If you have $3,000 to invest in ASX shares, congratulations! Buying into the share market can be a great investment for your future wealth, depending on where you deploy it of course.
But, like some famous farm animals once proclaimed, some ASX shares are "more equal than others". Choosing a winner can make a huge difference to your personal wealth, while others can take you backwards. So with this in mind, here are 2 ASX shares that I think are dirt cheap today and have the potential to make a great investment as a result.
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1) Washington H. Soul Pattinson & Co Ltd (ASX: SOL)
Soul Patts is one of my favourite ASX shares. It's a diversified conglomerate that has been around longer than most, having started ASX life back in 1903 as a chain of pharmacies. Today, this company boasts massive stakes in a diversified portfolio of ASX businesses. These include TPG Telecom Ltd (ASX: TPG), New Hope Corporation Limited (ASX: NHC) and Brickworks Limited (ASX: BKW).
Using the income from these investments, Soul Patts has built a reputation as one of the best ASX dividend shares on the market. It has paid a consistent dividend for more than 40 years and has increased this dividend every year for the past 20. I also think Soul Patts is undervalued at the current share price. Its current market capitalisation is around $4.89 billion, yet its stake in Brickworks is worth around $1.09 billion alone. Its TPG stake adds a further $1.9 billion and the New Hope share, another $500 million. My conclusion? You are buying these assets for a discount at the current Soul Patts share price, making it a great option for a $3,000 investment today.
2) Ramsay Health Care Limited (ASX: RHC)
Another good-value ASX share to invest in is Ramsay Health Care. It's one of the largest health companies on the ASX with a massive portfolio of private hospitals. This network is vast in Australia alone, but Ramsay has expanded across the seas in recent years. It now has a significant presence in France, Singapore and the United Kingdom as well. The coronavirus crisis has not left Ramsay unscathed, with suspensions of elective surgeries and other re-prioritising causing some short-term hits to the company. As a result, it was sadly forced to suspend its 20-year streak of dividend pay rises this year.
Still, I think there is still some value in the Ramsay share price today. And that's despite the company's share price putting on around 20% since March. Ramsay shares are (at the time of writing) trading at $62.57, which is still more than 22% off the company's February highs. Healthcare is an industry that isn't going anywhere anytime soon. It might take a year or two, but I think this company is poised to flourish in a post-COVID world. As such, I think the Ramsay ASX share price is showing some value today and is another worthy choice for your $3,000.
