Category: Stock Market

Coles Group Ltd (ASX? COL) shares haven’t done that much in 2022 compared to many other ASX shares which have fallen significantly. The supermarket giant’s share price is currently down 6% in the year to date.

However, I don’t think a business should be judged on short-term price movements. Instead, I think a company’s long-term plan needs to be evaluated.

Coles’ strategy

The business points to consistent growth throughout economic cycles with an average compound annual growth rate (CAGR) of 4.8% and liquor retailing CAGR of 7% over the last two decades.

The company has a number of goals, hopefully, all of which can help Coles shares in the long run.

Coles wants to be Australia’s most sustainable supermarket group. It’s working on transitioning to renewable energy by FY25. It’s also aiming for 100% recyclable, reuseable, or compostable own-brand packaging in Australia by 2025.

Another area of focus is to “win in food and drink”, with a strong omnichannel offering. It’s investing in a “unified customer experience” through website enhancements and increased investment with e-commerce partner Ocado, targeting an FY24 launch. Coles is also aiming for net new space growth of around 1.5% per annum.

The business wants to offer great value exclusive brands, as well as be a destination for health and convenience. It’s looking to expand its ‘exclusive to Coles’ range to around 40% of sales. Coles also wants to improve its ‘Coles Kitchen’ and ‘I’m free from’ brands.

Perhaps the most important element of the longer-term plan is ‘smarter selling’. Indeed, this could have a major impact on Coles shares. The company wants to achieve a long-term structural cost advantage through programs including data, automation, and technology partnerships.

Smarter selling

It’s working on further automating its supply chain and operations through German logistics company Witron and Ocado enhancements. Coles wants to accelerate self-service transformation in-store and invest further in technology, artificial intelligence (AI), and data.

The company says that it’s on track to deliver cumulative smarter selling benefits of $1 billion by the end of FY23 under its four-year program. In the first quarter of FY23, it opened three new supermarkets, taking the total network to 838, while also opening seven liquor stores.

Strategies include front-of-store loss prevention, ‘dynamic markdowns’, e-commerce van optimisation, and energy savings.

It’s spending a total of around $1.4 billion on the Witron and Ocado transformation projects. It’s a big spend but, hopefully, it helps Coles shares in the long term.

The company says the $1.04 billion spent on Witron is expected to deliver: safer working environments with improved service at a lower cost, reduced lead time to deliver better availability of stock, and a doubling of the volume on half the footprint with around two-thirds of the operating costs of a standard site. There are two warehouses being built – the one in Queensland is expected to be completed in the third quarter of FY23, while the NSW one is expected to be completed in the third quarter of FY24.

With Ocado, Coles hopes to achieve a seamless digital customer experience, improved product availability and freshness, greater product range, and increased network capacity.

Coles share price valuation

Looking ahead to FY24, according to Commsec, Coles shares are valued at under 21 times FY24’s estimated earnings and could pay an annual dividend per share of 66 cents per share, which is a grossed-up dividend yield of 5.6%.

The post Where will Coles shares be in 5 years? appeared first on The Motley Fool Australia.

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More reading

• Why I think these are 3 of the safest high-yield dividend shares on the ASX right now
• Will the Coles share price deliver for investors this Christmas?
• 2 ASX 200 dividend shares to buy for income in 2023: analysts
• Wondering how the Coles share price fared over November? Here’s how
• Boost your retirement income with these ASX dividend shares: analysts

Motley Fool contributor Tristan Harrison 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 positions in and has recommended Coles Group. 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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The ASX share market has seen plenty of volatility this year. A number of businesses have dropped 40%, 50% or even more. However, a select few have managed to go up by more than 100% over the last 12 months.

With that level of rise, past performance is definitely not a reliable indicator of future performance.

However, we have also seen in the past that some winners have kept on winning. Over the past decade, CSL Limited (ASX: CSL), Altium Limited (ASX: ALU) and Pro Medicus Ltd (ASX: PME). But, that level of long-term growth is rare, requiring consistent strong growth over many years.

Let’s have a look at some of the strongest performers and consider whether they could keep rising.

Terracom Ltd (ASX: TER)

One of the strongest performers on the ASX over the past year has been Terracom Ltd (ASX: TER). It has risen by more than 340%.

Terracom is a coal miner with a presence in both Australia and South Africa. It says that it’s a low-cost producer focusing on delivering “exceptional outcomes”.

The ASX share recently recommenced paying dividends, and its intention is to pay quarterly dividends. At the moment it’s paying a quarterly dividend of 10 cents per share, which is an annualised grossed-up dividend yield of 67%. Its policy is to pay between 60% to 90% of net profit after tax (NPAT) on a quarterly basis.

It has benefited enormously from the higher coal price and the board is now considering a share buyback. The company is also considering future projects and acquisitions which the company comes across.

However, will the coal price keep rising? I’m not sure about that, but it seems that a lot of dividend income is headed investors’ way.

MMA Offshore Ltd (ASX: MRM)

This ASX share describes itself as a primary contractor to oil and gas operators, providing autonomous underwater vehicle solutions to collect seafloor and sub-seafloor data to assist in the engineering design of subsea infrastructure.

Over the last year, the MMA Offshore share price has gone up by around 115%.

The company is working on capitalising on “momentum” in both traditional and new energy markets while working to maximise operating leverage through increased utilisation and rates. It continues to seek growth opportunities for acquisitions.

Its outlook for the ASX share is “positive”, with significant activity forecast for oil and gas, as well as offshore wind, over the next five years. Vessel and subsea services markets are “continuing to improve”.

The MMA Offshore share price is still down 30% from the pre-COVID level. But, I’m not sure if it can double again from here in a short amount of time. But, over time, it may be able to achieve more for shareholders.

Warrego Energy Ltd (ASX: WGO)

Warrego Energy describes itself as a UK and Australian-based petroleum exploration, development and production company with assets in Australia and Spain.

The Warrego Energy share price has soared this year, rising by around 145% over the last 12 months.

The ASX share is benefiting from a bidding war for the business.

It was recently announced that the Warrego board has unanimously recommended Gina Rinehart’s Hancock offer of 28 cents of cash per Warrego share.

I think it’s highly unlikely that the Warrego Energy share price will double again from here. Beach Energy Ltd (ASX: BPT) has already announced that it’s not going to match Hancock’s offer. Time will tell if there are any other bidders.

The post These 3 ASX shares have doubled, can they do it again? appeared first on The Motley Fool Australia.

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More reading

• Why Bigtincan, Core Lithium, Pinnacle, and Warrego shares are dropping today
• Why Beach, Chalice Mining, Nitro, and Rio Tinto shares are rising today
• Warrego Energy share price slides as Hancock takeover offer trumps Beach
• Why Coronado, GQG, Patriot Battery Metals, and Strike shares are pushing higher
• Strike Energy share price soars following Warrego buy up

Motley Fool contributor Tristan Harrison has positions in Altium. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Altium, CSL, and Pro Medicus. The Motley Fool Australia has positions in and has recommended Pro Medicus. 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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The ASX share market has been through plenty of difficulties in 2022. But, 2023 could be just as interesting as 2022 for a number of reasons.

This year has seen direct COVID-19 impacts fade on some parts of the economy. For example, we’re seeing travel demand rebound, which is helping ASX travel shares return to profitability.

But, in 2023, there could be a number of areas that could influence the ASX share market return.

With each area, it’s very hard to say how things are going to land, so any predictions are just guesses.

China COVID restrictions to ease?

The Asian superpower is still facing difficulties with COVID. It has been trying to restrict the transmission of the virus, even though other countries have adjusted their strategy.

However, some major Chinese cities have started to lift COVID curbs, such as Beijing and Shanghai, where people no longer need to present a negative COVID test to enter certain buildings. China is also working on vaccinating its older, more vulnerable citizens.

The lockdowns have limited economic activity, but a lifting of restrictions could mean more demand for some commodities. The iron ore price has already lifted in anticipation of more economic output in the country.

A lifting of Chinese restrictions could be a boost for ASX share market names like BHP Group Ltd (ASX: BHP), Rio Tinto Limited (ASX: RIO) and Fortescue Metals Group Limited (ASX: FMG).

Mixed outlook for oil

The Woodside Energy Group Ltd (ASX: WDS) share price has had a volatile time over the last 12 months.

It benefited enormously from higher energy prices after Russia invaded Ukraine. But, with the risk of the global economy tipping into a recession, oil demand could fall. The oil price is now essentially back to where it was at the start of the year even though the Ukraine conflict continues. But, if the Chinese economy fully reopens, could this be another boost for the oil price if oil demand from 1.4 billion people returns to normal?

I think the movements and direction of the oil price over 2023 could have important indirect impacts on the ASX share market – not just for Woodside shares, but many other parts of the market and economy as well.

Widespread inflation to fall?

A reduction in the oil price could help reduce the level of inflation. Not only would the oil price itself reduce inflation, but many other parts of the economy utilise energy for transportation, manufacturing and so on.

Inflation is exceptionally high at the moment, as noted by many central bankers. That’s exactly why interest rates have been going higher – to reduce economic demand.

With supply chains hopefully returning to normal and some commodity prices being down, the inflation numbers could look a lot better. Remember, that doesn’t necessarily mean that there will be an overall reduction in prices. A product going from $100 to $110 in one year is inflation of 10%, but then staying at $110 for the next year is inflation of 0%, even though the price remained high.

If inflation reduces, then central banks could stop their rate increases and this could be a boost for the ASX share market.

The ‘real’ economy

A lot of focus is going to be on how the ‘real’ economy performs in the coming months. How will households and businesses cope with the higher interest rates, as well as high prices because of inflation.

The retailers of Wesfarmers Ltd (ASX: WES), JB Hi-Fi Limited (ASX: JBH), Harvey Norman Holdings Limited (ASX: HVN), Premier Investments Limited (ASX: PMV) and so on, could see their sales impacted if things go south. But it may not be anywhere near as bad as some are fearing.

Other areas of the economy could also be affected by a downturn – construction could be an important one. The Housing Industry Association said that new home sales fell 23% over the three months to November, compared with the prior quarter, as reported by the Australian Financial Review.

It’ll be interesting to see how this plays out for names like Stockland Corporation Ltd (ASX: SGP), Mirvac Group (ASX: MGR) and CSR Limited (ASX: CSR).

ASX growth shares to rebound?

With how much pain there has been for ASX growth shares during 2022, it will be interesting to see if there is a rebound for some share prices, even if economic conditions aren’t looking great.

Share prices often move before the numbers show that things have gotten worse, or better.

I think it’s quite possible that some of the ones that have fallen the hardest, like Xero Limited (ASX: XRO) and Temple & Webster Group Ltd (ASX: TPW), which are both down more than 50%, could see a bounce.

If Xero shares were to rise 20% from here – a return that I think would beat the ASX share market in 2023 – the Xero share price would only get back to $84, which would be back to September 2022 prices.

Interest rate-dependent businesses may not recover so much, because interest rates are unlikely to drop heavily over 2023 (in my opinion) because it could take some time for inflation to subside.

The post 5 investments themes to watch on the ASX share market in 2023 appeared first on The Motley Fool Australia.

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More reading

• Could this help ANZ close the gap on its ASX 200 competitors?
• This ASX 200 dividend share is my biggest stock market investment. Here’s why
• Bought $1,000 of Westpac shares 10 years ago? Here’s how much dividend income you’ve received
• Is it safe to invest in ASX shares now? Take advice from Warren Buffett
• Telstra share price on watch following latest telco data breach

Motley Fool contributor Tristan Harrison has positions in Fortescue Metals Group. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Harvey Norman, Temple & Webster Group, and Xero. The Motley Fool Australia has positions in and has recommended Harvey Norman, Wesfarmers, and Xero. The Motley Fool Australia has recommended Jb Hi-Fi, Premier Investments, and Temple & Webster Group. 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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Australia and New Zealand Banking Group Ltd (ASX: ANZ) shares could get a boost if the ASX bank share can be successful with the commercial bank side of its business.

On Friday, the bank reported it had hired Clare Morgan as its group executive for its Australian commercial business.

She was hired from S&P/ASX 200 Index (ASX: XJO) bank share Commonwealth Bank of Australia (ASX: CBA) where she was the executive general manager of small business banking.

Morgan will be in charge of the ANZ commercial business in Australia. The team she leads will serve customers ranging from sole proprietors to emerging corporates, as well as private banking clients.

Why is this appointment so important?

ANZ CEO Shayne Elliot explained the reason why appointing Morgan was important and how integral ANZ sees the commercial side of its business:

Clare is an outstanding leader and I’m confident her business banking experience will be an asset to both ANZ and our customers. This is a significant appointment for ANZ as we continue to transform how we serve our commercial customers through the better use of digital platforms and data.

While banking small businesses has always been core to what we do, it’s the right time to increase focus on this market, given it is a significant opportunity for ANZ and the progress we have made in other parts of our business.

Clare joins an experienced team running our major businesses with Antonia Watson leading New Zealand through a period of major change, Maile Carnegie returning Australia Retail to growth and Mark Whelan having transformed Institutional into one of the best run wholesale banking businesses globally.

ANZ is “firing”

Talking to the Australian Financial Review Weekend, Elliot had some positive things to say about how the business is performing.  He said:

With the retail in Australia back to growth, ANZ Plus firing and Clare appointed as our new Commercial banking head, our priority now is getting Suncorp Bank approved and ready for integration.

It was also reported that ANZ is targeting up to $2 billion in projected investment spending, and targeting a return on it, as well as actively monitoring the ideas.

Elliot also said that the ASX 200 bank share’s number one objective — to restore momentum in home loans — has been fulfilled.

Aside from commercial banking, ANZ is now focused on getting approval for its acquisition of the banking division of Suncorp Group Ltd (ASX: SUN).

Where to next for the ANZ share price?

ANZ shares have risen by 8% over the past six months. Amid rising interest rates, the broker Credit Suisse is quite optimistic about where ANZ is headed. A price target is where the broker thinks the share price will be in 12 months. Credit Suisse’s price target is $30, a rise of around 23%.

The broker estimates put the ANZ share price at nine times FY23’s estimated earnings with a potential grossed-up dividend yield of 9.9%.

The post Could this help ANZ close the gap on its ASX 200 competitors? appeared first on The Motley Fool Australia.

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Motley Fool contributor Tristan Harrison 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.

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I am invested in a number of ASX dividend shares in my portfolio. The biggest S&P/ASX 200 Index (ASX: XJO) share investment in my portfolio is Washington H. Soul Pattinson and Co. Ltd (ASX: SOL) shares.

The business is one of the oldest on the ASX. In fact, it has been listed on the ASX since 1903. It’s also one of the names that I’ve been invested in for the longest, due to several reasons.

Strong diversification

Soul Pattinson may be the most diversified share in the ASX 200.

It describes itself as an investment house with investments in a diverse portfolio of assets across a range of industries.

The company started off as a pharmacy business but has since invested in a wide array of companies.

It has held strategic positions in companies like Brickworks Limited (ASX: BKW), TPG Telecom Ltd (ASX: TPG), and New Hope Corporation Limited (ASX: NHC) for decades. These are three of its biggest positions. In percentage terms, it owns 12.6% of TPG, 43.3% of Brickworks, and 39.9% of New Hope.

Other strategic investments include Asian telco Tuas Ltd (ASX: TUA), fund manager Pengana Capital Group Ltd (ASX: PCG), Asian-listed healthcare business Apex Healthcare, and resource business Aeris Resources Ltd (ASX: AIS).

It then has a number of other portfolios.

It has a large cap portfolio with names like Macquarie Group Ltd (ASX: MQG), CSL Limited (ASX: CSL), Wesfarmers Ltd (ASX: WES), Transurban Group (ASX: TCL), Commonwealth Bank of Australia (ASX: CBA), and BHP Group Ltd (ASX: BHP).

Next, the ASX 200 dividend share has a private equity portfolio, worth $654 million at the end of FY22. Investments include electrical business Ampcontrol, financial services business Ironbark, swimming school business Aquatic Achievers, and an agricultural portfolio. It recently invested more money into agriculture as it looks to build its farming aggregations.

It also has an ‘emerging companies’ portfolio. Investments here include names like Clover Corporation Limited (ASX: CLV), Lindsay Australia Ltd (ASX: LAU), and Paladin Energy Ltd (ASX: PDN).

On top of that, the company has a structured yield portfolio. It’s investing in financial instruments across the capital structure for “improved risk adjusted returns on attractive opportunities”. This portfolio currently has a yield of more than 10%, according to the company’s AGM update.

Soul Patts currently has a small property portfolio as well, although it has a large indirect interest in property via Brickworks’ industrial portfolio.

Not only are Soul Pattinson shares highly diversified, but the company has the ability (and ambition) to keep investing in new businesses and expanding its existing divisions. Indeed, its ability to shift the portfolio can mean it’s always future-focused.

I think its relatively defensive-focused portfolio is why the Soul Pattinson share price has held up so well in 2022.

Dividends

One of the most attractive things to me about this ASX 200 dividend share is its commitment to paying growing dividends to shareholders. Although, of course, dividends aren’t guaranteed.

The investment company has grown its dividend every year since 2000. It has also paid a dividend every year since it listed in 1903. Certainly, I think it has an impressive dividend track record.

Soul Pattinson’s cash flow comes from the dividends, distribution, and interest of its investment portfolio.

Each year, after paying for its operating expenses, Soul Pattinson then sends a majority of its cash flow to shareholders and then re-invests the rest for more opportunities.

In FY22, the ASX 200 dividend share had an ordinary dividend payout ratio of its net cash flow from investments of 74.7%. It also paid a special dividend because of the elevated dividend income coming from New Hope due to a buoyant coal market.

Long-term capital growth

No one knows what share prices are going to do in the short term.

But I think Soul Pattinson’s method of long-term investing in businesses with compelling growth plans continues to pay off. The fact that it also adds to its investment portfolio from its cash flow every year makes it almost inevitable that the portfolio grows.

For example, it recently invested another $73 million in agriculture and $181 million into its structured yield portfolio in the first quarter of FY23.

In the five years to 31 July 2022, Soul Pattinson shares had delivered total shareholder returns of an average of 10.5% per annum. This was 2.1% per annum better than the All Ordinaries Accumulation Index (ASX: XAOA). Though past outperformance is not a guarantee of future performance.

Foolish takeaway

I think Soul Pattinson shares have the potential to keep paying good dividends and delivering attractive long-term capital growth while having the diversification to reduce risks and volatility.

I’m looking to steadily buy more of the ASX 200 dividend share in the coming years.

The post This ASX 200 dividend share is my biggest stock market investment. Here’s why appeared first on The Motley Fool Australia.

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More reading

• Beat the All Ordinaries with this unstoppable ASX dividend share
• 3 passive income ASX 200 dividend shares that can help make you richer
• 3 ASX 200 dividend shares that could provide a lifetime of passive income
• Why I’m buying ASX shares in this once-in-a-lifetime market to try and retire early
• 5 ASX 200 dividend shares to build your portfolio around

Motley Fool contributor Tristan Harrison has positions in Brickworks and Washington H. Soul Pattinson And. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Brickworks, CSL, Clover, Lindsay Australia, and Washington H. Soul Pattinson And. The Motley Fool Australia has positions in and has recommended Brickworks, Washington H. Soul Pattinson And, and Wesfarmers. The Motley Fool Australia has recommended Lindsay Australia, Macquarie Group, and Tpg Telecom. 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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The last 10 years have been rough on the Westpac Banking Corp (ASX: WBC) share price. Fortunately, the banking favourite has been offering investors dividends over the period. But have they been enough to offset the stock’s tumble?

If an investor were to have bought $1,000 of Westpac shares in December 2012, they likely would have walked away with 38 shares, paying $25.98 apiece, and around $12 change.

Today, the stock in Australia’s oldest bank is trading at $23.44 – marking a 9.77% fall over the last 10 years. That leaves out a figurative parcel with a value of $890.72.

For comparison, the S&P/ASX 200 Index (ASX: XJO) has gained around 57% in that time.

So, have Westpac’s dividends made up for its share price’s poor performance over the decade? Let’s take a look.

How much have Westpac shares paid in dividends in 10 years?

Here are all the dividends Westpac has offered shareholders over the last 10 years:

Westpac dividends’ pay date	Type	Dividend amount
December 2022	Final	64 cents
June 2022	Interim	61 cents
December 2021	Final	60 cents
June 2021	Interim	58 cents
December 2020	Final	31 cents
December 2019	Final	80 cents
June 2019	Interim	94 cents
December 2018	Final	94 cents
July 2018	Interim	94 cents
December 2017	Final	94 cents
July 2017	Interim	94 cents
December 2016	Final	94 cents
July 2016	Interim	94 cents
December 2015	Final	94 cents
July 2015	Interim	93 cents
December 2014	Final	92 cents
July 2014	Interim	90 cents
December 2013	Final	88 cents
December 2013	Special	10 cents
July 2013	Interim	86 cents
July 2013	Special	10 cents
December 2012	Final	84 cents
Total:		$16.59

All up, Westpac has provided $16.59 of dividends per share over the last 10 years.

That means a $1,000 investment in December 2012 would have yielded $630.42 of passive income in the years since.

Considering the bank’s share price’s 9.77% fall alongside its biannual offerings, our imagined parcel would have returned around 54% over its life.

Of course, that return might have been amplified with the use of a dividend reinvestment plan (DRP), allowing an investor to compound their returns.

Additionally, all dividends handed out by Westpac since 2000 have been fully franked. That means they may have brought extra benefits at tax time.

Thus, Westpac’s dividends have offset its share price’s poor performance over the last 10 years. On top of that, the payouts see the stock’s performance nearly on par with that of the ASX 200 over that period.

The big bank currently trades with a 5.3% dividend yield.  

The post Bought $1,000 of Westpac shares 10 years ago? Here’s how much dividend income you’ve received appeared first on The Motley Fool Australia.

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More reading

• Could the VAS ETF outperform the BHP share price in 2023?
• Earn passive income with these strong ASX 200 dividend shares: brokers
• After sliding into the red last month, what’s the outlook for the Westpac share price in December?
• 3 passive income ASX 200 dividend shares that can help make you richer
• Morgans names 2 more of the best ASX shares to buy in December

Motley Fool contributor Brooke Cooper 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 recommended Westpac Banking. 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 think one of the world’s greatest investors is Warren Buffett who has led Berkshire Hathaway to become one of the largest global businesses. He certainly has delivered great advice over the years that can be very applicable to today’s situation with ASX shares.

A number of the ASX’s leading names have seen their share prices take a bath in recent times. For example, the Xero Limited (ASX: XRO) share price has dropped more than 50% in the year to date.

Whether the sell-off is justified for Xero and many other ASX growth shares is debatable. But the question now is whether these declines represent an opportunity, or whether higher interest rates mean these lower prices are about right.

Warren Buffett’s wise advice

I don’t think every business is worth buying just because its share price has dropped, but when almost the entire market is sold down, such as during the COVID crash, I think indiscriminate selling presents a great hunting ground.

One of the most quoted Warren Buffett sayings is this:

Be fearful when others are greedy and greedy when others are fearful.

In other words, the best time to buy ASX shares may be when there is widespread uncertainty because this is when share prices are lower.

But, there are also likely to be times when investors are euphoric. I think 2021 was an example of this when almost everything displaying growth was loved by investors. We should be cautious around those times.

Buffett also has this gem of advice from 2001:

To refer to a personal taste of mine, I’m going to buy hamburgers the rest of my life. When hamburgers go down in price, we sing the ‘Hallelujah Chorus’ in the Buffett household. When hamburgers go up in price, we weep. For most people, it’s the same with everything in life they will be buying — except stocks. When stocks go down and you can get more for your money, people don’t like them anymore.

In his 1997 annual letter, Buffett said:

If you expect to be a net saver during the next five years, should you hope for a higher or lower stock market during that period?

Many investors get this one wrong. Even though they are going to be net buyers of stocks for many years to come, they are elated when stock prices rise and depressed when they fall.

Only those who will be sellers of equities in the near future should be happy at seeing stocks rise. Prospective purchasers should much prefer sinking prices.

Foolish takeaway

Warren Buffett doesn’t try to predict where share prices are going to go in the short term. If he sees a wonderful business at a fair price, then he’s willing to invest. For example, Taiwan Semiconductor Manufacturing recently entered the Berkshire Hathaway portfolio after Warren Buffett’s business invested US$4 billion. He’s still investing during this period and I think we can find some good ASX shares at the current prices.

If we waited until things seemed completely ‘safe’, share prices would probably have gone much higher. Plus, there always seems to something going on in the news, so it may be wise to ignore that noise.

The post Is it safe to invest in ASX shares now? Take advice from Warren Buffett appeared first on The Motley Fool Australia.

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More reading

• Almost ready to retire? I’d follow Warren Buffett’s tips to enjoy a growing passive income from ASX dividend shares
• Here are 2 of the best ASX growth shares to buy in December: Morgans
• One Warren Buffett-style stock I’m ‘never’ selling
• ASX 200 tech shares deep in the red today. Here’s why
• 10 ASX shares to buy in 2023

Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Berkshire Hathaway, Taiwan Semiconductor Manufacturing, and Xero. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended the following options: long January 2023 $200 calls on Berkshire Hathaway, short January 2023 $200 puts on Berkshire Hathaway, and short January 2023 $265 calls on Berkshire Hathaway. The Motley Fool Australia has positions in and has recommended Xero. The Motley Fool Australia has recommended Berkshire Hathaway. 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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The Telstra Group Ltd (ASX: TLS) share price is one to watch on Monday.

That’s in the wake of a reported data breach, which has seen the data of around 130,000 of the S&P/ASX 200 Index (ASX: XJO) telco’s customers released publicly.

This comes just two months after insurance giant Medibank Private Ltd (ASX: MPL) revealed significant amounts of medical-related data from its customers had been compromised.

Here’s what Telstra investors learned regarding the latest mass data breach over the weekend while the ASX was closed.

What happened with the data breach?

The Telstra share price is on watch after news hit the wires that the names, phone numbers, and addresses of approximately 130,000 customers – who were meant to be unlisted – were accidentally published online on the telco’s directory assistance site.

As Bloomberg reports, Telstra said the data breach was not due to malicious outside hackers, as was the case with Medibank. Instead, Telstra indicated the issue was due to a “misalignment of databases”.

Commenting on the error that could put the Telstra share price under pressure today, chief financial officer Michael Ackland said (quoted by Bloomberg):

We recently discovered there had been a misalignment of the databases used to provide these services, which resulted in some customers’ names, numbers and addresses being listed when they should not have been. This was a result of a misalignment of databases — no cyber activity was involved.

Ackland went on to apologise to the customers impacted by the internal error:

Protecting our customers’ privacy is absolutely paramount, and for the customers impacted we understand this is an unacceptable breach of your trust. We’re sorry it occurred, and we know we have let you down.

Telstra said it is working to remove the customers’ details from its publicly accessible online directory assistance. The ASX 200 telco will launch an internal investigation.

Telstra share price snapshot

As at Friday’s close, the Telstra share price is down 1% over the past 12 months. That compares to a full year loss of 2% posted by the ASX 200.

As you can see in the price chart below, Telstra shares have enjoyed a much better second half, gaining 7% over the past six months.

The post Telstra share price on watch following latest telco data breach appeared first on The Motley Fool Australia.

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More reading

• 5 things to watch on the ASX 200 on Monday
• Top brokers name 3 ASX shares to buy next week
• Here’s how I’d invest $20,000 in ASX 200 shares for a 7% dividend yield
• Here are the top 10 ASX 200 shares today
• Here are the 3 most heavily traded ASX 200 shares on Friday

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 positions in and has recommended Telstra Group. 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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The ASX share market has been shaken around in 2022 amid high inflation and rising interest rates. It’s left some ASX dividend shares looking like bargains.

When share prices fall, it means that dividend yields are increased for potential investors. For example, if a business has a 6% dividend yield and its share price drops 10%, the yield turns into 6.6% if the same dividend is paid.

While it’s hard to say what share prices are going to do next, it’s comforting knowing that ASX dividend shares can keep sending the dividend cash to shareholders.

So which names are worth looking at? Here are three that could be in the bargain basket.

Jumbo Interactive Ltd (ASX: JIN)

Jumbo describes itself as Australia’s leading dedicated digital lottery company. It offers its proprietary lottery software platform and lottery management experience to government and charity lottery sectors in Australia and globally. It also retails lottery tickets in Australia and the South Pacific.

The Jumbo share price has plunged 26% in 2022 to date. FY22 was solid with underlying earnings per share (EPS) increasing by 13% to 51.5 cents per share.

The ASX dividend share is expecting a lower profit margin in FY23, but Commsec numbers suggest it could grow its profit and the dividend in FY23. The Jumbo share price is valued at 27 times FY23’s estimated earnings with a grossed-up dividend yield of 4.5%.

PeopleIn Ltd (ASX: PPE)

PeopleIn says that it “provides clients with complete talent solutions, from workforce resourcing and project management, through to staffing and upskilling solutions”.

The ASX dividend share recently reaffirmed its FY23 earnings guidance, with normalised earnings before interest, tax, depreciation and amortisation (EBITDA) of between $62 million to $66 million.

It gave a market update that said “operating conditions continue to be highly positive, given the strength of the employment market and extensive demand” from clients. The company said its healthcare and community vertical is “well-placed to address the critical shortages within its sector, as delays in visa processing and travel costs improve”.

Despite the positive outlook, the PeopleIn share price has fallen just over 30% in 2022.

According to Commsec, the PeopleIn business is priced at nine times FY23’s estimated earnings with a potential grossed-up dividend yield of 7%.

TPG Telecom Ltd (ASX: TPG)

TPG is one of the largest telecommunication businesses in Australia. It has the brands of TPG, iiNet, and Vodafone Australia.

The business is rolling out its 5G network and has also signed up to a major regional network sharing agreement with Telstra Group Ltd (ASX: TLS) which will improve its offering to customers.

Its latest result, the FY22 half-year report, shows a 135,000 net increase in mobile subscribers. The ASX dividend share is also working on growing its number of fixed wireless subscribers. This is home internet powered by the mobile network, which can generate much stronger profit margins for the business.

The merger between Vodafone Australia and TPG is on track to deliver the synergies target of between $125 million to $150 million in FY22.

The FY22 interim dividend grew 12.5% to nine cents per share. After a 25% fall in the TPG share price since mid-August, it’s expected to pay a grossed-up dividend yield of 5.6% in FY23.

The post 3 ASX dividend shares to buy on sale right now appeared first on The Motley Fool Australia.

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More reading

• Beat the All Ordinaries with this unstoppable ASX dividend share
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• Top brokers name 3 ASX shares to buy next week

Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Jumbo Interactive and Peoplein. The Motley Fool Australia has positions in and has recommended Telstra Group. The Motley Fool Australia has recommended Jumbo Interactive, Peoplein, and Tpg Telecom. 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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At the start of each week, I like to look at ASIC’s short position report to find out which shares are being targeted by short sellers.

This is because I believe it is well worth keeping a close eye on short interest levels as high levels can sometimes be a sign that something isn’t quite right with a company.

With that in mind, here are the 10 most shorted shares on the ASX this week according to ASIC:

• Flight Centre Travel Group Ltd (ASX: FLT) has returned to the top spot with short interest of 14.3%. Short sellers appear to be targeting the travel agent giant amid concerns over the travel market recovery due to the cost of living crisis.
• Betmakers Technology Group Ltd (ASX: BET) has dropped from the top spot after its short interest dropped 12.9%. With this betting technology company’s shares down over 60% since the start of the year, some short sellers may believe they have bottomed now and are closing positions.
• Perpetual Limited (ASX: PPT) has seen its short interest rise to 11.6%. Short sellers have been loading up on this fund manager’s shares after it was pressured into completing its acquisition of Pendal Group Ltd (ASX: PDL).
• Megaport Ltd (ASX: MP1) has seen its short interest remain flat 10.5%. Weakness in the tech sector and a soft start to FY 2023 appear to be why short sellers are targeting this network as a service operator’s shares.
• Sayona Mining Ltd (ASX: SYA) has 9.6% of its shares held short, which is down week on week. Short sellers appear to have concerns over the valuation of this lithium developer given recent forecasts for declining lithium prices.
• Lake Resources N.L. (ASX: LKE) has short interest of 8.7%, which is up week on week. Short sellers believe Lake could be having issues producing battery grade lithium at scale from its Kachi operation.
• Nanosonics Ltd (ASX: NAN) has short interest of 8.5%, which is flat week on week. There are concerns over this medical device company’s margins due to a major sales model change in the US.
• Zip Co Ltd (ASX: ZIP) has returned to the top ten with short interest of 8.2%. Short sellers appear to believe that the buy now pay later provider will struggle to achieve profitability as targeted.
• Breville Group Ltd (ASX: BRG) has seen its short interest slide again to 8.1%. Short sellers continue to close positions following the recent release of the appliance manufacturer’s first quarter update.
• Domino’s Pizza Enterprises Ltd (ASX: DMP) has short interest of 7.1%, which is down materially week on week. Short sellers may be closing positions on the belief that headwinds are now easing for the pizza chain operator.

The post Here are the 10 most shorted ASX shares appeared first on The Motley Fool Australia.

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More reading

• Here are the top 10 ASX 200 shares today
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• Building a retirement income portfolio? I’d buy this unstoppable ASX dividend share
• The cheap ASX shares to buy for dividends: broker
• ASX 200 correction: A once-in-a-lifetime chance for supercharged passive income!

Motley Fool contributor James Mickleboro has positions in Domino’s Pizza Enterprises. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Betmakers Technology Group, Megaport, Nanosonics, and Zip Co. The Motley Fool Australia has positions in and has recommended Nanosonics. The Motley Fool Australia has recommended Betmakers Technology Group, Domino’s Pizza Enterprises, Flight Centre Travel Group, and Megaport. 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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