I think there are a number of ASX shares that are worth buying at the current prices with $1,000 (or more).
In my opinion, each of the below picks could be really good long-term options:
Pushpay Holdings Ltd (ASX: PPH)
This ASX tech share is a donation payments business which services the large and medium US church sector. It’s aiming for US$1 billion of annual revenue from this target market.
I think the company has a compelling future for the rest of the decade with growth being brought forward by COVID-19. The rising profit margins are very attractive to me.
At the current Pushpay share price it’s valued at 41x FY21’s estimated earnings.
I’ve written about Pushpay many times as an idea, here is the latest longer-form article.
Redbubble Ltd (ASX: RBL)
Redbubble is an artist product business that sells things like wall art, masks, phone cases, clothing and so on through an online marketplace.
The company is seeing enormous growth as consumers shift to online purchasing. In the first quarter of FY21 it saw marketplace revenue growth of 116% and gross profit growth of 149%. It’s a very scalable business due to network effects. It is steadily adding new product lines which increases its total addressable market.
In my opinion, Redbubble has a very promising growth trajectory over the next five years.
Temple & Webster Group Ltd (ASX: TPW)
This ASX share is another e-commerce business. It sells furniture and home furnishings online. It’s another business benefiting from the big shift to online shopping.
The Temple & Webster share price has crashed 24% lower after giving its trading update this week. Was it bad? The year to date to 19 October 2020 revenue was up 138% and it generated earnings before interest, tax, depreciation and amortisation (EBITDA) of $8.6 million – more than the whole of FY20.
Looking out five years, I think this is a good opportunity to buy shares of a very fast-growing business.
WAM Microcap Limited (ASX: WMI)
WAM Microcap is a listed investment company (LIC) which aims to invest in ASX shares with market capitalisations under $300 million.
I think the investment team at WAM Microcap is one of the best LIC teams out there. Its portfolio has generated strong results – since inception in June 2017 it has generated returns of 21.2% per annum (before fees, expenses and taxes).
It also offers a grossed-up dividend yield of 5.3%.
MFF Capital Investments Ltd (ASX: MFF)
MFF Capital is another LIC which has done well. The ASX share has been one of the best LICs over the past decade under the stewardship of Chris Mackay.
It owns a portfolio of high quality global shares with good growth prospects like Visa, Mastercard, Berkshire Hathaway, Home Depot and Microsoft.
I believe good long-term returns can continue, with a steadily rising dividend as a bonus.
Here’s the latest longer article I wrote about MFF Capital.
Future Generation Global Invstmnt Co Ltd (ASX: FGG)
Future Generation Global is another LIC that gives exposure to global shares. However, it invests in the funds of fund managers that invest in global shares. Those managers work for free so that Future Generation Global can donate 1% of its net assets to youth mental health charities. It’s a great setup.
Its portfolio has outperformed the global share market over the short-term and longer-term. It’s trading at a discount to its net tangible assets (NTA) per share and it’s starting to grow its (small) dividend.
This is a longer article I wrote about Future Generation Global.
A2 Milk Company Ltd (ASX: A2M)
I think A2 Milk could be the best value ASX growth share in the ASX 200.
The infant formula business is certainly going through a tough time at the moment due to COVID-19 impacts on domestic customer demand and logistics.
However, I believe it still has a very strong future – particularly in North America. I think short-term difficulties give us an opportunity to buy shares cheaper of this attractive global growth business.
At the current A2 Milk share price it’s valued at 23x FY23’s estimated earnings.
I made a bull case for the A2 Milk share price in a longer article here.
Bubs Australia Ltd (ASX: BUB)
Bubs is also an infant formula ASX share that’s suffering due to COVID-19 at the moment.
There are a few moving parts to Bubs, with the Chinese element worrying some investors.
However, there are two key areas of Bubs that make me bullish about its long-term future when you look out five years. First, its gross profit margin is steadily rising as more of its revenue comes from infant formula. Second, its growth prospects in markets outside of China, such as Vietnam, look very promising and could help drive revenue and profit much higher in FY22 and beyond.
Where to invest $1,000 right now
When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*
Scott just revealed what he believes are the five best ASX stocks for investors to buy right now. These stocks are trading at dirt-cheap prices and Scott thinks they are great buys right now.
*Returns as of February 15th 2021
Tristan Harrison owns shares of Future Generational Global Investment Company Limited, Magellan Flagship Fund Ltd, and WAM MICRO FPO. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of PUSHPAY FPO NZX and Temple & Webster Group Ltd. The Motley Fool Australia owns shares of and has recommended A2 Milk and BUBS AUST FPO. The Motley Fool Australia has recommended PUSHPAY FPO NZX and Temple & Webster Group Ltd. 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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