If I were investing $5,000 into ASX shares right now I'd want to pick high-quality ideas. There are lots of shares trading at cheaper prices that could be worth buying today.
Before today's movements, the S&P/ASX 200 Index (ASX: XJO) was down around 25% from the start of the coronavirus declines.
It's causing a terrible human toll but it has caused share prices to fall significantly, which are opportunities for potential investors. I'd love to buy these ASX shares:
Brickworks Limited (ASX: BKW) – $2,000
The construction industry is definitely being affected by the ongoing coronavirus outbreak. However, construction is still going on, so Brickworks' building products division isn't going to have a truly terrible year.
Indeed, in Spain where the outbreak has been one of the worst, construction will soon be able to operate as long as they follow social distancing rules.
I think Brickworks is very well placed to ride through this, particularly with its other assets of 'investments' and its 50% stake of its high-quality industrial property trust.
It has been a long-term performer and has generated reliable earnings for decades. Its dividend has been steady or growing for over forty years. It currently offers a grossed-up dividend yield of 6.2%.
Magellan High Conviction Trust (ASX: MHH) – $1,000
The biggest and best businesses in the world are trading at much better cheaper prices these days because of the economic worries.
This is a listed investment trust (LIT) which is operated by the high-performing Magellan Financial Group Ltd (ASX: MFG). It generally owns around 10 high-quality global shares which it has a high conviction in.
At the moment it currently owns shares like Alibaba, Alphabet, Microsoft, Facebook and Visa. These names are going to be less affected because of how they deliver their services to customers. Over the long-term I think it's these tech blue chips that could deliver the best capital growth, particularly after the coronavirus effects are over.
It's currently trading at around its net asset value (NAV), but the share price is down 19.3% since 20 February 2020 which includes the benefit of the weakening Australian dollar.
Future Generation Investment Company Ltd (ASX: FGX) – $2,000
This listed investment company (LIC) is known for outperforming the market when the ASX is falling. It is invested in a number of 'absolute return' funds which can short shares and still make money even if the share market is falling.
It's hard to say what the philanthropic LIC's net tangible assets (NTA) value was at the end of March 2020, or what it is right now, but I think it won't have dropped as much as the share price has.
I like buying shares for less than what they're worth. I believe there's a value opportunity here at a share price of $0.94 and I think its dividend will remain solid during this period.
Future Generation currently offers a grossed-up dividend yield of 7.6%.
Foolish takeaway
I think all three of these shares going to be strong long-term performers. They're all trading at very good value and I'd happily buy all three today – particularly Brickworks and Future Generation.
