ASX shares are very volatile at the moment because of the coronavirus outbreak.
Before the last month, it was very rare for the ASX to move more than 3% in either direction. Now it seems to be happening every day.
Investors are worried about the ASX, which I think means it's a great time to start buying shares whilst there's fear in the market.
Here are two ASX shares I'd buy if the coronavirus selloff worsens:
Brickworks Limited (ASX: BKW)
Brickworks is partly cyclical and partly not. It owns a variety of building products businesses which are some of the market leaders in their categories, such as brickmakers and roofing. These businesses are going to be affected by an economic slowdown, so I understand why the market has sent the Brickworks share price down by 22% in a month.
But I think it's important to remember Brickworks' other assets. It owns a large amount of Washington H. Soul Pattinson and Co. Ltd (ASX: SOL) shares which provides defensive earnings and dividends.
It also owns 50% of a growing industrial property trust along with Goodman Group (ASX: GMG). This gives a reliable source of rental income to Brickworks. More projects are expected to be finished in the next few years.
Brickworks has maintained or grown its dividend every year for over four decades and it currently has a grossed-up dividend yield of 5.25%.
I already think it's a good buy and could become more attractive if the construction outlook worsens.
Altium Limited (ASX: ALU)
Altium is a world leader in providing electronic PCB software for engineers to design the products of tomorrow.
Over the last month the Altium share price has fallen by 22%. Painful, but not the worst out there.
Altium has a compelling long-term future with its link to the design of the Internet of Things. Management are aiming for 100,000 Altium Designer subscribers and revenue of US$500 million.
Out of all of the companies on the ASX, Altium is well positioned to survive with its cloud-based Altium 365 service, its strong cashflow and its large balance of cash (plus no debt).
It's now trading at 31x FY22's estimated earnings.
Foolish takeaway
I think both companies are looking very attractive to me at these prices. Brickworks may suffer from a construction slowdown, but its market capitalisation is backed up by its investments' value and the dividend is supported by the investment income. Altium is a great business too.
