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.

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.

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Looking for a source of income in this low interest rate environment? Then the three ASX dividend shares listed below could be great options.

I believe all three are well-positioned to continue paying dividends during the pandemic and then grow them in 2021. Here’s why I would buy them:

BWP Trust (ASX: BWP)

The first dividend share I would suggest investors consider buying is BWP. It is a real estate investment trust investing in and managing commercial properties throughout Australia. The majority of its properties are large format retail properties, which are predominantly leased to home improvement and outdoor living giant, Bunnings. I think this is a high quality tenant to have and feel confident it will be staying put in its warehouses for the long term. Especially given how Bunnings is owned by Wesfarmers, which just happens to own a ~23.6% stake in BWP. At present I estimate that the company’s units offer a forward 5.1% yield.

Dicker Data Ltd (ASX: DDR)

Another dividend share to consider buying is Dicker Data. It is a leading distributor of information technology products which has been growing at a strong rate over the last few years. This has been driven by its strong market position, growing demand, and the addition of many new vendors. I believe Dicker Data is well-positioned to continue its growth over the coming years, which should be good news for income investors. In fact, this year the company intends to grow its dividend 31% to 35.5 cents per share.  This represents a fully franked 4.8% yield.

Wesfarmers Ltd (ASX: WES)

A final option to consider is Wesfarmers. It is one of Australia’s leading conglomerates and the company behind brands such as Bunnings, Kmart, Target, online retailer Catch, and Officeworks. In addition to its retail exposure, the company also owns a number of businesses in the chemicals and industrials industries. Combined, I believe this leaves Wesfarmers well-positioned to grow its earnings and dividends consistently over the coming years. At present I estimate that its shares offer a forward fully franked ~3.9% dividend yield.

More reading

• Is the Wesfarmers share price in the buy zone?
• 3 safe and strong ASX dividend shares to buy right now
• Macquarie picks the best stocks to buy for the post COVID-19 rebound
• Forget term deposits and buy these top ASX dividend shares
• The importance of diversifying your ASX portfolio and how you can do it

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Dicker Data Limited. The Motley Fool Australia owns shares of Wesfarmers 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 3 high yield ASX dividend shares you can buy right now appeared first on Motley Fool Australia.

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