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2 ASX shares I’d buy with $1,000

If I were given $1,000 to invest into some ASX shares, there are two that I’d pick.

It wouldn’t be one of the shares in the ASX20, I don’t think they have enough growth potential for my portfolio.

But I do like the sound of these two:

Magellan Financial Group Ltd (ASX: MFG)

Magellan is a funds management business.

The biggest part of its business is to manage investor money and invest in global shares. It concentrates on quality growth shares like Microsoft, Alphabet, Facebook, Yum! Brands and Starbucks.

It also runs another strategy that targets global infrastructure. Finally, it has an Australian shares strategy.

Between all of those strategies, Magellan has over $100 billion of funds under management (FUM) which generates significant levels of base management fees each year. Any outperformance of portfolios also generates performance fees for Magellan.

I think that Magellan’s solid investment returns and regular investor cash inflows should lead to attractive profit growth over time.

Magellan has also launched some fairly cheap exchange-traded funds (ETFs) for investors who want cheaper alternatives than Magellan’s main strategy which costs more.

One of the most exciting things in my opinion about Magellan is that it’s investing its own money/capital into private operating businesses. Two of the most exciting are new investment bank Barrenjoey and Mexican food chain Guzman y Gomez. I think these businesses have the potential to grow much larger over the years, with Magellan to benefit.

According to CommSec, Magellan shares are valued at 17 times the estimated earnings for the 2022 financial year

Pushpay Holdings Ltd (ASX: PPH)

Pushpay is another ASX share that I think has a lot of growth potential.

The digital donation business is processing billions of dollars of donations for the large and medium US church sector.

It has benefited from the shift to digital payments during this difficult COVID-19 period. I think this trend from cash to digital will just continue over the coming years.

One of the great things about Pushpay is how scalable it is. The company’s gross profit margin increased from 65% to 68% in the latest result.

Revenue, cashflow and net profit all continue to rise strongly. As the processing volume gets bigger, Pushpay will continue to benefit from stronger operating leverage.

One of the biggest catalysts in the future could be geographical expansion to other countries, which could increase Pushpay’s total addressable market.

According to CommSec, Pushpay shares are valued at 27 times the estimated earnings for the 2022 financial year.

$50,000 per year in passive income from shares? Yes, please!

With interest rates UP, now could be one of the best times to start earning passive income from a portfolio. Imagine earning 4%, 5% — or more — in dividend passive income from the best shares, LICs, or ETFs… it’s like magic.

So how do the best investors do it?

Chief Investment Officer Owen Rask has just released his brand new passive income report. Owen has outlined 10 of his favourite ETFs and shares to watch, his rules for passive income investing, why he would buy ETFs before LICs and more.

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Information warning: The information on this website is published by The Rask Group Pty Ltd (ABN: 36 622 810 995) is limited to factual information or (at most) general financial advice only. That means, the information and advice does not take into account your objectives, financial situation or needs. It is not specific to you, your needs, goals or objectives. Because of that, you should consider if the advice is appropriate to you and your needs, before acting on the information. If you don’t know what your needs are, you should consult a trusted and licensed financial adviser who can provide you with personal financial product advice. In addition, you should obtain and read the product disclosure statement (PDS) before making a decision to acquire a financial product. Please read our Terms and Conditions and Financial Services Guide before using this website. The Rask Group Pty Ltd is a Corporate Authorised Representative (#1280930) of AFSL #383169.

At the time of publishing, Jaz owns shares of Magellan.
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