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Where I’d invest $10,000 into ASX shares

buy-and-hold, long term investing
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I think it’s important to always know where you would invest when you have money to put to work.

Share prices change every day, so it’s good to have a watchlist of shares that you would consider for your portfolio.

It’s getting tough to find growing shares at good value at the moment, with many tech shares trading expensively.

Here is where I would invest $10,000 into ASX shares:

NAOS Small Cap Opportunities Company Ltd (ASX: NSC) – $2,000

I’m a big fan of buying a dollar for less than a dollar. This listed investment company (LIC) is trading at a 23% discount to its pre-tax assets reported at the end of April 2019, meaning you are buying a dollar for $0.77.

The LIC looks to invest for the long-term in a small portfolio of high-quality industrial businesses which Naos has high conviction with, usually with a market capitalisation range of between $100 million to $1 billion.

The last year has been tough for industrial small caps, but the next 12 months could see a rebound of performance from shares like MNF Group Ltd (ASX: MNF) if earnings prove better than the market was hoping for.

A bonus is that the LIC comes with a large dividend yield which Naos aims to sustainably grow over the longer-term.

WAM Global Limited (ASX: WGB) – $3,000

WAM Global is another LIC which is attracting my attention because it’s trading at a double digit discount to its pre-tax net tangible assets (NTA). The LIC largely invests in small and medium internationally-listed businesses.

It’s currently trading at a 13% discount to the NTA at the end of April 2019. Franking credit refund worries and global share market jitters has seen an attractive discount open up with WAM Global which owns a portfolio full of high-quality names like Alphabet, American Express, Bandai Namco, Danone, Diageo, HCA Healthcare, Logitech and Reckitt Benckiser.

It’s very useful for the long-term that WAM Global can invest anywhere in the world.

Costa Group Holdings Ltd (ASX: CGC) – $2,000

One of the best ways to beat the market is to do things differently to what the rest of the market is doing, which can mean trying to buy shares when they’re unloved.

Costa is certainly unloved at the moment after disappointing the market for a second time with citrus and berry issues. Demand for avocados, tomatoes, mushrooms, citrus fruit and berries is likely to grow over the long-term.

The issues of fruit flies and crumbly berries seem relatively short-term for Costa, so this could be an opportunistic time to buy Costa shares whilst it’s under pressure. The company still has very ambitious medium-term growth plans in Africa, Asia and Australia.

Washington H. Soul Pattinson and Co. Ltd (ASX: SOL) – $3,000

The Soul Patts share price is down around 25% over the past three months.

Whilst the century-old investment house’s investments in its largest holdings like Brickworks Limited (ASX: BKW), TPG Telecom Ltd (ASX: TPM) and New Hope Corporation Limited (ASX: NHC) have fallen, the long-term potential of the business is as strong as ever thanks to its conservative balance sheet, its heavily-aligned management and a focus on cashflow.

Soul Patts currently has an attractive, long-term, growing grossed-up dividend yield of 3.6%.

Foolish takeaway

I think all of these businesses are nicely priced for a long-term buy today. I particularly like the idea of Soul Patts and WAM Global.

Where to invest $1,000 right now

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

Scott just revealed what he believes are the five best ASX stocks for investors to buy right now. These stocks are trading at dirt-cheap prices and Scott thinks they are great buys right now.

*Returns as of June 30th

Motley Fool contributor Tristan Harrison owns shares of COSTA GRP FPO, NAO SMLCAP FPO, WAMGLOBAL FPO, and Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia has recommended Brickworks, COSTA GRP FPO, MNF Group Limited, and Washington H. Soul Pattinson and Company 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.

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