Warren Buffett is one of – if not the – greatest businessmen and investors of all time. He has managed to come from relatively small means to build a US$70 billion fortune and the gigantic US$430 billion company Berkshire Hathaway (NYSE: BRK.A)(NYSE: BRK.B) over his long life.

But not only that, Buffett has also made a name for himself as a talented teacher – often dispensing his investing wisdom in a trademark folksy style complete with colourful and memorable quotes.

Here are three that I think all ASX investors will benefit from keeping in mind this week:

“If you aren’t willing to own a stock for ten years, don’t even think about owning it for ten minutes.”

This is one of my personal favourites. In this single pithy sentence, Buffett captures the essence of the long-term mindset that we Fools love. Consider investing as buying ownership of quality businesses, not as the daily trading of ticker symbols on a screen.

Thus, we should all be looking for that company we would want to own for at least a decade, just like Buffett has with Coca-Cola or American Express.

“Whether we’re talking about socks or stocks, I like buying quality merchandise when it is marked down.”

This quote addresses the strange nature of a stock market crash – the only marketplace in the world where buyers want to run out the door if things go on sale. Buffett loves buying shares when everyone wants to sell them.

That’s because when real panic gets a hold in the share market, investors have the tendency to sell everything and get as much cash as possible, with no discrimination between whether what they’re selling is a good or a bad company.

Again, you can use this to your advantage as an investor.

“Price is what you pay, value is what you get”

This fantastic nugget of wisdom is the essence of Buffett’s ‘value investing’ style. It’s a reminder that while the stock market is often a rational place (meaning the price of a company’s shares is equal to its value), this isn’t always the case.

That’s why we’ve seen businesses like Afterpay Ltd (ASX: APT) fluctuate between being priced at $9 a share and $40 a share over the last 3 months. Has the value of Afterpay as a company changed by 400%? Not really (in my opinion). Has its price? Absolutely, and to extreme levels.

Taking advantage of this kind of disparity is how you can outperform the S&P/ASX 200 Index (ASX: XJO) over time.

More reading

• Morgans warns investors to sell these ASX 200 shares in the rally
• Will high unemployment be the last straw for this ASX bull run?
• Fund manager thinks investors should look beyond the worst economic data since the Great Depression
• Is this ASX 200 share market recovery “fool’s gold”? This ASX fundie thinks so
• Webjet share price jumps 25%: Is it good value?

Sebastian Bowen owns shares of American Express and Coca-Cola. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and recommends Berkshire Hathaway (B shares) and recommends the following options: long January 2021 $200 calls on Berkshire Hathaway (B shares), short January 2021 $200 puts on Berkshire Hathaway (B shares), and short June 2020 $205 calls on Berkshire Hathaway (B shares). The Motley Fool Australia owns shares of AFTERPAY T FPO. The Motley Fool Australia has recommended Berkshire Hathaway (B shares). 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 Start your week off with these 3 top Warren Buffett quotes appeared first on Motley Fool Australia.

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

If you’re looking at adding a few new shares to your portfolio, then I think the five listed below are worth considering.

I believe all five have the potential to generate strong returns for investors over the next decade.

Here’s why I would buy them:

Aristocrat Leisure Limited (ASX: ALL)

I think this gaming technology company could be a long term market beater. Although it looks likely to experience a short term reduction in demand for its poker machines due to the pandemic, I expect its social and mobile gaming apps to thrive during lockdowns. If it can retain these users when casinos reopen, Aristocrat Leisure will be well-placed for growth over the next 10 years.

Bigtincan Holdings Ltd (ASX: BTH)

Bigtincan is a provider of enterprise mobility software which allows sales and service organisations to improve mobile worker productivity through smart devices. It counts a growing number of blue chip companies such as Australia and New Zealand Banking Group (ASX: ANZ), sports giant Nike, and global beauty retailer Sephora as customers. I believe this is a testament to the quality of its offering.

Bravura Solutions Ltd (ASX: BVS)

Bravura Solutions is a fintech company providing software and services to the wealth management and funds administration industries. It has a number of different products in its portfolio, but the key one for me is the Sonata wealth management platform. It is used by many large financial institutions to connect and engage with their clients anytime, anywhere, via computers, tablets or smartphones.

Jumbo Interactive (ASX: JIN)

Jumbo is an online lottery ticket seller and the operator of the Oz Lotteries website. It is aiming to generate $1 billion in global ticket sales annually through its platform by FY 2022. This will be triple what it achieved in FY 2019. If it delivers on this, then I suspect its shares will be trading notably higher than where they are today. 

Kogan.com Ltd (ASX: KGN)

A final share to consider as a buy and hold option is Kogan. I think the ecommerce company would be a good option for investors due to continued shift to online shopping. In addition to this, its expansion into potentially lucrative verticals such as energy and mobile and the launch of Kogan Marketplace should support its earnings growth in the future.

More reading

• Is this ASX 200 share market recovery “fool’s gold”? This ASX fundie thinks so
• Where to invest $20,000 into ASX shares for strong long term returns
• 3 top ASX growth shares to buy with $3,000 after the market crash
• These mid cap ASX shares could be long term market beaters
• ASX shares and investing trends that could boom post COVID-19

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 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 owns shares of and has recommended BIGTINCAN FPO and Kogan.com 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 5 top ASX shares to buy and hold for a decade appeared first on Motley Fool Australia.

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