The ASX has been one of the best wealth creating mechanisms that our country has ever seen. Returning on average around 10% per year since its Federation-era beginnings, Aussie shares are simply just something you want long-term exposure to if you want to build wealth in this country, in my opinion.
Saying this, here is where I’d spend $10,000 on ASX shares today.
Telstra Corporation Ltd (ASX: TLS)
The Telstra share price has really come off the boil lately, and so I think it’s now back in the ‘buying opportunity’ territory. Telstra shares were going for a new 52-week high of $4.01 just two months ago but have since slid back to the $3.50 level. Still, with a starting yield around 4.57%, heavy investment in 5G and a strong brand coupled with Telstra’s reputation of having ‘Australia’s best mobile network’ there’s a lot of reasons to like this company at these price levels, in my opinion.
Telstra is also a fairly recession-resistant company (mobile phones and data are more of a ‘need’ than a ‘want’ these days) so I think that adds a lot of appeal as well – especially for dividend investors.
Afterpay Touch Group Ltd (ASX: APT)
The Afterpay share price has been hitting new highs this week thanks to the company allaying fears over criminals using its services to launder money yesterday in its submission to AUSTRAC. Still, the company’s US and UK launches are both smashing already-lofty expectations and we might be seeing a new payments giant in the making – and if this is the case, Afterpay shares might still be relatively cheap compared to the company’s full potential.
I still think this is a risky play, as competition from other payment providers like Zip Co Ltd (ASX: Z1P) as well as big US giants like Visa and American Express is likely to continue to ramp up (that’s what happens when you find a lucrative niche no one else has, just ask Netflix). But I think the risk is balanced by opportunity with Afterpay.
In my opinion, both of these companies are offering investors a solid buying opportunity today, opportunities that I would exploit with this $10,000 investment. You have a classic growth vs. value choice here, so make your decision accordingly!
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Sebastian Bowen owns shares of Telstra Limited. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of AFTERPAY T FPO and ZIPCOLTD FPO. The Motley Fool Australia owns shares of and has recommended Telstra 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.