With a new month upon us, now could be a good time to see if there are any additions you could make to your portfolio to take it to the next level.

I think the tech sector would be a good place to look for options, given the quality on offer at this side of the market.

But which ASX tech shares should you buy? Here are a few I would buy:

Appen Ltd (ASX: APX)

Appen is one of my favourite tech shares on the ASX. Its global team of over a million crowd-sourced experts prepare the data that goes into artificial intelligence (AI) and machine learning models. This is a very important part of the process, as high quality data is vital for successful models. Pleasingly, given how important AI is becoming to businesses, I expect demand for Appen’s services to continue to grow over the next decade. This should underpin strong earnings growth for a long time to come.

BetaShares Asia Technology Tigers ETF (ASX: ASIA)

If you would like to invest in a number of tech shares in a single investment, then you might want to look at the BetaShares Asia Technology Tigers ETF. This fund is invested in some of the fastest growing tech companies in the Asia market. These companies are revolutionising the lives of billions of people in the region and look very well-positioned for growth. Included in the fund are the likes of ecommerce giant Alibaba, search engine company Baidu, and Afterpay Ltd (ASX: APT) shareholder and WeChat owner, Tencent.

Xero Limited (ASX: XRO)

A final ASX tech share to consider buying in September is Xero. It has been growing at a strong rate for years and looks well-positioned to continue this trend in the future. Especially given its evolution from a cloud-based accounting service into a full service business solution. It’s offering was given a boost recently by the acquisition of Waddle. It is a cloud-based lending platform that helps small businesses access capital through invoice financing. Management believes the acquisition aligns with its strategy to grow the small business platform and to address critical small business financial needs.

More reading

• Top brokers name 3 ASX shares to buy next week
• Why investing more in super can turbo charge your retirement plans
• These were the worst performing ASX 200 shares last week
• Why I’d buy Afterpay and other ASX tech shares at record highs
• Bulls versus bears – two experts face off on where share prices are going

James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Xero. The Motley Fool Australia owns shares of and has recommended BetaShares Asia Technology Tigers ETF. The Motley Fool Australia owns shares of AFTERPAY T FPO and Appen 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.

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I think there are always ASX share opportunities on the ASX to buy. You just need to buy the right ones at the right price.

It’s a good idea to decide which shares you may want to buy in the form of a watchlist. Then you could jump on opportunities whenever they pop up.

I think the below four ASX shares are long-term opportunities and I’d be very happy to buy for my portfolio right now:

Citadel Group Ltd (ASX: CGL) – $3,000

Citadel is a leading ASX tech share that provides software to help organisations manage data in sectors like defence, education and healthcare.

The company recently reported its FY20 result which had a lot going on, partly due to the acquisition of Wellbeing. I really like the transformational acquisition. It’s a UK software provider for the healthcare industry.

Compared to the core Citadel business, Wellbeing has higher recurring revenue and it also has a higher earnings before interest, tax, depreciation and amortisation (EBITDA) margin. It improved quality of the overall Citadel business.

In FY20 Citadel’s underlying EBITDA grew by 25.3%. I think FY21 and beyond looks very promising for Citadel.

At the current Citadel share price, it’s trading at around 13x FY22’s estimated earnings.

Pushpay Holdings Ltd (ASX: PPH) – $3,500

Pushpay is another exciting ASX share in my opinion.

It’s an electronic donation business which helps its clients facilitate digital giving. Its largest customer base is the US large and medium church sector. There is a huge amount of money donated to US churches each year. Pushpay is aiming for US$1 billion of revenue over the long-term.

The company could become a lot larger partly as a result of its growing profit margins. In FY20 alone Pushpay’s gross margin improved from 60% to 65%. That’s a big increase in one year. It indicates that the business can become more profitable again in FY21, FY22 and beyond.

At the current Pushpay share price it’s trading at 35x FY22’s estimated earnings.

Magellan High Conviction Trust (ASX: MHH) – $1,500

This is a listed investment trust (LIT) which invests in other businesses on your behalf.

The ASX share is managed by Magellan Financial Group Ltd (ASX: MFG), the portfolio is full of Magellan’s best (growth) ideas.

What names make it into a portfolio of (approximately) just 10 names? Some of its biggest holdings include Alibaba, Alphabet, Microsoft, Tencent and Facebook. These are quality global businesses with resilient operating models for the current COVID-19 environment.

At the current Magellan High Conviction Trust it’s trading a 5% discount to the current indicative net asset value (NAV).

Washington H. Soul Pattinson and Co. Ltd (ASX: SOL) – $2,000

Soul Patts is a great investment conglomerate in my opinion. It has been around for over a century and I think the current uncertain environment is a good one for the business to excel in.

It owns a number of defensive businesses like telecommunications, property, swimming schools and agriculture. These industries should be able to perform well even during a recession.

The ASX share is regularly adding to its portfolio of investments. There are plans to invest in regional data centres, which is a good growth industry at the moment with the shift to cloud infrastructure.

Not only is Soul Patts a solid growing business, but it also has a great dividend history. It has increased its dividend every year for 20 years in a row.

At the current Soul Patts share price it offers a grossed-up dividend yield of 4.2%.

Foolish takeaway

I really like each of these ASX shares. I think that Citadel and Pushpay have very exciting futures which is why I’d be willing to invest more in both of them. However, I like the long-term returns and diversification offered by Soul Patts and Magellan High Conviction Trust.

More reading

• 3 stellar ASX growth shares to buy right now
• 5 top ASX dividend shares you should never sell
• 2 great ASX shares I’d buy for income and growth
• Volatile day for the Citadel share price following FY 2020 results
• 3 small cap ASX growth shares to buy right now

Motley Fool contributor Tristan Harrison owns shares of Washington H. Soul Pattinson and Company Limited. 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 has recommended Citadel Group 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.

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While some shares have fully recovered from the 2020 market crash, many others continue to trade at relatively low levels. As such, there are still likely to be buying opportunities for long-term investors who are seeking to grow the size of their portfolio.

Through purchasing undervalued shares now, you could benefit from their long-term recovery potential as the prospects for the world economy improve. This may lead to market-beating returns that improve your chances of making a million.

Low valuations after the market crash

Numerous stocks continue to trade at low prices after the market crash. In fact, vast swathes of the stock market are currently trading significantly lower year-to-date, with their uncertain financial prospects causing investor sentiment to remain weak. For example, commodity-related stocks, banks and many support services companies currently trade on valuations that have not been seen since the last major global recession in 2008/09.

Buying stocks at low prices has historically been a sound means to generate high returns in the long run. As with any asset, a lower price provides greater scope for capital growth. It also means there may be a wider margin of safety on offer. In some cases, such as where a company has a solid financial position and long-term growth potential, a low valuation may not be merited. This could reduce overall risks for investors when such companies are purchased as part of a diverse portfolio of shares.

Recovery potential

While some sectors may currently seem unlikely to recover from the 2020 market crash, history suggests that they will encounter improving operating conditions in the coming years. For example, at times it felt as though the world economy would never recover from the global financial crisis. However, through the use of an accommodative monetary policy, global GDP growth gradually recovered. This allowed companies trading in a wide range of sectors to produce rising profitability, which catalysed their share prices.

With policymakers having already sought to stimulate economic growth through fiscal and monetary policy stimulus in many of the world’s major economies, the long-term prospects for global growth could be relatively sound. As such, buying a range of cheap stocks now while other investors are bearish on their prospects may enable you to benefit from a likely recovery in their prospects in the coming years.

Making a million

While the market crash may have temporarily derailed the performance of the stock market, its track record suggests that it offers high return potential in the long run. For example, indexes such as the FTSE 100 and S&P 500 have produced high single-digit annual returns over recent decades.

Assuming an 8% return on a $500 monthly investment, you could obtain a seven-figure portfolio within 35 years. However, through buying undervalued shares now ahead of a likely global economic recovery, you may be able to generate even higher returns than those of the stock market. This could improve your chances of making a million in the coming years.

More reading

• Where I’d invest $10,000 right now in ASX shares
• Top brokers name 3 ASX shares to buy next week
• Will the RBA keep the cash rate on hold for 3 more years?
• Top brokers name 3 ASX shares to sell next week
• ASX reporting season heroes to buy for FY21

Motley Fool contributor Peter Stephens has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. 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.

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Last week saw a large number of broker notes hitting the wires once again. Three buy ratings that caught my eye are summarised below.

Here’s why brokers think investors ought to buy them next week:

Appen Ltd (ASX: APX)

According to a note out of the Macquarie equities desk, its analysts have retained their outperform rating and lifted the price target on this artificial intelligence services company’s shares to $43.00. Although Macquarie acknowledges that Appen’s first half performance was softer than the market expected, it still believes it will achieve its guidance in FY 2020. It also remains very positive on the future thanks to the increasing spending on artificial intelligence. I agree with Macquarie on Appen and feel it would be a great buy and hold option.

Aventus Group (ASX: AVN)

Analysts at UBS have upgraded this property company’s shares to a buy rating and lifted the price target on them to $2.50. According to the note, the broker was impressed with Aventus’ FY 2020 results and believes it demonstrates the strength of its large format retail assets. And while it acknowledges that no guidance was given for the year ahead, it remains positive on its outlook and expects its assets to benefit from changing consumer habits. I think UBS is spot on and would be a buyer of Aventus’ shares.

Bravura Solutions Ltd (ASX: BVS)

Another note out of Macquarie reveals that its analysts have retained their outperform rating but trimmed the price target on this financial technology company’s shares to $5.50. Although Bravura’s performance in FY 2021 looks set to be disrupted by the pandemic, the broker appears confident this is temporary and its long term prospects remain positive. In light of this, it feels it is worth sticking with the company. I agree with Macquarie and would buy and hold Bravura shares.

More reading

• These were the worst performing ASX 200 shares last week
• Brokers name 3 ASX shares to buy right now
• The Appen share price is down 9% today. Here’s why
• ASX shares are on track for new record highs. Here’s why…
• ASX 200 down 0.9%: Costa impresses, Harvey Norman profits grow, Appen downgraded

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Bravura Solutions Ltd. The Motley Fool Australia owns shares of Appen Ltd. The Motley Fool Australia has recommended AVENTUS RE UNIT. 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.

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