It's no secret that the best way to make money from investing is to buy and hold high-quality ASX shares for years on end. This allows compounding to take place, which is one of the most powerful forces in finance.
By regularly buying more shares of high-conviction companies, we can remove some of the emotion and tendency to try and time the market. For the average investor, the appeal of picking the highs and lows leads to long-term underperformance compared to the S&P/ASX 200 Index (ASX: XJO).
Today, I want to share with you three ASX shares that I am personally planning to buy more of over time. In my opinion, each of these businesses represents an attractive investment opportunity with a long runway for growth ahead.
I won't stop buying these 3 ASX shares anytime soon
Each company that I'll mention today is quite different in terms of market capitalisation, sector, and stage of development. This provides some valuable diversification benefits and reduces the overall risk of the portfolio.
Personally, I'm a big fan of taking a 'GDV' (growth, dividend, and value) approach to investing in ASX shares. This doesn't mean it's necessarily the right approach, but there are two key benefits to this investing style, in my opinion:
- It dampens the peaks and troughs in the portfolio compared to if it were completely invested in only growth shares or only dividend shares. At the moment, this has proved comforting when many growth-orientated shares have lost support in the market.
- It opens the portfolio to many opportunities that may not otherwise be considered purely because they don't fit into a specific box at a single point in time. For example, Microsoft Corporation (NASDAQ: MSFT) failed to grow its net income for 9 out of 10 quarters between 2014 and 2016 — some might have considered it a deteriorating 'value' share — yet, the company, by all accounts, has been a colossus, compounded over the ensuing years.
Having said that, let's dive into the shares!
Ansarada Group Ltd (ASX: AND)
The first ASX share I'll be regularly buying more of is Ansarada Group. This fast-growing software-as-a-service (SaaS) company provides cloud-based software solutions that help businesses manage their data during key corporate events, such as mergers & acquisitions (M&A).
At a market capitalisation of around $135 million and currently loss-making, Ansarada quenches the 'growth' thirst for me. Based on its latest full-year results, the company delivered 44% revenue growth year on year with a gross margin of 95%.
I think Ansarada is an ASX share with the potential to deliver tremendous shareholder returns as it expands its software offering to more day-to-day operations reliant on orderly data.
Jumbo Interactive Ltd (ASX: JIN)
This company has been a staple of my portfolio for several years now, with my first buy at around $2.70 a share. Jumbo Interactive provides digital lottery services across Australia, Canada, and the United Kingdom.
During my time as a shareholder (going back to 2017), Jumbo has grown its net profits after tax (NPAT) by nearly fourfold. Aiding in this growth has been a successful acquisition strategy, broadening the company's growth potential.
However, I personally consider Jumbo a cornerstone dividend share in my portfolio. This ASX share is currently trading on a dividend yield of 3.1%.
Sonic Healthcare Ltd (ASX: SHL)
That only leaves us with the 'value' component of the portfolio. Sonic Healthcare is a global leader in providing pathology and radiology services. It has a market capitalisation of around $16 billion, making it the largest ASX share on this list.
At present, Sonic is trading on a price-to-earnings (P/E) ratio of around 11 times. This represents a notable discount when compared to the global healthcare industry average of around 18 times earnings.
Personally, I believe Sonic Healthcare has an attractive valuation considering the healthcare sector's long-term tailwinds. Furthermore, the market appears to be pricing Sonic as though its growth days are behind it. However, I'm quietly confident there could be much more to come, fuelled by acquisitions and advancements in artificial intelligence.
