If I had $20,000 to invest with right now, there are four ASX shares that I’d want to invest in.
The current coronavirus economic conditions make it hard to know what’s going to happen next. But I believe that society will get through this in the next couple of years. Once we’re through the worst of this the ultra-low interest rates will make shares seem very attractive.
Here are the four shares I’d buy with $20,000 right now:
Pushpay Holdings Ltd (ASX: PPH) – $6,000
I think Pushpay is one of the most promising shares to invest in on the ASX. It’s an electronic donation business which predominately services large and medium US churches. It was on a good growth trajectory before COVID-19, but the current conditions have accelerated that growth.
Being able to electronically donate to your church is very useful in a socially distancing world where cash isn’t ideal. Pushpay’s FY20 was strong and in FY21 the company is expecting earnings before interest, tax, depreciation, amortisation and foreign currency (EBITDAF) to approximately double.
The Pushpay share price has been a strong performer recently, but the increased growth more than makes up for that in my opinion.
Brickworks Limited (ASX: BKW) – $5,000
I think Brickworks is one of the best value ASX 200 shares at the moment. When you take its defensive & reliable assets of its Washington H. Soul Pattinson and Co. Ltd (ASX: SOL) shares and 50% stake of the industrial property trust at book value, you’ll see that combined value essentially supports the Brickworks market capitalisation.
The rest of the business – its building products divisions – come for free. I think that’s a useful way to look at it because construction earnings are going to be down because of the coronavirus impacts.
Until construction comes back, which may be sooner than some expect, investors will get to collect the grossed-up dividend yield of 6.1%.
Magellan Global Trust (ASX: MGG) – $5,000
This is a listed investment trust (LIT) which invests in the best global shares. Some of its top holdings include Alibaba, Alphabet, Atmos Energy, Microsoft, Tencent, Facebook, Visa, Mastercard, Reckitt Benckiser and Novartis.
The LIT is invested in businesses which could prove to be quite defensive in the face of the coronavirus, their growth may even accelerate due to customer habits changing.
Despite the fees, Magellan Global Trust’s net return is impressive and regularly outperforms its global benchmark. Particularly over longer time periods.
As a bonus the LIT is a decent income share, it targets a 4% distribution yield. It’s currently trading at a small discount to its net asset value (NAV).
PM Capital Global Opportunities Fund Ltd (ASX: PGF) – $4,000
This is a listed investment company (LIC) which also invests in global shares. It’s always looking for unloved global shares that could make strong returns.
It’s invested in various ideas such as alternative investment managers, house builders in Europe, resources and others. That translates into share holdings like KKR & Co, Freeport-McMoRan Copper and Cairn Homes.
PM Capital Global Opportunities Fund has an attractive trailing grossed-up dividend yield of 6.3%.
It’s trading at 15% discount to the weekly net tangible assets (NTA) at 15 May 2020.
Foolish share takeaway
I really like all of these shares for different reasons. I think Pushpay could be the strongest performer over the next three to five years, but Brickworks could be very reliable whilst the two global investment businesses offer good portfolios for investors to get exposure to.
If I had another $5,000 to invest there’s an extra idea I’d want to put it towards.
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More reading
- Save your future self from financial misery
- Why AP Eagers, Lendlease, Pushpay, & ResMed shares are sinking lower
- 3 shares now trading at crazy cheap prices
- Why these ASX shares have just stormed to record highs
- Is the ASX 200 getting too far ahead of itself?
Motley Fool contributor Tristan Harrison owns shares of MAGLOBTRST UNITS, PM Capital Global Opportunities Fund Ltd, and Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia owns shares of and has recommended Brickworks, PUSHPAY FPO NZX, and Washington H. Soul Pattinson and Company Limited. 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 post Where to invest $20,000 into shares right now appeared first on Motley Fool Australia.
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