The ASX is a great place to find investment opportunities with $20,000.
It’s getting a bit harder to find opportunities at the moment because of how high share prices are due to lower interest rates with many of Australia’s leading businesses like CSL Limited (ASX: CSL), Wesfarmers Ltd (ASX: WES) and Goodman Group (ASX: GMG) trading close to their record highs.
But, I still think there are shares worthy of investing in, such as these picks:
Webjet Limited (ASX: WEB) – $4,000
The travel business has been hit quite hard over the past year due to Thomas Cook’s collapse and now the coronavirus, which could cause problems over the next few months and mean that the underlying full year FY20 result won’t be as good as hoped, however FY21 and beyond looks very promising.
Don’t forget, in the FY20 half-year result the company is expecting underlying earnings before interest, tax, depreciation and amortisation (EBITDA) of at least $80 million, which excludes one-off revenues & costs and the impact of AASB16.
It’s trading at 14x FY21’s estimated earnings.
Washington H. Soul Pattinson and Co. Ltd (ASX: SOL) – $7,000
I don’t think there are any shares on the ASX that are as diversified or has the longevity like Soul Patts.
It’s an investment house which is invested in various industries like telecommunications, resources, pharmacies, property and building products.
The recent court win appeal by TPG Telecom Ltd (ASX: TPM) to merge with Vodafone Australia has meant that Soul Patts’ largest holding now has a much more promising future, plus there should be bigger dividend payments coming Soul Patts’ way.
If coal prices turn around this year then 2020 could be a great year for the conglomerate.
Pushpay Holdings Ltd (ASX: PPH) – $3,000
Pushpay is an electronic donation payment business. Since the start of November 2019 the Pushpay share price has risen by 57%. I think there’s more to come because the company is still growing revenue and its operating profit margin at a fast rate, which should lead to net profit growing at a fast rate.
The recent acquisition of Church Community Builder has opened up an opportunity for Pushpay to improve its offering to customers and integrate further into the church’s operations.
Magellan Global Trust (ASX: MGG) – $6,000
Everyone should have exposure to the best businesses in the world like Microsoft, Alphabet, LVMH, Visa, Mastercard and so on. These are exactly the types of businesses that Magellan Global Trust focuses on. Economic moats are still important, they’re just harder to find.
Magellan Global Trust has a reputation for having an attractive portfolio with defensive features where its value falls less in negative times and outperforms the market in most conditions.
As a bonus, the trust targets a 4% distribution yield for investors.
Over the next two years I think that Webjet and Pushpay have a good chance of beating the market quite comfortably, but Magellan Global Trust and Soul Patts have strong, diversified portfolios which makes them safer and they are also likely to outperform by a bit due to their skill.
The post Where to invest $20,000 in ASX shares right now appeared first on Motley Fool Australia.
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Tristan Harrison owns shares of MAGLOBTRST UNITS and 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 PUSHPAY FPO NZX and Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia owns shares of Wesfarmers Limited. The Motley Fool Australia has recommended 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. 2020