There are plenty of ASX shares that are growing. However, few are growing their earnings as rapidly as the ASX shares listed below.

Here’s why these could be ASX 200 growth shares to buy in March:

Lovisa Holdings Limited (ASX: LOV)

The first ASX 200 share to look at is fast-fashion jewellery retailer Lovisa. It could be a top long term option due to the popularity of its affordable offering and its significant global expansion plans.

The latter is a key reason why Morgans is so bullish on the company. It recently wrote:

LOV commented today that it sees ‘lots of white space’ around the world for future network expansion. This, in our opinion, is the reason to own LOV. The business has a product that can be deployed around the world; an efficient fit-out process; a strong position in a niche segment; and the ambition to turn Lovisa into a truly global brand.

Morgans has an add rating and $29.00 price target on its shares.

WiseTech Global Ltd (ASX: WTC)

Another ASX 200 growth share that could be a buy is this logistics solutions company.

WiseTech is the company behind the popular CargoWise One solution, which allows users to execute complex logistics transactions and manage freight operations from a single, easy to use platform.

Demand has been strong for its platform over the last few years and underpinned strong sales and profit growth.

Pleasingly, this strong form has continued in FY 2023, with the company reporting stellar growth during the first half. And with management expecting more of the same in the second half, WiseTech is guiding to revenue growth of 26% to 30% and EBITDA growth of 19% to 29% for the full year.

Morgan Stanley is positive on the company’s outlook. It has an overweight rating and $70.00 price target on its shares.

The post 2 explosive ASX growth shares to buy this month: analysts appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#0095C8”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#0095C8”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• We still hold this ASX 8-bagger because there’s more to come: QVG
• Top ASX shares to buy in March 2023
• These are my top ASX 200 growth shares to buy today
• Here are the top 10 ASX 200 shares today
• 7 more ideas for buying ASX shares this reporting season: expert

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 positions in and has recommended Lovisa and WiseTech Global. The Motley Fool Australia has positions in and has recommended WiseTech Global. The Motley Fool Australia has recommended Lovisa. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

from The Motley Fool Australia https://ift.tt/LpEWbZ7

When starting out on what is hopefully a lifelong investing journey of building wealth, there are two paths one can go down. The first is to become an active share investor. This path involves researching individual businesses listed on the ASX, finding the best ones, and paying the right price for a piece of them.

This is typically what most people think of when ‘investing in shares‘ is mentioned.

The second path is passively investing into index funds. An index fund is a managed fund or exchange-traded fund (ETF) that invests in an index. This index represents a broad swathe of the most successful companies listed on a share market.

For example, the flagship index that covers the Australian share market is the S&P/ASX 200 Index (ASX: XJO). The ASX 200 represents the largest 200 shares on the ASX, weighted by the companies’ size (or market capitalisation).

The most popular index in the world is the United States’ S&P 500 Index. This does a similar thing but covers the 500 largest shares listed on America’s stock exchanges.

An index fund is designed to give investors the market return’, no more, no less. The whole reason why many investors choose to shun passive investing and go down the active route is to try and beat the returns of the broader market.

But history shows this is easier said than done. That’s why many other investors try a hybrid approach, investing in individual shares as well as in index funds.

Warren Buffett’s favourite index fund

So time now to glean some advice from the great Warren Buffett — one of the best investors to have ever walked the earth. Buffett has made a career out of successfully beating the market.

As our chief investment officer Scott Phillips went through earlier this week, Buffett has vastly overachieved when it comes to this goal, delivering an average return of almost twice what the S&P 500 has given over a 58-year period.

Yet Buffett has some interesting advice on which path the average investor should go down. This is an excerpt from Buffett’s 2013 letter to the shareholders of his company Berkshire Hathaway:

Most investors, of course, have not made the study of business prospects a priority in their lives. If wise, they will conclude that they do not know enough about specific businesses to predict their future earning power.

I have good news for these non-professionals: The typical investor doesn’t need this skill. In aggregate, American business has done wonderfully over time and will continue to do so (though, most assuredly, in unpredictable fits and starts)….

The goal of the non-professional should not be to pick winners… but should rather be to own a cross-section of businesses that in aggregate are bound to do well. A low-cost S&P 500 index fund will achieve this goal…

Indeed, the unsophisticated investor who is realistic about his shortcomings is likely to obtain better long-term results than the knowledgeable professional who is blind to even a single weakness.

So if I was just starting out on my wealth-building journey, this is the path I would follow for my first few years. Luckily the ASX has an ETF that tracks Buffett’s index of choice, the S&P 500. The iShares S&P 500 ETF (ASX: IVV) has given ASX investors an average return of 16.82% per annum over the past 10 years.

The magic of compound interest

If an investor starts by putting $20 a week into this index fund, they will have $1,040 after a year. Say our investor keeps this up, and the S&P 500 ETF retains this historical rate of return (which is by no means guaranteed), then they will have a total investment portfolio worth just under $30,000 within 10 years.

If left for another ten years (provided the $20 a week continues), this could grow to more than $165,000, and to almost $810,000 over the ten years after that. Such is the power of compounding.

As our investor grows in confidence, then they can perhaps try and beat the market by investing in individual shares like Buffett and boost these returns even more. But if I were just starting out today, this is certainly the Buffett wisdom I would follow.

The post I’d invest $20 a week the Warren Buffett way as I aim to build wealth appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#43B02A”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#43B02A”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• For $750 in monthly passive income, buy 8,572 shares of this ASX 200 stock
• How to become a millionaire with ASX shares
• Here are the top 10 ASX 200 shares today
• Why is the Liontown share price roaring 12% higher today?
• Passive income watch: Here are the ASX 200 shares that delivered some of the biggest dividend boosts this earnings season

Motley Fool contributor Sebastian Bowen has positions in Berkshire Hathaway. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Berkshire Hathaway. The Motley Fool Australia has recommended Berkshire Hathaway and iShares S&p 500 ETF. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

from The Motley Fool Australia https://ift.tt/9HK27YD

Last week saw a number of broker notes hitting the wires once again. Three buy ratings that investors might want to be aware of are summarised below.

Here’s why brokers think investors ought to buy them next week:

Allkem Ltd (ASX: AKE)

According to a note out of Goldman Sachs, its analysts have reiterated their buy rating on this lithium miner’s shares with a slightly trimmed price target of $15.40. This follows the release of Allkem’s first-half results, which came in slightly ahead of expectations. Allkem remains Goldman’s preferred lithium exposure due to its discount to peers and its optionality across the Americas and Australia on the largest lithium resource under its coverage. The Allkem share price ended the week at $12.36.

Harvey Norman Holdings Limited (ASX: HVN)

Another note out of Goldman Sachs reveals that it analysts have retained their buy rating on this retail giant’s shares with a trimmed price target of $4.70. Although Harvey Norman’s first-half results fell short of expectations, Goldman remains positive for a number of reasons. This includes its dirt cheap valuation compared to peers and its belief that the peak cash drag on franchisee support is behind it. The Harvey Norman share price was fetching $3.71 at Friday’s close.

Pointsbet Holdings Ltd (ASX: PBH)

Analysts at Bell Potter have retained their speculative buy rating on this sports betting company’s shares with a reduced price target of $2.75. This follows a mixed half-year result with Pointsbet’s revenue beating expectations but its loss coming in greater than forecast. Nevertheless, the broker remains positive given its very large opportunity in the North American sports betting market. The Pointsbet share price ended the week at $1.43.

The post Top brokers name 3 ASX shares to buy next week appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#0095C8”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#0095C8”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• Give yourself a passive income boost with these ASX dividend shares: experts
• Here are the top 10 ASX 200 shares today
• Why is the Liontown share price roaring 12% higher today?
• What’s happening with ASX 200 lithium stocks this week?
• Buy these ASX 200 mining shares before they boom: experts

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

from The Motley Fool Australia https://ift.tt/rm8YRtT

Some S&P/ASX 200 Index (ASX: XJO) stocks could be very effective Investment choices for passive income. I’m going to talk about Premier Investments Limited (ASX: PMV) shares.

I think this ASX retail share has done a very good job of growing its earnings and dividend over the past decade. Its underlying businesses, like Smiggle and Peter Alexander, have performed well.

The higher earnings and profitability have helped the Premier Investments share price increase by almost 100% over the last five years.

How to make $750 monthly passive income from Premier Investments shares

While hardly any ASX stocks pay dividend income monthly, we can easily divide an annual amount equally into 12 to work out the monthly figure.

To make $750 a month, we need to generate $9,000 of annual passive dividend income.

In FY23, according to Commsec, Premier Investments is expected to pay an annual dividend per share of $1.05, not including the effect of franking credits. That’s a cash dividend yield of 3.85%.

If we owned 8,572 Premier Investments shares, then we’d receive $9,000 of annual passive income of dividends in cash. The franking credits would be a bonus on top of that.

The current Commsec forecast for Premier Investments suggests that the dividend could be increased to $1.06 per share in FY25. At the current Premier Investments share price, that suggests the ASX 200 stock could pay a FY25 cash dividend yield of 3.9%.

If we use the FY25 payout, investors would need to own 8,491 Premier Investments shares to receive $9,000 of annual dividends.

How is the ASX 200 stock performing?

We haven’t heard the company’s FY23 half-year result yet – its reporting period ends in January rather than December, like many other ASX shares. We should see the company’s results later this month.

The latest news we heard was the company’s update announced in early December 2022.

It advised that global sales for the first 17 weeks of the first half of FY23 were up 24.9% compared to the pre-COVID FY20 first-half sales. The company also said that it achieved “record sales” during the year’s Black Friday trading week, including its highest-ever global online sales for a trading week.

The company noted that in weeks 13 to 17 of the first half of FY23, it saw 0.1% growth on the prior corresponding period, this was despite cycling “very strong” sales in the FY22 first half, which benefited from store re-openings and pent-up demand surging after months of lockdowns.

Premier Investments added that it had managed its logistics program effectively and was “fully prepared” for the trading ahead. It also said that it was “well positioned to take full advantage of the current  momentum through the remaining critical first half trading periods of Christmas, Boxing Day and ‘back to school’,

Going back to school is an important time because of Premier Investments’ global school accessories business called Smiggle, which is driving a lot of the overall growth that the company is experiencing.

Premier Investments share price snapshot

According to Commsec, the ASX 200 stock is valued at 17x FY23’s estimated earnings.

The post For $750 in monthly passive income, buy 8,572 shares of this ASX 200 stock appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#0095C8”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#0095C8”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• How to become a millionaire with ASX shares
• Here are the top 10 ASX 200 shares today
• Why is the Liontown share price roaring 12% higher today?
• Passive income watch: Here are the ASX 200 shares that delivered some of the biggest dividend boosts this earnings season
• Here are the 3 most heavily traded ASX 200 shares on Friday

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 Premier Investments. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

from The Motley Fool Australia https://ift.tt/vC7YaFt