The ASX has given us a rare tranche of bargains this week, as global markets caught the wobbles after the latest round of tensions in the US–China trade war. The ASX has looked to have found its feet somewhat today, but many shares are still a lot cheaper than they were this time last week. Here's how I would deploy a $20,000 lump sum today.
WAM Global Ltd (ASX: WGB) – $8,000
I'm giving WAM Global a hefty chunk of capital here due to the discount this listed investment company (LIC) is trading at right now. WAM Global is a relatively new LIC and has recently announced its inaugural dividend, but is still trading at a 15% discount to its value, making it a strong buy for me. WAM Global invests in quality companies on international markets such as liquor-maker Diageo and credit card king American Express.
CSL Limited (ASX: CSL) – $8,000
CSL has just had $10 knocked off its price this week, and so is looking attractive to me. CSL is one of the highest quality businesses money can buy on the ASX (in my opinion) and is also a great place to get a foot in the door of the healthcare sector. The company is a pioneer in blood plasma research, vaccine development and blood medicines and has an enormous R&D budget to ensure this continues. Any pullback is a buying opportunity for CSL shares as the market almost constantly rewards its performance with a pricing premium.
Coles Group Ltd (ASX: COL) – $4,000
A more conservative pick for the last $4,000, Coles' share price has come off the boil recently, so now might be a good time to jump into this grocery giant. Coles has impressed investors this year with its ambitious plans to automate its supply chains and cut costs while rolling out innovative marketing campaigns like its 'Little Shop 2' range of collectables. It is also looking like a potential dividend beast with a stated goal of 80–90% profit payout ratio.
Foolish takeaway
All of these companies remain amongst the highest-quality businesses on the ASX (in my eyes) and all have recently had their share price tags put on sale.
