Building a massive portfolio of ASX shares from scratch is no easy feat. Creating real wealth through the share market takes time, dedication and discipline. But it can be done, nonetheless. One thing I’ve learned over time is that sometimes it’s simple rules executed consistently that can really give your returns a boost. So, with that in mind, here are 3 rules for building a massive ASX share portfolio.

1) Set aside money for regular investing

I often hear would-be investors say something like ‘I want to invest, but there’s never any money left over from my pay packet’. Our brains have a funny ability to work with the cash we think is available. Whether you have $100 or $500 sitting in your account, there’s a high chance it will be gone by the time your next pay cheque comes in.

That’s why setting aside your investing cash when you get paid is vital for building wealth with ASX shares. If you make this a habit every time you get paid, and invest the money regularly, your chances of building a massive ASX share portfolio will balloon.

2) Don’t just buy ASX blue chips

There’s nothing wrong with having an ASX portfolio consisting of the big 4 banks, Woolworths Group Ltd (ASX: WOW), Wesfarmers Ltd (ASX: WES) and Telstra Corporation Ltd (ASX: TLS). But these companies are likely to give you a nice stream of dividend income and little else over the coming years. If you really want to make your ASX share portfolio massive, you’ll need some help from your shares too.

That’s why I think investors in the ‘wealth accumulation’ phase should mix blue chips with at least some growth shares. Whether it’s Afterpay Ltd (ASX: APT), Altium Limited (ASX: ALU), Xero Limited (ASX: XRO), Polynovo Ltd (ASX: PNV) or any other growth share, you want to have at least some portion of your portfolio dedicated to companies that have long runways in front of them.

3) Don’t act with emotion

Keeping a cool head is one of the best ways you can outperform the S&P/ASX 200 Index (ASX: XJO) over time. Most investors who underperform the index do so because they make silly decisions based on what ‘the crowd’ is doing.

This might involve buying an overvalued company in the hope it will make you a quick buck, or otherwise selling a perfectly good company at a terrible price because the market is crashing. Both of these decisions are emotional and have no place in the creation of a massive ASX share portfolio. The best investors in the world buy businesses, not ticker symbols, and any ambitious disciple would do well to follow by example.

More reading

• Where to invest $5,000 in ASX 200 shares today
• Where will the Coles share price be in 1 year?
• Tax planning for ASX 200 investors
• Is the BHP share price a buy?
• 3 top ASX dividend shares I would buy for income right now

Sebastian Bowen owns shares of Telstra Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Xero. The Motley Fool Australia owns shares of and has recommended Telstra Limited. The Motley Fool Australia owns shares of AFTERPAY T FPO, Altium, 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.

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On Tuesday the Australian share market continued its remarkable run and charged notably higher. This has led to a large number of shares racing higher this week.

Three which have climbed so much they have just reached record highs are listed below. Here’s why they are breaking records:

Ansell Limited (ASX: ANN)

The Ansell share price continued its positive run and hit a record high of $35.35 on Tuesday. The health and safety products company’s shares have been on fire this year due to the increasing demand it is experiencing it is during the pandemic. And unlike some companies which are getting a temporary sugar hit from the crisis, investors appear to believe the pandemic will cause a sustained increase in demand for Ansell’s hand and body protection solutions.

Appen Ltd (ASX: APX)

The Appen share price hit a record high of $32.02 yesterday. Investors have been fighting to get hold of the artificial intelligence company’s shares over the last couple of months after it released a positive market update. Appen revealed that demand for its services has remained strong despite the pandemic. According to the release, the company remains on course to achieve its FY 2020 operating profit guidance of $125 million to $130 million. This represents a 23.8% to 28.7% year on year increase.

Temple & Webster Group Ltd (ASX: TPW)

The Temple & Webster share price climbed to a record high of $4.49 on Tuesday. Investors have been buying the shares of Australia’s largest online retailer of furniture and homewares after it revealed stellar sales growth during the pandemic. A recent update shows that Temple & Webster’s second half revenue to 24 April was up 74% on the prior corresponding. This was driven by record new and repeat customer orders. Investors appear optimistic that this shift to online shopping will be sustained.

More reading

• 5 ASX 200 10-bagger shares of the decade
• If you invested $10,000 in the Appen IPO, this is how much you’d have now
• ASX 200 shares to buy for growth and income
• 2 quality ASX shares to buy for long-term growth
• Why this ASX infrastructure company could help protect your portfolio in a downturn

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 Temple & Webster Group Ltd. The Motley Fool Australia owns shares of Appen Ltd. The Motley Fool Australia has recommended Ansell Ltd. 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 Why Appen and these ASX shares just hit record highs appeared first on Motley Fool Australia.

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ASX 200 shares are starting to rebound after a tough start to 2020. The S&P/ASX 200 Index (ASX: XJO) is down 13.53% this year with some of the blue-chip shares down considerably more.

So in this up and down share market, here’s where I’d be investing $5,000 today.

Where to invest $5,000 in ASX 200 shares today

I like to stick to the large-cap shares when things are tough. There are some hard times ahead for the ASX banks but I think the National Australia Bank Ltd. (ASX: NAB) share price could be in the buy zone.

NAB shares are down 32.44% this year. This could mean the bank is in trouble, or that it is undervalued.

I think the bank dividend cuts have spooked some investors. There have also been significant impairments as the coronavirus pandemic continues to hit balance sheets.

However, I think the Aussie banks will remain a significant part of our economy. That means ASX 200 bank shares could be undervalued if corporate earnings bounce back quicker than expected.

I also consider CSL Limited (ASX: CSL) to be a good buy right now. The Aussie biotech share closed at $291.00 on Friday afternoon but has since surged to $307.63.

There’s been strong support for the CSL share price around the $290 to $300 mark in recent times. Given the current circumstances, ASX healthcare shares could be a solid buy right now.

Another ASX 200 share worth a look at today is Newcrest Mining Limited (ASX: NCM). Newcrest is a leading ASX gold miner and could benefit from the volatile share market.

Investors tend to flock to gold in times of uncertainty. That’s good news for the Newcrest share price, despite the fact it has already climbed 5.26% higher in 2020.

Foolish takeaway

There are a number of ASX 200 shares that are in the buy zone right now. The volatile market has created buying opportunities for patient investors with a long-term investment horizon.

More reading

• 3 easy rules for building a massive ASX share portfolio
• Where will the Coles share price be in 1 year?
• Tax planning for ASX 200 investors
• Is the BHP share price a buy?
• 5 things to watch on the ASX 200 on Wednesday

Ken Hall has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of CSL Ltd. 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 Where to invest $5,000 in ASX 200 shares today appeared first on Motley Fool Australia.

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