One of the best things about shares is that prices are always changing, meaning sometimes businesses are priced nicely and other times expensively.
It’s this changing of price over the weeks, months and years that allows us to pick and choose our entry points into the best businesses.
At the moment, these are three of my favourite ASX 200 shares:
Washington H Soul Pattinson And Co Ltd (ASX: SOL)
WHSP might be the best positioned to keep growing no matter what’s going in the local or global economy because of its diversified investment conglomerate nature. It’s over 100 years old and seems ready to go on for many decades more.
It doesn’t take on debt and invests in relatively defensive businesses with attractive cashflow such as Brickworks Limited (ASX: BKW), TPG Telecom Ltd (ASX: TPM), New Hope Corporation Limited (ASX: NHC) and Australian Pharmaceutical Industries Ltd (ASX: API).
The fall of the coal price has sent the WHSP share price down about 25% since early March, I think $23 is a nice price to buy some shares today.
Webjet Limited (ASX: WEB)
Webjet is one of Australia’s largest travel agent businesses, but I think it has a distinct advantage over some of its local competitors like Flight Centre Travel Group Ltd (ASX: FLT) because Webjet is a purely online-only business which means lower costs, therefore Webjet can either offer better prices or achieve better profit margins.
I think Webjet is particularly appealing at the moment because its corporate travel segment, WebBeds is going at a fast pace from organic growth, it’s hitting profitability and it just added a lot of earnings with the Destinations of the World acquisition.
REA Group Limited (ASX: REA)
This business is the owner of the leading real estate Australian website, realestate.com.au where it receives ad revenue for every property on the platform looking to be sold or rented.
People choose to more of their research on REA Group’s website, which is good brand power for the company as it allows management to do inflation-beating price rises over time.
If REA Group can unlock the potential of its international property sites in South East Asia, India and the US then it could become a much bigger business compared to today.
2 More ASX Shares I’m Keeping My Eye On
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Disclosure: At the time of writing Jaz owns shares of Washington H Soul Pattinson And Co Ltd, but this could change at any time.
