I'd use the Warren Buffett method and buy these 2 ASX shares

Warren Buffett's advice has steered me to these stocks.

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I think Warren Buffett is one of the world's leading investors. He has identified the right times to invest via his Berkshire Hathaway business during bear markets. His advice is very useful for finding compelling ASX shares.

Good investing is usually about choosing good assets at attractive prices. We're generally presented with the best prices when there's a lot of uncertainty.

Warren Buffett once shared one of the most simple yet valuable pieces of advice:

Be fearful when others are greedy and greedy when others are fearful.

In other words, invest eagerly when most investors are cautious and be careful when the market looks bubbly and too excited.

With that in mind, I believe the two ASX shares below tick the boxes.

Johns Lyng Group Ltd (ASX: JLG)

The Johns Lyng share price has dropped close to 20% since 26 February 2024, as shown in the chart below.

Created with Highcharts 11.4.3Johns Lyng Group PriceZoom1M3M6MYTD1Y5Y10YALL26 Feb 202416 Jun 2024Zoom ▾26 Feb11 Mar25 Mar8 Apr22 Apr6 May20 May3 JunMar '24Mar '24Apr '24Apr '24May '24May '24Jun '24Jun '24www.fool.com.au

The company specialises in building and restoring various properties and contents after damage caused by insured events such as weather, fire, and impact.

Clients include major insurance companies, commercial enterprises, local and state governments, body corporates/owners' corporations and regular households.

Johns Lyng is effectively growing its market share in Australia and the United States. It was recently appointed to the Allstate emergency response and mitigation panel. Allstate is one of the largest insurance companies in the US.

The company's catastrophe earnings can be pretty volatile – catastrophes are not consistent. However, the underlying core business is growing at a pleasing pace. In the FY24 first-half result, Johns Lyng reported that its normalised business-as-usual net profit after tax (NPAT) increased 15.8% to $25 million.

The estimate on Commsec suggests the business could generate earnings per share (EPS) of 20.5 cents in FY24 and reach 25 cents in FY26. This translates into a forward price/earnings (P/E) ratio for FY26 of 24, which I think is appealing for a business with a long growth runway that's growing underlying earnings by double digits.

That's why I believe Warren Buffett would be attracted to this growing industrial ASX share.

Collins Foods Ltd (ASX: CKF)

The chart below shows that the Collins Foods share price has dropped around 25% since January 2024, presenting an opportunity to buy into this fast-growing business.

Created with Highcharts 11.4.3Collins Foods PriceZoom1M3M6MYTD1Y5Y10YALL1 Jan 202416 Jun 2024Zoom ▾Jan '24Feb '24Mar '24Apr '24May '24Jun '24Jan '24Jan '24Mar '24Mar '24May '24May '24www.fool.com.au

Collins Foods operates an extensive network of KFCs in Australia and a growing KFC network in Europe. It also operates a small number of Taco Bells in Australia.

When it comes to businesses that operate through physical locations, like retailers or food places, we want to see that those existing locations are performing well. This can be measured through the same-store sales (SSS) metric.

In the FY24 first half result, Collins Foods revealed KFC Australia SSS growth of 6.6% and KFC Europe SSS growth of 8.8%. It's also steadily adding more KFC outlets in Australia and Europe, improving its scale benefits.

That HY24 result saw the company's revenue rise 14.3% to $696.5 million and underlying NPAT increase 28.7%.

Europe has a much bigger population than Australia, so I believe there's scope for a significant increase in the number of stores in the region over the next decade.

According to Commsec, Collins Foods' EPS is expected to rise by approximately 50% between FY24 and FY26, which would put the business at just 12x FY26's estimated earnings. I believe Warren Buffett would be attracted to this sort of growth potential.

Motley Fool contributor Tristan Harrison has positions in Collins Foods 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 Collins Foods 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.

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