The ASX share market is a great place to find long-term opportunities. I think the two ASX shares I'm going to write about in this article can do really well from their current prices for the long term.
Interest rates and inflation are causing a lot of volatility in the stock market. But, as Warren Buffett once said about investing during market uncertainty:
Be fearful when others are greedy, and greedy when others are fearful.
There could be some really good opportunities right now like the below ideas which could do well for years to come. I'd buy them with $2,000.
Image source: Getty Images
Wesfarmers Ltd (ASX: WES)
Wesfarmers is one of my favourite businesses on the ASX – it operates a number of retailers like Bunnings, Kmart, Officeworks and Target.
In an economic environment where households have less spare money, the value-focused offers of Bunnings and Kmart could do much better than competitors.
I like the diversified nature of the company. The ASX share has a growing portfolio of non-retail brands, thanks to its healthcare, industrial and chemicals, energy and fertiliser (WesCEF) divisions.
As we can see on the chart above, the Wesfarmers share price is down around 9% from 26 April 2023, making it much cheaper. It's possible there could be further declines, but I think the total shareholder returns over the next five years (share price and dividend growth) can be solid, particularly once a fully-operational Mt Holland starts generating earnings.
As we can see on the chart above, Wesfarmers' current price/earnings (P/E) ratio is close to the lowest it has been since the COVID-19 crash.
Vaneck Morningstar Wide Moat ETF (ASX: MOAT)
This is a high-performing exchange-traded fund (ETF), though past performance is not a reliable indicator of future returns.
VanEck says that this index is a rules-based index that's invested in at least 40 "attractively priced US wide-moat stocks, as determined by Morningstar's time-tested proprietary research."
An economic moat refers to the competitive advantages of a business. Morningstar says that the "durability of economic profits is far more important than magnitude." For a company to be involved in the portfolio, it must have at least one of five moat sources: intangible assets, cost advantages, switching costs, network effects and efficient scale.
The economic moat is expected by Morningstar to endure for more than a decade.
As we can see on the chart below, the ASX share has delivered a lot of capital growth over the past five years. I think the investment style is very effective for the portfolio and that it could do well in the long term.
