When it comes to investing in the ASX, I always prefer to look well into the future. Markets like the S&P/ASX 200 Index (ASX: XJO) already operate based on many forward-looking mechanisms.

But in order to outperform the market over the long-term, you sometimes have to be bolder than the market. This is particularly true when it comes to contemplating how the economy will function in 1, 5 or even 10 years’ time.

So what are the ASX future fortune-making industries?

With this in mind, here are 3 ASX industries I think will be alive and thriving for the foreseeable future and beyond! I think if you invest $3,000 in any of these industries, you have a strong possibility of making a fortune over the next decade.

Healthcare

Healthcare is the very definition of an evergreen industry. Until humanity discovers the elixir of life (not too likely in my view), we’re always going to need medical services and supplies. Furthermore, Australia (along with most of the world’s advanced economies) has an ageing population. This alone should ensure a decades-long tailwind for the healthcare sector.

Luckily, the ASX is full of quality companies that operate in this space. Private hospital operator Ramsay Health Care Limited (ASX: RHC) is one such company. Ramsay has a massive portfolio of well-regarded private hospitals in Australia as well as around the world.

CSL Limited (ASX: CSL) is another consistent winner, as is Cochlear Limited (ASX: COH) and, more recently, Polynovo Ltd (ASX: PNV). Plenty of choices here!

Software-as-a-Service (SaaS)

Software-as-a-Service is a relatively new business concept. This is because it is only enabled by the pervasiveness of the internet and by the cloud infrastructure that now underpins it. But this doesn’t mean it’s not a great place to invest for growth over the coming decade.

Many ASX SaaS companies have already delivered substantial fortunes for their investors on the back of surging share prices over the last few years. Investors have been especially attracted to companies committed to aggressive expansion plans and long-term, strategic outlooks. Altium Limited (ASX: ALU) and Xero Limited (ASX: XRO) are two such examples. Despite the fact both companies’ share prices have rocketed over the past couple of years, I still think this space remains primed for massive growth down the road. I believe this growth is likely to be enjoyed by the ASX’s existing SaaS key players as well as some possible new entrants.

ASX resources

Although this sector is somewhat boring when compared with the first two on my list, I do believe it has the potential to make investors sizeable amounts of money over the coming decade. Whilst some might argue resources is an ‘old-world’ industry, the fact remains that almost all facets of the economy still rely on one resource or another – whether it be steel, copper or aluminium.

And I believe there’s still room for future growth too. The economy of tomorrow is probably going to be less fossil-fuel focused (hopefully) and more reliant on resources used in electronics. Things like silver, lithium and cobalt. Thus, smaller resources players like Galaxy Resources Limited (ASX: GXY) and Pilbara Minerals Ltd (ASX: PLS) could currently be worth investing in for long-term growth potential.

Foolish takeaway

Whilst it’s easy to become obsessed with the coronavirus-led volatility in the market right now, no one can predict what ASX shares will do in the immediate future. I believe, a smarter approach is to focus on the decades ahead and consider investing in ASX industries that are well positioned for long-term, future growth.

More reading

• Down 10% in 2 months. Are Coles shares a buy today?
• Why this ASX 200 stock could surge higher tomorrow
• Do the Altium and Xero share prices still represent good long-term buys?
• Can we value ASX shares with P/E ratios in 2020?
• Why this ASX funeral share is well positioned for future growth

Sebastian Bowen owns shares of Ramsay Health Care Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Cochlear Ltd., CSL Ltd., and Xero. The Motley Fool Australia owns shares of Altium. The Motley Fool Australia has recommended Cochlear Ltd. and Ramsay Health Care 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 $3,000 invested in these 3 ASX industries could make you a fortune in the future appeared first on Motley Fool Australia.

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The Coles Group Ltd (ASX: COL) share price is down around 10% over the past two months.

Coles shares are today trading at $15.23 at the time of writing. Seeing as Coles shares were over $17 back in March, is this a buying opportunity for this ASX consumer staples giant?

Why are Coles shares falling?

Since mid-March, the broader S&P/ASX 200 Index (ASX: XJO) has surged over 22% in value. In this period, Coles’ share price has gone backwards. So what’s going on?

Well, Coles shares were one of the few stocks that investors were flocking to during March. Investors were evidently drawn to the company’s defensive qualities and were responding to the panic buying of essentials we saw across the country at the time.

Today, the situation is remarkably different.

The initial bump in revenue Coles experienced during the first quarter of 2020 has likely evaporated. We know this because just today, the Australian Bureau of Statistics released its April retail data, which found food retail spending fell by 17.1% in April, compared with March.

Meanwhile, most of the additional spending Coles has had to implement recently on safety equipment and extra store sanitisation looks like it’s here to stay for at least the remainder of 2020. Coles also employed a massive number of new staff over the last few months, which is another cost the company has to absorb.

Are Coles shares a buy today?

Coles shares certainly look a lot more attractive than they did two months ago, but I’m still not convinced they’re a screaming bargain on today’s prices. This is a company that I don’t think will see significant growth over the next few years. Its ‘Smarter Selling’ cost-cutting program has also had a major wrench thrown into it by the coronavirus.

In saying that, dividend income is hard to find on the ASX these days and so I think Coles shares have a lot of merit from an income investing perspective. On current prices, Coles shares are offering a trailing dividend yield of 2.76%, or 3.94% grossed-up with full franking.

That’s a lot better than a term deposit or a non-existent dividend from Westpac Banking Corp (ASX: WBC).

Foolish Takeaway

Coles is a good business with strong fundamentals and many attractive defensive qualities, which it certainly showed off during the market panic we saw in March with aplomb. I wouldn’t buy this company for its future growth prospects, but I think Coles shares remain a sound choice for reliable ASX dividend income today.

More reading

• $3,000 invested in these 3 ASX industries could make you a fortune in the future
• Aussie retail numbers paint a gloomy ASX picture
• The Bubs share price is up 20% in May, will it catch up to the A2 Milk share price?
• Why this ASX 200 stock could surge higher tomorrow
• Can we value ASX shares with P/E ratios in 2020?

Motley Fool contributor Sebastian Bowen has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of COLESGROUP DEF SET. 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 Down 10% in 2 months. Are Coles shares a buy today? appeared first on Motley Fool Australia.

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Is the Webjet Limited (ASX: WEB) share price a buy?

Just over a week ago I looked at whether the Webjet share price was a buy. I concluded it seemed cheap if travel can return sooner rather than later. Since then it’s gone up about 12% in a week – that’s a quick return if you bought at the time!

I wasn’t expecting it to make such a quick double digit return. So I thought I’d revisit my thinking on the Webjet share price. Investment thoughts can change if something goes up or down over 10% in such a short time.

Why I was feeling bullish 

The company raised around $350 million in a capital raising which is being used to strengthen the balance sheet because of the travel restrictions that are in place globally due to the coronavirus. I think this puts the business in a much stronger position compared to a lot of its travel peers – Webjet should be able to easily survive to December 2020 even if strict restrictions remained. That alone was a boost to the Webjet share price. 

But the restrictions are lifting much earlier than expected. I believe international travel is nowhere close to coming back yet though. But the possibility of domestic travel has been brought forward with some other restrictions ending. The NSW government has said that people will be able to visit regional NSW. I think that’s very promising that domestic bookings could start again sooner rather than later.

I think Webjet also has an advantage in that it delivers its service online. That means it has a lower cost base and customers will still be able to access all of the options, it’s not like a closed physical travel agent shop.

Is the Webjet share price a buy now?

After a quick 12% rise from around a week ago I think I’d be inclined to take profits off the table today. The share market has returned an average of 10% a year over the decades, so making 12% in a week is an attractive return and I’m cautious about investors expecting too much from Webjet this year.

Hopefully it can keep rising and I still believe it could be a solid performer over the next 5 to 10 years, but taking profits off the table today wouldn’t be a terrible decision.

More reading

• Can we value ASX shares with P/E ratios in 2020?
• Why James Hardie, Oil Search, Webjet, & Westpac shares are jumping higher
• 3 industries that may never recover from COVID-19
• Why a buy and hold strategy for ASX shares is best
• Why Qantas, Webjet and these ASX travel shares are dropping lower today

Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Webjet 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.

The post Is the Webjet share price a buy? appeared first on Motley Fool Australia.

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