If I had $10,000 to invest right now, I’d want to put it into ASX shares.
ASX shares are a great way to grow wealth because you can invest as little as $500 per trade, though it’s more economical to buy larger parcels so that you’re not spending more than 1% of your transaction value on brokerage. Then compounding can do its thing for you over the long-term.
These are the ASX shares I’d buy with $10,000 today:
Webjet Limited (ASX: WEB) – $2,500
Webjet is one of the leading travel businesses in Australia, with its customer offering that most people are familiar and the B2B business called WebBeds.
The Webjet share price is one of the few ASX shares to reflect the coronavirus risks, but I think this makes it more of an opportunity because it’s down 12% since 24 January 2020.
The company was potentially going to be a takeover target before the coronavirus development and Webjet was projecting strong underlying profit growth in FY20.
Webjet’s growth may be delayed, but hopefully the coronavirus will be solved by 1 July 2020, the start of the new financial year, so FY21 could show a lot of growth.
It’s currently trading at 14x FY21 estimated earnings.
PM Capital Global Opportunities Fund Ltd (ASX: PGF) – $3,000
This is a listed investment company (LIC) which invests in global shares. It’s quite hard to find shares trading at good value, with many share markets valued at close to all-time highs.
PM Capital Global isn’t afraid to go for those unloved opportunities like copper miners, global banks and European house builders to create good returns.
It has been a strong performer over the past year with its net of fees performance of 30.3%, yet it still trades at a double digit discount to its pre-tax net tangible assets (NTA).
Washington H. Soul Pattinson and Co. Ltd (ASX: SOL) – $4,500
Soul Patts is trading close to a 52-week low, it has outperformed the ASX over the long-term and yet the ASX index is the one trading at close to a 52-week high.
The investment house has a promising future with its long-term strategy, it likes to invest in uncorrelated businesses which have good growth prospects and good cashflow generation.
It has already been around over a century and I think it’s one of the shares most likely to be around in 2100 on the ASX.
Its forward grossed-up dividend yield is just over 4% right now.
I think each of these shares are very attractively priced right now. Webjet could produce the strongest returns over two or three years, but Soul Patts could have a short-term boost if it gets the benefit of TPG Telecom Ltd (ASX: TPM) winning its court case.
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Motley Fool contributor Tristan Harrison owns shares of PM Capital Global Opportunities Fund Ltd and Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia owns shares of and has recommended Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia has recommended Webjet Ltd. 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.