea disorder becoming more and more prevalent in today's society (one of the major contributing factors to this trend is the growing rate of obesity across the Western world). As such, ResMed should continue to benefit well into the future.
- Cover-More Group Ltd (ASX: CVO) is Australia's leading travel insurance business. Despite the falling AUD or the threat of an Ebola epidemic, strong rates of Australian outbound travel are expected to be sustained. To highlight just how resilient the outbound travel insurance market is, the industry even managed to grow through the Global Financial Crisis and the Swine Flu epidemic in 2009. With an estimated 40% dominance over the local market (as well as a growing presence in China and India), Cover-More is in a box-seat position to benefit.
- Veda Group Ltd (ASX: VED) is Australia's leading data analytics business with credit histories on 20 million individuals and 5.7 million businesses. In times of economic uncertainty, businesses become increasingly wary about who they are extending credit to, and call on the products and services of companies like Veda to empower their decision making. Veda Group also grew revenue strongly through the GFC and strong growth is anticipated over the coming years too.
- Washington H. Soul Pattinson and Co. Ltd (ASX: SOL) is seen by many as Australia's answer to Warren Buffett's Berkshire Hathaway empire. Not only is the investment conglomerate run by a world-class management team, its investments are diversified across various industries to ensure a fantastic balance between risk management and potentially great returns. Having been born in 1872, Soul Patts survived two World Wars, the Great Depression and the recent GFC. Need I say any more about its resilience?
