It never feels too good to buy shares of ASX companies when they are trading at or near their 52-week highs. After all, we're all taught that one of the keys to stock market investing success is 'buying low and selling high'. As such, picking up shares of an ASX company when they are 'high' doesn't seem logical to many investors.
And yet, sometimes we have no choice if we want to invest in a top-quality ASX company. Some shares are universally acknowledged by the markets as the best in the business, and as such, almost perpetually trade at rich valuations.
I don't like investing in companies at or near their 52-week highs. But I still do it sometimes. I try and think of the legendary inventor Warren Buffett's wise words here: "It's far better to buy a wonderful company at a fair price than a fair company at a wonderful price".
So today, let's discuss a pair of ASX companies that are, right now, near their 52-week highs, but that I would still buy this month on the stock market.
2 ASX companies that I would still buy at their 52-week highs this month
Washington H. Soul Pattinson and Co Ltd (ASX: SOL)
Washington Soul Pattinson, or Soul Patts for short, is one of my favourite ASX companies. It is one of the oldest businesses on the stock market, having first opened its doors in the 19th century. But today, this investing house is trading at $33.34 a share, just a few cents away from its current 52-week high of $33.94. Yet I would still happily buy more Soul Patts shares today.
This is a company with one of the best long-term performance track records on the ASX. Back in June, Soul Patts confirmed that its investors have enjoyed an average annual return (including dividends) of 12.9% per annum over the 20 years to 30 April 2023. That's a market-smashing performance.
Speaking of dividends, Soul Patts can also claim to be the only ASX 200 share that has given its investors a dividend raise every single year since 2000. With these things in mind, it's no wonder this company is trading hot right now. But I'd still happily buy shares as a long-term investment.
Brickworks Ltd (ASX: BKW)
Another stalwart of the ASX, Brickworks is another one of the share market's top-performing shares. This construction materials company has done an excellent job of building a diversified and resilient earnings base that complements its construction materials business well.
This strategy has been so successful that Brickworks can also boast of a stellar decades-long performance track record. Back in March, this ASX company confirmed that its investors have benefitted from an average return of 10% per annum (again including dividend returns) over the 20 years to 31 January 2021.
Like Soul Patts, Brickworks also has an impressive dividend streak. It can't quite match Soul Patts' 22 years and counting record of raising its dividend. But Brickworks hasn't cut its annual payouts since 1976.
Today, Brickworks shares are asking $27.88 each, not too far from the company's current 52-week (and all-time) high of $28.09. But that wouldn't stop me from picking up shares today if I could.