Im bullish on good-quality shares and investments for 2020 and beyond. Here are three that Id be happy to snap up immediately
Branded luxury goods
Despite all the recent carnage on the high street, Burberry (LSE: BRBY) has been trading well and quietly growing its revenues and earnings a bit each year.
In November with the half-year results, the branded luxury goods manufacturer, wholesaler and retailer reported a solid performance for the six months to 28 September. Chief Executive Marco Gobbetti said in the report that the firm is on track to deliver the first phase of its strategy. New products account for about 70% of the companys main-line retail store offering now, he said, and theyve been received well by customers.
In early 2018, Burberry recruited Riccardo Tisci as its chief creative officer and his designs have driven double-digit growth. There is momentum across social media, press and influencers, which is pushing the brand. Meanwhile, distribution is being transformed with rationalisation of the wholesale operation and the refreshing of the firms retail stores in all major cities.
Burberry appears to be thriving with rebooted energy and the outlook is positive. Although the forward-looking earnings multiple is in the 20s, I think this is a quality operation thats transforming into something even more dynamic and could be worth its rating. Id buy some of the shares with a five-year-plus holding period in mind.
Analytics and decision tools
Information-based analytics and decision tools provider RELX (LSE: REL) has an impressive record of annually rising revenue, earnings, cash flow and dividends. And in a trading update released in October, the company reported 4% growth in underlying revenue in the first nine months of 2019.
The firm acquired 12 assets, spending 378m in the period, and disposed of seven others for proceeds of 62m. I think such nipping and tucking is part of how the directors optimise the business and achieve such steady trading and financial results.
Theres been a share buy-back programme in full swing, and in October, 550m had been spent on that out of a planned 600m. The balance should be completed by the end of this year.
Meanwhile, the outlook is positive with the directors expecting more growth in revenues and earnings ahead. I reckon Relx has been such a consistent performer for so long that its worth the forward-looking earnings multiple, which is running at just over 19 for 2020 as I write. This is another stock Id be happy to tuck away for the long term.
The leading London index
I believe we could be heading into a golden era for investing. So Id be keen to own a slice of Londons lead index of large-cap companies, the FTSE 100. Theres a generous dividend on offer near 4% and the chart shows the index moving up from a long period of consolidation.
And Id opt for the accumulation version of a low-cost FTSE 100 index tracker fund so that the dividends will automatically be reinvested for me.
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