How much do you think you would have now if you had invested $5,000 into the share market each year since 1990?

That’s a total of $150,000 invested over a 30-year period. Maybe it would be worth $250,000 now? Or perhaps even half a million?

Well, you might be surprised to learn that if you earned the market return of 9.5% per annum, you would have generated even more wealth. Today, these investments would be worth approximately $825,000.

I believe this demonstrates how rewarding it can be to invest consistently over a long period.

With that in mind, I have picked out three top ASX shares which I believe would be great options for your first $5,000 investment:

Bubs Australia Ltd (ASX: BUB)

I think Bubs could be a good option for a $5,000 investment. It is an infant formula and baby food company which has been growing at a rapid rate. This has been driven by its expanding distribution footprint in Australia and increasing demand in the Asia market. The good news is that its distribution footprint has just expanded further and demand in China is accelerating. I believe this bodes well for its future earnings growth.

Freedom Foods Group Ltd (ASX: FNP)

Another ASX share to consider investing $5,000 into is Freedom Foods. It is a diversified food company with a focus on healthy eating. Its shares have fallen heavily this year after the pandemic hit a number of its sales channels hard. I believe these headwinds are only temporary and investors ought to take advantage of its share price weakness to buy shares. Especially given its very positive long term earnings growth outlook thanks to increasing demand for UHT dairy products, plant beverages, and cereals and snacks.

ResMed Inc. (ASX: RMD)

A final option for a $5,000 investment is ResMed. I believe the medical device company can continue growing its earnings at a solid rate for some time to come. This is thanks to its exposure to a sleep treatment market growing quickly due to the proliferation of sleep apnoea. I think ResMed will be one of the biggest winners in the market because of its high quality masks and software solutions.

More reading

• What ASX shares should you invest in during a bull market?
• 3 ASX shares to buy and hold for the 2030s
• 3 quality ASX shares to buy and hold for decades
• Have $10,000? This is where I’d invest it into ASX shares
• Here’s why long term investing can outperform shorter holding periods

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 BUBS AUST FPO. The Motley Fool Australia has recommended BUBS AUST FPO, Freedom Foods Group Limited, and ResMed Inc. 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 Can you get rich by investing $5,000 a year into ASX shares? appeared first on Motley Fool Australia.

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It’s hard to know where to invest in ASX shares right now. The S&P/ASX 200 Index (ASX: XJO) has roared back to life after the bear market slump in February and March.

There’s so much uncertainty around the economy with monetary and fiscal policy fighting against the impending Aussie recession.

With all that’s going on, here’s where I’d be looking to invest $2,500 right now.

How to invest $2,500 in ASX shares today

I’m a big believer of the old mantra, ‘time in the market beats timing the market’. Essentially this means that you shouldn’t overthink the current market if you’re investing for the long-term.

The ASX 200 has historically trended upwards which is good news for buy and hold investors.

I think buying high-quality ASX shares is the key to long-term wealth.

This means I’m looking at some of the good value, blue chip shares today. For instance, the BHP Group Ltd (ASX: BHP) share price is one I’ve got my eye on.

BHP shares have fallen lower in 2020 but could be due for a rebound. Strong commodity prices may persist for the rest of 2020 and beyond if we see a global infrastructure boom.

That’s good news for the ASX mining share and its earnings. But it’s not just the mining sector that could be set to gain this year.

It’s hard to ignore the healthcare sector amid the coronavirus pandemic. Healthcare companies generally have non-cyclical earnings and some defensive exposure is often a good thing.

This means I’d be looking at an ASX healthcare share like CSL Limited (ASX: CSL).

CSL shares have slumped below the $300 per share mark in recent weeks. This could present a buying opportunity if you’re bullish on the Aussie biotech’s long-term success.

I think CSL has a strong research and development pipeline as well as a competitive advantage in both its influenza vaccinations and blood plasma segments.

This could mean the ASX healthcare share is due for a rebound back towards the $300 mark and beyond in 2020.

More reading

• Top brokers name 3 ASX 200 shares to sell next week
• Top brokers name 3 ASX 200 shares to buy next week
• How mum and dad investors are beating fund managers at their own game
• Why dividend shares aren’t quite as good as you’d think
• Is this ASX small cap the best placed to benefit from the $700m HomeBuilder grant?

Ken Hall has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of CSL Ltd. 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.

The post Where I’d invest $2,500 in ASX shares today appeared first on Motley Fool Australia.

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Once again, a large number of broker notes hit the wires last week. Some of these notes were positive and some were bearish.

Three sell ratings that caught my eye are summarised below. Here’s why top brokers think investors ought to sell these shares next week:

ASX Ltd (ASX: ASX)

According to a note out of Goldman Sachs, its analysts have retained their sell rating and $64.08 price target on this stock exchange operator’s shares. The broker continues to believe that ASX Ltd’s shares are overvalued at the current level following the release of its May update last week. Especially after futures volumes were down sharply for a second month in a row. The ASX Ltd share price ended the week at $87.03.

Magellan Financial Group Ltd (ASX: MFG)

A note out of Morgan Stanley reveals that its analysts have retained their underweight rating and $40.00 price target on this fund manager’s shares. This follows the release of Magellan’s May update which revealed sizeable institutional fund outflows. In light of this outflow, it has concerns over the premium its shares trade at and fears that they could de-rate if funds inflows slow. The Magellan share price last traded at $58.00.

Nufarm Limited (ASX: NUF)

Analysts at Morgans have downgraded this agricultural chemicals company’s shares to a reduce rating with an improved price target of $4.76. According to the note, the broker has concerns over the impact the pandemic is having on its fourth quarter performance. It notes that this has created a lot of near term uncertainty for its earnings. And while it believes its balance sheet is robust, it isn’t enough to prevent a downgrade to a reduce rating. Nufarm shares were changing hands for $4.93 at the end of last week.

More reading

• Top brokers name 3 ASX 200 shares to buy next week
• How mum and dad investors are beating fund managers at their own game
• Why dividend shares aren’t quite as good as you’d think
• Is this ASX small cap the best placed to benefit from the $700m HomeBuilder grant?
• Invest like Warren Buffett with these ASX 200 shares

Motley Fool contributor James Mickleboro 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.

The post Top brokers name 3 ASX 200 shares to sell next week appeared first on Motley Fool Australia.

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