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Where I’d spend $20,000 on ASX 200 shares today

With the S&P/ASX 200 (ASX: XJO) index slightly retreating from its march towards a new all-time high today, it’s looking like a good time to deploy some extra capital into the markets.

Here’s how I would spend $20,000 on ASX 200 shares today

Altium Limited (ASX: ALU)

Altium shares have recently come off the boil, so I think it’s a great time to consider adding this WAAAX favourite to your portfolio if you haven’t already done so. Altium is in the business of making software that assists engineers in designing printed circuit boards – an essential component of almost every electronic device. Their software-as-a-service subscription model has proved a huge hit in the industry, and Altium has long reported double digit earnings growth, making it a phenomenal growth stock.

Back in early September, ALU shares had pushed over the $38 mark for the first time, but today, the shares are looking a lot cheaper at $31.25 (at the time of writing).

BHP Group Ltd (ASX: BHP)

Another company that I think is looking cheap today is BHP. Shares of the ‘Big Australian’ are down 1.15% at the time of writing – going for $36.20. BHP is now closer to its 52-week low of $30.31 than its high of $42.33.

Although the iron ore market has cooled off somewhat, BHP remains one of the lowest-cost producers of both iron and coal in the world. Therefore, I think this company is a great buy-and-hold investment that has the potential to throw off huge dividends as well (as we’ve seen this year so far).  

Afterpay Touch Group Ltd (ASX: APT)

My final stock to spend $20,000 on today is another WAAAXer – buy-now, pay-later king Afterpay. Afterpay shares are currently trading 1.65% lower at $28.62, even though the company announced it has signed famous UK retailer Marks & Spencer to its platform this morning.

With the UK launch of Afterpay’s products seemingly going even better than its previous US launch, I think the company is a buy at these prices. Millennials in particular can’t seem to get enough of buying now and paying later, and I think a cultural shift like this is underestimated by many investors.

Foolish takeaway

I think all 3 of these stocks are trading at attractive prices today, despite the general height of the overall market. The WAAAX stocks are definitely the riskier choices here, but as a US president once said, “the future belongs to the brave”.

5 stocks under $5

We hear it over and over from investors, "I wish I had bought Altium or Afterpay when they were first recommended by The Motley Fool. I'd be sitting on a gold mine!" And it's true.

And while Altium and Afterpay have had a good run, we think these 5 other stocks are screaming buys. And you can buy them now for less than $5 a share!

*Extreme Opportunities returns as of June 5th 2020

Sebastian Bowen has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of AFTERPAY T FPO. The Motley Fool Australia owns shares of Altium. 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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