The best time to buy any ASX shares is when they are trading at an attractive value.
It’s impossible to know what share prices are going to do next, but it’s a good idea to take advantage of share prices when they have temporarily declined in value.
The below two ASX shares are ones I would consider for my portfolio with $2,000 for a long term investment of five or more years:
Brickworks Limited (ASX: BKW)
Brickworks is a leading Australian construction materials business. Some of its brands includes Austral Bricks, Austral Masonry, Austral Precast, Bristile Roofing, Auswest Timber, Bowral Bricks, Daniel Robertson, Nubrik and GB Masonry.
It also operates a property division that exists to maximise the value of surplus land created by the building products business. It owns half of a trust in conjunction with Goodman Group (ASX: GMG), which is building and will lease industrial logistics buildings such as one of the Coles Group Limited (ASX: COL) automated distribution centres.
The final pillar to Brickworks’ business is its 39.4% ownership of investment conglomerate Washington H. Soul Pattinson and Co. Ltd (ASX: SOL) which helps to even out the cyclical earnings of Brickworks.
The Brickworks share price has fallen 14% over the past six or so weeks with falling sentiment about the Australian property market and the falling value of Soul Pattinson shares. It is priced at an attractive discount to the inferred underlying value of its Soul Pattinson shares, its property trust and its building assets.
Costa Group Holdings Ltd (ASX: CGC)
Costa is the largest horticultural business in Australia, it has five segments: avocados, berries, mushrooms, tomatoes and citrus fruit.
The last 12 months has been tough for Costa because weather and (short term?) demand caused food prices to fall, leading to a drop in profit.
However, the company is predicting that its underlying profit can grow by 30% over the next year and by more than 10% a year over the medium term. Growing demand for healthy food from Asia, older Australians and people in general (eg keto, vegetarian etc), a growing population and food scarcity could lead to higher food prices, boosting Costa’s profit.
If Costa continues to expand its farming operations internationally then it could compound profit nicely over the long term. Its share price has fallen around 40% since the end of August 2018.
If you want some more ASX share ideas to consider for your $2,000 then the proven and reliable businesses outlined in the free report below could be ideas.
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Disclosure: Jaz owns shares of Costa Group Holdings and Washington H. Soul Pattinson and Co at the time of writing, but this could change at any time.