I think that 2022 is turning into an opportune time to buy some ASX shares at much better prices.
Ultimately, investing is about finding good investments and buying them at a good price.
We can now buy plenty of ASX shares at much cheaper prices. That’s a good idea to me, which is why I like the look of these two ideas:
WCM Global Growth Ltd (ASX: WQG)
This potential investment is a listed investment company (LIC).
As the name implies, the LIC is looking for global businesses with attractive growth potential.
There are two key factors that the investment team at WCM are looking for, aside from just a good price.
WCM wants to find businesses with a growing economic moat. In other words, the target is businesses that are seeing their competitive advantages getting stronger. This can be measured by a rising return on equity (ROE).
Another thing that the ASX share’s investment team are looking for is a good corporate culture that facilitates and encourages the growth of the economic moat/competitive advantages.
Some of the businesses that currently fit the bill for the portfolio includes: Sherwin-Williams, Thermo Fisher Scientific, Amphenol, Visa, Stryker, UnitedHealth, ServiceNow, Church & Dwight, Nike and Old Dominion Freight Line.
The WCM Global Growth share price has dropped 30% in 2022, so I think its underlying portfolio is much better value now.
Brickworks Limited (ASX: BKW)
Brickworks seems to me to perennially be at an attractive discount to the underlying value of its assets.
While I like the long-term prospects of its building products divisions, particularly in the US, and its investment division, I’m most attracted to Brickworks for its industrial property stake and its dividend.
Including the franking credits, Brickworks currently has a dividend yield of around 4%. It hasn’t cut its dividend for over forty years, which is excellent stability for shareholders.
The industrial property trust is a 50:50 joint venture between Brickworks and Goodman Group (ASX: GMG).
The property trust is benefiting from the strong demand for logistics and e-commerce facilities. Huge warehouses are being built for Coles Group Ltd (ASX: COL) and Woolworths Group Ltd (ASX: WOW). It has already finished a massive warehouse for Amazon.
I think the fact that the trust has years of property projects ahead is really attractive. This will drive up the net asset value of the trust as well as the net rental profit. This should help grow the dividend in the coming years and also increase the underlying value of Brickworks shares.
