I think that the ASX share market is a really good way to grow wealth over the long term. For beginners, these could be some really good names to consider.
When I think about a beginner, I'm picturing a younger Aussie investor who has time on their side to achieve good results through compounding.
Not every investment is going to go well. However, there are some businesses and industries that look compelling to me. In five or 10 years' time, they could become much larger.
With that in mind, I think these two ASX shares could be opportunities.
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Betashares Global Cybersecurity ETF (ASX: HACK)
This is an exchange-traded fund (ETF) offering investment exposure to businesses that provide defences against cybercriminals. I think it's a well-timed mention considering the difficulties that Optus and Medibank Private Ltd (ASX: MPL) are experiencing.
It provides exposure to both global cybersecurity giants as well as emerging players. On 24 October 2022, this ETF owned 37 positions. Some of the names it's invested in include Infosys, Cisco Systems, Broadcom, Crowdstrike, Palo Alto, Fortinet, Science Applications, Booz Allen Hamilton, Cyberark Software and Juniper Networks.
I think it's an attractive industry to be invested in for the long term because of the projected growth of revenue in response to cybercrime. According to Statista, the global cybersecurity market is expected to rise from US$137.6 billion in 2017 to US$248.3 billion in 2023.
This investment looks a lot cheaper for beginners (and all investors) after falling 20% since the beginning of the year.
Airtasker Ltd (ASX: ART)
I think Airtasker is one of the most promising smaller ASX shares. It provides a platform for people who need a job done to link up with people and businesses who are willing to do the job.
Anyone can post a job on Airtasker for a number of different things. Tasks include removal services, home cleaning, furniture assembly, painting and handyperson jobs, business and admin, marketing, gardening and so on.
The growth rate of the business is impressive in my opinion. In the fourth quarter of FY22, the business reported revenue growth of 30.6% to $9 million. It's doing well at growing both the number of jobs posted and the number of people doing work – it's important that both of these are balanced. Fourth quarter gross marketplace volume (GMV) went up 38.3% to $54.4 million.
I also think the ASX share has a strong future because of its international addressable market. It's already operating and growing in the United States and United Kingdom. In May 2022, the international GMV reached a monthly annualised rate of $9.5 million.
Airtasker has a gross profit margin of over 90%, meaning that new revenue can largely turn into gross profit. This allows the business to invest a lot of new revenue for more growth.
I believe it's a good time for beginners to consider Airtasker shares because they have fallen 60% this year, so the business is a lot cheaper.
