If I were lucky enough to be given $10,000 to invest into solid ASX shares today, these are the ones I would pick:
Altium Limited (ASX: ALU) – $3,500
The Altium share price is down around 15% since the end of July, so I think the share price looks much more attractive today.
It certainly is better value and I think this share price – which we haven’t seen for a couple of months – is now actually cheaper than it was before when you consider that RBA and US Federal Reserve have reduced interest rates since then, which theoretically increases asset values.
Altium has good potential with the steady growth of the Internet of Things and other technological developments going on around the world. If it manages to hit 100,000 Altium Designer seats and the revenue targets by 2025 then it could deliver strong profit growth and margin improvement between now and then, but those targets are not guaranteed to be hit and Altium is still valued at quite an expensive price/earnings ratio.
But, I do think it’s important to be invested in some of the best growth shares on the ASX, even if they’re a bit expensive.
MFF Capital Investments Ltd (ASX: MFF) – $4,000
In terms of its investment universe options, its costs and its historical investment returns, there may not be a better listed investment company (LIC) than MFF Capital on the ASX in my opinion.
I like that MFF Capital can invest anywhere in the world if it wishes. It has a fixed management cost, so as its net assets get bigger the fees get smaller as a percentage. And portfolio manager Chris Mackay’s investment selections have delivered excellent returns.
Whilst there will be volatility in the shorter-term, I think MFF Capital is set up for more good returns over the long-term and it’s trading at an attractive discount to its pre-tax net tangible assets (NTA).
Vanguard FTSE Asia ex Japan Shares Index ETF (ASX: VAE) – $2,500
The trade war has seen the value of this exchange-traded fund (ETF) fall back a few percent again, leaving it at an attractive price in my opinion.
Whilst there are China issues that can’t be ignored with this ETF, I think its cheap price/earnings ratio and the underlying growth rate provides enough margin of safety for it to be a relatively smart part of a portfolio with impressive businesses like Tencent, Samsung and Alibaba helping increase its value over time.
Each of these investment ideas is at a decent price and I’d be happy to buy any of them today, although choosing Altium is somewhat of a bet that interest rates stay low for a long period of time.
Other growth shares to consider are these top ASX shares which could all beat the market in the coming months and years.
Our Motley Fool experts have just released a brand new FREE report, detailing 5 dirt cheap shares that you can buy today.
Stock #1 is an Australian internet darling with a rock solid reputation and an exciting new business line that promises years (or even decades) of growth… while trading at an ultra-low price…
Stock #2 is another high-growth business trading near a 52-week low all while offering a 4.7% grossed-up yield...
Plus 3 more cheap bets that could position you to profit over the next 12 months!
See for yourself now. Simply click the link below to scoop up your FREE copy and discover all 5 shares. But you will want to hurry – this free report is available for a brief time only.
- NEW: Free report names top 3 ASX dividend shares to buy for 2019
- Top analysts name their top 3 ASX blue chip shares for 2019
- Richest man alive issues dire warning
- 3 quality dividend shares to boost your income
Motley Fool contributor Tristan Harrison owns shares of Altium, Magellan Flagship Fund Ltd, and VANGUARD FTSE ASIA EX JAPAN SHARES INDEX ETF. The Motley Fool Australia owns shares of Altium. 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