The smartest shares to buy if you have $2,000

I think investors need to be smart about which shares they buy at the moment.

The first wave of the coronavirus seems to be passing, but we haven’t seen the full economic pain of it yet. There could still be a second wave.

I think smart growth share investors with $2,000 should go for ideas that which long-term growth potential but could see growth accelerate due to the current situation.

If you have $2,000, I’d be looking at one of these smart share ideas:

Bubs Australia Ltd (ASX: BUB)

Bubs is one of the lucky businesses seeing its growth accelerate during this period. In the update for the third quarter to 31 March 2020, Bubs said its quarterly revenue of $19.7 million was up 67% on the prior corresponding period and up 36% on the previous quarter.

Customers are stocking up on Bubs products. The infant formula business recently announced another impressive distribution announcement which will see more products sold in more shops.

I was pleased to see that the company generated a positive operating cashflow of $2.3 million for the period and ended with a cash balance of $36.4 million. Positive cashflow is an important step for a small cap. 

It may be too bullish of me to expect it to follow in the exact footsteps of other ASX infant formula shares, but it’s making some very promising moves.

Magellan High Conviction Trust (ASX: MHH) 

Many of the world’s best businesses aren’t listed in Australia. You could look to invest in them directly, or you could invest in them indirectly. I like the idea of this listed investment trust (LIT) which is invested in around 10 of the best shares in the world. You don’t need to worry about which individual shares to own.

Its top five holdings include Alibaba, Alphabet, Microsoft, Starbucks and Tencent. It also owns Facebook. Apart from Starbucks, I think the other top four are clearly in a good position to keep earning strong profits during this difficult period because of their digital business models.

We can sometimes buy this LIT at a nice discount when its share price is less than its net asset value (NAV) per share). At the moment that discount is around 5%, not bad.

Pushpay Holdings Ltd (ASX: PPH)

Pushpay is another share I think that can be a strong performer over the next three years. It already has been very good since the start of May.

FY20 was a great result and the earnings before interest, tax, depreciation, amortisation and foreign currency (EBITDAF) is expected to jump again in FY21 by around 100%.

I expect electronic donations to US churches to rise significantly because of the coronavirus. I like that Pushpay’s app also allows those churches to livestream their services to people who can’t be there.

Pushpay is a great share to invest in because its margins are rapidly rising. It’s starting to generate good cashflow and there are still plenty of countries and (non-church) charitable sectors to expand into.

Foolish takeaway

I really like all three of these share ideas. At the current prices it’s hard to pick between them, though I’d put Bubs and Pushpay slightly higher. I think they all have very promising futures.

More reading

• 3 explosive ASX growth shares to buy
• 3 ASX shares that I’d invest $1,000 into EVERY month
• 2 ASX stocks that could replace cash
• Where growth, income, and value investors can invest right now
• 3 top ASX growth shares that could smash the market in the 2020s

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