What ASX shares to Buy?

Our publisher Caroline Mark writes for us monthly, providing readers with updates on her journey starting out investing in ASX shares.

Read more about Investing in Small Caps. Why we picked these ASX Small Cap gems and their outstanding performance.

A lot has been happening with my growing portfolio of ASX shares.

I’ve made two ASX share transactions since I last wrote. I’m buying a parcel of ASX shares every month using the money I’ve saved in a month and slowly over time I’m growing my share portfolio. I only started in September 2019, but I’m on my way and I’ve got about $15,000 invested already. I’m really enjoying investing. I follow my ASX shares closely and I check in on the broking app every day. It’s officially addictive.

Please remember that I am not an analyst, I'm just an ordinary person (who happens to work at Under the Radar Report) and I'm using Under the Radar Report's independent ASX share research and stock tips to help me choose which ASX shares to buy.

I'm writing about my share investing experiences. My own personal investment philosophy is that I'm not a trader and I'm looking to slowly build up my share portfolio for a long-term investment. I was sick of being too frightened to buy shares and it was time to take some control of my financial future!

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My latest share purchase! Best ASX Small Cap Stock to Buy?

I looked closely at ASX Small Cap stock Tassal (TGR) as it is on our Small Cap Best ASX Stocks to Buy list. The Small Cap stocks on this Best ASX Stocks to Buy list have a track record of outstanding performance. It’s an average return of over 60%. So that is where I'm looking to choose my next stock to buy.

Why is Tassal one of the best shares to buy?

I like our stock tip Tassal (TGR) for a number of reasons, but I worked out I want diversification when setting up my share portfolio. Tassal (TGR) gives my ASX share portfolio exposure to food. I didn’t want more ASX shares in financial services, or mining or telecommunications and food is a growth industry.

What I found fascinating is that this ASX Small Cap produces salmon mainly for the Australian market, which gave me a lot of comfort, because I like eating salmon! Only joking, but it is Australian's move towards eating more salmon that has driven the growth of Tassal in the last 10 years. And that demand isn't abating.

The ASX Small Cap now farms prawns as well. It has a market cap of $900m and so it isn’t really an ASX Small Cap any more but more a mid-cap. Under the Radar Report has been following this ASX Small Cap since 2012 and we see a share buying opportunity now. It pays a dividend yield of 4.1% and demand for its product is always going to be strong. There are definitely risks in aquaculture and I’m sure it will have good years and bad years but I like the business and I bought 600 ASX shares at $4.22.

ASX Small Caps versus ASX Blue Chip Shares

What is interesting is everyone always says, ASX Small Cap are risky, and Blue Chips offer much more stability and certainty. In fact, so far in the ASX stocks I’ve chosen it’s been the opposite! I think what they really mean is that the big ASX Blue Chip shares are well established businesses and they won’t drop or rise 40% or 50% that an ASX Small Cap can, and they will still be here in 10 years’ time, which isn’t the case for the odd listed ASX Small Cap.

Hunting Under the Radar Report for Blue Chip Value

It continues to surprise me how much the share price moves on ASX Blue chip shares.

The first ASX stock I bought was Alumina (AWC) after reading our ASX stock tip and its share price moves around quite a bit. I bought AWC at $2.24 and it went down and then up and down and up a lot (hooray) and it’s dropped back and trading just above where I bought it. It pays a dividend of around 6% and I’m quite happy that it’s in my ASX share portfolio. I’m happy to hang on. Our Blue Chip Value ASX Stock Report still shows a big price target growth so there is share price growth potential but the dividend yield is very good. I’m not a set and forgetter, but I’m not a trader either. I bought Alumina (AWC) because it pays a good dividend and it’s a strong, established business. It’s Blue Chip!

The ASX Big Banks: I bought NAB Shares

I first bought 100 NAB shares at $28.86. The share price has since dropped, and it’s dropped a lot! But it’s a bank. It’s backed by the Australian Government and it’s not going to fall off a cliff tomorrow. There is a new CEO starting who has a great track record. There is hope. I know that if you like a stock that when the price drops a common strategy is to buy more shares and then you get a lower average price that you bought in at. On Monday I bought another 100 NAB as this is a long-term ASX share for my portfolio. Naturally, on Tuesday it dropped another 45c…. and whammo, I’m down $500 on one stock. Oh, wait, it’s up today and I’m only down $400. If you bought these stocks for a trade, you wouldn’t have any nerves left. It’s hard enough managing day-to-day life.

I’ve bought bank shares because Under the Radar Report’s research on ASX listed Blue Chip stocks shows they’re historically very cheap, they pay reliable dividends and they’re businesses that aren’t going anywhere (unless it’s to the Royal Commission). I’m holding on for the long-term and yes, I’m cross I bought on Monday and not Tuesday, but that’s the share market.

If you are interested in learning more about Blue Chip Stocks and how to invest in this area, read more here.

My ASX Small Cap stocks are all up!

The other three ASX listed Small Caps I’ve bought after reading our ASX stock tips are, Panoramic Resources (PAN), Macquarie Telecom (MAQ) and Volpara (VHT) are all up, or trading where I bought them.

But this week is the first time I’ve seen my ASX share portfolio as a whole in the red. Although, I might add that it’s not much in the red (and it is a Christmas colour). It’s less than $150 and it’s not a disaster. Last week my ASX share portfolio was up by $500 and my learning is that ASX stocks really do move around, whether it's one of the bix ASX 200 stocks or a little ASX small cap share. When you watch your share portfolio and whether or not you act gives an indication whether you’re share trading or share investing. So far, I’m the latter.


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ABOUT THE AUTHOR

Caroline Mark

Caroline Mark is the Founder and Publisher at Under the Radar Report, which provides independent ASX share research to help build investor’s share portfolio. Under the Radar Report is licensed to give general share financial advice only (ASFL: 409518). The author is not licensed to give personal financial advice and this commentary is for general information only.

Under the Radar Report is licensed to give general financial advice only (ASFL: 409518). The author does not own shares in any of the stocks mentioned.

Under the Radar Report is licensed to give general financial advice only (ASFL: 409518). The author does not own shares in any of the stocks mentioned.