6 March 2009…ring any bells? Probably not… I would bet many investors have mentally blocked out that traumatic day.
If you were a Foolish investor, though, you'd be celebrating the anniversary of one of the best times to buy shares. (You can see why below)
On that day six years ago, the S&P/ASX 200 Index (ASX: XJO) (Index: ^AXJO) hit its lowest point during the GFC. The world's financial markets were making a great sucking sound as credit liquidity drained away.
If there ever was a time when the old stock saying, "Don't buy until there's blood in the street" was true, this was it. Fools everywhere could now wade in and pick up even the best quality stocks at big discounts.
Here's a list of five big-name stocks you could have picked up for a song…and made out like a bandit!
The 6-year annualised returns are pure gold, except one that was a disappointing mix of iron and coal – BHP Billiton Limited (ASX: BHP).
This is why Fools love it when prices go down – tantalisingly down….
How do these stocks look going forward? I prefer two over the rest, REA Group Limited (ASX: REA) and Flight Centre Travel Group Ltd (ASX: FLT).
REA Group operates the property advertising website realestate.com.au. The company regularly has high-double digit earnings growth. The dividend yield is low, but dividend growth is high like earnings. It's expanding overseas through acquisitions and investment. Also, REA Group is in a joint venture partnership with News Corp to develop a leading property advertising website in the US.
Flight Centre is also expanding internationally and has a successful corporate travel business called FCm Travel Solutions that taps into the higher margin business travel market. Flights are becoming comparatively cheaper and customer volumes are growing in general. Earnings growth has pulled back due to the weaker Australian economy, but the company can offset that by growing its business in the huge US flight market.
