May.24 — Hong Kong protesters battled with riot police in busy downtown areas on Sunday, showing their opposition toward China’s dramatic move to crack down on dissent in the biggest demonstration since the coronavirus swept through the city in January. Stephen Engle reports on “Bloomberg Daybreak: Australia.”
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At the weekend I looked at how $20,000 investments in a number of ASX shares have fared over the last decade.
Given the success of these investments, today I thought I would look at a few shares which I think investors ought to invest $20,000 into today for the next 10 years.
Here why I think these three top ASX shares could provide strong returns for investors:
Bravura Solutions is a fintech company providing software and services to the wealth management and funds administration industries. The key product in its portfolio is the Sonata wealth management platform. Sonata allows users to connect and engage with their clients anytime, anywhere, through computers, tablets or smartphones. It is proving to be very popular with financial institutions due to the way it simplifies legacy client systems into one unified customer-centric solution. Also supporting its growth in the future will be the recent acquisitions of Midwinter and Finocomp. These have strengthened its offering and opened the company up to new and lucrative markets.
Another option for that $20,000 investment is Jumbo. It is an online lottery ticket seller and the operator of the Oz Lotteries website. Its shares have fallen heavily in recent months due to concerns over its slowing growth. However, this has been caused by an increased investment in the future growth of its software-as-a-service (SaaS) business. I think this selling has been overdone and created a buying opportunity for investors. Especially when you consider its massive market opportunity. Last year management noted that approximately 7% of the world’s lottery tickets are sold online. This implies that 93% of a ~US$300 billion global market has yet to transition online. Jumbo is aiming to grow its ticket sales to $1 billion per annum by FY 2022, which is still only scratching at the surface of the overall market.
Another ASX share for investors to consider investing $20,000 into is NEXTDC. I think it is a great way to gain exposure to the rapidly growing cloud computing market. This is because NEXTDC’s world class data centres have been experiencing a material increase in demand for capacity over the last few years. And with more infrastructure expected to shift over to the cloud in the next decade, it looks well-positioned to profit greatly.
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James Mickleboro owns shares of NEXTDC Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and recommends Jumbo Interactive Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Bravura Solutions Ltd. The Motley Fool Australia has recommended Bravura Solutions Ltd and Jumbo Interactive 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 Where to invest $20,000 into ASX shares right now appeared first on Motley Fool Australia.
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The Fortescue Metals Group Limited (ASX: FMG) share price will be on watch today as news broke on Saturday that the company had increased its stake in Cadente Copper to 20%. This cements its right to preserve its stake through future capital raisings and moreover, to participate in debt issues. The company is exploring a copper-gold porphyry in Peru.
Argentina and Ecuador are also part of Fortescue’s exploration program.
I have worked for Andrew Forrest in the past. Like anybody else, I have worked out that when he sees something in the distance in mining, then he is probably correct.
He went against the odds at Murrin-Murrin with the laterite nickel-cobalt mine, which required a massive and highly technological processing operation. In the past 4 years, nickel has been the stand out performer in base metals. He also went against the odds in the Pilbara mining low-grade ore using surface excavation machines. This was unheard of.
Regardless of the current situation, copper is likely to see strong demand in the decade to come on the back of its increase in use for electric vehicles and batteries, as well as continued growth in China and India. As for gold, the precious metal is likely to see sustained high prices. The combination of uncertainty, large volumes of quantitative easing, and low interest rates work in unison to keep gold high.
It is hard to recall a week when Fortescue wasn’t up to something new or visionary over the past decade. At the recent Macquarie Conference, it covered its future plans. The US$1.3 billion Eliwana project. The US$2.6 billion Iron Bridge project. A US$800 million investment in energy infrastructure, including 275 kilometres of transmission lines and 150 megawatts of solar-powered generation. As always, Fortescue supports local suppliers and local contractors.
Over the past decade, Fortescue has achieved some truly impressive compound annual growth rates (CAGR). These include 14.1% for sales, 16.8% for cash flow, 17.6% for earnings per share, and a share price CAGR of 10.8%.
At the time of writing, Fortescue is trading at a very low price-to-earnings ratio of 5.49. This is a level well below its 10-year average of 10. At this low price, you also get a company that has a dividend CAGR of 36.3% and a 12-month trailing dividend yield of 7.36%.
Regardless of any sabre rattling that goes on between the great powers, only Australia can fulfil the iron ore quantities and qualities required by China. Over the medium term, when the current tensions have subsided, I believe Fortescue will still be one of the engines of the Australian economy.
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Motley Fool contributor Daryl Mather owns shares of Fortescue Metals Group Limited. 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 Fortescue share price: ASX iron ore major increases South American investment appeared first on Motley Fool Australia.
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