2 picks I'd buy for my ASX share portfolio in February

Here are two companies I think anyone can buy this month.

Sebastian Bowen

Author Bio Sebastian Bowen has been a Motley Fool contributor since late 2018. Sebastian found his passion for writing and educating others about shares and all things finance after completing his studies in political, economic and social science and enjoys bringing this passion to life at the Fool. His investment philosophy is a simple one – buying high-quality companies at prices that make sense. When he’s not researching his next investment at all hours of the morning, Sebastian enjoys classic movies and likes to unwind with a good book, newspaper or record. Areas of Expertise Dividend investing ETFs Education Bachelor of Political, Economic, and Social Sciences (Government and International Relations), University of Sydney Social Media X/Twitter Favorite Investment Quote "In the short run, the market is a voting machine, but in the long run, it is a weighing machine." – Benjamin Graham

Published February 9, 2024 4:00 am AEDT

Christmas and the holidays are wonderful times, but they also tend to be uncomfortably expensive. I know my own investing habits took a holiday of their own over the summer break.

But now that we're well into February, many of us might find that we once again can spare a few dollars for our investing portfolios.

So if you're fortunate enough to find yourself in this camp, here are two ASX share picks I'd be happy to add to my portfolio this February.

Happy couple enjoying ice cream in retirement. — Image source: Getty Images

2 ASX share picks for February 2024

BetaShares Nasdaq 100 ETF (ASX: NDQ)

I'm continually amazed at how many managed funds that invest in international shares in Australia simply can't beat the returns of a simple index like the NASDAQ-100 Index (NASDAQ: NDX).

The Nasdaq is one of the two major stock exchanges in the United States. It tends to house most of the famous US tech companies, which have proven to be the driving force behind its stunning returns.

On the ASX, ordinary investors have the opportunity to share in these returns through the Betashares Nasdsaq 100 exchange-traded fund (ETF). This fund holds portions of the largest 100 non-financial shares on the Nasdaq Index. That includes everything from Apple, Microsoft, Amazon and Alphabet to Meta Platforms, NVIDIA, Airbnb and Netflix.

This ETF's numbers are just stunning. As of 31 January, investors have enjoyed an average annual return of 22.63% over the past five years. Those returns are not guaranteed in the future, of course.

But this ETF still gives us an easy avenue to invest in some of the best companies on the planet, making it a no-brainer ASX share pick this month for me.

REA Group Ltd (ASX: REA)

Many Australians might not know the name REA Group, but they've probably heard of this classifieds company's flagship asset – realestate.com.au.

REA Group has experienced a big pullback this week, thanks to the company's latest earnings report. As we went through yesterday, REA still reported an 18% rise in revenues over the six months to 31 December. It also revealed a 22% jump in profits and a 16% spike for its next dividend payment.

I'm not sure what spooked investors here. Sure, REA's expenses did rise significantly over the period. But REA's lead as the premier destination for property buyers, renters and sellers looks more unassailable than ever.

As such, I think this ASX 200 share is ripe for the picking as a buy-the-dip opportunity this February.

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