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Coronavirus: Where I’d invest $3,000 into shares right now

The coronavirus is causing continuing volatility and the last week was another painful week for the S&P/ASX 200 Index (ASX: XJO) which dropped 13%.

It’s times like this that are great to put some money to work into shares. The best time to buy shares is when prices is lower, not when they are higher.

If I had $3,000 to invest into shares, I’d pick these three shares:

Magellan High Conviction Trust (ASX: MHH) 

The share market will eventually recover from this, whether it takes a few months or a couple of years.

However, it’s not guaranteed that every business will get through this period, particularly if it turns into a painful recession. So where are you meant to invest in this type of environment? I think the best businesses with good balance sheets will be the ones to get through this the easiest and be best placed to succeed on the other side.

This listed investment trust (LIT) is managed by Magellan Financial Group Ltd (ASX: MFG), which is one of Australia’s best globally-focused fund managers. It focuses on the world’s leading brands with strong operating leverage.

Its top five holdings in alphabetical order are: Alibaba, Alphabet, Facebook, Microsoft and Visa.

Not only are those businesses trading more cheaply, but the Magellan High Conviction Trust is currently trading at a 7.2% discount to its net asset value (NAV).

Pushpay Holdings Ltd (ASX: PPH) 

Most businesses have been downgrading or removing their guidance because of the coronavirus. Its share price has been hurt just like almost any other company, it’s down by 25% since 21 February 2020.

However, Pushpay gave an update this week and said it was previously expecting, before acquisition costs, that earnings before interest, tax, depreciation, amortisation and foreign exchange (EBITDAF) would be between US$23 million to US$25 million. Now it’s expecting EBITDAF to be between US$25 million to US$27 million.

It’s benefiting because churches, Pushpay’s main customer base, are electronically communicating with congregations and receiving more donations digitally. This is good for Pushpay. 

Pushpay seems like it won’t be affected painfully during this period, so it could be worth a buy now that it’s trading more cheaply.

Altium Limited (ASX: ALU) 

I think Altium is one of the best growth shares on the ASX. It has a great management team and a compelling long-term future with its various electronic PCB software service offerings as well as Octopart.

If you had a think about which international businesses you’d want as customers, Altium can say it has most of them including: Apple, Amazon, Microsoft, Google, Tesla, BMW, Disney, Boeing and Space X.

Altium has strong cashflow and a very good cash pile on its balance sheet, with no debt. It’s in great shape to get through this tough period.

While FY20 is likely to see a result that isn’t good as previously hoped, I think the 24% fall from 21 February 2020 makes it an attractive buy at 30x FY22’s estimated earnings.

Foolish takeaway

All three of these ASX shares are great growth options and it’s hard to pick a winner. Pushpay is a strong idea if its earnings are going up yet its share price is down. Altium is a very high-quality ASX idea and the Magellan offering has some of the highest-quality global businesses in its high-conviction portfolio.

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Motley Fool contributor Tristan Harrison owns shares of Altium. The Motley Fool Australia owns shares of and has recommended PUSHPAY FPO NZX. 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.