I tend to concentrate my investing in a few shares and mostly diversify if I see opportunities in sectors which I am not currently in. During the coronavirus pandemic, it was hard to stay focussed as there were value opportunities everywhere. Below I’ll detail some of the shares I recently bought and sold.

Mining share investing

Fortescue Metals Group Limited (ASX: FMG) has long been a cornerstone of my portfolio. I bought into the company at a very low price compared to today. During the pandemic, I purchased more Fortescue shares at a price of $8.80 per share. At the close of business last week I had made around 64%. 

Fortescue is a local company for me. I like the “can-do” attitude, the use of local supply chains, and the year-on-year performance increases. Most of all, I really like the dividend.

I owned Bellevue Gold Ltd (ASX: BGL) before the pandemic, sold it to take profits, and then I have recently bought back in. Knowing what I know now, I would not have sold when I did. However, in March the whole world looked a lot more bleak and uncertain than it does now. 

In my view, Bellevue is a great opportunity for growth. It is developing a high-grade, high-ounce ore body. It has pre-existing infrastructure to reduce the costs of ramp-up. And it is employing many of the professionals who have done similar during the last decade with Northern Star Resources Ltd (ASX: NST).

Financial sector

I sold Westpac Banking Corp (ASX: WBC) for a significant loss during the lockdown period. My initial position was part of a turnaround strategy which I expected to be executed by September or so of this year. The share price had dropped due to the money laundering scandal.

However, once the pandemic hit, the situation changed immediately. It became clear that holding the Westpac shares was a lost opportunity for me. I am sure the Westpac share price will lift significantly. However, for me, there are more profitable ways to put capital to work in the short term.

Recently I also started a position in Sezzle Inc (ASX: SZL). I had long favoured Zip Co Ltd (ASX: Z1P) as a likely challenger to Afterpay Ltd (ASX: APT). Yet I decided Sezzle already had a good head-start among the Gen Z demographic in the $5 trillion US retail market. Sezzle is up around 20% for me so far. 

Foolish takeaway

As somebody approaching retirement years, yet, with no intention to ever retire, I use a higher-risk strategy than most.

My foundation is in solid income-producing shares, preferably those that will also increase in value. This is backed with a significant share investment in growth companies at a good price. Lastly, I work a lot on finding and exploiting share market events.

Most times, it has gone well. Sometimes it goes badly. When it goes badly there is no point in wasting time with regrets. Just pick yourself up, learn from the mistake, and put your capital back to work. 

More reading

• 3 ASX shares to buy now with $10,000
• Afterpay share price up 7%, ASX 200 edges higher
• Why the Afterpay share price just hit a record high and could still go higher
• Here are another 2 insanely cheap ASX 200 shares to buy right now
• Are Aussies still withdrawing cash like crazy?

Daryl Mather owns shares of Bellevue Gold Ltd, Fortescue Metals Group Limited, and Sezzle Inc. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of AFTERPAY T FPO and ZIPCOLTD FPO. The Motley Fool Australia has recommended Sezzle Inc. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The post My share investing journey during the pandemic appeared first on Motley Fool Australia.

from Motley Fool Australia https://ift.tt/2BVhOck

Deciding which ASX shares to buy in the current climate is difficult. During the bull markets you wonder if you have missed the boat. When the bear markets set in, and they will, you wonder if you should cut your losses. 

I believe the 4 shares below represent good value investments in today’s market. They should be solid investments over the medium term regardless of what happens tomorrow. In particular, I think one of them has the real possibility of becoming a 10 bagger share over the next decade. That is, a company likely to return 10 times the initial investment.

High blue chip value

I think that Commonwealth Bank of Australia (ASX: CBA) is probably the best certified blue chip share at the moment. Having put aside $1.5 billion for costs related to COVID-19, CommBank has been moving fast to position the bank for future growth. Although, as the nation’s largest mortgage provider, it is likely to see larger impacts from COVID-19 than its competitors.

At the time of writing, CommBank has a 12-month trailing dividend yield of ~6%, although banks have currently deferred dividends, and is selling at a price to earnings ratio (P/E) of ~13.

Overlooked ASX value share to buy now

I believe Aristocrat Leisure Limited (ASX: ALL) is probably the most overlooked ASX large cap share on the market. It has a fantastic track record of year on year sales growth, maintains very tight margins, and has a 10-year average return on equity (ROE) of 28.6%.

Despite the company’s exposure to digital gaming and social media platforms, its casino revenue streams have been hit hard by COVID-19 restrictions. As restrictions ease, I think Aristocrat will see its share price rise relatively quickly. 

The Aristocrat share price is currently trading at a P/E of just 10.8. That is way below its 10 year average P/E of 23.

One great ASX growth share

Over the past fortnight Sezzle Inc (ASX: SZL) caught my eye. So much so that I have taken a small position in the company. This is a small buy now, pay later company competing head on with the giant Afterpay Ltd (ASX: APT).  The company has a market cap of just $275 million, yet it has already secured a network of 1.3 million users and 14.9 thousand merchants. 

While much larger rivals Afterpay and Zip Co Ltd (ASX: Z1P) are actively working to enter the $5 trillion US retail market, Sezzle is already there targeting Gen Z and Millennials. While Sezzle is unlikely to suddenly become the market leader, I believe the potential for share price growth is high and the possibility of it becoming a 10-bagger over the next decade very real.

Foolish takeaway

I think these are among the best value ASX shares to buy now. Personally, I would split 40% of $10,000 into each of the large cap shares, and the remaining 20% into the higher risk growth share. I believe all of these companies have a very strong value proposition right now. But the market is moving fast.

More reading

• My share investing journey during the pandemic
• Afterpay share price up 7%, ASX 200 edges higher
• Why the Afterpay share price just hit a record high and could still go higher
• CBA share price lower on Slater & Gordon class action news
• Leading brokers name 3 ASX 200 shares to sell today

Daryl Mather owns shares of Sezzle Inc. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of AFTERPAY T FPO and ZIPCOLTD FPO. The Motley Fool Australia has recommended Sezzle Inc. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The post 3 ASX shares to buy now with $10,000 appeared first on Motley Fool Australia.

from Motley Fool Australia https://ift.tt/37r6aBK

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.

The stock market once again told a tale of two exchanges on Wednesday. The Nasdaq Composite (NASDAQINDEX: ^IXIC) had another great day, rising almost 1% and closing above 10,000 for the first time in its history. The Nasdaq 100 index did even better, gaining almost 1.5% and also climbing over the 10,000 hurdle. Yet elsewhere, market measures like the Dow and S&P 500 finished lower on the day, held back by fears about the Federal Reserve’s need to provide further monetary stimulus to try to shore up the broader economy.

Leading the Nasdaq higher on its historic day was Tesla (NASDAQ: TSLA), which celebrated a share-price milestone of its own. However, not every stock on the Nasdaq gained ground, and Starbucks (NASDAQ: SBUX) in particular revealed some challenges that could hold back the coffee stock for a while.

Tesla gets into high gear

Tesla stock finished higher by 9%, soaring above $1,000 per share for the first time ever. The electric vehicle maker has high hopes that it’s only scratched the surface of its addressable market, and future products could dramatically expand its opportunities for further growth.

CEO Elon Musk helped fan excitement about Tesla by talking about the prospects for its Semi electric commercial truck. Even though the semi tractor-trailer truck concept has been part of Tesla’s plans since late 2017, the company has prioritized other efforts first, most notably the Model 3 mass-market sedan. However, Musk reportedly reset those priorities recently, signaling that he wants to move forward more aggressively in bringing the Semi to market faster.

It’s probably not a coincidence that the move comes just after newly public electric truck specialist Nikola (NASDAQ: NKLA) has promoted its own ambitions in serving the commercial truck market. With Nikola’s Badger electric pickup likely to go up against Tesla’s Cybertruck, investors are likely to see plenty of clashes between the two EV automakers. At least today, Tesla won the share-price battle, and investors have high expectations that Musk will lead his team to greater innovations in the future.

Starbucks slows down, faces big losses

Elsewhere, shares of Starbucks dropped 4%. The coffee giant revealed in a filing with the U.S. Securities and Exchange Commission just how much the coronavirus pandemic has affected its business, and it showed some of the strategies it’s looking to follow to get back on track.

Starbucks expects to report a fiscal third-quarter adjusted loss of $0.55 to $0.70 per share, with the pandemic costing the company between $3 billion and $3.2 billion in revenue. Comparable store sales in the U.S. were down 28% in May from year-ago levels.

The coffee giant is also modifying its expansion plans. In China, the company expects to add at least 500 new stores for fiscal 2020, even with pandemic-related setbacks. However, Starbucks now sees itself opening just 100 new stores in the second half of the fiscal year, and it will close as many as 400 company-owned locations in the next 18 months in order to replace them with new store formats in different places. The idea is to offer ways to meet changing customer expectations, with new retail-oriented stores that won’t necessarily offer the typical Starbucks “third place” ambiance.

Investors can look forward to better results later in the year, with Starbucks projecting a fiscal fourth-quarter adjusted profit of $0.15 to $0.40 per share. Nevertheless, the full-year projection of just $0.55 to $0.95 in adjusted earnings per share threw a cup of cold coffee in investors’ faces, and shareholders have to hope that Starbucks’ strategic efforts bear fruit quickly.

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

More reading

• Where to invest $500 into ASX shares right now
• My share investing journey during the pandemic
• 3 ASX shares to buy now with $10,000
• 3 top ASX dividend shares to buy to beat low interest rates
• Is the NAB share price a buy right now?

Dan Caplinger owns shares of Starbucks. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and recommends Tesla and Starbucks. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The post Nasdaq Tops 10,000 on Tesla Surge; Starbucks Cools Off appeared first on Motley Fool Australia.

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

from Motley Fool Australia https://ift.tt/3dRQXM9