Doug Goodwille from Kayne Anderson speaks to Drew Meredith from The Inside Network on market thinkers.
While a surging gold price is on hold as the world adjusts to a Trump presidency, all the factors that saw its price rise more than 50 per during his first term in office – trade disputes, fiscal deficits and geopolitical tensions – are almost certainly guaranteed the second time around.
Three stocks for beginners in 2022
2022 could be a good time to start investing in ASX shares for beginners. There has been a lot of declines on the ASX share market, so there’s plenty of opportunities.
Over the long-term, I think that ASX shares can produce good results. But shares can see some major volatility in the short-term. I see this as a way to accelerate returns – buy low, sell high, right?
With that in mind, I think these three options are high-quality picks for the long-term:
BetaShares Global Sustainability Leaders ETF (ASX: ETHI)
An exchange-traded fund (ETF) is a great way to invest in a basket of shares in a single investment. It can provide a lot of diversification.
However, ETFs can end up buying some businesses someone may not want to own such as fossil fuel businesses, gambling, tobacco and so on. BetaShares Global Sustainability Leaders ETF cuts out all of those ‘unethical’ sectors. The ETHI ETF also makes sure that there is board diversity (such as ensuring it’s not just a male-dominated board), there’s no supply chain concerns and the business isn’t destroying habitats.
The businesses are chosen for this ASX share from the global share market, there are 200 of them in the portfolio. That’s really good diversification, in my opinion.
Some of the portfolio holdings are: Nvidia, Apple, Visa, Home Depot, MasterCard, Toyota, Cisco Systems, ASML and Adobe.
Future Generation Global Investment Company Ltd (ASX: FGG)
This is a listed investment company (LIC) ASX share that also provides access to a global portfolio of businesses.
But instead of directly investing in those companies, Future Generation Global is invested in funds that are focused on global shares. Those funds are run by some of Australia’s best internationally-focused fund managers. But those fund managers work for free, so that Future Generation Global can donate 1% of its net assets to youth mental health charities each year.
I think Future Generation Global represents good value, it’s a solid dividend payer and it is supporting a number of great causes. The underlying diversification seems really good too. It’s a solid pick for beginners investing in ASX shares.
Brickworks Limited (ASX: BKW)
Australians are obsessed with property, right? Well this business could be a way to profit from that, whilst also providing diversification.
Brickworks produces a number of products for the Australian construction and renovation industry including clay bricks and pavers, masonry and stone, roofing, specialised building systems, precast, cement and timber battens.
It also has a presence in the US. After making some acquisitions, it’s one of the biggest brickmakers in the United States.
For me, there are two other segments that are even more compelling.
It owns a sizeable part of the investment house Washington H. Soul Pattinson and Co. Ltd (ASX: SOL) which owns a diversified portfolio across different sectors including telecommunications, resources, agriculture, financial services, building products and so on. This provides growing dividends and an increasing asset value for Brickworks.
I’m also excited by its industrial property trust that it owns 50% of, alongside Goodman Group (ASX: GMG). I think it’s a great strategy by the ASX share. This is where high-quality industrial properties are built on land that Brickworks no longer needs. What’s an industrial property? Well, distribution warehouses are a major example.
The industrial property trust just completed a huge warehouse for Amazon in Sydney. It’s also building another big one for Coles Group Ltd (ASX: COL). There are plenty of other properties already completed and planned ones too. It is growing value for Brickworks and it’s building a rental income stream.
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