Investing in ASX shares could be the best thing to do with my money over the long-term. But where would I invest that money, say $5,000, straight away?
There are some really good businesses that I’ve got my eyes like WAM Microcap Limited (ASX: WMI). But it’s not cheap right now. I wish I could go back in time to buy a business like Pro Medicus Ltd (ASX: PME).
I recently wrote an article about a number of quality ASX tech shares, which may be good ideas. These two ASX shares could also be solid options.
But some ASX shares that I’d happily buy as soon as the market opened would be:
Volpara Health Technologies Ltd (ASX: VHT)
Volpara is a high quality healthcare business that is helping women in the US with breast screening technology. Its enterprise-wide practice-management software helps with productivity, compliance, reimbursement patient tracking.
The business has a very attractive gross profit margin – it’s above 86% and rising. At Janaury 2021, around 12.5 million US screenings were using at least one of its products. That’s a market share of around 30%.
Customer churn is low and its average revenue per user (ARPU) continues to increase, it’s now at US$1.40.
The business is focused on ‘risk’ and ‘genetics’ because of the significant strategic and revenue opportunities expected from that activity. A big part of that is the new acquisition of CRA Health. It was thanks to that acquisition that Volpara just won its biggest client win.
There’s also the long term potential benefit of lung cancer screening which Volpara is trying to grow.
Kogan.com Ltd (ASX: KGN)
Kogan could be one of the best ASX shares to look at the moment because of its valuation combined with its solid growth.
Even if you take the lower growth rate seen in January 2021, I think it looks like a very good business. Gross sales grew more than 45% year on year, which included 111.6% growth in Kogan Marketplace and 54.6% growth in exclusive brands. Gross profit went up 102% and adjusted EBITDA (EBITDA explained) rose 90%.
I think that an ASX share which is valued at just 25 times the 2021 financial year’s estimated earnings for that level of growth is attractive (according to the forecast on CommSec).
Kogan’s sales growth probably isn’t going to be as strong in FY22. But, its steadily growing profit margins mean that profit growth will be faster than sales growth.
It’s benefiting from scale benefits as increased volume is more profitable due to the existing e-commerce infrastructure. Kogan is expanding into New Zealand and growing in new categories, lengthening its growth runway.
MFF Capital Investments Ltd (ASX: MFF)
I really think that this listed investment company (LIC) ticks a lot of boxes right now.
MFF Capital’s share price of $2.70 is at a 15% discount to the pre-tax net tangible assets (NTA) of $$3.18 per share.
That means I can get a 15% discount to a quality portfolio full of shares like MasterCard, Visa, Amazon, Home Depot, Facebook, Alphabet, Bank of America, CVS Health and Microsoft.
MFF has a great portfolio manager, low costs, a growing dividend and very solid long term returns. A bonus of this LIC is that it can decide to borrow to boost its returns, if it likes the valuations on offer. Net debt was 5.1% at the end of March 2021.
