Author: therawinformant

The S&P/ASX 50 index is home to 50 of the largest shares on the Australian share market. These are predominantly household names and companies that are true blue chip shares.

While not all shares on the index are necessarily in the buy zone, I think there are a few that could be.

Here’s why I would buy these three outstanding ASX 50 shares:

Aristocrat Leisure Limited (ASX: ALL)

The first ASX 50 share to consider buying is Aristocrat Leisure. I’m a big fan of the gaming technology company due to the quality of both it poker machine and digital businesses. I believe both businesses have the potential to grow at an above-average rate over the long term thanks to their quality portfolios, high levels of investment in product design, and strong market positions. Combined, I expect solid earnings growth from Aristocrat Leisure for years to come once the pandemic passes. This could make it a top long term option.

Rio Tinto Limited (ASX: RIO)

Another ASX 50 share I would buy is Rio Tinto. I think the mining giant could be a great option for investors that are wanting to diversify their portfolio with a little exposure to the resources sector. Especially given the recent increase in the iron ore price. This looks to have positioned Rio Tinto perfectly to deliver bumper free cash flows from its world class operations in FY 2020 and FY 2021. And given the strength of its balance sheet, this is likely to lead to the miner rewarding shareholders with handsome dividends.

Woolworths Limited (ASX: WOW)

A final ASX 50 share which I think is worth considering is Woolworths. I’m a big fan of Woolworths due to its quality brands (Woolworths supermarkets, Dan Murphy’s, BWS), their defensive qualities, and its strong management team. I believe they have put the company in a position to generate robust earnings growth for the foreseeable future. And with Woolworths traditionally paying out a good portion of its profits as dividends, this bodes well for investors in search of income in this low interest rate environment.

More reading

• 3 high yield ASX dividend shares for income investors
• UBS picks the best ASX retail stocks for the post COVID-19 world
• Investing $1,000 into these ASX 200 shares could be a smart move
• I think Aristocrat shares are outstanding value
• Why the ASX 200 tumbled lower on Monday and 2 shares to buy

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of 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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It’s mid-June and in Australia, that means cold mornings, strawberry moons and tax time preparations. Tax time can be a frantic time of year for a lot of Australians. And come 30 June 2020, the financial year (FY20) will be over and a new one about to start (FY21). We all need to be ready for that to happen – those deductions, subscriptions and donations to charity aren’t going to organise themselves.

I’m sure many of us will be making our way to a Bunnings or Officeworks over the next fortnight – as shareholders of Wesfarmers Ltd (ASX: WES) are no doubt eagerly awaiting. 

But there’s another bit of financial housekeeping that we could all look at to help us during tax time, and that’s the option to top up your super.

I know, I know. No one likes super. I mean, most of us like that it’s there, but like children in days of yore, it’s often enjoyed ‘out of sight, out of mind’.

But that doesn’t stop the fact that our super needs a little maintenance from time-to-time. And we happen to be at that special time of year!

A super job before 30 June 

Not only is a superannuation fund a savings and investment fund for our retirement, but it’s also something of a legal tax haven. See, most super contributions are taxed at a flat 15% rate, as opposed to most other income which can be taxed all the way up to 47 cents to the dollar. And so if you want to top up your super in the form of adding in extra cash above your employer’s minimum 9.5% (up to $25,000 a year in most cases), it will remain taxed at 15 cents in the dollar. This has the potential to save you a substantial amount in income tax if you do it properly.

In order to claim this tax perk this financial year, you will have to top up your super before 30 June. Otherwise, it will count toward’s FY21’s cap rather than FY20’s.

So, if you want to turbocharge your super fund’s compounding returns (and the chances of living your best retirement), think about making some concessional contributions before this date. Of course, it’s always a good idea to speak with your own tax agent or financial advisor to be sure this is the right option for you.

Too many people aren’t taking full advantage of what topping up their super can do for them and I think it’s important to spread the word on how the FY20 tax time can help!

More reading

• 3 high quality dividend shares to buy instead of the big four banks
• Why I would buy Wesfarmers and these ASX dividend shares
• 2 of the best ASX dividend shares for retirees to buy today
• Got $5,000 spare? Consider Wesfarmers shares and these 2 other ASX companies
• Why ASX, Domain, Tyro, & Wesfarmers shares are dropping lower

Motley Fool contributor Sebastian Bowen has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of Wesfarmers 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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If you have room in your portfolio for a few growth shares, then I think the three listed below could be top options.

I believe all three are well-positioned to deliver above-average earnings growth over the next few years and could generate strong returns for investors. Here’s why I’m positive on them and would invest $3,000 across their shares:

Bubs Australia Ltd (ASX: BUB)

The first growth share to look at is Bubs. It is a goat’s milk-focused infant formula and baby food company. Whilst I’ve been a fan of Bubs for a while, it is only really now that I think it is investment grade. This is because for a long time its strong sales growth was coming with significant losses. This led to the company burning through cash at a rapid rate. However, Bubs recently reported positive operating cashflow of $2.3 million on record quarterly revenue of $19.7 million. I’m optimistic the company has now reached a scale which will make its operations more and more profitable over the coming years. As a result, I think it could be a good long term option for investors.

Pro Medicus Limited (ASX: PME)

Another growth share that I think has a lot of potential is Pro Medicus. This healthcare technology company provides radiology IT software and services to hospitals, imaging centres, and healthcare groups. The product in its portfolio that I’m most excited about is the popular Visage 7 Enterprise Imaging Platform. It delivers fast, multi-dimensional images which are streamed via an intelligent thin-client viewer. Demand for Visage 7 has been strong and the company recently announced a major new contract with one of the highest rated hospitals in the United States. In addition to this, it revealed that it has a number of sales opportunities in its pipeline that it is working on. I believe this bodes well for its future growth.

Xero Limited (ASX: XRO)

A final ASX growth share I think investors ought to consider buying is Xero. I think the provider of cloud-based business and accounting software is arguably one of best growth shares on offer on the ASX. This is due to the increasing demand for its platform from small businesses and the stickiness of its product. Combined, they are resulting in significant recurring revenues which I feel are only likely to grow larger in the coming years as more and more businesses move over to the cloud.

More reading

• 5 ASX shares that would’ve made you a fortune in 5 years
• Why I think Xero shares are a great long-term buy
• ASX 200 jumps almost 4%, Webjet share price soars
• 3 ASX shares to buy and hold for the next decade
• Coles shares and 2 other ASX 200 companies to buy in the current market

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 BUBS AUST FPO and Xero. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. recommends Pro Medicus Ltd. The Motley Fool Australia owns shares of and has recommended Pro Medicus Ltd. The Motley Fool Australia has recommended BUBS AUST 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.

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I like to keep an eye on substantial shareholder notices. This is because these notices give you an idea of which shares large investors, asset managers, and investment funds are buying or selling.

Two notices that have caught my eye today are summarised below. Here’s what these fund managers have been buying:

Computershare Limited (ASX: CPU)

A notice of change of interests of substantial holder shows that AustralianSuper has taken advantage of Computershare’s share price weakness to increase its stake. According to the notice, the super fund has picked up approximately 8 million of this share registry company’s shares over the last four months. This has lifted its holding to a total of ~41.1 million shares, which represents a 7.59% stake in the company.

The Computershare share price is down 27% from its 52-week high. Judging by its purchases, this has left its shares trading at a level that AustralianSuper thinks is attractive. One broker that would agree with this is Morgans. Last month the broker put an add rating and $13.90 price target on the company’s shares.

Medibank Private Ltd (ASX: MPL)

A notice of initial substantial holder reveals that Perpetual Limited (ASX: PPT) has been building a position in this private health insurer over the last few months. Perpetual started buying in February when Medibank’s shares were trading at $3.06. It then continued to purchase shares in March when they fell to ~$2.60 and has consistently added to its holding since then. Its last recorded purchase came on 11 June for $3.01. In total Perpetual now owns 140,759,820 shares, which represents a 5.11% stake in the company.

As with AustralianSuper and Computershare, it appears as though the fund manager sees value in Medibank’s shares after they fell 18% from their high. Affordability issues have been weighing heavily on the company over the last 12 months, but AustralianSuper doesn’t appear concerned.

More reading

• Tax time is approaching – what you need to know
• These ASX 200 stocks just got downgraded by top brokers
• Why Afterpay, Amcor, Computershare, & Westpac shares are dropping lower
• ASX 200 drops 2%: Big four banks sink lower, JB Hi-Fi to deliver strong profit growth
• 3 high yield ASX dividend shares for income

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. 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.

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Finding ASX shares that can make you a fortune in just 5 years is every investor’s dream. Investing in that one knockout winner can make a life-changing impact on your portfolio and your personal wealth. Of course, the ASX boards are littered with the broken dreams of those investors who’ve made the wrong bets. We can’t all find the next Amazon.com.

But we can take a look at some past ASX winners that made their investors very rich over the past 5 years.

CSL Limited (ASX: CSL)

CSL is one of those rare shares that has made an absolute motza for its investors over the past 5 years, despite its size and blue chip status. Five years ago, CSL shares were trading at $87.40 each. Fast forward to today and CSL shares will set you back $286.22 (at the time of writing). That’s a 227% gain in 5 years.

Xero Limited (ASX: XRO)

Xero has been another ASX fortune maker over the past 5 years. This cloud-based accounting software provider was a slow burner in its infancy but has really stepped on the gas over the past few years, as its scalable business model works its magic. Five years ago, Xero shares were asking just $17.06. Today, those same shares will set you back $88.39. That’s more than 400% in gains that investors have enjoyed since 2015.

Northern Star Resources Ltd (ASX: NST)

It’s not often that ASX gold miners are cited as favoured money makers, but ask any Northern Star shareholder for their opinion on the matter. This mid-cap miner’s shares have spent the past 5 years rocketing from $2.28 in 2015 to $13.20 today. If you go back another 5 years to 2010, Northern Star was just 6 cents per share. Who said that gold doesn’t glitter! Any lucky shareholder that acquired Northern Star ownership in 2015 would be looking at nearly a 480% gain today. And for anyone who got in back in 2010? Hello 22,000%.

Afterpay Ltd (ASX: APT)

Afterpay’s phenomenal success would probably be familiar to every ASX investor by now. After all, this buy now, pay later pioneer is a share that is up more than 35% in just the last month alone. But what of those long-term investors in Afterpay? Well, back in 2015, you could have picked up Afterpay shares for just $2.95. Fast forward to today and Afterpay is making yet more record highs, going for $57.34 at the time of writing. That’s a 1,844% return since 2015. Talk about a fortune maker!

Fortescue Metals Group Limited (ASX: FMG)

Much like CSL, this ASX blue chip iron miner doesn’t immediately come to mind as a ‘multi-bagger‘ share. Yet this company’s numbers tell a different story. Back in 2015, you could have picked up some Fortescue shares for just $2.16. Today, those same shares will set you back $14.61 – netting any lucky buyer in 2015 a 576% increase in their fortune. Not bad for a red dirt digger.

More reading

• Why I think Bellevue shares are ‘gold’ for your portfolio
• Why I think Xero shares are a great long-term buy
• Is the CSL share price a buy right now?
• ASX 200 down 0.1%: Carsales update impresses, a2 Milk surges higher
• 3 reasons to buy ASX 200 shares right now

Sebastian Bowen 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. and Xero. 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.

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