Where to invest $5,000 into ASX shares

This is where I'd invest $5,000 of my money into ASX shares today, including Pushpay Holdings Ltd (ASX:PPH).

| More on:
a woman

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Just before Christmas could be the perfect time to invest $5,000 into ASX shares.

The global economy is looking a bit better with the trade war starting to wind down, so I'd feel good about investing $5,000 into these shares:

Pushpay Holdings Ltd (ASX: PPH) – $1,500 

Technology businesses are some of the most promising on the ASX. They have the ability to expand rapidly because there's not really any physical limitations. Technology allows businesses to have high profit margins and they just need to keep adding customers until they reach profitability.

That's exactly what's happening with Pushpay right now, which is an electronic donation payment business, it has reached profitability and positive cashflow but continues to grow quickly.

It has just announced an acquisition which is a church management system which will improve Pushpay's offering to church clients (which is Pushpay's major source of revenue today), and drive revenue higher.

The next couple of years could see rapid growth of profit for Pushpay.

Webjet Limited (ASX: WEB) – $1,500 

Webjet is another tech business, it's a travel business that serves both individual customers like you and I, it also has a B2B offering called WebBeds which is growing organically strongly right now (excluding the effects of the Thomas Cook collapse).

Webjet is expecting underlying organic earnings before interest, tax, depreciation and amortisation (EBITDA) growth of at least 16% which is a solid growth rate for the price it's trading at.

It's trading at under 15x FY21's estimated earnings. There is also talk that some private equity is interested in acquiring Webjet because of its cheap price and good growth prospects.

Washington H. Soul Pattinson and Co. Ltd (ASX: SOL) – $2,000

Soul Patts has delivered long-term outperformance of the overall ASX share market with its diversified investment portfolio.

Why I think Soul Patts could be a particularly good choice right now is that it could significantly benefit if TPG Telecom Ltd (ASX: TPM) wins the court case to merge with Vodafone Australia. TPG is a very significant part of Soul Patts' portfolio.

Even if TPG doesn't win I think Soul Patts has an excellent long-term future with its new investments like luxury retirement living which will benefit from ageing population tailwinds.

Foolish takeaway

Both Pushpay and Webjet could generate very strong returns over the next couple of years, but Soul Patts is the safer choice for market-beating returns which is why I'd allocate the most to it.

Tristan Harrison owns shares of Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of PUSHPAY FPO NZX. The Motley Fool Australia owns shares of and has recommended Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia has recommended PUSHPAY FPO NZX and Webjet Ltd. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Growth Shares

a happy investor with a wide smile points to a graph that shows an upward trending share price
Growth Shares

Here are the top five ASX 200 shares in Macquarie's model growth portfolio

These ASX 200 shares are highly rated by analysts at Macquarie.

Read more »

a man with a wide, eager smile on his face holds up three fingers.
Growth Shares

3 ASX shares to buy in 2024 and hold for the next 10 years

Analysts think these top shares are in the buy zone right now.

Read more »

A man leans forward over his phone in his hands with a satisfied smirk on his face although he has just learned something pleasing or received some satisfying news.
Growth Shares

4 ASX growth shares I think will benefit from interest rate cuts in 2024

Not only will home loan holders rejoice, investors of these stocks could also be yelling with joy when the Reserve…

Read more »

A smiling woman sits in a cafe reading a story on her phone about Rio Tinto and drinking a coffee with a laptop open in front of her.
Growth Shares

3 of the best ASX growth shares to buy now

Analysts see plenty of upside for these buy-rated shares.

Read more »

A man and woman in an office look at a laptop and discuss investing, budget strategies or other financial concepts
Growth Shares

Here's why analysts love these buy-rated ASX 200 growth shares

There's a reason analysts are feeling bullish about these companies.

Read more »

A woman with strawberry blonde hair has a huge smile on her face and fist pumps the air having seen good news on her phone.
Growth Shares

Big returns could be coming for high-flying Lovisa shares

Morgans doesn't believe it is too late to snap up this hot stock.

Read more »

Smiling young parents with their daughter dream of success.
Growth Shares

Why these ASX 200 growth shares could be top buys now

Analysts are feeling bullish about these growth stocks. Let’s see what they’re saying.

Read more »

Concept image of a man in a suit with his chest on fire.
Growth Shares

Ignore the noise and buy this hot ASX growth stock

A recent pullback may have created a buying opportunity according to Bell Potter.

Read more »