I'm listening to Warren Buffett and loading up on cheap ASX shares in March

I love the look of these stocks at these prices.

| More on:
A young woman dressed in street clothes leaps happily in the air with the focus on her bright red boots that are front and centre for the camera.

Image source: Getty Images

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

Warren Buffett has always advocated that investors should buy businesses at a price that's less than they're worth. I think some Aussie companies look like cheap ASX shares following their recent reports.

I only like to look at businesses I think can grow over the long term, meaning they'll be more valuable in three years or five years than today. With that in mind, when the share prices fall, it seems like a good opportunity for me to buy.

Johns Lyng Group Ltd (ASX: JLG)

The Johns Lyng share price is down 10% since 26 February 2024.

The business specialises in restoring a building and its contents after damage by an insured event, including flooding, storms and fire. It's also growing its presence in the catastrophe work industry.

I saw several things in the HY24 result that cemented my belief it has an exciting future.

Its core business as usual (BAU) revenue rose 13.7% to $426.1 million, though total revenue declined 4% because catastrophe revenue was lower. Core BAU earnings before interest, tax, depreciation and amortisation (EBITDA) rose 28.1% to $55 million and total EBITDA grew 7.5% to $63.9 million – that's good evidence of operating leverage.

The ASX share also reported that its BAU normalised net profit after tax (NPAT) rose 15.8% to $25 million. If this number can keep growing by double-digits (in percentage terms), then the compounding can enable Johns Lyng to generate much bigger profits in the coming years.

I was also pleased to see that the company is continuing to make acquisitions in the strata management space. Not only does this mean it can create consistent, resilient earnings, but it can also unlock synergies with the core business by utilising those services. I think Warren Buffett would be a fan of this business.

In my opinion, this short-term pullback is a good buy-point for this cheap(er) ASX share. I'm planning to buy more Johns Lyng shares next week.  

Accent Group Ltd (ASX: AX1)

The Accent share price is down 13% from 14 February 2024.

The business continues to add stores across the brands that it owns as well as shoe brands it acts as a distributor for. In the first half of FY24, it saw a total of 72 new stores added. Accent said 22 new Platypus stores have been opened in Australia and New Zealand, along with 17 new Skechers stores.

The ASX share also saw its contactable customers increase by 0.2 million to 10 million.

It saw its gross profit margin improve from 55.2% to 56.6%, which was enough for the business to report a $2 million increase in its gross profit.

While other profit measures decreased, partly due to the inflation of costs, I think the business has a promising future once retail conditions improve.

Its dividend payment of 8.5 cents per share is still an attractive level of passive income.

The trading update was promising. It said total owned sales in the year to date to the end of January 2024 were up 1.6%, while like-for-like sales for the second half were down just 0.7%. The gross profit margin continues to be above last year, while costs continue to be higher, though at a lower rate of increase compared to the first half.

I'm planning to buy some more Accent shares next week. I think this is a very cheap ASX share.  

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

Before you buy Accent Group 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 Accent Group 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 Tristan Harrison has positions in Accent Group and Johns Lyng Group. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Johns Lyng Group. The Motley Fool Australia has recommended Accent Group and Johns Lyng Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Opinions

Miner looking at a tablet.
Opinions

3 reasons why the Fortescue share price could still be a buy

Let’s dig into why this mining giant could be a solid buy.

Read more »

A young woman wearing a red and white striped t-shirt puts her hand to her chin and looks sideways as she wonders whether to buy NAB shares
Opinions

The pros and cons of buying Wesfarmers shares in May

Is this retail giant an appealing opportunity?

Read more »

Smiling man sits in front of a graph on computer while using his mobile phone.
Opinions

2 ASX 200 shares that I think are still bargains after the market rally

These businesses look like attractive opportunities. Here’s why…

Read more »

A young woman looks at something on her laptop, wondering what will come next.
Opinions

Worried about another stock market sell-off?

Market declines don’t need to be too scary.

Read more »

An evening shot of a busy Times Square in New York.
Opinions

The pros and cons of buying US-focused ASX ETFs in the current environment

In a short amount of time, the US share market has erased the declines that it went through at the…

Read more »

I young woman takes a bite out of a burrito n the street outside a Mexican fast-food establishment.
Opinions

Time to cash in your gains? Brokers say sell on these 3 ASX 200 shares

Experts say these stocks are overvalued and it may be time to take some profits off the table.

Read more »

A woman sits at her computer with her chin resting on her hand as she contemplates her next potential investment.
Opinions

Here's what I'd do after the big ASX stock market rally

The US and China are working towards a trade deal.

Read more »

Two hands being shaken symbolising a deal.
Opinions

2 ASX 200 shares I'd buy after the US-China tariff deal

These stocks look appealing to me right now.

Read more »