1 Share I’d Buy Today

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We often get asked what share we would buy. Well, we’re going to start a series. The idea is to identify opportunities that exist and to show you that investing isn’t about having a lot of money but rather a lot of patience and consistently working at it.

Now while ‘hot tips’ can sometimes win, at Accession3 we are more interested in long term, sustainable wins. Markets move each and every day and more often than we’d like, it’s not the way that you want it.

And while Warren Buffett is famous for saying that he’d just invest all his money in index funds, the reality is if you did that you would’ve made nothing. Just look at the ASX 200…
asx-200-10-year-chart

Clearly, it’s lower now than it was in 2006 so an index fund, that follows the index would’ve made you a loss. Even the Oracle from Omaha gets its wrong.

But one Share I’d buy today, even if I had just $1,000 is CSL. Despite a tough month (it’s dropped 20%) there is much to like. A few reasons include:
1. An ageing population – on average the world is getting older and we all know, the older we get the more medical intervention we require;
2. Research & Development – CSL invests heavily in developing new products. This flow of new products to market assists in growing revenue;
3. Currency – for those more short-term in their thinking, the $A has been pushing higher ($0.77US at time of writing) which hurts CSL’s share price. It is commonly believed the $A will fall lower over the next 12 months which will help CSL.

Now, if you had purchased CSL (black line) in 2006 instead of Warren’s index fund your performance would compare like this:
asx-200-10-year-chart-v-csl

We think CSL can continue its growth over the next 10 years.

By: Nick Rundle

Email: nmr@accession3.com

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