2 ASX shares to buy for investors in their 20s

Here are 2 ASX shares to buy for investors in their 20s.

| More on:
a woman

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Investors in their 20s should go for shares that are about achieving long-term growth in my opinion.

Income shares aren't necessarily bad choices, but it usually signals that there isn't a lot of capital growth opportunity from that business. Receiving a higher level of income than necessary from your investments can also lead to paying more tax along your investment journey.

That's why I like the following two ASX shares:

MFF Capital Investments Ltd (ASX: MFF)

This business may be the best way for us to be invested in international growth shares. It's a listed investment company (LIC) that invests in the best, high quality growth shares on the planet. I like that it runs a relatively small portfolio compared to the exchange-traded funds (ETFs) that own hundreds of holdings. Having a concentrated portfolio can be good if you know what you're doing.

It has a low annual management fee that should continue to shrink as a percentage because it has a fixed fee arrangement with Magellan Financial Group Ltd (ASX: MFG).

MFF Capital is trading at a discount to its underlying pre-tax assets and has one of the best fund managers in Australia in my opinion at the helm with Chris Mackay, who has an enormous amount of skin/wealth in the game with his (and his family's) MFF Capital holdings getting closer to $200 million in value.

Costa Group Holdings Ltd (ASX: CGC)

Costa may be the best food company on the ASX with its growing list of fresh food that it produces at its farms in Australia, China and North Africa.

Demand for avocados, berries, citrus fruit, mushrooms and tomatoes continues to grow in Australia and internationally as the population grows along with the shift towards more nutritious food. This could lead to rising food prices over the next decade.

If interest rates are cut in Australia this year then growth shares like Costa could become more valuable because of the international earnings and the focus on growth organically & through acquisitions.

Costa is trading at under 20x FY20's estimated earnings.

Foolish takeaway

I think both of these shares would make excellent investments for a time period of a decade or longer. Out of the two I think MFF Capital is an excellent business to own because of the flexibility to invest in any shares in the world.

Motley Fool contributor Tristan Harrison owns shares of COSTA GRP FPO and Magellan Flagship Fund Ltd. The Motley Fool Australia owns shares of and has recommended COSTA GRP FPO. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Growth Shares

a man in a business suit and carrying a laptop stands smiling with hand in pocket outside a large office building in a city environment.
Growth Shares

Buy these 2 impressive ASX 200 shares in July: experts

Experts are bullish about these two businesses.

Read more »

A bearded man holds both arms up diagonally and points with his index fingers to the sky with a thrilled look on his face over these rising Tassal share price
Growth Shares

3 ASX 200 shares set to dominate the next decade

Let's see why these shares could be great long term picks for Aussie investors.

Read more »

A group of businesspeople clapping.
Growth Shares

3 ASX growth shares with 10-year compounding potential

Let's see which shares are being tipped as buys for growth investors.

Read more »

Woman happy and relaxed on a sofa at a shop.
Growth Shares

Are these 2 top ASX growth shares buys?

Are these high-flyers still buys?

Read more »

Two university students in the library, one in a wheelchair, log in for the first time with the help of a lecturer.
Growth Shares

3 stellar ASX growth shares to buy with $7,000

Let's see why analysts are feeling bullish about these top stocks.

Read more »

A smiling man at a shop counter takes payment from a customer, with racks of plants in the background.
Growth Shares

2 ASX shares to buy and hold for the next decade

I’m optimistic about what these investments can deliver in a year.

Read more »

A smiling businessman in the city looks at his phone and punches the air in celebration of good news.
Growth Shares

High-conviction ASX 200 shares with 10-year upside

Let's see why analysts think these shares could be great long term picks.

Read more »

A young male ASX investor raises his clenched fists in excitement because of rising ASX share prices today
Growth Shares

The ultimate Australian stocks to buy and hold for 10+ years

These shares could be ultimate buys according to analysts.

Read more »