If I had $10,000 to invest in three ASX shares today, I’d want to make sure they have good long-term growth prospects and could be reliable in this volatile period.
With that in mind, these are three ASX shares I’d buy today:
Magellan Global Trust (ASX: MGG) – $4,500
Magellan Global Trust is one of the highest-quality listed investment businesses on the ASX. It has a mandate to invest in the best global businesses it can find such as Visa, Mastercard, Alphabet and Facebook.
Each of its holdings could beat the global share market return over the medium-term, but I particularly appreciate the large cash holding Magellan Global Trust has, around 20% of the portfolio, which is a good defence against market falls.
Fund manager Magellan Financial Group Ltd (ASX: MFG) is one of the most consistent fund manager outperformers of the market and I think Magellan Global Trust will continue to do well over the long-term.
BetaShares Asia Technology Tigers ETF (ASX: ASIA) – $2,500
Asia has its own equivalent of the Amazons and Facebooks of the US, which we can access through an ETF like this Asian technology ETF offered by BetaShares.
Before the trade war rattled international markets, tech giants like Alibaba and Tencent were some of the top performing blue chips in the world. They’ve now fallen to such an attractive level it’s hard to avoid thinking they’re worth a small place in a portfolio at this level assuming China doesn’t go through a recession.
BetaShares said that at the end of November the index was trading with a price/earnings ratio of just over 6, which seems like excellent value.
Washington H. Soul Pattinson and Co Ltd (ASX: SOL) – $3,000
What could be a safer long-term bet than investment conglomerate Soul Patts?
I particularly like the commitment of the investment company to pay a steadily-rising dividend. It has increased its dividend each year since 2000, which is a wonderful record considering most ASX businesses reduced their dividend during the GFC.
It currently has a grossed-up dividend yield of 3.2%.
I believe Magellan Global Trust is well-positioned to profit from the falling share market. The Asian Technology ETF looks very attractive, but it’s higher-risk, so I wouldn’t want to allocate too much of my portfolio to it. Soul Patts may be the highest quality share of the three, but I’d like its yield to be higher before buying more shares.
Motley Fool contributor Tristan Harrison owns shares of BetaShares Asia Technology Tigers ETF, MAGLOBTRST UNITS, and Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia owns shares of and has recommended Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia owns shares of BetaShares Asia Technology Tigers ETF. The Motley Fool Australia has recommended Brickworks and TPG Telecom Limited. 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.