We think our Starter Stocks could be ideal building blocks to form the foundation of a portfolio for new and experienced investors alike.
We encourage investors to own at least three of these companies on their way to a portfolio of 15 shares or more.
Starter Stocks are businesses that are emblematic of our investment philosophy here at Share Advisor. They embody the qualities we like to look for in long-term investments. So we’re looking for some (or all) of the following:
- an impressive track record;
- a dominant market position;
- a business that is easy to understand and simple to follow;
- a strong management team;
- an admirable company culture; and
- less volatility (hopefully) than the wider market.
These are companies we believe in for the long term, and where we think their management, business practices and financial characteristics could make them attractive bets for many years to come.
Share Advisor “Starter Stock” Pick #1:
Britvic (LSE:BVIC)
Britvic (LSE: BVIC) is the second largest producer of soft drinks in the UK, thanks to its strong relationship with PepsiCo. As well as Britvic, its brands include Fruit Shoot, J2O, Robinson’s and Tango.
The combination of predictable dividends in a low yield world and the potential for acquisition activity has made the consumer staples sector even more expensive than it usually is. But there are still pockets of value and we believe Britvic represents one of those opportunities, and that its growth opportunities are as good or better than competitors that fetch higher multiples. Britvic can expand at home with new product launches and it is busy expanding distribution internationally, too.
Britvic is also improving its efficiency, which should give it increased distribution with lower costs per unit and more flexibility to expand in the future. Those watching the financial statements should see this translate into a higher operating margin over the next few years, which is an area where management has already been making consistent improvement.
