Common wisdom suggests that as you're heading towards retirement, you should switch your assets into lower risk investment types. There is some merit to this approach and your financial adviser and/or superannuation fund is possibly organising some of these strategies on your behalf.
Yet if you're 10 years or more from retirement, you have plenty of time to invest in attractive growth shares as well, not just boring old dividend stocks. Here are 3 companies I'd buy now if I was retiring in 10 years:
Vocus Group Ltd (ASX: VOC)
Telco Vocus has made headlines for all the wrong reasons in recent times. With executive departures, a cut to the dividend, and two recent earnings downgrades, there have been good reasons to be negative about the business.
However at today's prices, investors are getting long-life assets with plenty of cash generation potential, owned and operated by a company that is growing its market share at the expense of competitors.
Fisher & Paykel Healthcare Corp Ltd (ASX: FPH)
Fisher & Paykel designs, manufactures, and sells medical equipment that is used for a variety of respiratory care and sleep apnea ailments. Over the past few years the company has successfully driven down costs and expanded into new markets, delivering great returns for shareholders.
A patent claim and counterclaim legal dispute with competitor ResMed Inc. (CHESS) has the potential to impact sales, although Fisher & Paykel continues to invest heavily in research & development and new products bring the promise of rewarding future growth.
XERO FPO NZX (ASX: XRO)
Cloud software company Xero has experienced something of a revival in its share price in recent times, as investors warm to the idea of the business reaching break-even point without having to raise additional capital or borrow. Yes, Xero is unprofitable. However, the company has an expanding footprint in very large markets, and has achieved market dominance in the local New Zealand and Australian market in a relatively short number of years.
With promising initial success in markets such as the UK and the USA, Xero's business could be much larger in a decade's time.
