I think it’s a great time to buy ASX shares. In-fact, I think it’s always a great time buy ASX shares – which ASX shares are worth buying can change each week as share prices change.
There are plenty of quality options on the ASX, you just need to find the rights ones at good prices.
If I had $3,000 to invest today, these are three ASX shares I’d buy today:
Share 1: Pushpay Holdings Ltd (ASX: PPH)
I believe that Pushpay is one of the best ASX shares that people can buy right now. It’s a digital donation business which is making life a lot easier for its large and medium US church clients. It enables people to electronically donate, which is very useful in this COVID-19 era of social distancing. Indeed, the company is seeing elevated growth during this period.
In FY20 Pushpay grew revenue by around a third. In FY21 the company is expecting to at least double its earnings before interest, tax, depreciation, amortisation and foreign currency (EBITDAF). Businesses displaying this type of growth are the ones that we should aim to own in our portfolios if we’re aiming to beat the market over the longer-term.
Digital donations are a fairly defensive industry when you think about it – people will continue to want to support their church even during a pandemic-caused recession. Pushpay helps churches stay connected with their congregations with a livestreaming service.
Over the long-term, Pushpay is aiming to achieve US$1 billion of revenue from the US church sector. But there are plenty of other not-for-profit areas that Pushpay could expand into in the future like different religions, churches in other countries and even different sectors like education.
At the current Pushpay share price it’s trading at 32x FY22’s estimated earnings.
Share 2: MFF Capital Investments Ltd (ASX: MFF)
MFF Capital is a listed investment company (LIC) which invests in overseas shares. It’s run by Magellan Financial Group Ltd (ASX: MFG) co-founder Chris Mackay who actually owns a large amount of MFF Capital shares. He’s aligned with regular shareholders.
At the moment two of MFF Capital’s biggest holdings are Visa and Mastercard, which make up around a third of the portfolio. MFF’s largest position at the moment is cash. Net cash was 41.7% of the portfolio at 31 July 2020. Other larger positions (with a weighting of more than 2%) include Home Depot, CVS Health, Berkshire Hathaway and Microsoft.
MFF Capital has been a very strong performer for shareholders. Over the past decade it has delivered total shareholder returns over 17.9% per annum.
With a commitment of higher dividends in the future, I think MFF Capital is well placed to deliver long-term shareholder returns. It also comes with lower costs than many other internationally-focused fund managers.
At the current MFF Capital share price it’s trading at a small discount to its pre-tax net tangible assets (NTA).
Share 3: Magellan High Conviction Trust (ASX: MHH)
Many of the best businesses in the world aren’t ASX shares, they’re listed overseas – usually in the US. Magellan High Conviction Trust aims to invest in the best businesses in the world.
Some of the most exciting businesses in the world are technology businesses. Their operating models allow them to expand quickly and they can deliver higher gross profit margins than many other types of businesses like manufacturers, retailers or commodity businesses.
At the end of June 2020 its biggest five holdings were Alibaba, Alphabet, Facebook, Microsoft and Tencent. These are some of the highest-quality businesses in the world.
The ASX share has fairly high management fees, but I think its growth-orientated portfolio could produce strong net returns over the longer-term. Better than the ASX, at least.
The LIT offers concentrated diversification and it targets a 3% distribution yield. That’s not a bad yield in the current environment.
At the current Magellan High Conviction Trust share price it’s trading at a 6.5% discount to the net asset value (NAV).
I think each of these ASX shares have great growth prospects over the next five years. The international aspect of all of them is an attractive way to diversify away from Australia in my opinion.
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’.
*Returns as of 6/8/2020
Tristan Harrison owns shares of Magellan Flagship Fund Ltd and MAGLOBTRST UNITS. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of PUSHPAY FPO NZX. The Motley Fool Australia has recommended PUSHPAY FPO NZX. 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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