Deciding which ASX shares to buy in the current climate is difficult. During the bull markets you wonder if you have missed the boat. When the bear markets set in, and they will, you wonder if you should cut your losses.
I believe the 4 shares below represent good value investments in today's market. They should be solid investments over the medium term regardless of what happens tomorrow. In particular, I think one of them has the real possibility of becoming a 10 bagger share over the next decade. That is, a company likely to return 10 times the initial investment.
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High blue chip value
I think that Commonwealth Bank of Australia (ASX: CBA) is probably the best certified blue chip share at the moment. Having put aside $1.5 billion for costs related to COVID-19, CommBank has been moving fast to position the bank for future growth. Although, as the nation's largest mortgage provider, it is likely to see larger impacts from COVID-19 than its competitors.
At the time of writing, CommBank has a 12-month trailing dividend yield of ~6%, although banks have currently deferred dividends, and is selling at a price to earnings ratio (P/E) of ~13.
Overlooked ASX value share to buy now
I believe Aristocrat Leisure Limited (ASX: ALL) is probably the most overlooked ASX large cap share on the market. It has a fantastic track record of year on year sales growth, maintains very tight margins, and has a 10-year average return on equity (ROE) of 28.6%.
Despite the company's exposure to digital gaming and social media platforms, its casino revenue streams have been hit hard by COVID-19 restrictions. As restrictions ease, I think Aristocrat will see its share price rise relatively quickly.
The Aristocrat share price is currently trading at a P/E of just 10.8. That is way below its 10 year average P/E of 23.
One great ASX growth share
Over the past fortnight Sezzle Inc (ASX: SZL) caught my eye. So much so that I have taken a small position in the company. This is a small buy now, pay later company competing head on with the giant Afterpay Ltd (ASX: APT). The company has a market cap of just $275 million, yet it has already secured a network of 1.3 million users and 14.9 thousand merchants.
While much larger rivals Afterpay and Zip Co Ltd (ASX: Z1P) are actively working to enter the $5 trillion US retail market, Sezzle is already there targeting Gen Z and Millennials. While Sezzle is unlikely to suddenly become the market leader, I believe the potential for share price growth is high and the possibility of it becoming a 10-bagger over the next decade very real.
Foolish takeaway
I think these are among the best value ASX shares to buy now. Personally, I would split 40% of $10,000 into each of the large cap shares, and the remaining 20% into the higher risk growth share. I believe all of these companies have a very strong value proposition right now. But the market is moving fast.
