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…

| More on:
hand with two fingers

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

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.

More on Best Shares

Six young people wearing Santa hats sit on a beach celebrating at sunset.
Best Shares

Top ASX shares to buy in December 2024

Our Foolish writers reckon these stocks make seriously sensible buying this silly season!

Read more »

Three shareholders climbing ladders up into the clouds
Share Gainers

11 ASX All Ords shares rising faster than Nvidia over the past year

Who knew? Here are the homegrown ASX companies outperforming Nvidia on share price growth over the past 12 months.

Read more »

Three women cruise along enjoying ice-creams in the sunshine.
Best Shares

3 ASX 300 stocks up by more than 300% in a year

These stocks certainly add up to a triple treat.

Read more »

A fit woman in workout gear flexes her muscles with two bigger people flexing behind her, indicating growth.
Best Shares

Top ASX shares to buy with $500 in November 2024

$500 worth of ASX shares might not sound like a huge investment. But, to realise the benefits of compounding, you…

Read more »

asx share price boosted by us investment represented by hand waving US flag across winning athlete
Best Shares

Here are the best-performing ASX 200 shares since the US election result

We reveal the 10 ASX stocks that have had the highest share price gains since the US Presidential election.

Read more »

A smiling man at a shop counter takes payment from a female customer, with racks of plants in the background.
Best Shares

Here's why I think Wesfarmers shares are a great buy for any ASX investor

I argue that Wesfarmers offers investors both growth and income potential.

Read more »

a young farmer stands back and admires his work in arranging bales of hay to form a house shape with two bales balancing against each other to form a roof, perched on bales tipped on their side in an abstract house shape on a freshly harvested paddock.
Best Shares

Top ASX shares to buy in November with the market near all-time highs

Our writers are still finding value in a record-breaking Australian share market.

Read more »

Excited group of friends sitting on sofa watching sports on TV and celebrating.
Best Shares

Top ASX shares to buy in November 2024

These are the ASX stocks our Foolish writers say should be on your ticket right now!

Read more »