Investors in their 20s should go for shares that are about achieving long-term growth in my opinion.
Income shares aren't necessarily bad choices, but it usually signals that there isn't a lot of capital growth opportunity from that business. Receiving a higher level of income than necessary from your investments can also lead to paying more tax along your investment journey.
That's why I like the following two ASX shares:
MFF Capital Investments Ltd (ASX: MFF)
This business may be the best way for us to be invested in international growth shares. It's a listed investment company (LIC) that invests in the best, high quality growth shares on the planet. I like that it runs a relatively small portfolio compared to the exchange-traded funds (ETFs) that own hundreds of holdings. Having a concentrated portfolio can be good if you know what you're doing.
It has a low annual management fee that should continue to shrink as a percentage because it has a fixed fee arrangement with Magellan Financial Group Ltd (ASX: MFG).
MFF Capital is trading at a discount to its underlying pre-tax assets and has one of the best fund managers in Australia in my opinion at the helm with Chris Mackay, who has an enormous amount of skin/wealth in the game with his (and his family's) MFF Capital holdings getting closer to $200 million in value.
Costa Group Holdings Ltd (ASX: CGC)
Costa may be the best food company on the ASX with its growing list of fresh food that it produces at its farms in Australia, China and North Africa.
Demand for avocados, berries, citrus fruit, mushrooms and tomatoes continues to grow in Australia and internationally as the population grows along with the shift towards more nutritious food. This could lead to rising food prices over the next decade.
If interest rates are cut in Australia this year then growth shares like Costa could become more valuable because of the international earnings and the focus on growth organically & through acquisitions.
Costa is trading at under 20x FY20's estimated earnings.
Foolish takeaway
I think both of these shares would make excellent investments for a time period of a decade or longer. Out of the two I think MFF Capital is an excellent business to own because of the flexibility to invest in any shares in the world.
