The prices of ASX shares are always changing. The current market volatility in-particular is creating opportunities for us to invest at beaten-down prices.
If I had $10,000 to invest today, this is how I'd do it:
REA Group Limited (ASX: REA) – $3,000
A weak housing market, rising interest rates and market volatility has seen the REA Group share price fall to the current price of around $74.
I believe there's a lot to like about REA Group at this price. It has proven it can increase revenue and profit even in tough market conditions and lower volumes, by encouraging property sellers to pay for more expensive advertising packages.
Over the longer-term I believe its investments in other property sites, particularly in Asia, could lead to long-term value creation for shareholders.
REA Group is currently trading at 29x FY19's estimated earnings.
MFF Capital Investments Ltd (ASX: MFF) – $3,000
MFF Capital is one of my favourite listed investment companies (LICs) on the ASX. It invests in overseas shares, it has an excellent track record and it has committed to increase the dividend from its current levels.
The global share market has a number of excellent businesses that are worth investing in, so a good way to access those ideas could be to delegate to the investment team of this quality LIC.
It's currently trading at 5% discount to its pre-tax NTA that was reported at the end of last week.
WAM Microcap Limited (ASX: WMI) – $2,000
WAM Microcap is one of the best LIC managers that focuses on ASX small caps in my opinion. It looks at shares with market capitalisations under $300 million at the time of acquisition.
Small caps are getting pummelled during the current volatility, which is why WAM Microcap keeps such a high level of cash. It's times like this that are excellent for cash because it provides protection and opportunities.
Despite elevated volatility, I think WAM Microcap could be one of the top LIC performers over the next decade.
Vanguard FTSE Asia Ex Japan Shares Index ETF (ASX: VAE) – $2,000
Asian shares are looking very cheap compared to their Western counterparts. Yet, as a whole, the Asian share market is delivering better earnings growth thanks to the growing economies of China and India.
I don't know much about individual Asian businesses, nor would I want to take a guess at which ones will be individually successful from here. So it might be best to simply buy a huge basket of them with this Vanguard Asian ETF.
Foolish takeaway
In my opinion, these four shares could all beat the ASX's returns over the next five years. They all have the potential to grow their value by more than 10% a year and are trading at attractive values today.
