If you’re looking to follow in the footsteps of Warren Buffett and make some buy and hold investments, then you might want to take a look at the ASX shares listed below.
Both of these shares appear fairly priced to analysts, have strong business models, and, importantly, have large market opportunities to grow into in the future.
Here’s why they could be long term market beaters:
Altium Limited (ASX: ALU)
Altium is an electronic design software company which has exposure to the growing Internet of Things and artificial intelligence (AI) markets. With these markets underpinning the explosion of electronic devices globally, demand for software subscriptions has been growing strongly. At the end of FY 2020, Altium had a total 51,006 subscriptions and was generating revenue of US$189.1 million.
And while the pandemic has weighed on its first half performance, management appears confident that its growth will resume in the second half. After which, the company is aiming to double its subscriptions to 100,000 and grow its revenue by 164% to US$500 million by FY 2025/26.
If it achieves its goals, management believes it will have market domination and be in a position to compel key industry stakeholders to support its agenda to transform electronic design and its realisation.
Credit Suisse is a fan of the company and this week put an outperform rating and $35.00 price target on its shares.
Pushpay Holdings Ltd (ASX: PPH)
Another company targeting huge growth in the future is Pushpay. It is a donor management and community engagement provider with a focus on the church market. Thanks to the quality of its offering, its strong market position, and the shift to a cashless society, Pushpay has been growing at a rapid rate in recent years.
Pleasingly, this has continued in FY 2021, with the company upgrading its earnings guidance this week for a second time due to a stronger than expected finish to the calendar year. Management is now forecasting FY 2021 operating earnings of between US$56 million and US$60 million, which will be up a massive 123% to 139% year on year.
Looking further ahead, management is aiming to win a 50% share of the US medium to large church market in the future. It estimates this to be worth US$1 billion in revenue, which is almost 8 times greater than FY 2020’s revenue of US$129.8 million.
Analysts at Goldman Sachs are bullish on its prospects. They have a conviction buy rating and $2.59 price target on its shares.
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
James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of and recommends Altium. 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. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.
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