There are a few ASX shares that I think look good value for the long-term.
Foreign currency movement is not a major factor for me for wanting to buy any particular business, but it’s a useful bonus with ASX shares that have US dollar exposure with how strong the Aussie dollar is.
I like the look of these two ASX shares right now:
WCM Global Growth Ltd (ASX: WQG)
This is a listed investment company (LIC) that is managed by WCM, a California-based fund manager.
I really like the WCM way of investing. It aims for businesses that are increasing the size of the economic moat, or the competitive advantage.
Some businesses have large economic moats compared to the competition. But if that advantage isn’t strengthening then there’s a good chance that competition may start catching up.
WCM also looks for businesses that have management that have a culture of trying to improve the moat. WCM has certain ways to judge the business and management on its moat culture.
It has performed very well. Its portfolio has produced net returns (after fees) of an average of 19.8% per annum since June 2017.
Some of its current biggest positions include MercadoLibre, Taiwan Semiconductor, Shopify and West Pharmaceuticals.
Pushpay Holdings Ltd (ASX: PPH)
Pushpay is one of my highest conviction ASX tech share ideas at the moment. It provides donation and church management tools for the large and medium US church sector.
Some commentators believe that Pushpay’s growth is going to slow as COVID-19 impacts subside and also because there aren’t many more large churches for it to win over.
Those may be fair points, though I think that the trend towards electronic payments isn’t going to go backwards. As the US economy recovers, there could be even more donations as level of household income heads back to pre-COVID levels.
There may not be too many more churches to win, but I think the market share of donations can keep increasing in those larger churches.
Pushpay is also now intending to expand into other adjacent sectors like smaller US churches and churches in other countries.
The company continues to boast of stronger operating leverage as it processes more volume. In the latest half-year report it told investors that its EBITDAF margin (EBITDA explained – the F stands for foreign currency) increased from 17% to 31%.
If Pushpay keeps growing its margins then it could be a very large business once it reaches US$500 million of revenue.
