The ASX and global share market has fallen over the past month, I think there are opportunities to be found.
So, let’s jump straight into it, here is how I’d invest $10,000 today:
Costa Group Holdings Ltd (ASX: CGC) – $2,000
Costa is Australia’s largest horticultural business, it grows tomatoes, mushrooms, berries, citrus fruit and avocados.
The company issued a profit downgrade this week, but I think this could be an opportunistic time to buy some shares with the company still predicting that profit could grow in FY19.
The disappointing update issues seemed mostly short-term, hopefully the issues can be fixed before the end of the year and FY20 will be more promising.
Vitalharvest Freehold Trust (ASX: VTH) – $3,000
This is a real estate investment trust (REIT) which owns farmland. At the moment all of its farms are leased to Costa and it generates both an 8% base rent plus variable rent (profit share) which is a 25% share of Costa’s EBT generated from operations at the properties. So I also think it could be an opportunistic time to buy Vitalharvest shares.
It also owns more than 13,500 ML of various water entitlements which is useful for the tenant and provides another source of value for Vitalharvest.
Vitalharvest is targeting an 8% distribution yield and is actively looking to add new farms to its portfolio.
Vanguard FTSE Asia Ex Japan Shares Index ETF (ASX: VAE) – $2,000
I firmly believe that the South East Asian and Indian regions are at the start of a strong century for the growth of their economies. I know little about many of the individual businesses in this exchange-traded fund (ETFs), but as a group I think it’s a promising area to consider. Some holding names include Tencent, Alibaba, Samsung, Ping An Insurance and China Mobile.
With nearly 900 holdings it’s diversified across a range of industries and its annual management fee is attractive at 0.40% per annum.
WAM Microcap Limited (ASX: WMI) – $3,000
In my opinion, WAM Microcap is one of the best investment managers in Australia to get exposure to ASX small caps.
The shorter-term underperformance of small businesses and also worries about franking credits has led to the WAM Microcap share price trading at close to its net tangible assets (NTA). This is one of the most attractive times to buy since it listed onto the ASX.
I believe WAM Microcap can produce long-term outperformance whilst steadily growing its dividend, although another recession wouldn’t be great for its portfolio. However, it could be better for diversification purposes to be invested across a wide range of small shares as opposed to a small number of small caps.
It currently has a grossed-up dividend yield of 5.1%.
I think each of these potential investments have the potential to beat the ASX over the long-term. At the current prices I’m particularly attracted to Vitalharvest and WAM Microcap for my portfolio and I may buy some of them in the next few months.
These top ASX shares could be further quality options to think about for your portfolio.
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Motley Fool contributor Tristan Harrison owns shares of COSTA GRP FPO, VANGUARD FTSE ASIA EX JAPAN SHARES INDEX ETF, and WAM MICRO FPO. 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.