Where to invest $6,500 in November 2023

I think it's a great time to start putting money to work.

| More on:
A mature aged man with grey hair and glasses holds a fan of Australian hundred dollar bills up against his mouth and looks skywards with his eyes as though he is thinking what he might do with the cash.

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

ASX shares look like a good place to invest $6,500 in November 2023 because of the ability to achieve both capital growth and dividend income.

I'm not going to suggest investing in the ASX's biggest blue chips because I'm not sure whether they can deliver strong long-term growth, even if the dividend yields are appealing.

Instead, I'm going to outline three ASX shares that could achieve solid capital growth from an investment of $6,500 between them.

Lovisa Holdings Ltd (ASX: LOV)

Lovisa is an ASX retail share that sells affordable jewellery aimed at younger shoppers.

It's growing its global store count at a really impressive rate. In FY23, it added 172 new stores, ending the financial year at 801 stores.

In the US alone, it added 72 stores, finishing the financial year with 190 stores. Certainly, I think there is enormous growth potential in the US market, considering there were 168 stores in Australia at the end of FY23 with less than a tenth of the population of the US.

Lovisa has recently entered a number of markets including Hong Kong, Spain, Taiwan, Morocco, Poland, and Italy.

In the next month, it's going to open its first stores in Vietnam and China, both of which have huge populations.

In the first 20 weeks of FY24, the ASX share's total sales were up 17% year on year, showing that its store rollout is helping scale which, in turn, can help overall profit.

According to projections on Commsec, the Lovisa share price is valued at 19 times FY25's estimated earnings.

Vaneck Morningstar Wide Moat ETF (ASX: MOAT)

This is a high-quality exchange-traded fund (ETF) focused on investing in companies with strong competitive advantages that are expected to endure.

As an example, take the company Walt Disney. It has been producing hit movies for many decades and owns numerous brands that can help it make billions of dollars for years to come, including the Marvel and Star Wars franchises. It also makes lots of money from its Disney parks, merchandise, and so on.

Disney is currently the biggest position in the portfolio, but there are others like Alphabet (Google), Salesforce.com, and Nike.

The strengthening Aussie dollar also makes it more attractive to invest in US shares. The investment team only buys shares for this portfolio when they think they are good value. This is a good strategy in my view.

The ASX ETF has delivered solid long-term performance, though past returns are not a guarantee of future results.

Brickworks Limited (ASX: BKW)

Brickworks is one of the largest building products manufacturers in Australia. It's the largest brickmaker in the country and is involved with a number of other products like paving, masonry, roofing, and cement.

With the huge population growth that Australia is seeing, there could be very strong growth in demand for the company's products.

I like Brickwork's exposure to industrial property which, thanks to limited supply, is seeing strong underlying rental income growth.

Large warehouses are being built on the company's land through a property trust jointly owned by Brickworks and commercial property partner Goodman Group (ASX: GMG). This is unlocking development profits and more rental income.

The Brickworks share price has dropped more than 10% since September 2023, meaning investors can get better value today than before. Whatever happens next, I think Brickworks' asset base – including its investments division – can provide protection and cash flow for shareholders.

Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. Motley Fool contributor Tristan Harrison has positions in Brickworks and Lovisa. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Alphabet, Brickworks, Goodman Group, Lovisa, Nike, Salesforce, and Walt Disney. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has recommended the following options: long January 2025 $47.50 calls on Nike. The Motley Fool Australia has positions in and has recommended Brickworks. The Motley Fool Australia has recommended Alphabet, Goodman Group, Lovisa, Nike, Salesforce, VanEck Morningstar Wide Moat ETF, and Walt Disney. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Opinions

A male investor sits at his desk looking at his laptop screen holding his hand to his chin pondering whether to buy Macquarie shares
Opinions

1 attractive ASX growth stock for 2024 and beyond

This business is building an exciting future.

Read more »

Young girl starting investing by putting a coin ion a piggybank while surrounded by her parents.
Investing Strategies

2 no-brainer ASX 'beginner' stocks I'd buy

These would make a great core for a starter portfolio, I think, but really that should also be positive for…

Read more »

A young woman wearing a silver bracelet raises her sunglasses in amazement, indicating positive share price movement in jewellery shares.
Investing Strategies

I'd need this many Lovisa shares to aim for passive income of $10k a year

The jewellery retailer is in a unique category in the ASX, so this is how you can take advantage to…

Read more »

A male investor sits at his desk looking at his laptop screen holding his hand to his chin pondering whether to buy Macquarie shares
Opinions

One ASX share to buy today to ride the 30% forecast surge in the S&P 500

If these experts have it right, the S&P 500 is set to continue rewarding investors with outsized gains.

Read more »

Woman relaxing on her phone on her couch, symbolising passive income.
Dividend Investing

$5k to invest buys me 700 shares in these 2 ASX stocks for a second income!

You don't need a lot of money to start a steady flow of cash flowing into your bank account.

Read more »

a man with a wide, eager smile on his face holds up three fingers.
Value Investing

3 Australian value stocks to buy right now

I think these stocks are capable of beating the market.

Read more »

A man eases back onto his sofa, happy with the relaxed vibe from his furniture.
Opinions

This is the best ASX share buy I've made in my superannuation fund

This stock has been an amazing investment so far.

Read more »

A young well-dressed couple at a luxury resort celebrate successful life choices.
Opinions

2 ASX shares under $50 new investors can buy confidently

I like these stocks for both growth and dividend potential.

Read more »