I love investing in ASX shares, it's easy to transact online and being able to just sit back and watch them deliver results over time.
The great thing about businesses is that they have a management team and employees that are doing their best to grow the company.
There are fewer attractive opportunities out there than a few months ago following share price rises amid interest rate decreases. The lower the rates go, the higher they can push share prices.
I'm going to talk about two of my favourite investments right now because of how much I think they can grow.
Tuas Ltd (ASX: TUA)
Tuas is a rapidly growing ASX telco share that is based in Singapore. The company recently announced its FY25 result and it was everything that I wanted to see.
Mobile subscribers grew by 19% to 1.25 million, showing it yet again grew its market share in the country. This was a key driver of the company's financials continuing to go in the right direction. Revenue jumped 29% to $151.3 million and operating profit (EBITDA) increased to $68.4 million.
The company continues to win over customers with its value offering, while also achieving stronger profit margins. In FY25 its EBITDA margin rose to 45%, rising from 42% in FY24.
I think the ASX share has plenty of potential to grow further, partly due to its expanding sales channels, including Changi Airport Terminals and 7-Eleven stores.
The company is expecting further subscriber growth in FY26 and I believe Tuas can continue to increase its market share substantially to FY30, even before including the M1 acquisition. It's buying another competitor in the Singapore market for S$1.43 billion on a debt-free and cash-free basis, with an implied EBITDA multiple of 7.3x, excluding synergies.
The increased scale of the combined business gives it more profitability and potentially accelerates the expansion into other countries such as Malaysia or Indonesia.
Betashares Global Quality Leaders ETF (ASX: QLTY)
This is an exchange-traded fund (ETF) with investments across the world in high-quality businesses.
The business has 150 holdings, so I'd say it offers significant diversification. It's invested in a number of countries including the US, Japan, Switzerland, France, the Netherlands, France, the Netherlands, Hong Kong, Spain, Sweden and the UK. I'm calling this an ASX share because we can buy it on the ASX.
Another positive on the diversification side is the number of sectors that have an allocation of at least 7%, including the IT (34.9%), industrials (16.4%), financials (11.6%), healthcare (11.5%), consumer discretionary (8.8%), communication services (8.5%) and consumer staples (7.4%).
But, in my view, the most important element of the fund is how it only focuses on the highest-quality global stocks. There are four factors that businesses must have: a high return on equity (ROE), a low debt-to-capital, strong cash flow generation ability and earnings stability.
When you put those four elements together, you're left with the strongest businesses in the world.
Since inception in November 2018, the QLTY ETF has returned an average of 14.5%, which is a strong return.
I think this fund can deliver excellent returns over the long-term from here.
