Stock Pick

  • How to get rich by investing in ASX shares

    Happy young man and woman throwing dividend cash into air in front of orange background

    If you’re just starting out with investing, I wouldn’t worry if you don’t have tens of thousands of dollars to invest. Even if you only have $5,000 to invest each year, you can still generate material wealth if you do it consistently and think long term.

    According to research by Fidelity, the Australian share market has generated an average total return of ~9.2% per annum over the last three decades. Based on this, if you invested $5,000 each year for the last 30 years (and earned the market return), your portfolio would now be valued at a massive ~$773,000.

    Overall, I believe this shows just how rewarding it can be to make regular investments over a long period.

    But which shares should you buy with your first $5,000? Two ASX shares that I think could provide market-beating returns over the long term are listed below:

    Afterpay Ltd (ASX: APT)

    Although it is a reasonably high risk option because of its lofty valuation, I still believe Afterpay could be a great long term investment. I believe the buy now pay later provider is well-positioned for growth over the next decade and beyond thanks to the growing popularity of the payment method with consumers and merchants and its massive market opportunity in the United States.

    In addition to this, I believe the company is very likely to expand into new territories in the near future. I suspect mainland Europe could come first and then probably the Asian market with the support of its substantial shareholder, WeChat. If it makes a success of these expansions, then Afterpay could become a payments giant in the future.

    Altium Limited (ASX: ALU)

    I think it is fair to say that 2020 has been a disappointing year for Altium. Unfortunately, it is one of the few tech companies which have been negatively impacted by the pandemic. Nevertheless, I believe this is a short term headwind and expect its growth to accelerate again in FY 2021.

    Especially given how it is exposed to the growing Internet of Things (IoT) market. According to a company presentation, global technology spending on IoT is expected to reach US$1.2 trillion in 2022. Given that the vast majority of IoT devices have printed circuit boards inside them, this should lead to strong demand for its award-winning electronic design software.

    And here are more exciting shares which could be destined for big things in the future…

    5 ASX stocks under $5

    One trick to potentially generating life-changing wealth from the stock market is to buy early-stage growth companies when their share prices still look dirt cheap.

    Motley Fool’s resident tech stock expert Dr. Anirban Mahanti has identified 5 stocks he thinks are screaming buys. And you can buy them now for less than $5 a share!

    Learn More

    *Extreme Opportunities returns as of June 5th 2020

    More reading

    James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Altium. The Motley Fool Australia owns shares of AFTERPAY T FPO. 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 How to get rich by investing in ASX shares appeared first on Motley Fool Australia.

    from Motley Fool Australia https://ift.tt/2B77FJk

  • ASX 200 down 0.2%: Afterpay hits record high, TPG Telecom merger vote

    At lunch on Wednesday the S&P/ASX 200 Index (ASX: XJO) has given back its morning gains and has dropped lower. The benchmark index is down 0.2% to 5,943.8 points.

    Here’s what has been happening on the market today:

    Afterpay hits record high on UK update.

    The Afterpay Ltd (ASX: APT) share price jumped to a record high of $62.33 this morning. This follows the release of an announcement by the payments company after the market close on Tuesday. The announcement revealed that Afterpay’s UK-based Clearpay business now has over 1 million active customers on its platform after a year in the country. Management also notes that consumers are using its platform more frequently than they were in the U.S. at the same stage.

    Sonic Healthcare update.

    The Sonic Healthcare Limited (ASX: SHL) share price is storming higher on Wednesday after the release of a trading update. That update reveals that after the pandemic hit the healthcare company hard in March and April, its business has bounced back strongly in May and June. As a result of this, the company has reinstated its guidance and advised that it expects its EBITDA to be broadly flat in FY 2020.

    TPG Telecom scheme meeting.

    The TPG Telecom Ltd (ASX: TPM) share price is pushing higher on Wednesday after shareholders voted overwhelmingly in favour of its merger with Vodafone Australia. According to the AFR, 99.68% of proxies voted in favour of the deal. This means the companies could complete the mega merger on July 13.

    Best and worst ASX 200 shares.

    The best performer on the ASX 200 on Wednesday has been the Perseus Mining Limited (ASX: PRU) share price with a sizeable 8% gain. This follows a jump in the gold price overnight. The worst performer on the ASX 200 has been the Viva Energy Group Ltd (ASX: VEA) share price with a 4% decline. This is despite there being no news out of the fuel retailer.

    5 stocks under $5

    We hear it over and over from investors, “I wish I had bought Altium or Afterpay when they were first recommended by The Motley Fool. I’d be sitting on a gold mine!” And it’s true.

    And while Altium and Afterpay have had a good run, we think these 5 other stocks are screaming buys. And you can buy them now for less than $5 a share!

    Learn More

    *Extreme Opportunities returns as of June 5th 2020

    More reading

    Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of AFTERPAY T FPO. The Motley Fool Australia has recommended Sonic Healthcare Limited. 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 ASX 200 down 0.2%: Afterpay hits record high, TPG Telecom merger vote appeared first on Motley Fool Australia.

    from Motley Fool Australia https://ift.tt/2Noo4f1

  • Is the Woolworths share price a secret buy?

    shopping trolley filled with coins, woolworths share price, coles share price

    The Woolworths Group Ltd (ASX: WOW) share price edged 0.8% lower yesterday, but is the Aussie retailer in the buy zone?

    Why the Woolworths share price could be a secret buy

    One thing that caught my interest yesterday was a trading update by SCA Property Group (ASX: SCP). 

    SCA reported that sales performance for a number of its tenants had been volatile due to the coronavirus pandemic.

    However, anchor tenants, such as supermarkets, have seen strong moving annual turnover (MAT) as at 31 May 2020.

    In fact, SCA’s supermarket tenants increased year-on-year MAT by 4.4% through to 31 May.

    I think this could be a good indicator of Woolworths’ performance so far given its dominance in the supermarket space.

    Because the Woolworths share price is up just 0.7% for the year, it may be undervalued right now.

    For context, the Coles Group Ltd (ASX: COL) share price is up 11.5% in 2020 while the S&P/ASX 200 Index (ASX: XJO) is down 10.95%.

    This means that the Woolworths share price is underperforming its rival but outperforming the ASX 200 benchmark.

    However, Woolworths is more of a conglomerate when compared to Coles’ singular supermarket focus.

    One particular drag in 2020 has been Woolworths’ pubs business, ALH Group.

    Tight restrictions on the hospitality sector have hurt earnings from ALH this year. However, as restrictions ease, the group could prove to become more of an asset to the Woolworths share price.

    If supermarket turnover continues to climb, combined with increased pubs revenue, this could spark the Woolies share price to climb in 2020.

    Foolish takeaway

    The Woolworths share price is roughly unchanged from where it started the year. 

    However, the positive update from SCA Property yesterday has got me thinking about whether it’s undervalued.

    Given the strong momentum behind ASX shares since the March bear market, I think Woolworths could be heading higher before the end of the year.

    For more great investment ideas, check out these top picks from the Fool team today!

    5 stocks under $5

    We hear it over and over from investors, “I wish I had bought Altium or Afterpay when they were first recommended by The Motley Fool. I’d be sitting on a gold mine!” And it’s true.

    And while Altium and Afterpay have had a good run, we think these 5 other stocks are screaming buys. And you can buy them now for less than $5 a share!

    Learn More

    *Extreme Opportunities returns as of June 5th 2020

    More reading

    Motley Fool contributor Ken Hall has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of COLESGROUP DEF SET, Wesfarmers Limited, and Woolworths Limited. 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 Is the Woolworths share price a secret buy? appeared first on Motley Fool Australia.

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

The Latest