Could the ASX be the best share of them all?

Having ASX shares is like owning your own playground. Could it be that one of the best investments of them all is right here in front of you?

| 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

Could it be that one of the best ASX investment choices of them all is right here in front of you?

The ASX first listed back in 1998, listing with a share price of $4. Many brokers couldn't believe their luck when the ASX chose to list itself. The good news kept coming when it then merged with the Sydney Futures Exchange to form the Australian Securities Exchange, ASX Ltd (ASX: ASX).

Brokers thought they had the best share of all. They were impressed with its growth rate and flawless balance sheet. It was on its own with no competition – the ultimate combination of two monopolies – and by 2007, with the economy sailing downwind, ASX shares were trading near $60.

The GFC and a history of headwinds

The ASX share price naturally reflects the health of the total share market. When the Global Financial Crisis rocked the financial world in 2008, the ASX reacted, dropping in price to just over a third of its former value at $24.

But just as the Australian economy overcame the set back of the GFC, ASX shares recovered – only to face their next big hurdle, this time from the Australian Federal Government. Through the Australian Securities and Investments Commission (ASIC), the government had chosen to introduce competition to the ASX monopoly and issued licences to other entities to set up alternative securities exchanges.

Once again, the investor market got the jitters and the ASX share price fell, reflecting the potential threat this new legislation held. It was not to be, however and was very short lived.

Singapore's takeover bid sparks political action

When the Singapore Stock Exchange (SGX) proposed a takeover of the ASX in 2010, it valued the entity at $8.3 billion. The SGX was quite bullish about its offer and touted the fact that this union would create South East Asia's fourth-largest stock exchange.  

After a great deal of publicity, the bid was ultimately not accepted thanks to federal Treasurer Wayne Swan who said in a statement at the time that it was 'no brainer' to reject the merger.

A decade later, the ASX is looking good

Today, ASX shares are trading at a price of $74 at the time of writing, down around 13% with the rest of the market amidst the COVID-19 panic. Until recently, it was priced at over $85 – not a bad gain, considering ASX shares first listed at just $4! Last year, ASX shares paid a franked dividend of $3.58 per share.

For investors, having ASX shares is like owning your own playground. What brokers initially called the 'best share ever' is still offering excellent gains and dividend returns. And it's right under your nose!

Should you invest $1,000 in Appen Limited right now?

Before you buy Appen Limited shares, consider this:

Motley Fool investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now... and Appen Limited wasn't one of them.

The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

And right now, Scott thinks there are 5 stocks that may be better buys...

See The 5 Stocks *Returns as of 30 April 2025

Motley Fool contributor Gregory Butler has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. 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 Share Market News

Person pretends to types on laptop drawn in sand.
Share Gainers

Here are the top 10 ASX 200 shares today

ASX investors had a rough start to the week today.

Read more »

Happy man working on his laptop.
Broker Notes

Leading brokers name 3 ASX shares to buy today

Here's why brokers believe that now could be the time to snap up these shares.

Read more »

Two funeral workers with a laptop surrounded by cofins.
Broker Notes

Macquarie just forecast this ASX 300 dividend share could surge 37%. Here's why

Atop its passive income payouts, Macquarie expects this ASX dividend stock could leap 37% in a year.

Read more »

A person in a gorilla suit leaps really high holding a banana, nearly doing the splits.
Share Gainers

Up 1,238% in a year, why is this ASX gold stock surging again on Monday?

The ASX gold stock is now well into ten-bagger range and still rising fast today.

Read more »

A happy investor sits at his desk in front of his laptop and does the mexican wave with his arms to celebrate the returns from his ASX dividend shares
Share Gainers

Why EOS, Gorilla Gold, Lendlease, and OFX shares are charging higher today

These shares are starting the week on a positive note. But why?

Read more »

A young male investor wearing a white business shirt screams in frustration with his hands grasping his hair after ASX 200 shares fell rapidly today and appear to be heading into a stock market crash
Share Fallers

Why Appen, DroneShield, Gentrack, and New Hope shares are dropping today

These shares are starting the week in the red. But why?

Read more »

An unhappy man in a suit sits at his desk with his arms crossed staring at his laptop screen as the PointsBet share price falls
Materials Shares

Does Macquarie rate James Hardie shares a buy, hold or sell?

The company is set to report FY25 earnings this week.

Read more »

A man looking at his laptop and thinking.
Industrials Shares

Which ASX 200 industrials stock does Macquarie expect to sink 40% over the next 12 months?

Can this name build it's way out of such negative sentiment?

Read more »