'Buy it for 5 years': Jun Bei Liu's 3 best ASX shares for 2023

Here is a trio of stocks that would make prudent investments for those who are willing to hold them for a few years.

Multiple experts are already tipping that 2023 will be a vastly different year to 2022 for ASX shares.

This year, growth stocks have taken a beating as interest rates have risen sharply and inflation rages on. But next year the markets are looking forward to a reversal of that situation.

So one expert reckons now is an opportune time to buy some to hold for the long run.

"We are seeing a lot of value in local business, particularly [in] growth," Tribeca portfolio manager Jun Bei Liu told Switzer TV Investing.

"There's just a lot of them being left behind."

Here are three ASX growth shares that Liu likes at the moment:

Fund manager Jun Bei Liu

Global expansion to drive growth

Domino's Pizza Enterprises Ltd (ASX: DMP) has already enjoyed a renaissance, with the share price rocketing 24.8% since 3 November.

Liu sees the pizza maker as an excellent long-term investment.

"You don't buy Domino's for next week's earnings. You buy it for five years, and things are going pretty well for them."

Despite the rally this month, the stock is still historically cheap as it is 46% lower than where it started the year.

The theme for the company is that it's not Australians that are going to start eating more pizzas.

"In Australia, it's pretty mature," Liu said.

"What Domino's has done is, globally, it's rolling out more territories."

The business is "just ramping up the pace" in Europe, as well as expanding in Taiwan and Japan.

"It's the global expansion that's going to drive growth."

This won't slow down in a recession

Some may perceive CSL Limited (ASX: CSL) as a defensive and "boring" stock, but it will certainly end up higher in a few years, according to Liu.

Even though the biotech stock has also rallied 7% over the past month, relative to other investments the price is still tempting to her.

"It still looks pretty good," said Liu.

"Even if we have a US recession or a global recession, it's not going to slow down. It will grow double digits for the next three years."

Pricing power and sticky clientele

Cloud accounting software maker Xero Limited (ASX: XRO) is facing much uncertainty with a new chief executive starting, and difficulties expanding in new markets.

That anxiety has shown up in the share price, which has dipped 11% over the past month. For the year to date, the Xero stock price has more than halved. 

According to Liu, investors also bid the stock down due to concerns about the slowing global economy.

But Xero has already demonstrated to her that it has some resilience.

"This company just put through some massive price increases… and the customers are still there," Liu said.

"And this is a penetration story [via] market expansion. The UK is still going very well."

Motley Fool contributor Tony Yoo has positions in CSL Ltd. and Xero. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended CSL Ltd. and Xero. The Motley Fool Australia has positions in and has recommended Xero. The Motley Fool Australia has recommended Dominos Pizza Enterprises Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Investing Strategies

A wallet with an Australian one hundred dollar note poking out sits on top of an electricity meter with the numbers rapidly going up.
Dividend Investing

How many Origin Energy shares do I need for $1,000 per month of passive income in FY27?

Find out what it takes to earn $12,000 every year in passive income.

Read more »

Two shop workers smiling and looking at a laptop surrounded by plants.
Investing Strategies

3 ASX shares I think could still be thriving in 2040

These three businesses have the qualities I think could keep them growing for another 14 years.

Read more »

Businessman at his desk, looking seriously at information on his digital tablet.
Investing Strategies

Buy, hold, sell: Appen, Flight Centre, and Telstra shares

I look at three ASX shares facing very different challenges and decide which I would buy today.

Read more »

A group of young ASX investors sitting around a laptop with an older lady standing behind them explaining how investing works.
Growth Shares

Droneshield vs Xero: Which ASX tech stock is the better buy for a young growth investor?

Which stacks up better on fundamentals and recent price action?

Read more »

Stock market board with green numbers.
Growth Shares

This is an exciting ASX growth share that experts think is a buy

This stock has a lot of growth potential.

Read more »

Male hands holding Australian dollar banknotes, symbolising dividends.
Small Cap Shares

This ASX small-cap share is predicted to deliver market-beating returns

The smallest stocks can deliver big returns.

Read more »

Woman with headphones on relaxing and looking at her phone happily.
Dividend Investing

Why this ASX dividend share is a retiree's dream for 2027

This business is a strong pick for dividends, in my view.

Read more »

Two young male miners wearing red hardhats stand inside a mine and shake hands.
Blue Chip Shares

Up 42% in a year. How much higher can BHP shares go?

Find out what the experts think.

Read more »