I think it's a great time to invest $10,000 into ASX shares right now.
Share prices are a lot cheaper than they were a couple of months ago. We never know what's going to happen with the share market. I think we have to be brave to pick up these attractive opportunities:
PM Capital Global Opportunities Fund Ltd (ASX: PGF) – $2,000
This is a listed investment company (LIC) which specialises in investing in overseas shares. It's run by Paul Moore and his investment team.
It had a great year in 2019. Obviously 2020 has been rough to date, but I think it's a good time to buy shares. PM Capital Global Opportunities Fund releases a net tangible assets (NTA) update every week, so we get a good reading of whether there's value there or not. The current share price is trading at a 20% discount to the NTA at 17 April 2020.
It's currently invested in shares like Visa, Siemens and Freeport-McMoRan Copper.
The LIC has built up an attractive profit reserve. It currently has a grossed-up dividend yield of 6.6%.
Brickworks Limited (ASX: BKW) – $3,000
The best time to buy cyclical shares is when they're at the bottom of the cycle of demand for their products or services. It seems likely that the construction sector is going to go through a lull this year.
The Brickworks share price has dropped by 38% since the share market started dropping. But construction will return at some point in the future, hopefully sooner rather than later.
I think Brickworks is one of the most reliable ASX shares you could pick. It's already been around for many decades.
Its diversified investments and property provide defensive earnings and cashflow during this time. It may have a strong rebound at some point.
Brickworks currently has a grossed-up dividend yield of 6.75%.
Magellan Global Trust (ASX: MGG) – $2,500
Even the best businesses in the world have seen their share prices fall over. It's the high quality global companies that Magellan Global Trust focuses on like Microsoft, Apple, Alphabet, Facebook and so on. These businesses are going to be less affected than most other industries and they have great balance sheets. ASX shares just don't offer the same global power.
Magellan Global Trust was one of the top performers before the coronavirus came along. One of the main benefits of the portfolio is that the earnings are global, not just from the USA. It should be okay even if things get harder there.
I like being able to buy the shares at a discount to their actual value. Magellan Global Trust is trading at a 8.6% discount to the net asset value (NAV) per unit.
Pushpay Holdings Ltd (ASX: PPH) – $2,500
Pushpay could be one of the best-placed ASX shares to get through this period. It's an electronic donation payment system which mainly services churches in the US.
There are obviously not as many church services going on at the moment. But those churches still need donations – Pushpay's digital donation option is great at this time. It also provides churches the opportunity to livestream to the congregation. That's another wonderful option if people are in lockdown or are social distancing.
The company has already increased its earnings before interest, tax, depreciation, amortisation and foreign currency (EBITDAF) guidance during this period. The coronavirus appears to have brought forward growth for Pushpay.
It was already profitable before this and now I think growth could be even stronger in the coming year.
Which ASX shares should you buy?
I think all four of these shares look very attractive right now. The cheaper global share prices are exciting and I think Pushpay's growth prospects are very compelling. But Brickworks is the one that attracts me the most for its reliable cashflow and dividends.
