Month: May 2022

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

What happened

It’s been a bloodbath in the crypto market of late. For the past two weeks, crypto investors have seen impressive selling pressure, taking the likes of top tokens such as Cardano (CRYPTO: ADA), Solana (CRYPTO: SOL), and Chainlink (CRYPTO: LINK) lower on a near-daily basis. 

However, these three top tokens have seen some buying pressure today, increasing 1.1%, 1.3%, and 0.5%, respectively, over the past 24 hours as of 3:30 p.m. ET. Interestingly, at the day’s highs this morning, these three tokens actually accelerated 6.9%, 7.5%, and 7.3%, respectively, since yesterday.

Today’s volatility in the crypto market has once again followed the price action seen in equity markets. All the major indexes have surged higher, with the Nasdaq leading the way with 2.76% gains at today’s close over yesterday.

Notably, recent reports have suggested that the correlation between cryptocurrencies and tech stocks has reached its highest level ever. Thus, the moves we’re seeing in some of the largest cryptocurrencies appear to be mirroring the movements in the largest tech stocks to a great degree.

So what

The whole argument behind cryptocurrencies representing an alternative asset class to equities and bonds appears to be falling apart. The market is now viewing digital assets much in the same what as tech stocks, for better or worse.

Given the tech sell-off we’ve seen of late, this has certainly been to the detriment of crypto investors. That said, on days when tech is rallying, these sorts of upside moves are possible. Thus, cryptocurrencies such as Cardano, Solana, and Chainlink are seemingly being viewed by investors as a higher-beta way to play already risky tech growth. 

Now what

I can understand the reason why the market is increasingly pricing cryptocurrencies and tech stocks in tandem. After all, the blockchain technology crypto tokens support is, in and of itself, a nascent high-growth technology. There’s plenty of upside for such tokens in times of accommodative monetary policy. However, with the punch bowl being taken away by the Federal Reserve, the future growth path for many digital assets is more uncertain than it’s been in a long time.

It should be noted as well that Cardano, Solana, and Chainlink investors have never been through a recessionary environment. With a greater recession risk being priced into all markets right now, it’s unclear what that means for these top tokens. Many investors appear to be taking the view that it’s better to wait on the sidelines than “HODL” right now. 

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

The post Don’t look now, but Cardano and Solana are recovering today appeared first on The Motley Fool Australia.

More reading

• 2 cryptocurrencies that could dwarf Shiba Inu
• Crypto market crash: Cardano, XRP, and Solana all take big hits again today
• Why Ethereum, Solana, and Cardano all plunged today
• Why should I buy Bitcoin ETF shares instead of just buying Bitcoin?
• Why Cardano is rising today

Chris MacDonald has positions in Solana. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Solana. The Motley Fool Australia owns and has recommended Solana. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips. 

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

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In my opinion, National Australia Bank Ltd (ASX: NAB) could be the smartest choice out of the big four ASX banks.

NAB’s other big four ASX bank peers include Commonwealth Bank of Australia (ASX: CBA), Australia and New Zealand Banking Group Ltd (ASX: ANZ,) and Westpac Banking Group (ASX: WBC).

I think that NAB can tick the boxes of what some investors might be looking for.

Dividend

Plenty of investors may look at big four bank shares for their dividend yields, so let’s start there.

The broker Citi thinks that NAB is going to pay an annual dividend of $1.50 per share in FY22 and $1.75 per share in FY23. At the current NAB share price, that translates into grossed-up dividend yields of 6.8% in FY22 and almost 8% in FY23.

While the above yields may not be the highest in the sector – for example, Citi thinks ANZ will pay higher dividend yields – it is still predicted to be a large dividend yield.

Dividends (and the dividend yield) alone aren’t likely to be enough to sway an investor into buying shares in a particular bank. There is normally more to an investment than just dividends.

Dividend growth can also be an important factor.

In the recent FY22 half-year result, NAB grew its interim dividend by 21.7% year on year to 73 cents per share. However, ANZ only grew its interim dividend by 2.9% to 72 cents per share and Westpac’s interim dividend was increased by 5.2%.

If NAB’s dividend keeps growing faster than ANZ and Westpac, its dividend yield could become the largest (at the current share prices).

Leadership and growth

Since the appointment of NAB CEO Ross McEwan in 2019, NAB has improved its performance. McEwan has more than 30 years of experience in the finance, insurance, and investment industries.

NAB notes that McEwan also has extensive experience in leading organisations through significant change and recovery. Before joining NAB, McEwan was Group CEO of Royal Bank of Scotland from 2013 to 2019 where he led a turnaround of the bank after the GFC.

NAB is generating profit growth. In HY22, cash earnings rose by 4.1% year on year to $3.48 billion. Westpac’s HY22 cash earnings were down 12% year on year to $3.1 billion.

ANZ’s cash earnings increased by 4% year on year to $3.1 billion. However, compared to the second half of FY21, ANZ’s cash profit declined 3%. NAB’s HY22 cash profit rose 8.2% compared to the second half of FY21.

NAB share price valuation

For me, NAB has a good dividend yield. The dividend is projected to keep rising at a good pace, while ANZ and Westpac dividends are growing more slowly.

CBA is often seen as the highest-quality bank. But I think that NAB’s valuation makes it a more attractive choice.

Using Citi’s estimates, the NAB share price is valued at 15 times FY22’s estimated earnings and 13 times FY23’s estimated earnings.

Compare that to the valuation on the CBA share price – it’s priced at 20 times FY22’s estimated earnings and 18 times FY23’s estimated earnings.

For growth and quality reasons, I think NAB is a better pick than ANZ and Westpac. It also seems much better value to me than buying CBA shares.

It’s worth keeping in mind too that the rising interest rate environment can help grow the profit of banks.

The post Why I think NAB shares could be the smartest big four ASX bank to buy appeared first on The Motley Fool Australia.

More reading

• Is the NAB share price cheap with its recent pullback?
• This is the best ASX bank share to buy in a rising rate environment: Citi
• Brokers name 2 ASX 200 dividend shares to buy now
• NAB share price lifts amid Suncorp rumours
• Why GrainCorp, Link, NAB, and Pendal shares are sinking today

Citigroup is an advertising partner of The Ascent, a Motley Fool company. Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Westpac Banking Corporation. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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The Boral Limited (ASX: BLD) share price is under pressure on Wednesday.

In morning trade, the building products company’s shares are down 3% to $3.12.

Why is the Boral share price sinking?

Investors have been selling down the Boral share price today after the company revealed that its earnings have taken a hit from recent inclement weather and higher energy prices.

According to the release, the company no longer expects to achieve the earnings guidance it provided in late March. It was previously expecting underlying earnings before interest and tax (EBIT) for its continuing operations (excluding Property) in FY 2022 to be between $145 million and $155 million.

Though, that guidance came with a proviso. It assumed no further extraordinary rain events. Unfortunately, that has not been the case, with New South Wales and Queensland continuing to face heavy rainfall in April and May.

As a result, the company expects this inclement weather and inflationary cost pressures to adversely impacts its underlying earnings in FY 2022 by ~$45 million.

This comprises a ∼$30 million adverse impact from exceptional rainfall on volumes and costs and a ~$15 million impact from inflation. The latter is primarily due to higher energy costs, which are assumed to continue to be elevated until the end of FY 2022.

Transformation plan falls short

Boral also provided an update on product price increases and its transformation program.

In respect to the former, Boral advised that the product price increases implemented in January and February are having a positive impact. However, they have been insufficient to offset the impact of more recent increases in energy prices.

And while its transformation program is expected to deliver a benefit of $45 million to $50 million in FY 2022, this has fallen short of its target range of $60 million to $75 million.

Management commentary

Boral’s CEO & Managing Director, Zlatko Todorcevski, said:

Ongoing rainfall in many parts of the east coast, particularly in New South Wales and Queensland, has continued to significantly impact our sales volumes, while also resulting in additional costs.

This has coincided with further sharp increases in energy prices, particularly in coal and electricity, impacting our production and logistics costs.

We are responding to this challenging operating environment by implementing additional measures to mitigate the impact of transport and fuel inflation alongside the already announced out of cycle price increases, and accelerating our focus on costs.

The post Boral share price down 3% on earnings hit appeared first on The Motley Fool Australia.

More reading

• Boral share price climbs amid ‘game changing’ carbon project
• The Boral share price has been smashed 10% so far in May. What’s happening?
• What’s happening to the Boral share price today?

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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The ASX market has been heavily sold off this month and has presented some lucrative buying opportunities.

Particularly now that the earnings season for a majority of the companies including the banks is past us.

Trawling through financial reports will give you a good financial snapshot of the company you may be looking to buy in. 

As Warren Buffet once said, “It’s far better to buy a wonderful company at a fair price than a fair company at a wonderful price.”

Below, are two dividend shares that I would be happy to pick up today.

Dicker Data Limited (ASX: DDR)

This leading Australian wholesale and distributor of computer hardware and software could be a great option for investors.

Dicker shares have been beaten down in 2022 despite the company recording impressive growth in its first quarter trading update.

Since late March, the Dicker Data share price has fallen by 18% to finish at yesterday’s closing price of $12.52.

Management highlighted that it expects to see gross margin lift to 9% for the full year. This is an improvement over the 8.6% achieved in the first half.

Furthermore, the board noted that it intends to pay a fully-franked quarterly dividend of 13 cents per share for FY22. Notably, this will bring the full-year dividend to 54 cents per share, which represents a 44% increase year on year.

I think that Dicker Data is trading at bargain levels and would class it as a buy for income investors.

Fortescue Metals Group Limited (ASX: FMG)

Regardless of being one of the world’s largest iron ore producers, the Fortescue share price has tumbled in recent times.

In mid-March, the company’s shares hit a year to date low of $16.87 following a slump in global iron ore prices.

However, it wasn’t long after before that the price of the steel making ingredient soared above US$160 per tonne.

Since then, Fortescue shares have recovered some ground but remain well below its year to date high of $22.99.

At Tuesday’s market close, the company’s shares closed at $19.39. When comparing with the above 2022 high, this reflects a decline of around 15%.

In Fortescue’s trading update for the three months ending 31 March, management highlighted a record third quarter operating performance.

The company said that it expects this to “contribute to strong cash flow generation and upgraded guidance for full year shipments”.

When looking at its dividends, the board paid an interim dividend of 86 cents per share in March.

While considerably lower than the $1.47 per share distributed to shareholders in H1 FY21, Fortescue could make inroads again.

This is due to the company anticipating shipment guidance of between 185 to 188 million tonnes for FY22. This compares to its previous guidance of 180 to 185 million tonnes.

With higher shipments in the midst of firm iron ore prices, this could amplify revenue realisation for the company.

In summary, I believe that the iron ore miner still has a lot of runway left given its attractive share price.

In my opinion, Fortescue is a solid buy for investors seeking shareholder value and dividend growth.

The post Why I think these are the best ASX dividend shares to buy right now appeared first on The Motley Fool Australia.

More reading

• Fortescue share price on watch after Twiggy returns to top job
• Analysts rate these ASX growth shares as buys this month
• Which ASX 200 mining share has the highest dividend yield in May?
• Woodside share price lifts despite Twiggy’s latest ‘greenwashing’ accusations
• Is the Fortescue share price cheap after dropping 10% in a month?

Motley Fool contributor Aaron Teboneras has positions in Dicker Data Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Dicker Data Limited. The Motley Fool Australia has positions in and has recommended Dicker Data Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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Investing your money in businesses that are either new to the market or emerging can make you seriously rich.

Of course, it is easier said than done.

This is why it pays off to research a company’s products/services, financial statements, projections, competitive moat and market trends before investing.

Nonetheless, we take a look at three companies that would have made you a millionaire if you’d invested $10,000 a decade ago.

Altium Ltd (ASX: ALU)

Despite sinking almost 17% in the past month, the former market darling’s shares have returned unbelievable gains across the decade.

If you’d invested $10,000 into Altium shares this time 10 years ago, you would have picked them up for approximately 36 cents apiece. This equates to an astonishing 27,777 shares without topping up along the way.

Fast-forward to today and the electronic design software company’s shares are exchanging hands at $27.57.

This means that those 27,777 shares would be now worth a staggering $765,811.89. While it falls short of the $1 million, bear in mind that Altium shares have tumbled lately. If the price returns to pre-2022 levels such as when it hit $45.30 in December, you’d be sitting on $1.25 million.

Pilbara Minerals Ltd (ASX: PLS)

Another stellar performer on the ASX has been Pilbara Minerals.

This Australian lithium-tantalum producer has seen its shares accelerate over the decade thanks to the growing global lithium industry.

And while the Pilbara Minerals share price has also tumbled by 7% in a month, investors wouldn’t be fretting.

Over the last 12 months, its shares have risen more than 150% alone.

When taking a glance at this time in 2012, Pilbara shares were trading at 2 cents apiece.

Currently, those shares can now be bought for $2.73 at yesterday’s market close.

That means that a $10,000 investment would have reaped $1.36 million.

Not a bad reward for patient long-term shareholders.

Vulcan Energy Resources Ltd (ASX: VUL)

Last but not least, the Vulcan Energy shares haven’t been around for the decade but nonetheless, have powered ahead.

Listed on the ASX in 2018, the clean lithium developer floated at a price of 20 cents per share.

At the last traded price on Tuesday, Vulcan Energy shares closed at $7.32.

This means your $10,000 buy in would be valued at an incredible $3.66 million.

It is worth noting that the Vulcan Energy share price is more than 50% off its all-time high of $16.65 reached last September.

One can only imagine how much you’d have if its shares regain composure.

Spoiler alert: It would have been over $8.32 million at the peak! A comfortable nest egg for your retirement one could say.

The post Who wants to be a millionaire? If only you’d invested $10,000 in these ASX shares 10 years ago appeared first on The Motley Fool Australia.

More reading

• Lighting up the market: ASX lithium stocks surge again on Tuesday
• Here are the 3 most heavily traded ASX 200 shares on Tuesday
• Why BlueScope, OFX, Pilbara Minerals, and Step One shares are pushing higher
• Why is the Pilbara Minerals share price climbing today?
• 2 sold-off ASX shares essential for electric cars

Motley Fool contributor Aaron Teboneras has positions in Altium. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Altium. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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It has been an interesting year for shareholders in all industries. Market shocks and rebounds have become the norm in 2022.

The Macquarie Group Ltd (ASX: MQG) share price has been no different. It fell as low as $173 in March and is now slightly recovered to $180.49 at yesterday’s market close.

A question I was asked recently was, can the Macquarie share price hit the $200 mark again this year?

Macquarie at a glance

Valued at around $69 billion, Macquarie is Australia’s fifth-largest company on the ASX by market capitalisation.

The company specialises in global banking, financial, advisory, investment, and fund management services.

Over the past few years, Macquarie has further diversified its business model, providing protection against future recessions. Its strong capital position and robust risk management framework has contributed to the company’s 53-year record of unbroken profitability.

Economic outlook

The uncertain economic environment has certainly cast a pall over the Australian banking industry. What were once deemed safe blue-chip shares with reliable dividends have been marred with share price volatility.

Banks tend to do well in times of market hysteria, cashing in on wild price swings. Macquarie has been no different.

In its most recent update to the market earlier this month, Macquarie CEO Shemara Wickramanayake commented:

While many of the regions and markets in which Macquarie operates saw heightened levels of volatility this year, our longstanding strategy to address key areas of unmet need in the community is unchanged.

Over time, this has seen us build deep and differentiated franchises in each of our areas of activity, all of which delivered sound outcomes and strong performance in FY22.

The global powerhouse has continued to maintain a conservative approach to capital, funding, and liquidity. This positions the group to respond to the current environment.

As at 31 March, Macquarie’s cash surplus position stood at $10.7 billion, well above the Australian Prudential Regulation Authority’s strict capital requirements. Macquarie’s CET1 Level 2 ratio stood at 11.5%.

Macquarie’s share price rise?

The global powerhouse has been on the road to recovery following the broader market slump.

The Macquarie share price is up 4.3% since it bottomed out in March, but is sitting below its all-time high of $217.32 achieved in early January.

Interestingly, Macquarie has been steadily growing its earnings per share (EPS) by up to 25% over the last few years. Earnings per share is considered an important tool in understanding the value of a business. It is widely used to track a company’s performance.

Should the company be able to continue this trend, the increased value of the business and the profitability reported should send Macquarie shares higher.

It is a growth trajectory in the works for this banking giant.

Foolish Takeaway

I do believe that the Macquarie share price will reach the $200 mark in 2022.

With the business being so resilient in the face of such challenging conditions and strong capital to back it up, it is just a question of timing.

With more than six months remaining of the calendar year, I believe this milestone will be achieved again soon.

The post Can the Macquarie share price reach $200 again in 2022? appeared first on The Motley Fool Australia.

More reading

• Top brokers name 3 ASX shares to sell next week
• Top ASX dividend shares to buy in May 2022
• 2 ASX 200 dividend shares to buy according to a top broker
• Hoping to bag the next Macquarie dividend, here’s what you need to do
• Time is running out to secure dividends from these 3 ASX 200 shares

Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Macquarie Group Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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There is a group of ASX-listed companies that has delivered a lot of financial growth in recent times, yet the share prices of those businesses have dropped heavily in 2022.

A business may not necessarily be better value if it has fallen a lot. However, if the company is still growing then investors may simply be valuing the business more cheaply after the volatility seen in 2022.

With that in mind, here are two ASX shares that continue to grow their operations quickly.

Pointsbet Holdings Ltd (ASX: PBH)

It has been a painful year for the Pointsbet share price, which has fallen around 65% in the 2022 year to date.

Pointsbet describes itself as a corporate bookmaker with operations in Australia, the United States, Canada and Ireland. It has developed a cloud-based wagering platform through which it offers clients sports and racing wagering products, advance deposit wagering on racing, and iGaming.

The ASX share is still seeing double-digit growth. It reported that for the three months to 31 March 2022, total turnover increased by 54% to $1.4 billion. The sports betting net win increased by 10% to $71.4 million, with an additional net win of $5.5 million from iGaming. That meant the total net win was up 18% to $76.9 million.

However, the US total net win declined 8% to $24.6 million after a 3.2 percentage point decline in the net win percentage.

In terms of cash active clients at the end of the quarter, Australian clients were up 47% year on year to 232,763 while North American cash active clients were 96% higher at 249,497.

Management continues to expect the Australian trading business to generate positive earnings before interest, tax, depreciation and amortisation (EBITDA) in FY22.

The Ontario market in Canada was scheduled to open on 4 April 2022. It had a market share of 4.3% of total sports betting app downloads.

Volpara Health Technologies Ltd (ASX: VHT)

Volpara is another ASX share that has experienced a heavy drop in 2022. In the calendar year to date, the Volpara share price has declined by around 30%.

The business describes itself as a health technology company. It has clinical functions that are used by screening clinics to provide “feedback on breast density, compression, dose and quality, while its enterprise-wide practice-management software helps with productivity, compliance, reimbursement and patient tracking”.

Volpara is growing at a fast rate. In its quarterly update for the three months to 31 March 2022, it said that it achieved record quarterly cash receipts from customers of NZ$8 million (AU$7,237 million), up approximately 48% year on year.

Its annual recurring revenue (ARR) has now reached around US$22.2 million (AU$31.5 million) and its market coverage has reached over 35.5% of US women being screened.

The ASX healthcare share also says that its software as a service (SaaS) churn remains “low”.

The post 2 ASX-listed companies that are growing rapidly appeared first on The Motley Fool Australia.

More reading

• Why Alkane, Chalice Mining, PointsBet, and Qantas shares are rising today
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• Why Nitro, PointsBet, Sezzle, and Siteminder shares are racing higher
• ASX 200 midday update: ResMed disappoints, PointsBet rockets higher

Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Pointsbet Holdings Ltd and VOLPARA FPO NZ. The Motley Fool Australia has positions in and has recommended VOLPARA FPO NZ. The Motley Fool Australia has recommended Pointsbet Holdings Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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Do you remember when you, or perhaps your son or daughter, were learning to drive?

When you ‘got your Ls’, suddenly you noticed all of the other learner drivers on the road, right?

Or when you or a partner was pregnant, you saw pregnant women everywhere?

Maybe when you bought a car, you suddenly realised how many others of the same model were on the road?

Of course, there wasn’t really a spate of new drivers, or newly pregnant women. There wasn’t a sudden surge in sales for the same model of car you now owned.

It’s just that our brains are wired to recognise similarities between us and others.

I’m no evolutionary biologist, but you can see why. Creating those connections strengthens bonds between people – an important building block in the creation of communities and societies that helped us advance as a species.

The same is true of investing.

Apparently, the world’s stock markets have lost $16 trillion in value (yes, with a T) since the most recent peak.

The falls have been rough on many of us.

It seems everywhere you look, there are stories of losses.

At least we’re in it together, I guess.

But that’s the other thing: those stories sell because humans respond viscerally to bad news.

‘If it bleeds, it leads’ is the newspaper maxim.

So not only is bad news likely to be more prominently reported, but we’re more likely to notice and to internalise that bad news when we can associate with it.

So you might not have noticed – or if you did, you almost certainly wouldn’t have given it the same weight – the stories about Warren Buffett, recently.

While the headlines are about bear markets in technology stocks, or crashing Bitcoin (CRYPTO: BTC) (that’s a whole other article), and the market is truly losing significant value, there are other stories, like Buffett’s.

Turns out, Buffett has been buying.

And not just buying, but BUYING.

He’s apparently invested $74 billion in the past couple of months.

Which is big.

And deserving of more headlines than it’s received.

Because Buffett knows what the rest of us need to remember – that when the news is full of ‘what just happened’, and when we are tempted to think in terms of extrapolation, rather than cycles – buying when others are fearful is usually a very smart option.

Let me put it in starker terms:

Right now, many people are selling in fear.

Some are holding onto cash, trying to avoid the pain of loss.

And the world’s greatest investor is buying.

Now, maybe, this time, after more than 55 years running Berkshire Hathaway Inc. (NYSE: BRK.A) (NYSE: BRK.B)…

Maybe, after countless headlines, over decades, wrongly wondered if Buffett was old hat…

Maybe, possibly, there’s a chance that he’s making a huge mistake.

But if Buffett is buying, while others are selling, or frozen in fear…

Isn’t there a chance we should spend less time contemplating our losses, and a little more time emulating the man who has spent decades demonstrating the value of long-term investing?

You think there might be a pretty bloody good chance?

Yep, me too.

I can’t offer to make the losses hurt less. I can’t stop the worry. I can’t make the market turn around, by force of will.

But I – like you – can hold my nose, and buy anyway with eyes set firmly on the horizon, and believe in the long-term potential of investing, just as Warren Buffett has… for decades.

Or, you can be like the ‘smart money’ and try to time the market, guess at macro forecasts, trade in and out, check your brokerage a dozen times a day and let the noise overwhelm you.

I don’t know about you, but I’m with Uncle Warren.

Join me?

Fool on!

The post $16 trillion ‘wiped off’ share markets. Buffett doesn’t care appeared first on The Motley Fool Australia.

More reading

• The single greatest investing lesson I ever learned
• Thinking about selling all your stocks? Here are 2 big risks you’ll face
• Worried about inflation? Here’s what Warren Buffett says Berkshire Hathaway is doing
• 3 lessons from what Buffett didn’t say at Berkshire Hathaway’s shareholder meeting
• Warren Buffett talks cash and more at Berkshire Hathaway’s annual meeting

Motley Fool contributor Scott Phillips has positions in Berkshire Hathaway (B shares). The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Berkshire Hathaway (B shares) and Bitcoin. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended the following options: long January 2023 $200 calls on Berkshire Hathaway (B shares), short January 2023 $200 puts on Berkshire Hathaway (B shares), and short January 2023 $265 calls on Berkshire Hathaway (B shares). The Motley Fool Australia has recommended Berkshire Hathaway (B shares). The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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The Fortescue Metals Group Limited (ASX: FMG) share price will be on watch on Wednesday.

This follows the release of an announcement this morning from the mining giant.

Why is the Fortescue share price on watch?

The Fortescue share price will be one to watch closely today after the company announced a raft of leadership changes.

According to the release, Fortescue is making these changes as part of its evolution into a global green renewables and resources company.

It expects the changes to help to deliver Fortescue’s global green energy business strategy – to lower global emissions, to decarbonise Fortescue, and to create significant additional value for shareholders, through sharing green fuels and technology with the world.

This follows two decades of Fortescue’s iron ore, trucks, and trains generating billions of tonnes of carbon emissions and polluting the Earth.

What are the changes?

The biggest change sees Dr Andrew “Twiggy” Forrest AO return to lead Fortescue as its Executive Chairman. He will be focused on overseeing the iron ore business for an interim period to help drive the company’s transition when its current CEO, Elizabeth Gaines, concludes her tenure in August.

Another change will see Dr Mark Hutchinson, former President and CEO of General Electric (GE) Europe, join Fortescue Future Industries (FFI) in early July. He will initially take the role of Director of Projects, before assuming the role of CEO of FFI by the end of 2022.

The current FFI CEO, Julie Shuttleworth, will continue in her role during the transition process and will then move to a senior executive leadership role.

Dr Forrest commented: “Bringing in someone with Mark’s global leadership experience and proven track record in managing large scale, complex global organisations and projects goes to the heart of our global vision for FFI. We are committed to sharply arresting climate change, creating massive economic growth, increasing jobs, and growing our business profitability for our shareholders.”

The Executive Chairman also dismissed concerns that FFI could destroy shareholder wealth and continues to believe it will be a profitable business.

“We will prove that going green has a fabulous and profitable future, providing significant additional value for shareholders by ramping up innovative and game changing green technologies, green operating know-how and sharing that and our future massive green fuel supply to the world,” he added.

Dr Forrest concluded with a warning to other mining companies that are ignoring the need to decarbonise.

“We are doing the hard work to genuinely decarbonise Fortescue, avoiding the temptation we see all around us to greenwash. I wish to specifically congratulate Rio Tinto and BHP for their efforts in their own inevitable decarbonisation journey. For those remaining in the private and public mining and energy sector who ignore the world’s need to change, you do so at your ignorance and peril.”

What else is changing?

Joining Dr Hutchinson at FFI will be the former CEO of AGL Energy Ltd (ASX: AGL), Andrew Vesey. He will be appointed as FFI’s Head of Energy Transition Projects.

The release notes that Mr Vessey has spent more than 40 years transforming and repositioning organisations by focusing on advanced technology and execution. His recognitions and awards include Business Leader of the Year’ (Climate Alliance); ‘CEO of The Year’ (S&P Platts Global Energy Awards) – One of Australia’s ‘Low Carbon Heroes.

Finally, another key appointment sees Christiaan Heyning join as Head of Decarbonisation. Mr Heyning joins FFI from McKinsey where he was a founding partner of the Perth business. He has a 20-year track record of strongly improving business outcomes in mining and industry internationally, with a very strong focus on sustainability.

The post Fortescue share price on watch after Twiggy returns to top job appeared first on The Motley Fool Australia.

More reading

• Which ASX 200 mining share has the highest dividend yield in May?
• Woodside share price lifts despite Twiggy’s latest ‘greenwashing’ accusations
• Is the Fortescue share price cheap after dropping 10% in a month?
• Why are Fortescue and green hydrogen making news again on Friday?
• Is the Fortescue share price a buy for its 16% dividend yield?

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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Looking for growth shares to buy in May? Well, here’s some good news! Listed below are two growth shares that have recently been named as buys with major upside potential.

Here’s what you need to know about them:

Allkem Limited (ASX: AKE)

The first ASX growth share to look at is Allkem. It is one of the world’s leading lithium miners with a collection of high-quality operations across different geographies and lithium type.

As Allkem is already shipping lithium in large quantities, it is allowing the company to benefit from the sky high lithium prices which are being driven by the clean energy transition and the rapid adoption of electric vehicles. This bodes well for its earnings growth in the coming years, especially with management aiming to increase its production three-fold by 2026.

Morgans is a big fan of Allkem and has an add rating and $16.98 price target on its shares.

Dicker Data Ltd (ASX: DDR)

Another growth share to look at is Dicker Data. It is a leading technology hardware, software, and cloud distributor, which distributes a growing portfolio of products from the world’s leading technology vendors from its new state of the art distribution centre.

Dicker Data recently released its first-quarter update and revealed that its strong growth has continued in FY 2022. The company reported a 50.5% increase in revenue to $673.6 million and a 22.7% lift in profit before tax to $23.8 million.

This was driven by a combination of organic growth and a full quarter contribution from the Exeed acquisition.

One leading broker that appears confident this strong form can continue is Morgan Stanley. In response to its first-quarter update, the broker retained its overweight rating and $16.00 price target on its shares.

The post Analysts rate these ASX growth shares as buys this month appeared first on The Motley Fool Australia.

More reading

• What’s with the Dicker Data share price today?
• Why I think the Allkem share price is in the buy zone
• Falling ASX 200 mining shares ‘an opportunity to invest in sector leaders’: broker
• Everything you need to know about the latest Dicker Data dividend
• Why CSL, Dicker Data, Lifestyle Communities, and Money3 shares are rising today

Motley Fool contributor James Mickleboro has positions in Allkem Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Dicker Data Limited. The Motley Fool Australia has positions in and has recommended Dicker Data Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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