The benchmark S&P/ASX 200 (Index: ^AXJO) (ASX: XJO) is home to a number of high quality companies for investors to choose from.
But with such a diverse range of shares available to investors it can be difficult to decide which to put your hard earned money in.
Well two shares in the index which I think are must buys are listed below. Here's why:
Corporate Travel Management Ltd (ASX: CTD)
This corporate travel specialist recently delivered yet another strong half-year result which saw it post a 26% jump in revenue to $150.5 million. Pleasingly margin expansion meant that statutory net profit jumped at an even faster pace of 28% to $22.1 million. Impressively, the company achieved this despite a sharp fall in total transaction value (TTV) in Asia during the half. An oversupply in the region drove ticket prices down, leading to a 22% drop in TTV. Management believes that the worst of the price deflation is behind it now and that it's onward and upward in the second-half. This could make it an opportune time to invest in the corporate travel specialist.
ResMed Inc. (CHESS) (ASX: RMD)
Thanks to the company's market-leading sleep treatment products, wide distribution, and quality management team, I believe ResMed is in a great position to capitalise on the strong long-term growth of the global sleep apnoea market. In its most recent quarter ResMed reported a 9% jump in sales to US$496.6 million, excluding the contribution from its recently acquired Brightree business. Including the acquisition revenue increased 17% to US$530.4 million. I expect the strong demand for its products will continue in the second-half, leading to another solid result. With the company focused on its goal of changing the lives of 20 million patients by 2020, I believe ResMed could prove to be one of the best buy and hold investments on S&P/ASX 200.
