I think it’s a great time to be investing in ASX shares. But which ones?
A diversified exchange-traded fund (ETF) is usually not a bad idea, but I believe there are other ones worth looking at:
MFF Capital Investments Ltd (ASX: MFF)
MFF Capital is a listed investment company (LIC), one of the best in my opinion.
It’s not often that you get the chance to buy a great company at a cheap price
But that’s exactly what you can get right now. MFF Capital owns a portfolio of shares. On a per-share basis the value (NTA) was $2.95 on 19 March 2021. The MFF Capital share price is $2.64, so there’s a 11% discount on offer.
But MFF Capital has a strong long-term track record – over the last ten years it has delivered an annualised total shareholder return of 16.4% per annum according to CMC.
Under the stewardship of Chris Mackay, MFF Capital has been very effective at finding good performers such as Visa and Mastercard. It’s also invested in a number of quality shares including Amazon, Berkshire Hathaway and Microsoft.
A bonus with this ASX share is that the board intend to keep growing the dividend.
Brickworks Limited (ASX: BKW)
Brickworks has been one of the most effective ASX shares over the last five decades in my opinion.
In some ways it has become a world-leading company at what it does in manufacturing building products.
Brickworks sells a wide variety of things like bricks, masonry, precast and roofing.
It has been very good at maximising the value from its land and knowing when to do maintenance on assets. It’s also not afraid to invest heavily in new facilities.
It’s trying to take this industry-leading approach to the US, which is a much bigger market and it’s a big long-term opportunity.
The other reason why I’m excited by Brickworks is its great property trust in partnership with Goodman Group
(ASX: GMG).
Not only are the two new warehouses for Coles Group Ltd (ASX: COL) and Amazon expected to unlock huge value for Brickworks, but it still has plenty of land which can also be built on.
Brickworks has a really good pipeline of opportunities with the property trust. Demand for well placed logistics properties is only going to increase further.
Combine that with the shares of Washington H. Soul Pattinson and Co. Ltd (ASX: SOL) and I think Brickworks has a very promising future.
