Seeing red? The ASX All Ord shares I'd buy on a down day

A young woman wearing a blue and white striped t-shirt blows air from her cheeks and looks up and to the side in a sign of disappointment after the ASX shares she owns went down today

Investors have become used to seeing the All Ordinaries Index (ASX: XAO) and many ASX All Ords shares enjoy unprecedented success in 2024 so far. After all, the All Ords Index has hit a series of fresh new all-time highs this year, as have many prominent ASX All Ords shares.

But recently, investors have been seeing more than a few red days. Since the end of March, the All Ords has lost 1.77% of its value. Yesterday, the All Ords Index made a third consecutive day of loss, having also notched up falls over Thursday and Friday last week.

This might be uncomfortable for many investors to see. However, whilst no one likes the feeling of losing money, there’s a silver lining to the cloud of a falling stock market: We get to buy our favourite ASX All Ords shares for cheaper prices.

When the markets are in a funk, I usually try to take advantage of it and top up on some of my favourite investments. I’m someone who tries to follow the Warren Buffett maxims of ‘price is what you pay, value is what you get’ and ‘be greedy when others are fearful’.

As such, I view any stock market negativity as an opportunity to add to my best share positions when others are selling out.

So today, let’s discuss the All Ords stocks I’d buy on a day of heavy selling on the ASX.

The ASX All Ord shares I’d buy in a stock market slump

Two of my oldest All Ords share positions are in Telstra Group Ltd (ASX: TLS) and National Australian Bank Ltd (ASX: NAB).

Even though the NAB share price has come off the boil a little over the past week or two, it is still up nearly 10% in 2024 to date. As such, I don’t think this ASX bank is looking too compelling right now. I’d wait for a much bigger drop before buying more NAB shares.

But Telstra is a different story. This telco hit a new 52-week low just yesterday – $3.71 a share. The company is now down by 15.49% since June last year.

Given this has resulted in Telstra’s dividend yield rising over 4.7%, this is definitely a stock I’d consider topping up on with any additional share price weakness.

Another ASX All Ords share I’m eyeing off is Woolworths Group Ltd (ASX: WOW).

Woolworths shares have had one of their worst periods in recent memory over the past 12 months, with the company’s shares sliding 17.92% since this time last year. Over the past two months alone, the company has shed more than 10% of its value.

Yes, this company’s last earnings report wasn’t fantastic. But Woolworths is still the dominant grocer in Australia, with a huge market lead over its rivals. I think the current share price is compelling and I would definitely start a position in Woolworths shares if the ASX has a few more down days.

Some final thoughts

I’d also consider topping up some of my favourite investments. The likes of Washington H. Soul Pattinson and Co Ltd (ASX: SOL) and MFF Capital Investments Ltd (ASX: MFF) don’t look especially cheap right now, despite recent pullbacks. But I think these diversified investments are of such high calibre that this wouldn’t put me off.

Remember, a stock market slump is a great opportunity to pick up some of our favourite ASX All Ords shares for a discount. Don’t let the next one pass you by.

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Motley Fool contributor Sebastian Bowen has positions in Mff Capital Investments, National Australia Bank, Telstra Group, and Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia has positions in and has recommended Telstra Group and Washington H. Soul Pattinson and Company Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.