Many investors in ASX shares think you have to time the market to build wealth. That’s simply not the case, and in fact, I believe market timing could cause your portfolio more harm than good.

Here’s why the tried and tested ‘buy and hold’ strategy can often work out best in the long run.

Why you don’t have to time the market to get rich

The February/March bear market was the perfect illustration of why trying to time the market can be so dangerous.

As ASX shares plummeted, many investors panicked and sold their positions. This would trigger a capital gains event (assuming you had picked some winners), meaning there’s tax implications, as well as the requirement to pay brokerage.

Let’s say your average investor didn’t sell on the first day of the market falling, which was around 20 February. Instead, they might have waited until the S&P/ASX 200 Index (ASX: XJO) had fallen 25.9% by mid-March.

And if they were the type of flighty investor that was willing to sell at the first sign of trouble, they may have also had a particularly bearish outlook on ASX shares for the remainder of 2020. This means they probably would have waited for a strong upward trend before buying back into the market.

Let’s say they waited until the ASX 200 benchmark was up 20.7% from its 23 March lows on 14 April before buying back in.

That investor would be in a very similar position to what they would’ve been in had they held their investment over the entire period. Only they would have paid brokerage twice and taxes on their gains.

Trying to time the market is honestly a mug’s game. If you’re a serious investor, I believe it’s best to purchase high-quality companies and hold them for the long term.

Which ASX shares should I be buying?

Which ASX shares to buy is the next question. Rather than day trading, which is essentially gambling with your money, remember that you’re investing in actual companies.

The shares you end up buying will depend on your investment goals and current portfolio construction. I personally like the look of a couple of blue-chips in the current market.

BHP Group Ltd (ASX: BHP), for example, could be a strong buy ahead of a potential infrastructure boom. Alternatively, picking up Woolworths Group Ltd (ASX: WOW) on the back of its strong turnover figures could be a consideration.

Whatever your strategy, trying to time the market should not be a big part of it. Keep your eye on the prize and with a touch of luck you could build a sizeable portfolio over time.

More reading

• Qantas share price on watch as it launches a $2bn cap raise
• Could one of these ASX shares be ‘the next Afterpay’?
• Why I would buy these outstanding ASX 50 shares right now
• 3 star ASX shares to buy for the rest of 2020
• 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 Woolworths 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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More reading

• Qantas share price on watch as it launches a $2bn cap raise
• You don’t have to time the market to get rich with ASX shares
• CSL share price on watch after US$450 million acquisition news
• Could one of these ASX shares be ‘the next Afterpay’?
• Why I would buy these outstanding ASX 50 shares right now

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The CSL Limited (ASX: CSL) share price will be on watch on Thursday after a promising announcement out of the biotherapeutics company.

What did CSL announce?

Hot on the heels of its decision to acquire clinical-stage biotechnology company Vitaeris earlier this month, this morning the company announced plans to make another acquisition.

CSL has agreed to acquire the exclusive global license rights to commercialise an adenoassociated virus (AAV) gene therapy program, AMT-061 (etranacogene dezaparvovec), for the treatment of haemophilia from Nasdaq-listed gene therapy company, uniQure .

According to the release, the AMT-061 program, which is currently in Phase 3 clinical trials, could be one of the first gene therapies to provide potentially long-term benefits to patients with haemophilia B.

Management explained that one dose of AMT-061 has shown to increase Factor IX (FIX) plasma levels to a degree that reduces or eliminates the tendency for bleeding for many years. FIX is the blood clotting protein lacking in people with haemophilia B.

This means that should AMT-061’s trials be successful, appropriate candidate haemophilia B patients will be able to have a one-time treatment to restore FIX activity to functional levels capable of eliminating the need for frequent and ongoing replacement therapies.

CSL’s CEO and Managing Director, Paul Perreault, commented: “Our vision for haemophilia B patients is to offer transformational treatment paradigms that help free them from the lifelong burden of this disease. With more than three decades of providing lifesaving innovations for the global bleeding disorders community, we are well positioned to maximise the potential benefit of this therapy.”

What is CSL paying for AMT-061?

Under the agreement with the gene therapy company, CSL will have the exclusive global right to commercialise AMT-061.

It will pay uniQure an upfront cash payment of US$450 million, followed by regulatory and commercial sales milestone payments and royalties.

In addition, uniQure will complete the Phase 3 trial and scale up manufacture for early commercial supply under an agreed plan with CSL. The transaction remains subject to customary regulatory clearances before closing.

Mr. Perreault concluded: “Upon approval, we believe this next-generation therapy would be highly complementary to our existing haemophilia B product portfolio. We hope that it provides patients with an alternate best-in-class treatment option, building on our legacy of delivering lifesaving innovations in hematology.”

More reading

• Why I would buy these outstanding ASX 50 shares right now
• Give your portfolio a boost with these ASX blue chip shares
• Australian businesses are running out of cash
• 3 ASX shares I’d buy if the market crashes again
• Consider these 3 quality ASX healthcare shares to buy now

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 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.

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There aren’t many ASX shares on the market like Afterpay Ltd (ASX: APT).

The Afterpay share price has nearly doubled in value this year while the S&P/ASX 200 Index (ASX: XJO) has slumped 10.8% lower.

While many investors think the ship has sailed on the buy now, pay later leader, given its current $59.38 per share valuation, could either of these candidates be ‘the next Afterpay’?

An Afterpay Competitor

Let’s start with an obvious candidate and one of Afterpay’s top rivals: Openpay Group Ltd (ASX: OPY).

Openpay is another buy now, pay later provider that differentiates itself based on its repayment schedule flexibility. Unlike Afterpay’s fairly rigid 8-week schedule, Openpay’s repayment period can stretch as long as 18 months.

The ASX buy now, pay later share listed in December 2019 and has traded around its first closing price of $1.33 for most of the time since then.

However, the last month or so has been a different story for Openpay. From the beginning of June, the Openpay share price began surging and is now trading at $2.48 per share with a market capitalisation of $267.5 million.

The buy now, pay later sector is competitive and I think we’ll see more consolidation in the months and years ahead. While Openpay may not be the next Afterpay, the company could still attract the interest of buyers on the acquisition trail.

Of course, betting on acquisitions is a purely speculative game. If Openpay can execute its expansion plans, then it may be able to continue climbing as a top ASX growth share in 2020.

An ASX Biotech share

Of course, it’s not just competitors that could be the ‘next Afterpay’ in terms of share price growth. I think the biotechnology sector could harbour some hidden gems in the current market.

In particular, Pro Medicus Limited (ASX: PME) has caught my eye right now. The Pro Medicus share price climbed 1.5% higher yesterday and is up 23.3% for the year.

The Aussie biotech company is a leading imaging technology company specialising in radiology IT services. It boasts a current market capitalisation of $2.9 billion.

In the short-term, I think demand for Pro Medicus’ services will be high given the backlog of medical work arising from COVID-19 lockdowns. Thinking longer-term, there’s a huge addressable market for Pro Medicus due to increasing use of imagery and medical technology overall.

Foolish takeaway

These are just a couple of the ASX shares I’ve got my eye on right now. I think both Openpay and Pro Medicus could have strong growth trajectories going forward.

There aren’t many companies like Afterpay out there, and it can take both savvy investing and a bit of luck to find them.

More reading

• Why Xero and these ASX tech shares just hit record highs
• 3 high quality ASX shares I would buy if there were another market crash
• 3 star ASX shares to buy for the rest of 2020
• 5 things to watch on the ASX 200 on Thursday
• Why the risks of a market correction for the ASX 200 is rising

Ken Hall has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. recommends Pro Medicus Ltd. The Motley Fool Australia owns shares of and has recommended Pro Medicus Ltd. 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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One of the most important large cap equity indices is the S&P/ASX 50 index. It represents 50 of the largest and most liquid shares listed on the ASX by market capitalisation.

Among these 50 companies are a number that I believe are outstanding long term investment options. Three ASX 50 shares that I would buy today are listed below:

BHP Group Ltd (ASX: BHP)

I think BHP is an ASX 50 share to consider buying. I believe the mining giant is the most outstanding option in the resources sector. This is due to the diversity of its world class operations and their extremely low costs. The latter means that BHP is able to fully benefit from favourable prices of many commodities it produces such as iron ore. I believe this leaves it well-placed to generate strong free cash flows again this year and in FY 2021. And given how strong its balance sheet is, this is likely to mean generous dividends being paid to shareholders.

CSL Limited (ASX: CSL)

A second ASX 50 share to look at is biotherapeutics giant CSL. I think CSL is the highest quality option on the index and well-placed to deliver solid earnings growth over the next decade. This is due to its leading and lucrative therapies, growing plasma collection network, and its impressive research and development (R&D) pipeline. The latter contains a number of therapies which have the potential to generate billions of dollars in sales over the next decade if their trials are successful.

Goodman Group (ASX: GMG)

A final ASX 50 share to consider buying is Goodman Group. It owns, develops, and manages industrial real estate across several countries. I’m a big fan of the company because of its high quality portfolio and exposure to markets with very positive long term outlooks. The latter includes its exposure to ecommerce through relationships with giant such as Amazon, DHL, and Walmart. I expect these assets to be in demand for a long time to come.

More reading

• CSL share price on watch after US$450 million acquisition news
• Give your portfolio a boost with these ASX blue chip shares
• Australian businesses are running out of cash
• 3 ASX shares I’d buy if the market crashes again
• This top fund manager believes dividend yields are going to 0%. Where should you invest?

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 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.

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Are you looking for better interest rates than those on offer with savings accounts or term deposits? Good news! Despite the pandemic, the Australian share market is still home to a good number of shares offering generous dividends.

Three ASX dividend shares which I think are top options right now are listed below:

BWP Trust (ASX: BWP)

The first dividend share to consider buying is this real estate investment trust. It leases the majority of its portfolio to hardware giant Bunnings, which I feel is a fantastic tenant to have. The benefits of this were demonstrated yesterday when BWP revealed its estimated final distribution for FY 2020. The company intends to declare a 9.27 cents per unit distribution, which will bring its full year distribution to a total of 18.29 cents per unit. Based on its last close price, this equates to a 4.65% distribution yield.

Commonwealth Bank of Australia (ASX: CBA)

I think the pullback in the Commonwealth Bank share price this year has brought it down to an attractive level for a patient investment. Especially as I’m optimistic that the worst is now behind the banks after the Royal Commission, bushfires, and pandemic. This could even mean that a return to growth isn’t too far away for the bank. For now, though, I expect Commonwealth Bank to cut its dividend down to approximately $3.70 per share in FY 2021. This equates to a fully franked forward 5.3% dividend yield.

Sydney Airport Holdings Pty Ltd (ASX: SYD)

Investors that are not in immediate need for dividends might want to consider Sydney Airport. I’m not overly convinced the airport operator will pay a final dividend this year, or if it does it will be significantly reduced. However, as long as Australia avoids a second wave of coronavirus, I believe the domestic tourism market will have recovered enough for Sydney Airport to pay a decent 29 cents per share dividend in FY 2021. If this proves accurate, it will mean a 5% dividend yield next year.

More reading

• Australian businesses are running out of cash
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• The CBA share price is down 13% this year. Is it a cheap buy?
• My 3 high-yield ASX dividend shares to buy now
• Coronavirus second wave potential could drive investment portfolio changes

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.

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