Do you have $1,000 to invest into ASX shares? I think there are still several investment opportunities on the ASX, we just have to be more picky than a few months ago when the COVID-19 selloff caused there to be lots of good value opportunities.
But I still think there are some wonderful investment ASX share ideas if you have $1,000 to invest today:
Exchange-traded fund (ETF)
BetaShares Global Quality Leaders ETF (ASX: QLTY)
I think it's worthwhile investing in quality companies during this difficult COVID-19 period. This ETF only invests in businesses which rank highly on return on equity (ROE), debt to capital, cash flow generation ability and earnings stability metrics.
This ETF costs a bit more than the cheapest ETFs out there, but its annual fee is still only 0.35%. It has performed very strongly since inception in November 2018, returning an average 19.76% per annum after fees.
Past performance is not a guarantee of future performance, but quality usually does well over time. Its current top holdings are shares like Nvidia, Apple, Adobe, Accenture, Alphabet and L'Oreal.
Growth shares
Pushpay Holdings Ltd (ASX: PPH)
I think Pushpay is a great ASX growth share. It's one of the businesses that is seeing accelerated growth due to the unfortunate circumstances. Its an electronic donation business that helps facilitate digital giving. At the moment most of its current earnings and potential growth is from the large and medium church sector in the US.
Pushpay now expects that earnings before interest, tax, depreciation, amortisation and foreign currency (EBITDAF) will at least double in FY21. That would be impressive after the strong FY20 result.
It's the rising profit margins and long-term growth runway that make me particularly excited about the company. The Pushpay share price has dropped back over the past couple of weeks to be better value.
Bubs Australia Ltd (ASX: BUB)
Bubs is another exciting ASX growth share in my opinion. It's riding the infant formula wave of demand from Asia. It specialises in goat milk products, which is seeing rapidly rising demand from countries like Vietnam and China.
As long as there aren't any more trade disputes between Australia and China, I think Bubs has a good chance of delivering a lot of revenue growth and an improving gross profit margin over the next five years.
Bubs was cashflow positive in the quarter ending 31 March 2020. This bodes well for profitability in FY21.
I'd be very happy to buy Bubs shares at the current price.
An eternal investment house
Washington H. Soul Pattinson and Co. Ltd (ASX: SOL)
Soul Patts has been listed in Australia since 1903. There are very few ASX shares in Australia that can point to that type of long-term history.
An investment conglomerate has a major advantage to most other businesses because it can alter its investment holdings over time. Being able to shift towards new growth opportunities – and divest old ones – is much better than being stuck as something in a low growth environment like a bank or telco.
I like to invest in ASX shares that I can see myself holding for many years. I want to minimise capital gains tax events and transaction costs as much as possible. Soul Patts definitely counts as a long-term idea.
The current Soul Patts share price is still down more than 10% compared to its February 2020 high. I think it's a good time to buy shares for the long-term.
Listed investment companies and trusts
Magellan High Conviction Trust (ASX: MHH)
This listed investment trust (LIT) is run by Hamish Douglass and his well-respected investment team. The trust only invests in businesses that it has a high conviction in, hence the name. There are quality shares on the ASX, but many of the world's best blue chips are listed overseas.
Names like Alibaba, Alphabet, Microsoft, Tencent and Facebook feature in they trust's holdings. Those names have extremely strong economic moats. I'm not sure you could displace those businesses even if you were given $50 billion to try to do it.
At the current Magellan High Conviction Trust share price it's trading at a 5.6% discount to the net tangible assets (NTA) per share.
WCM Global Growth Ltd (ASX: WQG)
This ASX share is a listed investment company (LIC) that aims to invest in businesses with strengthening economic moats. One of the main measures of this is improvement is a rising return on invested capital. For investment manager WCM, the direction of the 'moat' is more important than the size of the moat.
The LIC has performed strongly, its investment portfolio has returned an average of around 20% per annum, after fees, over the past three years.
At the end of June 2020 some of its largest positions included internet and ecommerce related shares like Shopify, Tencent and MercadoLibre.
WCM Global Growth's share price is trading at a 13% discount to the pre-tax net tangible assets (NTA) at 17 July 2020.
Foolish takeaway
I really like each of the above shares. If I had $6,000 then I'd love to invest $1,000 into all six of them. At the current prices I think WCM Global Growth, Bubs and Pushpay are the three most likely to deliver the best returns over the next five years, so they would be the ones I'd go for first.
