The end of tax year is a key time to top up your stocks and shares ISA because the ISA is a ‘use or lose it’ allowance.
You can’t carry any of it forward into the following tax year.
Charlie Huggins, Manager of the Quality Shares Portfolio at Wealth Club, shares his views on three stocks he is holding in his portfolio.
“Most companies are, by definition, mediocre. Some are good. Fewer still are great. And a tiny minority are truly exceptional. These are the ones I want to own.
I’m looking to invest in durable, adaptable and – above all – resilient businesses. Those selling critical goods and services, with high levels of recurring income from loyal customers. I believe the three companies below, owned in the Quality Shares Portfolio, pass these tests with flying colours.
Experian plc (LSE: EXPN)
Experian owns the world’s largest credit bureau. It aggregates credit data from lenders then sells it back to them. Without this data, banks would not be able to lend and the global economy would grind to a halt.
Experian has successfully expanded into new applications – using its data in more ways to solve more problems for more customers in more industries.
Today, it helps over 180 million consumers take control of their finances. It assists over 150,000 businesses, not only with lending decisions, but in verifying online purchases, combating fraud, acquiring customers and becoming more efficient. It even helps US hospitals manage payments.
This evolution has been reinforced by significant investments in innovation, from its insurance marketplace allowing US consumers to search and apply for car insurance with a few clicks, to its major investments in analytics tools and software. Recently, it has started joining up its solutions, making them even more powerful.
The roll-out of these recently launched products has only just begun. And it has scope to meaningfully accelerate Experian’s growth over the next decade. It’s why I’ve never been so excited by its long-term prospects.
Danaher Corporation (NYSE: DHR)
In the California gold rush, it wasn’t the gold miners who made the most money. It was the companies supplying the picks and shovels. Danaher has positioned itself as the picks and shovels provider to the medical science industry.
The company provides diagnostic tests, life sciences instruments and technologies for the development, manufacture and delivery of biological drugs. The diversity of its product portfolio, leadership positions in highly regulated markets and global scale add up to a resilient business that is difficult to compete with.
That said, it hasn’t been plain sailing in recent years. The pandemic saw a boom in spending from pharmaceutical and biotechnology companies. When that trend reversed and these companies cut back on inventories, Danaher’s revenue and profit took a hit.
The good news is demand for biological therapies is still growing rapidly. And with most of Danaher’s customers having worked through excess inventories and returned to normal ordering patterns, the stage could be set for a return to growth.
Roper Technologies Inc (NASDAQ: ROP)
Roper owns 28 high-quality software and technology businesses, generating excellent margins and cash flow; and has a strong track record of acquisitions and disposals.
Having disposed of its more cyclical industrial businesses, Roper’s attention has turned to how to get the most out of its existing operations. This includes a sharper focus on strategy, talent and new product development, such as incorporating Generative AI into a number of its software solutions.
Alongside this emphasis on improving its organic growth, Roper’s acquisition strategy is also evolving. There is a greater focus on ‘bolt-on’ deals that can be assimilated into existing companies, and acquiring businesses at a slightly earlier stage of their development, with stronger growth prospects.
In short, I think Roper’s long term growth prospects are improving. 2025 could be the year that progress becomes more evident.
