2 ASX stocks I'll be buying hand over fist in 2023

Wesfarmers is one of the ASX stocks I can't wait to load up on this year…

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We're only one and a bit months into 2023, but I can already tell you how I'm going to be investing this year. I'll be doing the same thing I did in 2021 and 2020 – buying as many ASX stocks as I can, hand over fist.

Since ASX shares tend to go up over time, I usually try to live by the philosophy that the best time to invest was yesterday. Sure, the markets have periods of irrational exuberance, and times where investors can't wait to get out fast enough. But although these events tend to get the most headlines, they are rare events.

So I tend to just invest any cash that I have into the markets sooner rather than later. That way, the stress of trying to 'time the markets' is taken out of the equation. Now, let's now talk about two ASX stocks that I plan to keep buying in 2023.

2 ASX stocks I want to buy more of in 2023

Wesfarmers Ltd (ASX: WES)

Wesfarmers isn't a hugely well-known company in Australia (outside the investing world, anyway). But the myriad of companies and brands that Wesfarmers owns certainly are. There's the company's crown jewel, Bunnings, of course.

However, Wesfarmers also owns a rather staggering number of other companies too. The most well-known are the likes of Kmart, OfficeWorks, and Target. But Wesfarmers also owns businesses ranging from mines, gas, and lithium to clothing, e-commerce, and pharmacies.

This company has a long and proud record of delivering strong capital growth and solid dividends to its investors. With Wesfarmers shares still down around 25% from their 2021 all-time highs, this is an ASX stock that I'll be hoping to top up on this year.

Vanguard MSCI Australian Small Companies Index ETF (ASX: VSO)

This exchange-traded fund (ETF) from provider Vanguard is another ASX investment I'd like to have more of by the end of 2023. This ETF is an index fund. But it doesn't mirror the popular S&P/ASX 200 Index (ASX: XJO). Instead, it holds a basket of shares sourced from the bottom end of the market.

So instead of the big ASX bank shares and BHP Group Ltd (ASX: BHP), the largest shares in this ETF are the likes of Carsales.com Ltd (ASX: CAR), OZ Minerals Ltd (ASX: OZL), and Cleanaway Waste Management Ltd (ASX: CWY). I like this ETF for the diversified exposure to the ASX it gives.

The Vanguard Small Companies ETF has returned an average of 8.15% per annum over the past five years (as of 31 January). It also currently has a trailing dividend distribution yield of 5.59%:

Motley Fool contributor Sebastian Bowen has positions in Wesfarmers and Vanguard MSCI Australian Small Companies Index ETF. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has positions in and has recommended Wesfarmers. 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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