I love investing in ASX shares at good prices for the long term. With all the recent volatility, there are some good-looking opportunities I'd put $10,000 into.
Legendary investor Warren Buffett once gave this very wise advice, which I think can be applied in 2022:
Be fearful when others are greedy, and greedy when others are fearful.
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Washington H. Soul Pattinson and Co. Ltd (ASX:SOL)
I would start by investing $4,000 into Soul Pattinson shares, the investment conglomerate company.
I did actually buy some Soul Pattinson shares last week so I'm 'eating my own cooking' here.
There are a few things that made me invest. Firstly, the Soul Pattinson share price has dropped by 16% since the start of 2022. I believe in the long-term future of the business, so I view a pullback like this as a good time to buy. If it drops more, I'll view it as even more attractive.
I really like the unconstrainted investing style of the ASX share. It can invest in any sector, small caps, large caps, globally-listed shares, private equity, debt, and so on.
It's invested in many industries including resources, telecommunications, financial services, agriculture, technology, and so on. The portfolio is becoming more diversified as time goes on.
The dividend record is also attractive – it has grown its annual dividend every year since 2000.
Airtasker Ltd (ASX: ART)
Next, I'd invest $2,500 into Airtasker, the local services marketplace.
This is one of the smaller ASX shares that I'm most optimistic about for the long term.
One of the main reasons that I'm excited about the business is its very high gross profit margin. In the first half of FY22, Airtasker's gross profit margin was 93%. This means that 93% of revenue turned into gross profit.
Such a high gross profit margin means that most of the new revenue it generates can be used to invest for more growth and improve the company's capabilities. It's also a promising sign in the long-term that the company can be very profitable when it chooses to be in the future.
I'm also impressed by the ASX share's global plans. It's doing well in Australia but it's also rapidly scaling in the UK and the USA, which are much larger total addressable markets.
The third quarter of FY22 was a sign of the company's rapid progress. In the last quarter, revenue rose 21.1% year on year to $8.6 million. UK gross marketplace volume (GMV) rose 138% year on year, while US posted task growth was 90% quarter on quarter.
It made $1 million of operating cash flow for the quarter, showing that the company can probably self-fund its growth. That means it doesn't really need to tap its cash reserves.
Despite the progress the ASX share is reporting, the Airtasker share price has fallen 53% in 2022, making it more attractive in my opinion.
Betashares Global Quality Leaders ETF (ASX: QLTY)
I would put $3,500 towards the QLTY ETF.
With a lot of volatility happening, I think it could be appropriate to consider high-quality businesses which now seem much better value.
The QLTY ETF is about investing in businesses that have a number of quality metrics, including low levels of debt, good cash flow, and a high return on equity (ROE).
Many businesses have declined amid worries about rising interest rates and inflation. The QLTY ETF itself has dropped more than 20% in 2022. I think the current price is more attractive.
Some of the bigger positions in the portfolio (of around 150 names) are: AIA, Johnson & Johnson, Novo Nordisk, Pfizer, Visa, and Adobe.
Those names are spread across a number of countries as well as different sectors. The US and Japan make up more than 70% of the country allocation, while IT and healthcare get over 60% of the sector allocation.
