With interest rates are at record lows and the economy in the grip of the coronavirus pandemic, picking companies to place our hard-earned cash has become more critical for long term prosperity.
If you have $1,000 to invest today, I think any one of these 3 ASX shares will deliver solid long-term returns.
Goodman Group (ASX: GMG)
At the time of writing, the Goodman share price has fallen 22% from its 52-week high of $16.78 and I believe this represents a great entry point. The group has exposure to the e-commerce space, which I suspect is booming on the back of consumers buying online.
Goodman will help retailers transition to e-commerce by providing the facilities like warehouses to help guide companies through an evolving retail landscape. It has major retail giants Amazon.com, Inc (NASDAQ: AMZN) and Coles Group Ltd (ASX: COL) as customers. These companies have performed strongly, despite the economic and health crisis.
At its half year ended 31 December results, Goodman reported a gearing ratio of 10%, high average global occupancy of 98% and $1.4 billion in cash. This gives management flexibility to invest funds where demand is.
Kogan.com Ltd (ASX: KGN)
This online retailer may substantially benefit from the shift of consumers to shopping online. In its first half FY20 results, the company reported an increase in active customers of 10.2%, year-on-year, to 1,699,000. The increase in customers helped the company's 1H FY20 results, with adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) increasing 35.2% from $13.4 million to $18.2 million.
Kogan has a growing list of businesses including retail, insurance and mobile products, just to name a few. It has plans to grow its existing businesses and portfolio of businesses.
I think Kogan's strong cash flow from its online marketplace, growing online consumer trends from shutdown measures, customer loyalty and diversified businesses should see the online retailer do well. Investors agree, bidding up the share price 25.61% in the past 12 months (at the time of writing).
BetaShares Nasdaq 100 ETF (ASX: NDQ)
This ETF from BetaShares has stormed 27% higher in the past 12 months. I believe this is on the back of the strength of its underlying assets, which include share positions in Amazon, Microsoft, Apple and Facebook – companies we interact with on a daily basis.
A real strength is its heavy exposure to cash cows in the tech space. Its 47% allocation in IT and 20% in communication services makes it more resilient than other ETFs with weighting to the financial, retail and travel industries. These industries have been particularly hit hard by COVID-19.
While delivering capital growth, the fund is also delivering dividend income with a 12-month distribution yield of 2.2%. I believe an investment in this ETF will deliver solid returns going forward.
Foolish takeaway
Taking a long term view to investing, despite the current uncertainty, could lead to long term wealth creation.
I think the 3 ASX shares discussed above will offer solid returns for investors and survive the economic and health crisis we are facing.
