I often ask myself, “how would Warren Buffett invest in ASX 200 shares right now?”
The Oracle of Omaha is arguably the most successful investor ever. He has built his fortune by combining long-term thinking with short-term tactical buying. His investment strategy has clearly paid dividends (even if Berkshire Hathaway doesn’t!) and I think the current market is ripe with opportunities for value investing.
Many ASX 200 shares have been smashed in the recent downturn. But a large proportion of these will emerge from the coronavirus pandemic with their businesses intact. They, therefore, could represent super cheap buying right now. Furthermore, with markets remaining volatile amid COVID-19 related updates, large daily swings are offering up plenty of chances to snap up some bargain buys.
So, amongst all the noise, how can you invest $1,000 in ASX shares like Warren Buffett himself?
How to invest $1,000 in ASX 200 shares like Warren Buffett
The key to value investing is looking for undervalued companies. This means those that have experienced heavy share price falls are prime buying candidates.
However, share prices don’t often fall for no reason. Investors are usually pricing in actual or expected decreases in earnings and/or future growth. The trick to investing like Warren Buffett is finding those that have been unfairly oversold.
I’ve got my eye on a couple of such ASX 200 shares. I think some of the real estate investment trusts (REITs) could be oversold right now. Take, for instance, National Storage REIT (ASX: NSR).
National Storage specialises in self-storage units and its share price has fallen 5.98% lower in 2020. However, if the economy and residential housing market nosedive this year, I think National Storage REIT earnings could benefit. Increasing numbers of people would be looking to store their possessions while they search for housing and/or temporarily downsize to save costs. The ASX 200 REIT was also a potential takeover target amongst several contenders prior to the pandemic. As such, it could be back on the acquisition radar when the market settles.
I also like the look of Macquarie Group Ltd (ASX: MQG). The ASX 200 financial group’s shares are down 23.21% in 2020 and could represent a great vehicle for investing $1,000 today. All of the ASX bank shares have been smashed this year, but I think Macquarie’s diversified investments and earnings streams could see it pull through the market downturn in good shape.
If you’re looking for more undervalued shares in 2020, you don’t want to miss these 5 top picks today!
NEW! 5 Cheap Stocks With Massive Upside Potential
Our experts at The Motley Fool have just released a FREE report detailing 5 shares you can buy now to take advantage of the much cheaper share prices on offer.
One is a diversified conglomerate trading 40% off it’s all-time high, all while offering a fully franked dividend yield of over 3%…
Another is a former stock market darling that is one of Australia’s most popular and iconic businesses. Trading at a <strong>significant discount</strong> to its 52-week high, not only does this stock offer massive upside potential, but it also trades on an attractive fully franked dividend yield of almost 4%.
Plus, this free report highlights 3 more cheap bets that could position you to profit in 2020 and beyond.
Simply click here to scoop up your FREE copy and discover the names of all 5 cheap shares.
But you will have to hurry because the cheap share prices on offer today might not last for long.
More reading
- Why ASX 200 iron ore miners are your best bet for dividends right now
- Why I’d invest $1,000 in this ASX tech share today
- Is the Wesfarmers share price in the buy zone?
- 3 five-star ASX 200 shares to buy right now
- 5 things to watch on the ASX 200 on Thursday
Motley Fool contributor Ken Hall has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Macquarie Group 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 How to invest $1,000 in ASX 200 shares like Warren Buffett today appeared first on Motley Fool Australia.
from Motley Fool Australia https://ift.tt/2ToqSfK
Leave a Reply