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What i'm buying next

After Caroline Mark outlined how she built her portfolio from scratch, she’s back to tell us what she’s buying next.

Caroline Mark is a novice investor who started investing in the sharemarket in September 2019. She is sharing her experiences of getting started as an investor through a regular monthly blog. She is the publisher of Under the Radar Report, an investment research provider. Whilst all reasonable care has been taken by WealthHub Securities in reviewing this material, this content does not represent the view or opinions of WealthHub Securities.
 

A lot has been happening with my growing portfolio of ASX shares.

I’ve made two share transactions since I last wrote. I’m buying a parcel of shares every month using the money I’ve saved in a month and slowly over time I’m growing my portfolio. I only started in September, but I’m on my way and I’ve got about $15,000 invested already. I’m really enjoying investing. I follow my shares closely and I check in on the broking app every day. It’s officially addictive.

 

Next small cap stock to buy

I looked closely at Tassal (ASX code TGR) as it is on our Best Stocks to Buy list. The stocks on this list have a track record of outstanding performance.

 

We have five current Best Buys and I like Tassal for a number of reasons, but I worked out I want diversification. Tassal gives my portfolio exposure to food. I didn’t want more exposure to financial services, or mining or telecommunications and food is a growth industry. We’re in a drought, so there must be huge demand.

 

What I found fascinating is that this company produces salmon mainly for the Australian market, which gave me a lot of comfort, because I like eating salmon.

 

Also, the company now farms prawns as well. It has a market cap of $900m and isn’t really a small cap any more but more a mid-cap. Under the Radar has been following the stock for a long time, since 2012 and we see a buying opportunity now.  It pays a dividend yield of 4.1% and demand for its product is always going to be strong. There are definitely risks in aquaculture and I’m sure it will have good years and bad years but I like the business and I bought 600 shares at $4.22.

 

Hunting Under the Radar for blue chip value

What is interesting is everyone always says, small caps are risky, blue chips offer much more stability and certainty. In fact, so far in the ASX stocks I’ve chosen it’s been the opposite!  I think what they really mean is that the big blue chips are well established businesses and they won’t drop or rise 40 or 50% that a small cap can, and they will still be here in 10 years’ time, which isn’t the case for the odd listed small cap.