I think listed investment companies (LIC) can be a really good way to make good long-termtotal returns if you find good investment managers.

The job of a LIC is to invest in other shares on behalf of shareholders. If they make good investment returns then it should lead to good growth of the share price and usually attractive dividends.

Fees are part of the picture. The higher the fees that the LIC charges, the more that detracts from the LIC’s net returns.

There is a complication to consider with LICs. They sometimes trade at a premium to their net tangible asset (NTA) value and sometimes they trade at a discount. That means you can buy $1 of assets for $0.90 if the NTA discount was 10%. Sometimes LICs trade at a premium, so the $1 of assets could cost $1.10. But the best LICs could be worth paying a premium for. 

With that in mind, here are two LICs that could be good for strong total returns:

MFF Capital Investments Ltd (ASX: MFF)

MFF Capital is a LIC that focuses on international shares. It’s run by Chris Mackay, the co-founder of Magellan Financial Group Ltd (ASX: MFG). He owns around $200 million of MFF Capital shares, so he’s very aligned with the regular shareholders.

According to CMC, over the past decade it has delivered total shareholder returns (TSR) of an average of 17.5% per annum, making it one of the best-performing LICs out there.

I think that long-term performance could continue with some of its current holdings. Looking at its positions worth more than 1%, it owns businesses like Visa, MasterCard, Home Depot, CVS Health, Facebook, Berkshire Hathaway, Microsoft, CK Hutchison, Flutter Entertainment, L’Oreal and JP Morgan Chase.

Aside from investing in great businesses, another reason to like MFF Capital is that it has low costs. Its fees are fixed, which means as it gets bigger it will cost even less as a percentage of assets.

The board has provided guidance that MFF Capital is going to increase its half-yearly dividend to 5 cents per share. An annual dividend of 10 cents per share would equate to a grossed-up dividend yield of 5.5% at today’s MFF Capital share price.

WAM Microcap Limited (ASX: WMI)

WAM Microcap is a LIC that targets ASX shares with market capitalisations under $300 million at the time of acquisition. This is the area of the market where investors can unearth some hidden gems if they look hard enough.

The Wilson Asset Management team have done very well at finding undervalued growth companies. Since inception in June 2017, WAM Microcap’s portfolio has delivered average annual returns per annum of 21.2%, before fees, expenses and taxes. This has been a great performance, which includes the COVID-19 period.

The LIC has been rewarding shareholders with special dividends in each financial year since FY18. FY20 saw total dividends of 9 cents per share declared for investors. That represents a big dividend return in one year.

Some of the small caps that it owned at the end of September 2020 included Redbubble Ltd (ASX: RBL), Baby Bunting Group Ltd (ASX: BBN), Temple & Webster Group Ltd (ASX: TPW), Macquarie Telecom Group Ltd. (ASX: MAQ) and City Chic Collective Ltd (ASX: CCX).

At the current WAM Microcap share price it offers a grossed-up ordinary dividend yield of 5.4%. That’s a solid starting yield and it could be boosted by regular special dividends if the strong performance keeps coming.

Foolish takeaway

I believe that both of these LICs are capable of continuing to produce strong returns over the coming years. At the current prices I’d probably go for MFF Capital for the international exposure and NTA discount.  

ASX small caps have had a really strong run over the last six months and the WAM Microcap share price now appears to be trading at a premium to its NTA. Though I must admit that WAM Microcap is one of the biggest positions in my portfolio, so it’s not as though I’m pessimistic about it at this price.

But I’m also looking at other share opportunities at the moment.

More reading

• How to replace your entire wage with ASX dividend shares
• This is where I’d invest $1,000 right now into ASX shares
• Where I’d invest $10,000 into ASX dividend shares
• 3 ASX shares I’d buy if the share market crashes again
• This ASX share is my top contrarian play right now

Tristan Harrison owns shares of Magellan Flagship Fund Ltd and WAM MICRO FPO. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Temple & Webster Group Ltd. The Motley Fool Australia has recommended Temple & Webster 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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Is the CSL Limited (ASX: CSL) share price a buy right now?

CSL is commonly regarded as one of the highest-quality businesses out there at the moment.

What has been happening recently?

The CSL share price is still down 12.3% from its pre-COVID-19 high, so it hasn’t recovered as much as many investors would like.

CSL didn’t fall as much as many shares from the peak to the bottom during the COVID-19 crash. On the share price front, it hasn’t done much over the past few months.

The recent CSL updates have been interesting but haven’t moved the market much.

FY20 was a solid result. Revenue went up 9% in constant currency terms and net profit after tax (NPAT) grew 17% in constant currency terms to US$2.1 billion.

At the time of the FY20 profit release, it provided FY21 net profit guidance of between US$2.1 billion to US$2.265 billion. That would have been growth of between 0% to 8%.

The annual general meeting (AGM) sort of included a profit upgrade. It changed that profit guidance to a range of US$2.17 billion to US$2.265 billion. This guidance implies FY21 net profit growth of between 3% to 8%. It’s pleasing to see that CSL is expecting yet another year of profit growth.

It’s still expecting strong demand for plasma and recombinant therapies to continue. CSL also expects strong demand for flu vaccines. Sales of albumin is expected to return to normal after the successful transition to the new business model in China. These are all pleasing points. 

However, COVID-19 restrictions are expected to hurt the company’s ability to collect plasma and this will add to the overall cost of collection. But CSL said it has multiple initiatives to mitigate this impact.

One of the most important developments recently is that CSL is investing in its research and development response to COVID-19. It is responsible for manufacturing the COVID-19 vaccine in Australia. This is on top of its normal R&D expenditure, so it expects to spend about 10% to 11% of revenue on R&D.

Why I think the CSL share price is a buy

It’s the R&D that makes me most willing to buy CSL shares. That’s despite the CSL share price trading at 34x FY23’s estimated earnings.

CSL expenses its R&D each year. In FY20 it spent US$922 million on R&D, compared to its net profit of US$1.9 billion. It would obviously be much more profitable if it spent $0 on R&D. But it’s the R&D that will open up new earnings streams for CSL in the coming years.

There is a potential scenario where people need a regular COVID-19 booster and it’s likely that CSL would be the company to manufacture it for Australia.

Despite its huge size, CSL continues to become more profitable with higher margins, which is the sign of a great business. In FY20 CSL grew its gross profit margin from 56% to 57.1% and the earnings before interest and tax (EBIT) margin rose from 29.3% to 29.7%.

There are few ASX shares in the ASX 100 that are in the healthcare industry, which earn a lot of profit internationally and have a long-term growth runway. CSL offers an attractive combination of growth and defence. 

Even if the CSL share price looks a little expensive, I think it’s worth buying today for the long-term. Quality businesses are able to generate good returns even if economic conditions are a bit tough.

There are also other bigger ASX shares I’d be willing to consider for my portfolio including A2 Milk Company Ltd (ASX: A2M), Magellan Financial Group Ltd (ASX: MFG) and Washington H. Soul Pattinson and Co. Ltd (ASX: SOL).

More reading

• 5 things to watch on the ASX 200 next week
• 10 must-buy ASX shares to snap up before it’s too late
• How to make $50,000 of passive income with ASX dividends
• Should you stay invested in an ASX share after a strong run?
• This is how you can become a millionaire with ASX shares

Tristan Harrison owns shares of Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of CSL Ltd. The Motley Fool Australia owns shares of and has recommended A2 Milk and Washington H. Soul Pattinson and Company 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.

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Are you looking for a source of income in this low interest rate environment? Then you might want to consider buying these ASX dividend shares next week.

Here’s why I think they are great options right now:

Accent Group Ltd (ASX: AX1)

The first dividend share that I think income investors ought to consider buying is Accent Group. It is the company behind retail brands The Athlete’s Foot, Platypus, and HYPE DC. It is also the distributor of a number of popular brands such as Vans, Timberland, Dr Martens, and Skechers. While certain areas of the retail sector have struggled during the pandemic, lifestyle footwear hasn’t been one of them.

Accent Group delivered very strong sales and profit growth at the end of FY 2020 and this appears to have carried over into the new financial year. Looking further ahead, I believe the company is well-placed for growth over the coming years thanks to its expansion plans, rapidly growing online business, and strong market position. In FY 2021, I expect the company to pay a 9 cents per share fully franked dividend. Based on the current Accent share price, this will be a 4.9% yield.

Wesfarmers Ltd (ASX: WES)

Another ASX dividend share to consider buying is Wesfarmers. As with Accent Group, Wesfarmers has been a positive performer during the pandemic. This is thanks largely to its key Bunnings business. The good news is that with the government providing home improvement stimulus and tax cuts, I believe Bunnings is well-positioned to continue its positive form over the coming years.

In addition to this, tax cuts are likely to be supportive of its other businesses such as Kmart, Target, and Catch. Combined with potential earnings accretive acquisitions, I believe Wesfarmers can grow its earnings and dividend at a solid rate over the 2020s. For now, I expect it to pay a fully franked dividend of ~$1.50 per share in FY 2021. Based on the latest Wesfarmers share price, this equates to an attractive fully franked 3.1% dividend yield.

More reading

• How ASX 200 investors can collect a rent check from Bunnings Warehouses
• These ASX ETFs could be perfect for dividend-seekers
• Is the Wesfarmers (ASX:WES) share price a strong buy today?
• Forget Westpac savings accounts and earn an income from these ASX dividend shares
• Revealed: ASX Christmas winners and losers

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of Wesfarmers Limited. The Motley Fool Australia has recommended Accent Group. 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 was another positive one for the S&P/ASX 200 Index (ASX: XJO). Despite a soft end to it, the benchmark index finished the period with a weekly gain of 1.2% to 6,176.8 points.

Another busy five days is expected next week. Here’s what to look out for:

ASX futures pointing higher.

According to the latest SPI futures, the ASX 200 is expected to open the week 39 points or 0.6% higher. This follows a reasonably positive end to the week on Wall Street. On Friday night the Dow Jones rose 0.4%, the S&P 500 edged slightly higher, and the Nasdaq dropped 0.35% lower. Stronger than expected U.S. retail sales data gave U.S. markets a lift.

CSL R&D Investor Briefing.

The CSL Limited (ASX: CSL) share price will be on watch on Tuesday when it holds its annual research and development (R&D) investor briefing. In FY 2020 the biotherapeutics giant invested US$922 million in its R&D. Investors will no doubt be keen to hear how this money is being spent and what new therapies are on the way. One treatment of interest is EtranaDez, which was acquired from uniQure this year for US$450 million. It is a new gene therapy undergoing phase 3 trials as a treatment for haemophilia B.

BHP quarterly update.

The BHP Group Ltd (ASX: BHP) share price will also be one to watch on Tuesday when the mining giant releases its first quarter update. According to a note out of Goldman Sachs, it expects BHP to report Petroleum production of 26Mboe, Copper production of 365kt, and iron ore shipments of 71.5Mt. The latter represents a 7% quarter on quarter decline in shipments. On Monday, South32 Ltd (ASX: S32) will be releasing its update.

Annual general meetings galore.

Annual general meeting season goes up a gear next week with a large number of companies due to hold their annual (virtual) events. This includes Cochlear Limited (ASX: COH), IDP Education Ltd (ASX: IEL), Qantas Airways Limited (ASX: QAN), and Webjet Limited (ASX: WEB). These companies could provide updates on their performances during the first quarter.

Tech shares on watch.

Australian tech shares such as Afterpay Ltd (ASX: APT) and Xero Limited (ASX: XRO) will be on watch next week. Last week the S&P/ASX All Technology Index (ASX: XTX) recorded a solid 3.7% gain, which extended the tech index’s month to date gain to an impressive 11.5%. Investors will be hoping this strong run continues. Though, the Nasdaq index falling 0.35% on Friday night could have some say in that.

More reading

• How to turn $20k in ASX shares into $1 million in 30 years
• Is the Redbubble Ltd (ASX: RBL) share price a buy after soaring 30% this week?
• 10 must-buy ASX shares to snap up before it’s too late
• How to make $50,000 of passive income with ASX dividends
• These were the worst performing shares on the ASX 200 last week

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 Cochlear Ltd., CSL Ltd., Idp Education Pty Ltd, and Xero. The Motley Fool Australia owns shares of and has recommended Webjet Ltd. The Motley Fool Australia owns shares of AFTERPAY T FPO. The Motley Fool Australia has recommended Cochlear 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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The stock market crash could mean there are more bargain shares now available to buy. Company valuations have fallen drastically across a wide range of sectors. While in some cases they may be deserved due weak financial outlooks, other businesses appear to offer excellent value for money given their financial strength and market position.

As such, now could be the right time to invest money in undervalued stocks. They could deliver impressive returns in the coming years that help you to retire early.

Identifying bargain shares

Of course, determining which companies can be viewed as bargain shares is not an exact science. However, it is likely to mean that the price at which a stock is trading does not fully value its long-term potential. This may be because investors are cautious about company prospects ahead of a possible second market crash. They may demand wider margins of safety to compensate them for an uncertain near-term outlook.

As such, a number of companies with strong balance sheets and robust market positions may be trading at low prices at the present time. Certainly, they could struggle to return to previous record highs in the short run due to political and economic risks. But on a long-term basis, they may prove to be very attractive investments that offer sizeable return potential.

Rising valuations in the coming years

Buying bargain shares may provide long-term growth because of improving company financial performance. For example, company profits are likely to increase as the economic outlook strengthens. This may not appear to be a likely outcome at the present time, given the existence of risks such as COVID-19, Brexit and the US election. However, major fiscal and monetary policy stimulus suggests that an economic recovery that boosts corporate profits is ahead in the coming years.

As well as rising profitability pushing share prices higher, improving investor sentiment could lead to capital growth for investors in the long run. As the financial pressure on businesses subsides and investors become less risk averse, they may accept higher valuations for stocks across the market. This could mean that undervalued stocks become more fully valued, thereby producing capital returns for existing investors.

A relatively attractive opportunity

Bargain shares could present the best means of improving your retirement prospects at the present time. Low interest rates are likely to mean disappointing after-inflation returns from cash and bonds, while high house prices may limit capital return prospects in the property market.

Certainly, a second stock market crash in 2020 cannot be ruled out. However, this risk provides investors with an opportunity to buy high-quality businesses when they are trading at low prices. Over time, they may produce impressive returns that boost your financial situation and help you to retire earlier than planned.

More reading

• How to turn $20k in ASX shares into $1 million in 30 years
• 3 brilliant ASX growth shares to buy
• Beat the rate cuts with these ASX dividend shares
• Is the Redbubble Ltd (ASX: RBL) share price a buy after soaring 30% this week?
• 10 must-buy ASX shares to snap up before it’s too late

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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For ASX share investors, turning a small nest egg into more than $1 million seems impossible. When you make that timeline just 30 years, it seems outrageous.

However, it isn’t impossible and the numbers really do make sense. With some disciplined investing, modest contributions along the way and the magic of compounding returns, a $1 million ASX share portfolio could be within reach.

How the numbers work

I’ve whipped up a very quick example to illustrate just how simple the numbers are. This scenario assumes a starting portfolio of $20,000, an annual return of 9.0% and $5,000 in yearly contributions.

This fictional investor would start out with an ASX share portfolio of just $20,000 in year 0 which would climb to $27,250 by the end of year 1. However, the power of compounding returns really kicks in beyond the 20-year mark.

Just by reinvesting these returns and contributing $5,000 per year, our average Aussie investor builds a $1.01 million portfolio within 30 years. That means if they started at the age of 25, they could have built that nest egg by the age of 55.

The best part? That $1 million portfolio only includes $170,000 of invested money with the rest coming from compounding returns.

Setting up an ASX share portfolio

The numbers show that it’s possible to turn $20,000 into over $1 million in the space of 30 years. That was clearly a simplified example with an assumed set return always reinvested back into the portfolio.

But even in a simplified example, we can see that the numbers work. The hard part is how to build out a portfolio to generate that target return.

There are many ways to set up such a portfolio. It could be done through buying (and eventually selling) ASX growth shares or choosing high-yield dividend shares.

If we go with the latter, it’s easy to see how a 9.0% return is possible. Shares like Scentre Group (ASX: SCG), New Hope Corporation Limited (ASX: NHC) and Westpac Banking Corp (ASX: WBC) all have dividend yields around that mark.

Even the historical averages for major share market indices like the S&P/ASX 200 Index (ASX: XJO) are around 9% per annum.

Foolish takeaway

Portfolio construction is not something that happens overnight. It’s worth taking the time to consider long-term investment goals before diving into buying ASX shares.

Shares can be expensive to buy and sell once you factor in taxes and transaction costs. A high-yield ASX share portfolio can help many Aussie set themselves up for retirement with a bit of hard work and a touch of luck.

More reading

• These were the worst performing shares on the ASX 200 last week
• These were the best performing shares on the ASX 200 last week
• ASX 200 falls, Tyro (ASX:TYR) up on merchant deal
• Class action lawsuit a new challenge for Rio Tinto (ASX:RIO) share price
• Why Afterpay’s (ASX:APT) Nick Molnar is embracing the fashion world

Motley Fool contributor Ken Hall 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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If you’re interested in adding some growth shares to your portfolio next week, then you might want to consider the three listed below.

I believe these ASX growth shares could provide market-beating returns for investors over the long term. Here’s why I think they are in the buy zone:

a2 Milk Company Ltd (ASX: A2M)

I think A2 Milk Company is a growth share to buy. The New Zealand-based infant formula and fresh milk company has been growing its earnings at a rapid rate over the last years. This has been driven largely by strong sales in the daigou channel and on mainland China. And while the daigou channel has been impacted in FY 2021 by lockdowns and will weigh on its near term growth, I expect a swift rebound once the crisis passes. After which, I expect further strong growth thanks to its modest market share in China, strong brand, increasing distribution footprint, and potential value accretive acquisitions.

REA Group Limited (ASX: REA)

Another ASX growth share that I would buy is REA Group. I think the owner and operator of the realestate.com.au website is well-placed for growth over the next decade thanks to its dominant ANZ business and its growing international operations. Another positive is its cost cutting during the pandemic. If a portion of these cost reductions can be maintained, then it should be supportive of margin expansion. Especially given the company’s price increase opportunities and new revenue streams.

Zip Co Ltd (ASX: Z1P)

A final ASX growth share to consider buying is this buy now pay later provider. I think it could be a great long term option due to the growing popularity of the payment method, the demise of credit cards, and its global expansion. While there is a fair bit of uncertainty because of PayPal’s entry into the market in the United States, I believe there is plenty of room for multiple players to operate successfully in the $5 trillion market. Pleasingly, business is booming in the United States for Zip’s QuadPay business. Last week it revealed that QuadPay customer numbers had reached 2.2 million at the end of September. This means almost half of its customer base is now in the United States. If it can build on this momentum during the holiday season, it could be a big year for Zip.

More reading

• 10 must-buy ASX shares to snap up before it’s too late
• These were the worst performing shares on the ASX 200 last week
• 3 shares with intelligent fanatics I would invest in today
• Zip (ASX:Z1P) share price slumps 10% this week: is it a buying opportunity? 
• Should you stay invested in an ASX share after a strong run?

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 ZIPCOLTD FPO. The Motley Fool Australia owns shares of and has recommended A2 Milk. The Motley Fool Australia has recommended REA 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.

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According to the latest ASX 30 Day Interbank Cash Rate Futures, the market is pricing in a 73% probability of a rate cut to zero by the Reserve Bank next month.

While I’m not sure the central bank will take rates to zero, I do suspect a cut from 0.25% to 0.1% could be coming. If this happens, it is likely to further pressure on the interest rates offered with term deposits and savings accounts.

In light of this, I think income investors would be better sticking with dividend shares for the foreseeable future. But which dividend shares? Two I would buy are:

Bravura Solutions Ltd (ASX: BVS)

The first ASX dividend share that I would buy is Bravura Solutions. It is a leading provider of software products and services to the wealth management and funds administration industries. The key product in its portfolio for me is the Sonata wealth management platform. This has been underpinning its growth over the last few years and looks well-placed to continue doing so thanks to its quality and sizeable addressable market.

Bravura also has a number of other quality products supporting its growth. This includes the Rufus transfer agency solution, the Midwinter financial planning solution, and the recently acquired Delta Financial Systems. All in all, I believe this portfolio of products has put Bravura in a great position to grow its dividend at a strong rate over the 2020s. For now, I estimate that it will pay an 11.5 cents per share dividend in FY 2021. Based on the current Bravura share price, this equates to a 3.45% dividend yield.

National Storage REIT (ASX: NSR)

Another ASX dividend share that I think would be a great option is National Storage. It is one of Australasia’s largest self-storage providers. From its 190+ centres across Australia and New Zealand, National Storage tailors self-storage solutions to residential and commercial customers.

It has been growing at a solid rate over the last decade thanks to a combination of organic and inorganic growth. While trading conditions are tough at present because of the pandemic, I believe its exposure to ecommerce and a potential rebound in the housing market in 2021 will underpin further growth over the medium term. In the meantime, based on the current National Storage share price, I estimate that it offers investors a forward 4.2% dividend yield.

More reading

• 10 must-buy ASX shares to snap up before it’s too late
• These ASX growth shares could be great options in October
• ASX 200 ends higher, Link (ASX:LNK) share price shoots 24% higher
• ASX 200 Weekly Wrap: Budget, US election sparks 5% surge in ASX shares
• Why the Bravura Solutions (ASX:BVS) share price is one to watch today

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. 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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The Redbubble Ltd (ASX: RBL) share price has delivered Afterpay Ltd (ASX: APT) like returns after soaring more than 1000% from March trough to today’s peak. After an outstanding FY21 first quarter trading update, is it too late to buy the Redbubble share price? 

Record first quarter FY21

Redbubble is in a prime position to leverage the global opportunity presented by the shift to online activity and increasing adoption of e-commerce platforms. It delivered an outstanding FY21 first quarter trading update with Q1 revenue increasing 114% to $175.8 million and an EBIT of $22.1 million compared to a $1.5 million loss in Q1 FY20. 

The company’s products are diverse across T-shirts, accessories, stationery and stickers, artwork, homewares and other apparels. T-shirts and accessories contributed to 56% of its revenues in Q1. The accessories segment experienced more than 500% revenue growth in Q1 year on year, likely to be driven by the increased purchases of face masks.  

North America contributes to more than 70% of the company’s revenue. Other regions such as Europe, the UK and ANZ contributed 12%, 10% and 6% respectively. All major regions delivered triple digit growth excluding the EU.

Moving forward, the company is focused on 4 key initiatives to generate ongoing profitable growth. This includes: 

• Artist acquisition, activation and retention 
• User acquisition and transaction optimisation 
• Customer understanding, loyalty and brand building 
• Further physical product and fulfilment network expansion  

Is the Redbubble share price a buy?

It’s a tough call for the Redbubble share price as it soared more than 1000% since its March lows without taking any breathers. The increasing number of COVID-19 cases in major economies around the world and the upcoming US election could increase the general market volatility in the near term. This could make Redbubble susceptible to sharp sell offs and profit-taking. 

Notwithstanding the risks to the broader market, Redbubble delivered an outstanding Q1 FY21 update and paints a roadmap to profitability. The company maintains a strong balance sheet with $58 million in cash as at 30 June 2020. It is also trades at a cheaper revenue multiple than US-listed competitor, Etsy. 

Foolish Takeaway

I would prefer the Redbubble share price to take a breather and healthy pullback before considering it a buy. However, given the strong Q1 FY21 update, it appears that the share price is likely to stay near record high levels or continue to push higher. If you’re a believer of the Redbubble business, I would pay closer attention to its share price for any buying opportunities. 

More reading

• 10 must-buy ASX shares to snap up before it’s too late
• Why Afterpay’s (ASX:APT) Nick Molnar is embracing the fashion world
• Brokers name 3 ASX shares to buy right now
• Why Beacon Lighting, Medibank, Redbubble, & Tyro shares are racing higher today
• How this fund manager’s 60% UP in the year of COVID-19

Motley Fool contributor Lina Lim has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of AFTERPAY T FPO. 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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The Australian share market is home to thousands of companies for investors to choose from.

Given the large number of options, it can be hard to decide which ones to add to your portfolio.

To help you on your way, I have picked out 10 of the best ASX shares I think you can buy now. They are as follows:

a2 Milk Company Ltd (ASX: A2M)

a2 Milk Company is a leading fresh milk and infant formula company. While FY 2021 looks set to be a rare off-year because of negative impacts from the pandemic, I believe it will bounce back strongly in FY 2022. Looking further ahead, I think it has the opportunity to grow its market share materially in China. This should underpin solid earnings growth over the 2020s.

Altium Limited (ASX: ALU)

Another option for investors is Altium. It is the electronic design software platform provider responsible for the award-winning Altium Designer product. Due to its exposure to the rapidly growing Internet of Things and AI markets, I believe it is well-placed for long term growth.

Afterpay Ltd (ASX: APT)

I think Afterpay would be an ASX share to consider buying with a long term view. Thanks to its international expansion and the increasing popularity of the buy now pay later payment method, I believe Afterpay can continue growing its underlying sales at a rapid rate for the foreseeable future. 

Appen Ltd (ASX: APX)

Appen is a leading developer of high-quality, human-annotated training data for machine learning and artificial intelligence. Given the size of these markets and their rapid growth, I believe Appen is likely to experience a sustained increase in demand over the next few years. This should underpin solid earnings growth over the medium term.

Bravura Solutions Ltd (ASX: BVS)

Bravura Solutions is the financial technology company behind the Sonata wealth management platform. This platform allows financial advisers to connect and engage with clients via computers, tablets, or smartphones. It also has a number of other solutions with large addressable markets.

CSL Limited (ASX: CSL)

Due to the quality of its core plasma business, the growing Seqirus influenza business, and its lucrative R&D pipeline I believe CSL could be a long term market-beater. And while plasma collections are difficult right now and could weigh on costs, I’m optimistic that heightened demand for flu vaccines will offset some of this. All in all, I believe this makes it an ASX share to buy.

Goodman Group (ASX: GMG)

Goodman Group is a commercial and industrial property company which I think would be a great long term option. I’m a big fan of the company due to the strength of its portfolio and its exposure to growth markets such as ecommerce. Goodman’s customers include Alibaba, Amazon, DHL, eBay, and Net a Porter.

Pushpay Holdings Ltd (ASX: PPH)

One of my favourite ASX shares right now is Pushpay. It is a fast-growing donor management and community engagement provider to the church market. Thanks to the quality of its platform, its leadership position, and the shift to a cashless society, I’m confident Pushpay will continue its rapid growth for the foreseeable future.

ResMed Inc. (ASX: RMD)

Another ASX share I’m bullish on is ResMed. It is a sleep treatment focused medical device company which has an enormous market opportunity. Management estimates that upwards of 1 in 7 people are impacted by sleep apnoea. However, the vast majority of these sufferers are undiagnosed. I believe this provides ResMed and its industry-leading products with a significant runway for growth.

Xero Limited (ASX: XRO)

A final option to buy is this cloud-based business and accounting software provider. Over the last few years Xero has evolved from being an accounting platform to a complete small business solution. This has been attracting a growing number of small to medium sized businesses to its platform, underpinning strong revenue growth. I’m confident there is still plenty more to come from Xero. 

More reading

• How to make $50,000 of passive income with ASX dividends
• Where I’d invest $10,000 in ASX shares for growth
• Why Afterpay’s (ASX:APT) Nick Molnar is embracing the fashion world
• 3 outstanding ASX shares to buy with $10,000 right now
• How this fund manager’s 60% UP in the year of COVID-19

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 and recommends Altium. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of CSL Ltd., PUSHPAY FPO NZX, and Xero. The Motley Fool Australia owns shares of and has recommended A2 Milk and Bravura Solutions Ltd. The Motley Fool Australia owns shares of AFTERPAY T FPO and Appen Ltd. The Motley Fool Australia has recommended PUSHPAY FPO NZX 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.

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