If I had $10,000 to invest into ASX growth shares, I know where I would want to put that money.
I think there are plenty of good businesses out there, but I also want to get them at a good price.
That’s why I like the look of these two ASX growth shares:
WCM Global Growth Ltd (ASX: WQG)
This is one of my preferred listed investment companies (LICs) at the moment.
In terms of being good value, the latest share price was $1.59 and the last weekly before tax net tangible asset (NTA) amount was $1.791 at 30 June 2021. That’s a nice discount of 11.2%.
But the fund manager, WCM, is good with a very effective investment strategy. WCM is based out of California.
It aims to invest in businesses with a good culture and a rising competitive advantage.
That culture is about finding businesses that have a culture of increasing its competitive advantages, or economic moat, as measured by the return on invested capital (ROIC).
It has a globally diversified portfolio, with holdings in North America, Europe and Asia.
Some of the largest holdings include: Stryker, Shopify, West Pharmaceutical Services, LVMH (Moet Hennessy Louis Vuitton), Sherwin-Williams and MercadoLibre.
It comes with fairly high management fees with both management fees (1.25% per annum) and performance fees (10% of the outperformance), but the returns have been good – the net returns over the last three years have been an average of 23.1% per year. Time will tell what the next three years of returns looks like.
Pushpay Holdings Ltd (ASX: PPH)
Pushpay is one of my favourite ASX growth shares. The recent 7% drop of the share price since 1 July 2021 has made it that bit more good value in my eyes.
It’s displaying all the traits that I like to see – rising margins, a large addressable market, seemingly the best product for clients and excellent cashflow.
In FY21, Pushpay paid off the debt it used to acquire Church Community Builder. New cashflow can be used for more acquisitions to further expand its offering or improve what it already does. The operating cashflow increased 145% to US$57.6 million.
The company has plans to grow in the Catholic segment, with an investment of $6 million to $8 million in FY22. It’s the first step in investing to grow its customer base outside of its existing core customer base and it has set the goal of acquiring more than 25% of the Catholic church management system and donor management system market over the next five years.
According to CommSec, the Pushpay share price is valued at 26 times the estimated earnings for the 2023 financial year.
