S&P/ASX 200 Index (ASX: XJO) shares may be headed downwards today, there are some great names worth owning.
I’m optimistic that these difficult times will pass at some point, though we don’t know exactly when that will be. It may take longer than I’m hoping, but it could be sooner than the market expects.
I’ve got my eyes on some great businesses that I expect to be able to succeed (business growth-wise) during this period.
Washington H. Soul Pattinson and Co. Ltd (ASX: SOL)
I want to look at businesses that could continue growing profits during this period and may not be negatively impacted by this period of higher energy prices and elevated inflation.
I believe the WHSP setup is well-suited to this scenario. It’s a diversified investment conglomerate that’s invested in a variety of areas through both listed and unlisted assets.
It recently acquired Brickworks, giving it significant exposure to industrial property and building products. WHSP is also invested in TPG Telecom Ltd (ASX: TPG), Tuas Ltd (ASX: TUA), New Hope Corporation Ltd (ASX: NHC), Aeris Resources Ltd (ASX: AIS) and many more.
Its private investments are across areas like financial services, farming and swimming schools.
The ASX 200 share’s earnings are defensive, which will help it navigate this uncertain period. Plus, it’s invested in ASX energy shares that could deliver positive returns if energy prices continue rising. Additionally, WHSP can make investments in some ASX shares that have sold off.
Overall, I think WHSP is one of the best businesses for times like this.
Breville Group Ltd (ASX: BRG)
Breville is another great ASX 200 share, in my view. It’s one of the world’s leading coffee machine businesses and also sells coffee beans (through the Beanz company).
I’m not expecting coffee consumption to noticeably decrease during this period, so any reduction of the Breville share price could be a buying opportunity, particularly if it continues growing revenue at more than 10% per year.
The company is working on growing its revenue through product innovation for existing markets, while growth into new markets could unlock pleasing revenue growth for the company.
I see the company’s expansion into China, South Korea and the Middle East as opening up large growth addressable markets which have significant room for coffee adoption in the coming years.
After falling almost 20% this month, I think this is a great time to buy.
