The ASX share market has fallen significantly today, so I'm sensing opportunities. At the time of writing, the S&P/ASX 200 Index (ASX: XJO) is down close to 2% amid global uncertainty.
At times like this, I like to refer to some wise words from one of the world's greatest investors – Warren Buffett. The Sage from Omaha once said:
To refer to a personal taste of mine, I'm going to buy hamburgers the rest of my life. When hamburgers go down in price, we sing the 'Hallelujah Chorus' in the Buffett household. When hamburgers go up in price, we weep.
For most people, it's the same with everything in life they will be buying — except stocks. When stocks go down and you can get more for your money, people don't like them anymore.
With that in mind, let's look at two of today's sold-off ASX shares that I'm calling buys.
GQG Partners Inc (ASX: GQG)
GQG is one of the largest listed fund managers on the ASX, with a focus on international shares.
The GQG share price is currently down almost 6% today, while the global share market has dropped much less. The Vanguard MSCI Index International Shares ETF (ASX: VGS) – which tracks the global share market – is only down by 1.6%. I think the GQG sell-off is overdone.
Fund managers can suffer pain in a sell-off because a drop in the share market likely means a decline in their funds under management (FUM), which is typically the most important factor for revenue and profit generation.
However, I think a sell-off like today can open up a long-term opportunity. In the first six months of 2024, GQG experienced net inflows of US$11.1 billion – inflows can offset share market declines.
GQG has demonstrated that its funds can outperform their benchmarks. Share market volatility is normal, so I believe this market panic is a buy-the-dip opportunity.
REA Group Ltd (ASX: REA)
REA Group owns realestate.com.au and various other property businesses and real estate portals, including REA India.
The REA Group share price has dropped more than 4% today, and it's down 8% in September.
Investors don't seem impressed by the company's idea of buying Rightmove, even though the two businesses share many similarities and have market-leading positions.
The ASX share has demonstrated its ability to capitalise on its number one position in Australia by regularly increasing prices at a strong rate. The company has strong operating leverage, and I think this can help drive its profit for years to come.
I'm also excited by REA Group's investments in the United States, India, and other Asian markets. The ASX share can benefit from these large, addressable markets.
The long-term looks promising, in my view, so this sell-off could be a buying opportunity.
