Where should you invest $1,000 in ASX shares?

Where to invest $1,000 into ASX shares? I think that one good pick would be Washington H. Soul Pattinson and Co. Ltd (ASX:SOL).

| More on:
a woman

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

It's a good idea to always know where you'd invest $1,000 so that you don't have to wait to put the money to work.

Quite a lot of money has been 'lost' by investors hesitating about whether to invest and missing out on the gains.

If I had $1,000 to invest I know which growth pick or defensive pick I'd go for:

Growth pick – Webjet Limited (ASX: WEB

The Webjet share price remains more than 10% lower than where it was three weeks after worries about the coronavirus.

In the short-term it's expecting a strong result. In the FY20 half-year result the company is expecting underlying earnings before interest, tax, depreciation and amortisation (EBITDA) of at least $80 million, which excludes one-off revenues & costs and the impact of AASB16. This would be growth of more than 37%.

As bad as effects of the coronavirus already is and may become, at some point this year the spread of the coronavirus will stop and it will fade into history like the other infections like SARS.

If it's all sorted before the start of FY21, the next financial year could show strong growth for Webjet. It's currently trading at 14x FY21's estimated earnings and has a good growth outlook with WebBeds.  

Defensive pick – Washington H. Soul Pattinson and Co Ltd (ASX: SOL)

Soul Patts' future looks even brighter today after the Federal Court reversed the ACCC's original decision to block the merger between TPG Telecom Ltd (ASX: TPM) and Vodafone Australia. This should see a special dividend come Soul Patts way as well as higher ordinary dividends.

The investment conglomerate has been a strong long-term performer, outperforming the ASX index over various longer-term time periods. Some of its largest holdings still have attractive prospects including Brickworks Limited (ASX: BKW) and Clover Corporation Limited (ASX: CLV).

I've been impressed by the recent investment moves into new areas like agriculture and luxury retirement living which provide further uncorrelated returns and good diversification.

Some of its smaller holdings are also generating good returns right now including technology investor Bailador Technology Investments Ltd (ASX: BTI).

Foolish takeaway

At the current prices I think both Soul Patts and Webjet have good chances to beat the market over the next two years. For the next few weeks I think it would be safer to go for Soul Patts to see that the coronavirus doesn't keep growing internationally and affect global travel.

Tristan Harrison owns shares of Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of Clover Limited. The Motley Fool Australia owns shares of and has recommended Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia has recommended Brickworks and 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.

More on ⏸️ ASX Shares

a woman wearing a close-sitting hat featuring wires and thick computer screen glasses clutches her computer monitor and looks shocked and disturbed as she reads old-fashioned computer text from the screen.
Technology Shares

Here's why ASX 200 tech shares (ASX:XTX) outperformed today

ASX tech shares have taken a turn for the better today.

Read more »

Worker in hard hat looks puzzled with one hand on chin
Resources Shares

Why did the Rio Tinto share price (ASX:RIO) have such a lousy 2021?

We look at what happened to this ASX 200 mining giant's shares last year

Read more »

a miner wearing a hard hat smiles as he stands in front of heavy earth moving equipment on a barren mine site.
Share Gainers

Here's why the Rumble Resources (ASX:RTR) share price is climbing 5%

The mineral explorer's share price is on the rise amid promising drill results.

Read more »

share price high, all time record, record share price, highest, price rise, increase, up,
⏸️ ASX Shares

Here are the top 10 ASX 200 shares on Wednesday

Here are your top 10 biggest gainers in the ASX 200 on Wednesday.

Read more »

comical investor reading documents and surrounded by calculators
⏸️ ASX Shares

The ASX reporting wrap-up: WiseTech, Bravura, Seven Group

Just what the investor ordered. Here’s a recap of the companies that reported on Wednesday...

Read more »

Doctor performing an ultrasound on pregnant woman
⏸️ ASX Shares

The ASX reporting wrap-up: Ansell, Kogan, Nanosonics

Just what the investor ordered. Here’s a recap of the companies that reported on Tuesday...

Read more »

blue arrows representing a rising share price ASX 200
⏸️ ASX Shares

Here are the top 10 ASX 200 shares on Tuesday

Here are your top 10 biggest gainers in the ASX 200 on Tuesday.

Read more »

unhappy investor considering computer screen
Share Market News

The ASX reporting wrap-up: Charter Hall, Ampol, NIB Holdings

Just what the investor ordered. Here’s a recap of the companies that reported on Monday...

Read more »