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Which ASX shares to buy when the ASX200 is at an all-time high?

Tristan Harrison
Planting a flag at the top of a mountain

The ASX200 (ASX: XJO) is close to hitting an all-time high again, which is great news if you’re invested in shares.

It’s not the banks driving that recovery. The Westpac Banking Corp (ASX: WBC) share price has been hurt by the AUSTRAC scandal. National Australia Bank Ltd’s (ASX: NAB) result and dividend cut disappointed investors.

But plenty of other blue chips are doing well to drive the index higher. BHP Group Ltd (ASX: BHP), CSL Limited (ASX: CSL) and Macquarie Group Ltd (ASX: MQG) are all doing well. Infrastructure stocks like Transurban Group (ASX: TCL) and Sydney Airport Holdings Pty Ltd (ASX: SYD) have been driven higher by rising earnings and lower interest rates.

But where are you supposed to invest when the market and so many shares within it are trading close to their all-time highs?

Well, quality does tend to win over the longer-term, so I don’t think CSL would be a bad pick even at this elevated price compared to other blue chips. It might hit $300 in 2020!

But looking lower down the market capitalisation list I think there are plenty of solid, dependable business that are growing profit but are trading a lot cheaper than tech shares.

There is usually always something that we can buy that’s good value. One of the divisions within each of Webjet Limited (ASX: WEB), Washington H. Soul Pattinson and Co. Ltd (ASX: SOL) and Brickworks Limited (ASX: BKW) are facing short-term issues which are likely to improve within 12 months, but they’re priced as though the pain will be longer than that. I think they could all beat the market over the next year and five years at the current prices. 

If there’s nothing that you think is good value then it’s okay to hold cash until an opportunity pops up. We don’t have to swing at every opportunity.

Foolish takeaway

We always need to pay attention to the price we pay when we invest, but it’s even more important when asset prices are elevated like they are today. But, there are still opportunities out there on the ASX and we just need to focus on these.

The post Which ASX shares to buy when the ASX200 is at an all-time high? appeared first on Motley Fool Australia.

For example I believe these top ASX shares are very nicely priced for market-beating returns over the short-term and long-term.

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Tristan Harrison owns shares of Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of CSL Ltd. The Motley Fool Australia owns shares of and has recommended Sydney Airport Holdings Limited, Transurban Group, and Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia owns shares of National Australia Bank Limited. The Motley Fool Australia has recommended Brickworks and Webjet Ltd. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The Motley Fool's purpose is to help the world invest, better. Click here now for your free subscription to Take Stock, The Motley Fool's free investing newsletter. Packed with stock ideas and investing advice, it is essential reading for anyone looking to build and grow their wealth in the years ahead. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson. 2019