4 companies I would buy with $1,000 today

There could be no better time to invest a spare $1,000 than today. This is because the time-value of money means that $1,000 invested today could be worth a whole lot more in the future when compounded over the long term.

So whether you have just been paid, have some extra money saved, or got lucky on the State of Origin, here are four companies I would buy with $1,000 today.

Shares in consumer finance company FlexiGroup Limited (ASX: FXL) look almost too good to refuse at the moment. The share price has plummeted over 30% this year from $4.46 to just $3.11, and can picked up at just 13 times earnings.

One driver for the fall is investor fears over deteriorating consumer confidence, a problem compounded by the raft of earnings downgrades from retailers like The Reject Shop Ltd (ASX: TRS). However as the wisdom of Warren Buffett teaches us it could be a perfect time to “be greedy when others are fearful” and pick up Flexigroup’s juicy dividend in the process.

XERO FPO NZ  (ASX: XRO), the maker of “beautiful” online accounting software, is still a charging bull when it comes to growth. The company grew revenues by 79% to NZ$70 million for the full year to 31 March 2013, and is quickly etching out market share around the world.

At the current share price of $26.70 the company may not scream value, but Xero still has huge growth potential which could see $1,000 today grow healthily over the long term.

Crown Resorts Ltd (ASX: CWN) is another company with a bright outlook where fears over consumer spending have pushed the company’s share price down. With shares close to the $15 mark the company is at the most attractive price it has been all year.

Finally, buying shares in microcap investment company Contango Microcap Limited (ASX: CTN) is a perfect way to get exposure to a number of small, but highly prospective companies in one fell-swoop.

The company has an impressive record of beating the ASX All Ordinaries, and is a great candidate for a spare $1,000 for investing over the long term. Come for the growth, stay for the dividend.

One more top pick for $1,000 today

The healthy long-term prospects of these four companies offer several potential homes for $1,000 today at attractive prices.

However my favourite company for $1000 today is The Motley Fool's #1 stock for 2014The Motley Fool has issued a firm "BUY" rating on this small but ultra promising ASX company... and you can get the name and code FREE right now. Click here for your free copy of "The Motley Fool's Top Stock for 2014."

Motley Fool contributor Regan Pearson owns shares in FlexiGroup Limited. The Motley Fool owns shares in Xero. 

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