The Motley Fool

3 ASX shares to buy for investors in their 20s

The earlier you can start investing the better off you’ll be. If you’re in your 20s then investing is a great idea because it gives you more time to compound your wealth.

Although high income investments like real estate investment trusts (REITs) are likely to outperform cash over the long-term, I think it’s better to go for growth.

With the above in mind, here are three ASX shares I think would suit a (fairly) young investor’s portfolio:

MFF Capital Investments Ltd (ASX: MFF)

I think MFF Capital may be the best listed investment company (LIC) on the ASX, its role is to invest in other shares for the benefit of its shareholders. It has a global investment mandate, so it can choose any share across the world to invest in.

It has been the top-performing LIC over the past five years due to the strength of its underlying holdings, such as Visa and MasterCard. Global businesses should continue to be good options over the long-term.

Another box that it ticks is the fact that the investment manager is very aligned with shareholders because Chris Mackay and his family own around $188 million of MFF Capital shares. With a low and fixed management fee, I think this is a great option for anyone to own.

Costa Group Holdings Ltd (ASX: CGC)

The best time to buy shares of individual businesses is when they are going through temporary problems.

Costa is Australia’s largest horticultural business, it grows berries, mushrooms, tomatoes, avocados and citrus fruit.

The citrus fruit segment in-particular has recently had a tough time and generally food prices were lower than expected. However, food prices (particularly tomatoes) have rebounded in recent months and now Costa expects to report at least 30% underlying profit growth in 2019. The fall in the share price will hopefully be temporary.

If Costa can executive its Asian growth strategy well then it may become a much larger player over time.

Vanguard FTSE Asia Ex Japan Shares Index ETF (ASX: VAE)

I think everyone should consider exchange-traded funds (ETFs) for their portfolio, but not every ETF is investment worthy.

In my opinion, Asia could be a very fruitful place to be invested over the next five decades or more, so a broad way to get exposure to that would be this Vanguard Asian ETF that owns shares of almost 900 Asian businesses in a wide range of industries.

The ETF looks cheap on simple metrics like the price/earnings ratio and the PEG ratio, so I’m happy to look to continue to accumulate a bigger holding for my own portfolio over time.

Another investment that could be good for an investor in their 20s is this hot ASX growth stock which is also growing its dividend at a phenomenal rate.

Here it is... Our #1 Dividend Share Pick for 2019

For a brief time, The Motley Fool Australia is giving away some of its most valuable research of the entire year. Simply by clicking the link below, you’re invited to discover our #1 absolute favourite dividend share to potentially profit inside the next 12 months (and beyond).

HINT: This is an ‘under the radar’ company boasting in a mouth-watering combo of GROWTH potential and FULLY FRANKED DIVIDENDS. Yet chances are you don’t know the name or the code. And perhaps you’d like to peek at our full investment analysis too, including all the reasons we expect this company to soar in 2019?

To get your access before it’s too late, simply click below now. Your copy is free, but this valuable report will NOT be available forever...


Motley Fool contributor Tristan Harrison owns shares of COSTA GRP FPO, Magellan Flagship Fund Ltd, and VANGUARD FTSE ASIA EX JAPAN SHARES INDEX ETF. The Motley Fool Australia owns shares of and has recommended COSTA GRP FPO. 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.

FREE REPORT: Five Cheap and Good Stocks to Buy now…

Our Motley Fool experts have FREE report, detailing 5 dirt cheap shares that you can buy today.

One stock is an Australian internet darling with a rock solid reputation and an exciting new business line that promises years (or even decades) of growth… while trading at an ultra-low price…

Another is a diversified conglomerate trading near a 52-week low all while offering a 2.7% fully franked yield…

Plus 3 more cheap bets that could position you to profit over the next 12 months!

See for yourself now. Simply click the link below to scoop up your FREE copy and discover all 5 shares. But you will want to hurry – this free report is available for a brief time only.