If I had $5,000 to invest into some ASX shares, there are some strong choices that I’d like to own for the long-term.
Earlier today, I published a piece about Pushpay Holdings Ltd (ASX: PPH), which is one of the stocks I’d have picked, but there are others I like the look of right now too.
I’d only want to choose great investments at good prices with my $5,000, which is what I believe the below ideas are:
Redbubble Ltd (ASX: RBL)
Redbubble has many of the attractive features that Pushpay does, in my opinion. It’s demonstrating rising profit margins, accelerated growth after COVID-19, growing market share and an ever-improving offering to clients thanks to consistent investment in its products.
The artist-designed product e-commerce company is aiming to become a leading e-commerce business with its two websites – TeePublic.com and Redbubble.com.
It’s doing really well and it’s a cashflow machine. In the first six months of FY21, Redbubble’s operating cashflow almost doubled to $80 million on the back of marketplace revenue growing by 96% – despite all the investing that it’s doing.
In January 2021, marketplace revenue grew 66%. This suggests the growth can continue into the future whatever happens with COVID-19.
MFF Capital Investments Ltd (ASX: MFF)
MFF Capital is one of my favourite listed investment companies (LICs) on the ASX. The role of a LIC is to invest into other shares on behalf of shareholders.
It’s run by Chris Mackay, who I believe is one of the wisest investors in Australia. MFF Capital has performed really well over the last decade with picks like Visa and Mastercard powering the LIC to strong returns. MFF Capital is now fully invested again after holding a large cash position during the COVID-19 period and its picks are doing well.
I like the international diversification it offers with shares Amazon, Home Depot, Berkshire Hathaway, CK Hutchison, Mitsubishi, Alphabet, Intercontinental Exchange, Itochu and L’Oreal.
A bonus is that MFF is looking to regularly grow its dividend to shareholders. One of the main attractions for me is the low management fee of MFF Capital.
Betashares Global Quality Leaders ETF (ASX: QLTY)
Quality exchange traded funds (ETFs) could be a good way to achieve solid long term returns. This offering from BetaShares has a management fee of just 0.35% per year.
What counts as quality? To make it into the ETF, businesses have to score well on return on equity, debt-to-capital, cash flow generation ability and earnings stability.
At the moment the biggest holdings in the portfolio are: Intel, Alphabet, Cisco Systems, Texas Instruments, Intuit, AIA Group, Visa, 3M, Accenture and Johnson & Johnson. This looks like a quality list in my book.
At 26 February 2021, over the prior 12 months it had delivered a net return of 10.7% and since inception in November 2018 it had returned an average of 16.6% per annum.
