I think it’s important that all investors keep a watchlist so that you know which ASX shares you would buy if they were at an attractive price.
Then, when you see something trading at good value, you have to be brave and push the buy button.
Here are four ASX shares I’d buy with $10,000:
Brickworks Limited (ASX: BKW) – $3,000
For me, Brickworks is one of the most interesting ASX businesses. It has a construction materials segment, but it also has sizeable property and investment divisions as well.
It’s true that Brickworks’ construction products building is suffering from the declining property market, but Brickworks recently outlined that the inferred asset backing of the company was $25 at the end of January 2019, which refers to the market value of its Washington H. Soul Pattinson and Co. Ltd (ASX: SOL) shares, plus Brickworks’ share of the net property trust assets plus the building products net tangible assets, plus development land at book value less net debt.
According to Brickworks, its inferred asset backing was around 50% higher than the share price at the end of January 2019. When you add that to the potential of the US Glen Gery acquisition, Brickworks looks promising at this price.
Paragon Care Ltd (ASX: PGC) – $1,500
Paragon is a medical product distributor that would appear to have very useful tailwinds due to Australia’s ageing demographics.
The share price has shrunk considerably over the past year with poor performance from what it has labelled as its legacy capital equipment business, which it plans to divest.
However, the remaining continuing business is growing well with organic revenue growth of 9% in the first half of FY19.
If Paragon can successfully integrate its recent acquisitions and benefit from synergies then today’s price could be very cheap in a couple of years from now.
Its trailing grossed-up dividend yield of 10% looks very attractive if it’s maintained.
Vanguard FTSE Asia Ex Japan Shares Index ETF (ASX: VAE) – $2,500
This Asian exchange-traded fund (ETF) remains my favourite ETF on the ASX because of the ultra-long-term growth opportunity of the Asian region.
The great businesses of Asia are trading much cheaper than the great US businesses. Indeed the entire ETF is trading with price/earnings ratio of around 12x.
I want to buy a lot more of this ETF over the next 12 months.
WAM Microcap Limited (ASX: WMI) – $3,000
One of the best ways to outperform the market over the long-term is to go for small caps which have more potential growth than large caps.
However, that area of the market can be full of dud ideas as well, so I’m happy to leave the investing to one of the best ASX small cap managers – Wilson Asset Management.
Since inception in June 2017, the WAM Microcap portfolio has generated an average annual return of 16.6%. It’s currently trading at around its underlying assets, which is a fair price to buy it at.
Each of these shares has the potential to beat the ASX index’s returns and also provide more income over the long-term. At the current prices I like the discount offered by Brickworks shares the most.