Why I invested $11,000 in these 4 top ASX 300 shares

I'm excited by these stocks I recently bought!

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There have been so many S&P/ASX 300 Index (ASX: XKO) shares trading at good prices lately that I've been very busy buying shares. Recently, I invested a total of $11,000 across four top ideas.

I'm a big believer in investing when there's fear around the market because that's when we get presented with the best prices. The stock market doesn't sell off for no reason.

I have invested in each of the following companies with a three to five year timeframe in mind, though I'd be happy to take profit off the table sooner (particularly with the fund manager) if they deliver quicker than what I'm hoping for.

Lovisa Holdings Ltd (ASX: LOV)

Lovisa is an ASX retail share that sells affordable jewellery aimed at the younger demographic. It makes good margins on its product sales and that also makes it easier to grow its store network.

It's the store network growth potential that attracted me to this business after the Lovisa share price decline of more than 30% from April 2023.

The business has recently entered a number of new markets such as Canada, Mexico, Taiwan, Hong Kong, Poland, Italy, and more. Each country gives the business the opportunity to open dozens of new stores and the ASX 300 share is also rapidly growing its store count in the US.

I believe there is a very strong opportunity for the company to double its store count over the next five years, which could come with overall profit growing by a similar percentage if margins can be maintained.

For disclosure, my average buy price for this was $17.43 per Lovisa share. Lovisa shares closed last week trading at $19.53 apiece.

Temple & Webster Group Ltd (ASX: TPW)

I believe more shoppers are going to buy things online more often, which could be a useful tailwind for Temple & Webster as the leading online player in the furniture and homewares space.

Its digital business model means that as its scale grows, its operating leverage should play out and its profit margins can come through, particularly as it doesn't need to pay for growing a national store network. Temple & Webster can also more easily implement technology and AI across its operations.

Revenue growth was in the double digits at the start of FY24, which bodes well for the longer term. This means it can invest more in growth expenditure, like tech offerings and marketing.

For disclosure, my average buy price for this was $5.40 per Temple & Webster share. As at close of trade last Friday, the company's share price was $6.35.

Pinnacle Investment Management Group Ltd (ASX: PNI)

Pinnacle is a company that helps high-performing investors start their own investment funds. It takes a stake in those businesses and also provides seed funding, distribution services, legal, compliance, and other institutional services. This strategy enables emerging fund managers to focus on the investing side of their operations.

The ASX 300 share has an impressive group of fund managers in its portfolio across different areas including large-cap ASX shares, small-cap ASX shares, private equity, and credit. These are high-performing fund managers that predominately have a record of outperforming their respective benchmarks.

Organic net inflows and good investment performances are helping grow the funds under management (FUM) and every so often, Pinnacle adds a new fund manager to its portfolio. One of the latest additions is a Canadian fund manager, providing some geographic diversification.

When investment conditions improve, I think this ASX 300 share could be one of the ones that rebounds quite strongly.

For disclosure, my average buy price for this was $7.73 per Pinnacle share. The Pinnacle share price closed at $8.43 on Friday.

Johns Lyng Group Ltd (ASX: JLG)

This company specialises in providing building and restoration services for clients such as insurers, governments, body/owner corporations, and individual households. It's rapidly growing in the 'catastrophe' recovery space, so it's leveraged to the unfortunate trend of more damage being done through storms, floods, and fire events.

I like that the ASX 300 share is diversifying and creating synergies by acquiring body corporation managers, as well as smoke alarm, electrical and gas compliance, and maintenance businesses. Each of these areas can provide demand for other parts of the John Lyng business.  

For disclosure, my average buy price for Johns Lyng was $5.79 per share. As of Friday's close, Johns Lyng shares are $6.29 apiece.

Motley Fool contributor Tristan Harrison has positions in Johns Lyng Group, Lovisa, Pinnacle Investment Management Group, and Temple & Webster Group. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Johns Lyng Group, Lovisa, Pinnacle Investment Management Group, and Temple & Webster Group. The Motley Fool Australia has positions in and has recommended Pinnacle Investment Management Group. The Motley Fool Australia has recommended Johns Lyng Group, Lovisa, and Temple & Webster Group. 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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