Most investors have a tendency to prefer investing in a 'bargain' than a well-run company which has a share price that has risen strongly but continues to have exceptional growth prospects.
This is evidenced by countless investors continuing to speculate on companies like Lynas Corporation Limited (ASX: LYC) and Atlas Iron Limited (ASX: AGO) but shunning long-term performers like Ramsay Health Care Limited (ASX: RHC) as having too little upside.
5 Top Businesses
The following five companies have had an exceptionally strong start to 2015 and are well suited to long-term investors that prefer a slow steady grind higher, instead of rapid rises and falls. Sadly, long-term wealth generation can be exceptionally boring but, as Warren Buffett has showed, extremely rewarding.
Macquarie Group Ltd (ASX: MQG) shares are up over 30% over the last three months after the company announced a massive 20% rise in earnings and a positive outlook for the year ahead. Macquarie's experience and solid management team are leading the way in the finance sector.
ResMed Inc. (CHESS) (ASX: RMD) shares are also up over 30% after the company did enough in the last quarter to calm shareholder fears about a slowdown in US growth. RedMed's dominant market position and flow of new products to market makes it a great investment.
Gold miner Newcrest Mining Limited (ASX: NCM) has had its fair share of problems, but a lower Australian dollar, higher gold price and some operational stability has seen its share price rise by 26% in 2015. This could continue if cashflows and operational performance continue to improve.
Electronic gaming machine company Aristocrat Leisure Limited (ASX: ALL) has been a favourite of investors this year as a result of a sensible acquisition and new product releases. The share price is up 24% with no sign of slowing down.
Building and construction product supplier Boral Limited (ASX: BLD) is benefitting from increased housing construction in Australia and has been an investor favourite in 2015, returning 21%, well above the 9% of the ASX 200.
Take Note!
Investors need to remember that these companies are unlikely to turn your investment into a million dollars overnight, but if they're anything like Ramsay they could turn your $10,000 into $65,000 over just five years!
