It's getting harder to identify where to invest money these days, with how ultra-low interest rates have warped valuations.
If I were lucky enough to be given $10,000 to invest into ASX shares, this is how I'd do it:
Vitalharvest Freehold Trust (ASX: VTH) – $2,500
This farmland real estate investment trust (REIT) has seen its share price fall 8% over the past month, despite interest rates falling here and overseas – plus a strong performance by the REIT sector as a whole.
I think short-term problems at a segment of its berry and citrus farms is creating a long-term investment opportunity, particularly as it diversifies its farm portfolio over the coming years.
I believe it could be a solid income option at a share price of under $0.90.
Washington H. Soul Pattinson and Co. Ltd (ASX: SOL) – $3,000
The gold standard for income and growth on the ASX is Soul Patts in my opinion. The century-old investment conglomerate has a steadily-growing portfolio of different businesses which can provide uncorrelated returns to the ASX index.
A lot of other long-term quality businesses are trading expensively in the healthcare and tech spaces, but I think Soul Patts is trading at good value under $23 with an excellent dividend history, which is funded entirely by cashflow (not by the capital growth of its holdings).
It currently has a grossed-up dividend yield of 3.7%
WAM Microcap Limited (ASX: WMI) – $2,000
Over the long-term I think one of the best ways to beat the market is to choose smaller shares which aren't followed by many investors but have higher-than-average growth potential due to their small size.
But I'm certainly not an expert in small cap investing, which is why I'm happy to leave the investing to high-quality managers like WAM Microcap. It's a listed investment company (LIC) which also aims to pay a good dividend.
WAM Microcap's portfolio has outperformed the broader ASX index since inception and offers a grossed-up dividend yield of 5%. It also appears to be trading at a slight discount to its underlying NTA value at June 2019.
WAM Global Limited (ASX: WGB) – $2,500
WAM Global is another LIC run by Wilson Asset Management, except this one looks for good value growth shares listed overseas in other regions like Europe, North America and Asia. I think it's important to diversify a portfolio away from just ASX shares.
It has been a decent performer since inception and strong performer since the start of 2019. WAM Global has just announced an inaugural fully franked dividend of 2 cents per share and has recently traded at a double-digit discount to its NTA.
When Geoff Wilson is buying shares of his LICs, which he has been this week, you can guess that WAM Global is valued at an attractive discount.
Foolish takeaway
I think all four of these shares are attractively valued right now – I'd be very happy to buy any of them today, although if I had to narrow down to two right now it would be Vitalharvest and Soul Patts.
