There are two ASX shares that I’d love to buy for my portfolio today.
Actually, there are quite a few businesses that I think look like good investments today. However, there are two that I particularly like the look of right now because of their long-term growth potential.
These are the two I’ve got my eyes on:
Redbubble Ltd (ASX: RBL)
Redbubble is one of the leading e-commerce ASX shares around in my opinion. It’s a company that owns two websites – Redbubble and TeePublic – where customers can buy products with artist designs on them. Redbubble pays the artists for their designs as the products get created by third party fulfillers.
The business has recently gone through a selloff after giving investors a trading update and telling the market that it was going to pursue a high-growth strategy of heavily investing and this would mean a low EBITDA margin (EBITDA explained) for the next few years.
Some shareholders didn’t like the sound of that and sold. However, I think it makes sense to do that considering the global market is huge. There’s more to Redbubble’s future than just the next year or two. The world is steadily shifting towards online shopping and Redbubble should be a beneficiary of this.
Prior to changing the operating strategy, Redbubble was demonstrating good operating leverage and I think much stronger margins will become apparent in FY25 and beyond. I believe it could be a good long-term ASX share to own, particularly from today’s price of under $4.
WCM Global Growth Ltd (ASX: WQG)
This listed investment company (LIC) could be the best one to consider for long-term total returns in my opinion.
I really like the investment style of WCM – the manager of the LIC – because it looks for businesses that are getting stronger, not simply strong today.
It’s looking for businesses that are improving their competitive moat position and for management of those companies that are focused on growing the moat for those businesses. It doesn’t invest in ASX shares, but it’s good that we can invest in it on the ASX.
Past performance is no guarantee of future performance. But, over the last three years, the ASX share’s portfolio has delivered net returns (after fees) of 21.5% per annum. That’s very solid.
At the current WCM Global Growth share price, it is trading at an 8% discount to the last stated weekly net tangible assets (NTA) per share and it has a fully franked dividend yield of 2.6%.
