The NZX sharemarket had been an outstanding performer in recent years but Craigs Investment Partners broker Chris Timms said returns would be harder to come by next year. The local sharemarket had risen 68.4% since the end of 2011, including dividends.
''Although the economic outlook is solid, growth is slowing and shares no longer look cheap. Investors must focus on companies with clear growth opportunities.''
Mr Timms believed interest rates would remain low, keeping dividend-paying companies in demand.
He also expected the currency to drift low against the US dollar, providing a benefit to companies exposed to the United States economy.
Three of his stock picks for 2015 were the same as last year.
''Good quality companies tend to reward investors over time and we see this as a reflection of a consistent long-term investment philosophy.''
Fisher and Paykel Healthcare: FPH had a stellar run over the past two years but it had been driven by genuine operational progress - highlighted by several consecutive profit upgrades.
The company was well positioned, had growth options and earnings momentum on its side.
It was also a beneficiary of any further weakness in the New Zealand dollar against the US currency. Share price, $6.12.
Contact Energy: The electricity sector performed well in 2014, particularly following the election.
Craigs did not expect a repeat performance but with attractive dividend yields on offer, and the defensiveness of the industry, a ''respectable performance'' was expected from the electricity sector. Contact was offering the best value in the sector. Share price, $6.28.
Fletcher Building: Fletcher Building had not performed well over the past two years, suffering from slower-than-expected benefits from the Christchurch rebuild and a high exposure to the struggling Australian economy.
However, Fletcher Building looked reasonable value having lagged the market. Mr Timms remained optimistic signs of a turnaround in its Australian operations could emerge in time. Share price, $8.10.
Mainfreight: Like Fisher and Paykel Healthcare, Mainfreight was another company to perform well in 2014 and it was tempting to not pick it again after having already had such a strong run.
But it was still a great business, leveraged to a robust domestic economy, lower fuel prices, international growth opportunities and, potentially, some currency weakness. Share price, $15.30.
Metlifecare: Craigs liked the retirement village and aged-care sector, given the long-term demographic tailwind of an ageing population - as well as the likely increasing demand for healthcare services.
Metlifecare was Craigs' chosen exposure to the sector because it offered the best value and because it was leveraged to the Auckland market where population growth and house price strength should mean the company does well. Share price, $4.28.
Other companies in the short list included Diligent (strong cash flows, US dollar exposure), Fonterra (likely to benefit from falling dairy payout) and Air New Zealand (benefit of falling oil prices).
