With smart investing and the magic of compounding, a humble sum like $10,000 has the potential to change your life in the long term. You have worked hard and sacrificed for your money, so instead of wasting it, why not put it to work?
For those who are just getting started investing, the coronavirus pandemic has created great long-term opportunities. Here are 4 ASX share ideas that can put your money to work.
Macquarie Group Ltd (ASX: MQG)
I would start by buying $2,500 worth of Macquarie Group shares. Given the uncertain market, Macquarie has the ability to adapt to volatile market conditions by switching between market-facing and annuity-style operations.
Aristocrat Leisure Limited (ASX: ALL)
I would put another $2,500 to work by buying shares in gambling machine manufacturer Aristocrat Leisure. The company has a strong, recurring revenue stream from leasing machines and also makes revenue through outright sales of its machines.
Additionally, the company has excellent growth potential with heavy exposure to the lucrative gaming industry in the US and online operations, which provides it with earnings flexibility. Despite the pandemic shutting down most casinos, Aristocrat is well-positioned to expand its market share when operations restart.
Brambles Limited (ASX: BXB)
I believe most portfolios should be balanced by having exposure to a defensive earner that can generate revenue through all market cycles. Therefore, logistics giant Brambles is the third company I would invest $2,500 in. Brambles owns more than 330 million pallets and crates which are used to transport goods from manufacturers to retail stores and online operators.
Operating in approximately 60 countries around the world through its iconic CHEP brand, Brambles has a sturdy business model with resilient exposure to the demand for essential consumer goods.
Woolworths Group Ltd (ASX: WOW)
With the remaining $2,500, I would buy shares in Woolworths. Apart from the surge in demand for essential goods during the pandemic, Woolworths is also poised to adapt to future demand with the supermarket giant investing heavily in its e-commerce operations.
Woolworths recently reported a near 11% surge in group sales for the quarter to $16.5 billion, with supermarket sales rising more than 40% in the week ending March 22. Although the costs of larger operations will increase, Woolworths also has exposure to the liquor and hotel industries, which are expected to recover post-pandemic.
The way I have allocated $10,000 in this case is relatively conservative. In my opinion, for long-term and sustainable growth, this is a prudent strategy in building wealth. Although the ASX shares I have chosen may not be to every investor’s taste, I think it reflects how a balanced portfolio should look.
These 3 stocks could be the next big movers in 2020
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In this FREE STOCK REPORT, Scott just revealed what he believes are the 3 ASX stocks for the post COVID world that investors should buy right now while they still can. These stocks are trading at dirt-cheap prices and Scott thinks these could really go gangbusters as we move into ‘the new normal’.
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Motley Fool contributor Nikhil Gangaram has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Macquarie Group Limited. The Motley Fool Australia owns shares of Woolworths Limited. 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.
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