On Thursday, the S&P/ASX 200 Index (ASX: XJO) was on form and pushed higher. The benchmark index rose 0.2% to 8,839 points.

Will the market be able to build on this on Friday and end the week on a high? Here are five things to watch:

ASX 200 expected to sink

The Australian share market looks set to fall on Friday following a disappointing night of trade in the United States. According to the latest SPI futures, the ASX 200 is expected to open 65 points or 0.75% lower this morning. In late trade on Wall Street, the Dow Jones is down 1%, the S&P 500 is down 1.3%, and the Nasdaq is 2.3% lower. Tesla (NASDAQ: TSLA) shares are down 14% and weighing heavily on the latter.

Oil prices jump

ASX 200 energy shares Santos Ltd (ASX: STO) and Woodside Energy Group Ltd (ASX: WDS) could have a great finish to the week after oil prices jumped overnight. According to Bloomberg, the WTI crude oil price is up 5.8% to US$91.87 a barrel and the Brent crude oil price is up 6.65% to US$100.33 a barrel. This was driven by reports that tankers were struck off Saudi Arabia.

Polynovo shares downgraded

Polynovo Ltd (ASX: PNV) shares will be in focus today after the medical device company was downgraded by the team at Bell Potter. According to the note, the broker has downgraded Polynovo’s shares to a hold rating with a heavily reduced price target of $1.00 (from $2.00). It said: “We conclude that the top line growth rate is below our expectation and accordingly our target price is adjusted to reflect this change. Pending the full year earnings update, our initial reaction has been to slash the growth forecast to low double digit percentage growth going forward. For FY27 we now expect net sales to increase by ~$15m relative to the $20m increase achieved in FY26. We are particularly concerned by sequential period decline in US revenues in 2H26 in addition to the absence of a strategy in the outpatient care market.”

Gold price tumbles

ASX 200 gold shares Evolution Mining Ltd (ASX: EVN) and Newmont Corporation (ASX: NEM) could have a poor finish to the week after the gold price tumbled overnight. According to CNBC, the gold futures price is down 2.5% to US$4,048.5 an ounce. Rate hike concerns are weighing on the precious metal. Also, Newmont will be releasing its quarterly update this morning.

Buy Generation Development shares

Morgans sees value in Generation Development Group Ltd (ASX: GDG) shares. In response to its fourth-quarter update, the broker has retained its buy rating with an improved price target of $6.89 (from $6.28). It said: “GDG has provided a 4Q26 update. We saw this as a strong result highlighted by record Investment Bond sales, and importantly, Evidentia beating expectations after a run of consecutive misses. We lift our GDG EPS by +1%-5% over the forecast period, on higher sales and FUM expectations in both key divisions. Our price target is set at A$6.89 (previously A$6.28). We maintain our BUY recommendation, with >20% TSR upside.”

The post 5 things to watch on the ASX 200 on Friday appeared first on The Motley Fool Australia.

More reading

• Oil prices are rising again. What does that mean for these ASX energy shares?
• Here are the top 10 ASX 200 shares today
• Guess which $1.8 billion ASX 200 stock is leaping 33% on Thursday!
• Why is the Santos share price lifting off on Thursday?
• Generation Development Group posts 36% lift in FUM and record inflows for FY26

Motley Fool contributor James Mickleboro has positions in Woodside Energy Group Ltd. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended PolyNovo and Tesla. The Motley Fool Australia has recommended Generation Development Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

James Hardie Industries plc (ASX: JHX) shares have been on a rollercoaster over the past year.

Earlier this year, the building products giant lost around 40% of its value as investors worried about its large US acquisition, softer earnings, and governance uncertainty.

Fast forward to today, and sentiment has shifted dramatically. James Hardie shares jumped 6% on Thursday to $36.99, taking their gain for the year to almost 20%.

So, what’s driving the turnaround?

Better-than-expected earnings

The biggest catalyst was James Hardie’s preliminary first-quarter FY27 results.

The company reported consolidated net sales of between US$1.449 billion and US$1.475 billion, comfortably ahead of previous guidance of US$1.315 billion to US$1.354 billion.

Profit also surprised on the upside. EBITDA came in between US$399 million and US$407 million, well above management’s earlier guidance of US$354 million to US$375 million.

The stronger-than-expected result suggests the company is executing better than many investors in James Hardie shares had feared.

A market leader with pricing power

James Hardie remains the dominant fibre cement manufacturer in North America and Australia.

Its strong brand, extensive distribution network, and reputation for durable products create competitive advantages that are difficult for rivals to replicate. That market leadership has historically given the company pricing power, allowing it to lift prices even when demand softens.

The expansion into outdoor living products also broadens its addressable market and creates opportunities to cross-sell products across its customer base.

Over time, management of James Hardie shares expects those benefits to support stronger margins and earnings growth.

Experts remain optimistic

Fund manager L1 Capital believes the recent rally may not be the end of the story. The firm noted James Hardie shares climbed 46% during the three months to June, helped by easing geopolitical tensions and management’s constructive FY27 outlook.

L1 expects the company’s core North American fibre cement business to return to volume growth, supported by normalising inventories, stronger execution in repair and remodel markets, gains among smaller builders, competitor exits, and continued conversion from vinyl and timber products.

Importantly, L1 believes the market is still valuing James Hardie at a discount because of lingering concerns over execution, governance, and the US housing cycle.

If those concerns continue to fade, the fund manager sees scope for both earnings growth and a higher valuation multiple.

The risks remain

The biggest risk for James Hardie shares is still the US housing market.

Demand for new homes and renovation activity remains sensitive to mortgage rates and consumer confidence. If higher interest rates continue weighing on housing, James Hardie’s sales growth could slow.

After such a strong rebound, investors are also likely to demand continued earnings upgrades to justify further gains.

Foolish takeaway

James Hardie’s latest earnings update has reminded investors why the company has long been regarded as one of the ASX’s highest-quality industrial businesses.

While risks remain, particularly in the US housing market, improving execution and stronger-than-expected earnings suggest the recent rally of James Hardie shares could still have further room to run.

The post James Hardie shares are flying. Here’s why the rally may not be over appeared first on The Motley Fool Australia.

More reading

• Here are the top 10 ASX 200 shares today
• Why are James Hardie shares jumping 9% on Thursday?
• James Hardie posts strong Q1 FY27 earnings above guidance
• Experts say these ASX 200 shares have great potential
• Here are the top 10 ASX 200 shares today

Motley Fool contributor Marc Van Dinther 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 no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

When Warren Buffett stepped down as CEO of diversified holding company Berkshire Hathaway on 31 December, he was a remarkable 95 years old.

After spearheading Berkshire Hathaway for some 60 years, he handed the reins over to Greg Abel, who’s been with the company since 1999.

But Buffett, being the man that he is, still keeps his finger on the market’s pulse, working from the company office and advising Abel.

What you may not know is that Warren Buffett started his career with very little money. But by the 1980s he’d notched up his first billion dollars. And, as of January this year, he was reported to be worth almost US$149 billion.

With that astonishing success in mind, here are three golden investing rules immortalised by the Oracle of Omaha that we would all do well to keep in mind.

Why Warren Buffett advises patience

While it’s tempting to believe we can out think our fellow investors, the reality is that timing the market correctly is very difficult, and requires more than a bit of luck.

Indeed, I’m not aware of a single investor who has managed to consistently time their entry and exits into the market correctly over the long-term.

And when it comes to the billions of dollars Warren Buffett amassed over the years, day trading certainly wasn’t part of his strategy.

“The stock market is designed to transfer money from the active to the patient,” he famously opined.

Which ties into this Buffett investing nugget, “I don’t invest to make a quick profit. I buy stocks with the mindset that the market might shut down tomorrow and stay closed for five years.”

So, the next time you’re tempted to buy or sell an ASX share simply because it’s getting a lot of media attention or has made some big daily moves, you may want to think again.

Instead look for quality companies, with sizeable barriers to competitor entry and solid long-term growth potential.

And then be patient.

Stick with the things that you know

Warren Buffett is also well known for avoiding investing in companies or assets that he doesn’t understand. That’s one of the reasons he never bought into the crypto markets.

“You don’t have to be smart, as long as you stick to what you know,” Buffett said.

Now we all have our different areas of expertise. So, if you think you understand global crypto markets, that doesn’t mean you should steer clear as well.

But according to the Oracle of Omaha, you should only invest in a sector or company if you understand how it works.

Invest in ASX shares providing real world value

The best investments, Warren Buffet advises, provide real world value, not just market value.

“It’s far better to buy a wonderful company at a fair price than a fair company at a wonderful price,” he said.

Again, don’t let yourself join the herd in snapping up ASX shares that are the market darlings of the hour.

Instead look for companies with great brands, a strong proven management team, and the ability to control prices.

The post 3 golden investment rules immortalised by Warren Buffett appeared first on The Motley Fool Australia.

More reading

• The bring-forward rule just got bigger. Here’s what that means for your superannuation
• 5 things to watch on the ASX 200 on Friday
• James Hardie shares are flying. Here’s why the rally may not be over
• Oil prices are rising again. What does that mean for these ASX energy shares?
• WiseTech buys FRDM.ai. What does this mean for WiseTech shares?

Motley Fool contributor Bernd Struben 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 no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.