Smart investors know the importance of a diversified investment portfolio. Volatility and fluctuation in values of stocks are inherent aspects of stock market investments. When you invest in only certain segment of stocks the risk factor increases significantly. On the other hand, when you spread your investment in stocks across the spectrum it not only lowers the risk factor but also averages in terms of profit. If you are considering to diversify your portfolio, it is very important to know if you are looking at long-term or short-term investments and at the type of risk appetite you have as an investor!
We have enlisted the world’s 10 best stocks for you to consider when thinking about diversifying your stock market investments.
iQIYI is China’s leading video content provider, and is often termed as ‘Netflix of China’. The major difference between Netflix and iQIYI is that the former has an immense subscriber base of 66 Million paid-users and millions of other free-content users. The company has the potential to transform over 80 million of their free subscribers to paid-users.
With the multifold increase in smartphone users in China, iQIYI is set to grab a large share of the millennial population, especially, which is over 400 million in the country.
Alibaba is still China’s giant when it comes to online retail. The company is dominant in the Chinese market with an impressive share of 75% of the country’s online shopping industry. Focused on consumer-to-consumer sales (Taobao), business-to-consumer sales (Tmall) and group sales (Juhuasuan), Alibaba easily races past even Amazon when it comes to sales volume.
Alibaba has an impressive interconnected network which inherently increases its user numbers significantly. Stock market experts predict Alibaba to overtake Amazon in their home-ground US in the near future.
3. BHP Group
The BHP Group (formerly BHP Billiton), is a leading Australian energy and mining company. The company has upgraded its product lines and also expanded its sales boundaries noticeably within the last couple of years. BHP Group is currently focused on petroleum, copper, coal and iron ore and earns 2/3rd of its revenue from copper and iron ore while the remaining 1/3rd revenue is generated from its coal and petroleum divisions.
Recently, BHP sold its entire asset holdings in the US and paid off its debt, which has more than tripled its operating income in the last couple of years. This marks the interesting point that experts predict to see BHP stock valuations to increase soon, in the near future.
4. AB InBev
AB InBev is a leading alcoholic and non-alcoholic beverage company from the US. Although the company accumulated around USD 108 billion in net debt, it is ready to pay it off as much as half using the cash flow by 2023.
Even if the company is to put its non-alcoholic division up for sale, experts predict only increase in stock valuations for AB InBev.
Anthem is a leading health insurance company from the US. The company is coping with acquisition attempts of Aetna by CVS and also prepares for the acquisition of Cigna/Express Scripts too.
However, as Anthem is set to introduce its pharmacy benefit plan in 2019, experts expect to see the company going for another acquisition this year.
Barclays, the US banking giant is reeling after legal and layoff issues which account for over USD 2 Billion in settlement amount.
However, the bank has shown immense promise with a turnaround in its profits and investors are being attracted by the fact that it is one of Europe’s least expensive banking providers.
Bausch, the Panama-based drug-makers, are looking to see immense profits this year. As the company has its dermatology products almost on the verge of being approved by the FDA and its debt is decreasing significantly too, it’s surely showing promise as a worthwhile international investment for Indian stock market investors.
Centrica is a popular British gas and electric utility provider. Although investors believe the company will take a hit with the new caps introduced in the home energy bills in 2018, the “connected homes” and alternative energy segments are still showing immense promise of growth from 2019 and thereon.
9. CK Asset Holdings
CK Asset Holdings is one of Hong Kong’s leading asset management firms. The company recently expanded its portfolio by buying the USB’s London-based headquarter building for a whopping USD 1.3 Billion and is in the process of buying APA Group’s Australian gas pipeline for an immense USD 9.5 Billion.
10. Dell Technology
Dell Technology is a popular global IT company. Recently, the company began streamlining and simplifying its capital structure and is expected to return to public listing by end of 2019.
These are the world’s 10 best stocks that Indian stock market players, amateurs and experts alike, need to keep an eye on. These stocks are predicted to help in diversifying your Investment Portfolio at a global scale and help minimize risk and maximize returns. So if you were thinking of starting your investing journey then the best time as they say, might just be now!