Category: Stock Market

The past month has been quite kind to the AMP Ltd (ASX: AMP) share price. AMP shares closed at $1.19 each on Wednesday, up a healthy 1.71%. That’s a pleasing 21.4% higher than the 98 cents price tag the company was commanding a month ago. It’s also a whopping increase of more than 38% from the 52-week low of 86 cents a share that AMP recorded back in early March.

It appears a major factor in these gains is the multiple agreements AMP has negotiated over the past month or two that will see the company’s Collimate Capital business broken up and sold.

Late last month, AMP announced that DigitalBridge Investment will buy Collimate Capital’s international infrastructure equity business for up to a total of $699 million. Before that, AMP also announced that Collimate’s domestic infrastructure equity and real estate businesses will be bought by Deus Property Group (ASX: DXS) for a potential $1 billion.

AMP share price rises amid rumours of buybacks and dividends

AMP has promised to return much of the capital from these sales directly to shareholders. As my Fool colleague Brendan covered earlier this week, this could see the company undertake an on-market share buyback, and perhaps a capital return, potentially in the form of a special dividend. AMP hasn’t paid out a dividend since 2019. This could be why we have seen an uptick in the AMP share price of late.

But AMP certainly has a long way to go if shareholders want to see the one-time financial services giant return to its former glory. Five years ago, AMP was a $5 share. And we won’t spend too long on the company’s 2007 days when it was commanding a share price over $10. Not to mention the early 2000s, which saw AMP shares close to $15.

At the current AMP share price, this ASX 200 share has a market capitalisation of $3.87 billion.

The post How is the AMP share price looking in May? appeared first on The Motley Fool Australia.

More reading

• Wesfarmers share price slips as Bunnings competition heats up
• Here are the 3 most heavily traded ASX 200 shares on Wednesday
• What’s the outlook for the Telstra share price in May?
• What would happen if Appen shares were removed from the ASX 200? 
• ASX 200 midday update: ANZ higher on results, Flight Centre and JB Hi-Fi sink following updates

Motley Fool contributor Sebastian Bowen 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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One ASX buy now, pay later (BNPL) has had a stellar month, outperforming Zip Co Ltd (ASX: ZIP) and other payment technology shares.

The Splitit Ltd (ASX: SPT) share price surged to 33 cents before midday today. This is 113% higher than the 15.5 cent closing price one month ago on 4 April. The company’s share price has since retreated to 28.5 cents at close of trade on Wednesday.

So why is the Splitit share price surging?

What’s going on with this ASX BNPL share?

The Splitit share price exploded 55% on 28 April alone. Driving this share increase was the CEO outlining a new vision for the company.

Splitit is a BNPL that allows customers to split payments using their available credit. This makes the company’s business model different to other BNPL shares.

In a CEO presentation, Splitit revealed it is looking to expand its Google partnership to United States customers.

The company also reported quarterly results. Revenue increased by 6% on the prior corresponding period, while sales volume jumped 23% year on year.

Finally, the company also approved a US$150 million Goldman Sachs credit facility at the annual general meeting on 28 April.

CEO Nandan Sheth commented on the company’s direction:

Splitit is uniquely positioned as it bridges the gap between BNPL and credit cards by making instalment payments possible on any credit card purchase at the point of sale.

The Splitit share price also surged 50% between market close on 19 April and 27 April. On 27 April, Splitit responded to a share price query from the ASX. Splitit said it was not aware of any information explaining recent trading of the company’s shares.

Splitit has outperformed other BNPL shares in the past month. The Zip share price has slipped 33% since market close on 4 April, while Block Inc (ASX: SQ2) has descended 20%.

Share price snapshot

The Splitit share price has fallen 60% in the past year. It has recouped some of those losses, jumping 19% year to date.

In the past week alone, it has surged 50%.

Splitit has a market capitalisation of about $134 million based on the current share price.

The post Guess which ASX BNPL share has soared 100% in a month. Hint: it’s not Zip appeared first on The Motley Fool Australia.

More reading

• Splitit share price leaps another 14% as CEO ‘formulates a new vision’
• The Splitit share price just popped 30%. What’s with this ASX BNPL share?
• March was a lousy month for ASX BNPL shares. Here’s why

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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AGL Energy Limited (ASX: AGL) is having a volatile week and its share price is showing the strain. As market watchers are likely aware, AGL’s long-planned demerger is facing new questions in the face of declared disapproval from its new major shareholder, tech billionaire Mike Cannon-Brookes.

The major facets of the demerger process are set to kick off in coming weeks. So, without further ado, let’s check what shareholders can look out for as the push to divide the 185-year-old company heats up and what might happen if it fails.

At the time of writing, the AGL share price is $8.20, 5.5% lower than it was at the end of last week.

For context, the S&P/ASX 200 Index (ASX: XJO) has slipped 1.7% in that time.

Why is AGL pursuing a demerger?

The embattled ASX 200 energy producer and retailer is pushing to split in two in an effort to protect shareholder value.

It expects the split will help the resulting businesses go their separate ways on their journeys to renewable energy.

A new entity, dubbed Accel Energy, will take the reins of AGL’s electricity-generating assets.

That includes the company’s coal-fired power plants, gas assets, and wind farms, as well as its development pipeline housing battery and hydro projects.

Meanwhile, AGL Australia will take on the company’s electricity retailing, trading, storage, and supply business. It will also walk away with the AGL brand.

As part of the demerger plan, AGL shareholders will be handed one share in each company. Accel Energy is also expected to retain a 15% to 20% holding in AGL Australia.

What still needs to happen before AGL can split?

In the coming weeks, shareholders will be able to have their say on the AGL demerger.

The company plans to release a scheme booklet in the middle of this month. That document will provide more details on the split.

Shareholders will have a month or so to thumb through the resource. They will then vote on the demerger in mid-June.

If the plan is agreed upon by 75% of shareholders and approvals received, the demerger will be implemented on 30 June.

Cannon-Brookes announced his intent to vote ‘no’ with his new 11.28% holding in AGL’s shares yesterday. That would leave the balance of power with 13.78% of the company’s shares.

What might happen if AGL’s demerger plan flops?

Understandably, AGL’s newly-crowned largest shareholder’s stance has raised questions on the demerger’s fate. Many are wondering what might happen if the plan fails to receive shareholder approval.

Cannon-Brookes expects AGL’s board will stand down if the company’s investors disapprove of the split, reports The Australian.

“It would be hard for them to stay in place,” the billionaire told the publication.

Meanwhile, Morgans doesn’t think anything drastic would come from a resounding ‘no’ on the demerger.

While the analyst notes the demerger’s flop could hamper AGL’s plans to restructure its debt, it’s confident the company will manage just fine.

“Despite the large amount of effort the company has expended in pursuing the demerger, we don’t see a major risk to short term cash flows should [it be voted] down,” Morgans analyst Max Vickerson stated.

Though, fellow broker JP Morgan has reportedly predicted a far more dramatic outcome of the demerger’s failure.

“A failed vote would likely destabilise the business, potentially leaving management in an untenable position and opening the company up to be acquired,” JP Morgan analyst Mark Busuttil said, as quoted by The Oz.

AGL share price snapshot

Despite its struggles this week, the AGL share price is performing well in 2022.

It has gained 33.5% since the start of the year. Though, it’s still almost 10% lower than it was this time last year.

The post When, why, how? All the details on the AGL demerger and what might happen if it flops appeared first on The Motley Fool Australia.

More reading

• Own AGL shares? Boss slams Cannon-Brookes’ plan as ‘transition into a nosedive’
• AGL share price dips despite $2 billion energy transition deal
• Why AGL, Booktopia, Cleanaway, and Corporate Travel Management shares are dropping
• ASX 200 midday update: Woolworths’ Q3 update, AGL falls on Cannon-Brookes raid
• Own AGL shares? Here’s why the company’s demerger could be dead in the water

JPMorgan Chase is an advertising partner of The Ascent, a Motley Fool company. 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 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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The Wesfarmers Ltd (ASX: WES) share price is currently in the red by 0.4% at the time of writing.

It comes as the S&P/ASX 200 Index (ASX: XJO) is also slightly down by 0.12%.

Wesfarmers’ decline comes amid increased competition in the home improvement space. The conglomerate owns several different businesses, but Bunnings is the key profit generator for the company.

In the FY22 half-year result, Bunnings generated $1.26 billion of earnings before tax (EBT). This is a significant portion of the overall $1.78 billion EBT generated by Wesfarmers in the first six months of the financial year.

Bunnings is also growing its earnings with other brands including Tool Kit Depot and Beaumont Tiles.

However, a new challenger is looking to take some of that home improvement market.

The Build to challenge Bunnings

Temple & Webster Group Ltd (ASX: TPW) has been talking about its plan to challenge in the home improvement segment for a while. But now it has launched a new website – thebuild.com.au – for home renovators to buy everything they want for DIY, renovation, and home improvement.

Obviously, this is exactly the market that Bunnings operates in.

Temple & Webster wants The Build to be a place consumers can find a large range, experience great customer service, and access a source of practical advice and inspiration.

Temple & Webster’s plan is to bring its “expertise in e-commerce and the home” to make The Build Australia’s ‘first-stop shop’ for renovating and redecorating. Its initial range features more than 20,000 products across 39 categories.

The company believes the market opportunity is “significant” with a total addressable market of around $16 billion. Temple & Webster also pointed out that this category is “underpenetrated” with respect to online adoption. Only 4% is online. The UK online penetration rate is 25% and growing.

Temple & Webster will invest around $10 million in FY22 and FY23 for growth of The Build. It’s expected to make a ‘material’ revenue contribution and be earnings before interest, tax, depreciation and amortisation (EBITDA) positive in FY26. The long-term profit margin profile is expected to be better than furniture and homewares.

Will Temple & Webster be successful to challenge Bunnings?

Only time will tell whether Temple & Webster will be able to take a sizeable market share in the sector. Also, growth of The Build may not mean a loss of earnings or market share for Bunnings. It remains to be seen what the long-term impact on the Wesfarmers share price will be.

However, it’s not the first time that a business has tried to challenge Bunnings. Several years ago, Woolworths Group Ltd (ASX: WOW) and Lowe’s tried to muscle into the sector with its Masters chain. But that business eventually closed after mounting losses.

Metcash Limited (ASX: MTS) is another business in the home improvement sector. It has three businesses – Total Tools, Home Timer & Hardware, and Mitre 10.

Wesfarmers has proven that it’s hard to dislodge the biggest player in the hardware sector. The business tried to expand Bunnings into the UK after buying the UK and Irish hardware business Homebase, but it decided to exit after not gaining traction.

It blamed problems arising from poor execution as well as the deterioration of the economic environment in the retail sector in the UK.

The post Wesfarmers share price slips as Bunnings competition heats up appeared first on The Motley Fool Australia.

More reading

• Why ARB, AVZ, Temple & Webster, and Zip shares are sinking
• Here are the 3 most heavily traded ASX 200 shares on Wednesday
• What’s the outlook for the Telstra share price in May?
• What would happen if Appen shares were removed from the ASX 200? 
• ASX 200 midday update: ANZ higher on results, Flight Centre and JB Hi-Fi sink following updates

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 Temple & Webster Group Ltd. The Motley Fool Australia has positions in and has recommended Wesfarmers Limited. The Motley Fool Australia has recommended Temple & Webster Group Ltd. 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 Australia and New Zealand Banking Group Ltd (ASX: ANZ) share price has edged higher following the company’s half year results today.

At the time of writing, the bank’s shares are up 0.81% to $27.48.

For context, the S&P/ASX 200 Index (ASX: XJO) is 0.10% lower to 7,308.7 points during afternoon trade.

What’s the go on the ANZ dividend?

In the half year report for the 2022 financial year, ANZ reported relatively stable growth across key metrics.

In summary, cash profit from continuing operations lifted by 4% to $3,113 million over the previous corresponding period. However, when comparing against the prior six months, this metric declined by 3%.

ANZ stated its Australia Retail and Commercial segment and its New Zealand segment underpinned the sound performance. Notably, this offset the poor result attained from the bank’s Institutional segment.

Overall, statutory net profit after tax (NPAT) rose to $3,530 million. This represents an increase of 20% from this time last year and a 10% improvement on the $3,219 million achieved in H2 FY21.

Based on the company’s cash profit above, the ANZ Board declared a fully franked interim dividend of 72 cents per share. This represents a 2% lift from the 70 cents declared in the prior comparable period.

Management noted that the latest dividend is consistent with its stated target dividend payout ratio of between 60% and 65%.

When can ANZ shareholders expect payment?

The ANZ interim dividend will be paid to eligible shareholders roughly 8 weeks away on 1 July.

However, to be eligible, you’ll need to own ANZ shares before the ex-dividend date which falls on 9 May. This means if you want to secure the dividend, you will need to purchase ANZ shares this Friday at the latest.

In addition, investors can elect for the dividend reinvestment plan (DRP) which will add a portion of shares to their portfolio instead. This will be based on a 10-day volume-weighted average price from 13 May to 26 May.

There is no DRP discount rate and the last election date for shareholders to opt in is on 11 May.

The post Everything you need to know about the latest ANZ dividend appeared first on The Motley Fool Australia.

More reading

• ANZ share price rises after half-year earnings beat
• ASX 200 midday update: ANZ higher on results, Flight Centre and JB Hi-Fi sink following updates
• Why ASX 200 bank shares are in the spotlight
• ANZ share price on watch amid $3.1bn half-year cash profit
• 5 things to watch on the ASX 200 on Wednesday

Motley Fool contributor Aaron Teboneras 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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In afternoon trade, the S&P/ASX 200 Index (ASX: XJO) is on course to record a small decline. At the time of writing, the benchmark index is down 0.1% to 7,306.7 points.

Four ASX shares that are falling more than most today are listed below. Here’s why they are sinking:

ARB Corporation Limited (ASX: ARB)

The ARB share price has crashed 13% to $33.03 following the release of a market update. That update revealed that the 4×4 parts manufacturer expects to report a 12% increase in revenue to $700 million in FY 2022. However, due to a large increase in expenditure, its margins and earnings are under significant pressure.

AVZ Minerals Ltd (ASX: AVZ)

The AVZ share price has sunk 20% to 78.7 cents. Incredibly, the AVZ share price was up as much as 19% at one stage today before capitulating. Although the lithium developer has been granted a mining licence, there are concerns over just how much of the Manono Lithium Project it will end up owning.

Temple & Webster Group Ltd (ASX: TPW)

The Temple & Webster share price is down 7% to $5.01. This morning the online furniture and homewares retailer announced its expansion into the home improvement market with its The Build business. While the home improvement market is clearly a big opportunity, launching a business that is expected to be loss-making for several years in the current environment doesn’t appear to have gone down well with the market.

Zip Co Ltd (ASX: ZIP)

The Zip share price is down 11% to $1.03. The weakness in this buy now pay later provider’s shares appears to have been driven by a couple of factors. One is the impending release of a sizeable number of shares from escrow. The other is a bearish broker note out of UBS from yesterday. The latter saw the broker reiterate its sell rating and cut its price target on Zip’s shares down to a lowly 90 cents.

The post Why ARB, AVZ, Temple & Webster, and Zip shares are sinking appeared first on The Motley Fool Australia.

More reading

• Here are the 3 most heavily traded ASX 200 shares on Wednesday
• Why the AVZ share price went from being up 19% to down 20% today
• The Zip share price is plunging 9% today. Here’s why
• Here’s why the ARB Corporation share price is plunging 10% today
• AVZ share price rockets 19% on ‘watershed moment’

Motley Fool contributor James Mickleboro 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 Temple & Webster Group Ltd and ZIPCOLTD FPO. The Motley Fool Australia has recommended ARB Corporation Limited and Temple & Webster Group Ltd. 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 Qantas Airways Ltd (ASX: QAN) share price has slipped into the red in afternoon trading, down 2.41% to $5.66 per share.

This comes as the S&P/ASX 200 Index (ASX: XJO) has also given up its earlier gains to currently be down 0.2%. It also comes amid news that the full Federal Court today found the airline in breach of the Fair Work Act, dismissing its attempt to overturn an earlier court ruling.

The breach in question relates to Qantas outsourcing of ground handling functions during the global pandemic. The layoffs of its ground handling crews drew the ire of the Transport Workers Union (TWU), which initiated the legal action.

Airline to appeal the ruling

In a statement today, Qantas said it intends to appeal the judgement to the High Court.

According to the airline, “Qantas has always said the decision to outsource our ground handling function was based on lawful commercial reasons in response to the unprecedented impact of the COVID crisis.”

It also noted that even before the onset of the pandemic, it had outsourced ground handling in 55 of the 65 Australian airports it operates from.

Qantas said there were three reasons why it had to outsource the remaining ground functions following the “massive impact of the COVID crisis”.

First, it cited potential annual savings in excess of $100 million per year from employing specialised ground handling companies. It said the savings were needed to help recover from the COVID impacts.

Second, Qantas said outsourcing eliminated the requirement to spend $80 million over five years on ground handling equipment.

And third, outsourcing enabled the airline to better match resources with fluctuating levels of demand.

“Today’s judgment does not mean Qantas is required to pay compensation or penalties,” the company stressed. “We will be asking the Court to stay any further hearings on this issue until after the High Court process.”

Qantas share price snapshot

Despite today’s retrace, the Qantas share price remains up 13% so far in 2022. That compares to a year-to-date loss of around 2% posted by the ASX 200.

The post Qantas share price lower amid Federal Court loss appeared first on The Motley Fool Australia.

More reading

• Top broker tips 17% upside for Qantas shares following Airbus order
• Why is the Webjet share price beating the ASX 200 today?
• Why Alkane, Chalice Mining, PointsBet, and Qantas shares are rising today
• Here are the 3 most heavily traded ASX 200 shares on Monday
• ASX 200 midday update: NAB’s AUSTRAC update, AGL downgrades guidance, Qantas takes off

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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The S&P/ASX 200 Index (ASX: XJO) has had another bumpy ride during this Wednesday’s trading session. After initially spiking to above 7,360 points soon after market open, the ASX 200 has been losing steam all day. It is now down by 0.08% at just over 7,310 points. 

But rather than letting that disappoint us, let’s instead dive a little deeper into the share market’s moves and check out the ASX 200 shares that are currently at the top of the market’s share volume charts, according to investing.com.

The 3 most-traded ASX 200 shares by volume this Wednesday

Telstra Corporation Ltd (ASX: TLS)

Our first ASX 200 share up today is none other than telecommunications giant Telstra. This telco has had a notable 9.74 million of its shares change hands as it currently stands. There hasn’t been much in the way of news out of Telstra today. However, this blue-chip share is defying the gloom of the broader market and has pushed 0.5% higher so far today to a flat $4 a share. This move, together with the telco’s ongoing share buybacks, is probably why Telstra has made the cut today.

Pilbara Minerals Ltd (ASX: PLS)

ASX 200 lithium producer Pilbara is our second share to check out today. So far, a hefty 12.37 million Pilbara shares have bounced around the market. There’s been no news or announcements out of Pilbara. So we should assume that this volume comes down to the company’s share movements today. As it currently sits, Pilbara has lost a hefty 1.7% so far and is currently trading at $2.61 a share. It’s this slide that we can probably thank for Pilbara’s presence here.

AVZ Minerals Ltd (ASX: AVZ)

Our final and most traded ASX 200 share of the day so far goes to lithium stock AVZ Minerals, and by a country mile too. A whopping 110.43 million AVZ shares have been bought and sold on the markets thus far, which is an incredibly high volume. This is undoubtedly a result of the (quite frankly) insane volatility we have witnessed with this company today.

AVZ put out a notice this morning that informed investors that the Democratic Republic of Congo government had granted a mining license to AVZ’s Manono Project. At first, the shares rocketed around 18%. But in a stunning twist, investors appear to have gotten a major case of cold feet, with ANZ shares now down 18% to 81 cents a share. Yes, AVZ has traded between $1.18 and 79 cents a share today. No wonder so many shares have been traded. 

The post Here are the 3 most heavily traded ASX 200 shares on Wednesday appeared first on The Motley Fool Australia.

More reading

• Why the AVZ share price went from being up 19% to down 20% today
• What’s the outlook for the Telstra share price in May?
• What would happen if Appen shares were removed from the ASX 200? 
• ASX 200 midday update: ANZ higher on results, Flight Centre and JB Hi-Fi sink following updates
• Analysts name 2 blue chip ASX 200 dividend shares to buy

Motley Fool contributor Sebastian Bowen has positions in Telstra Corporation Limited. 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 Corporation Limited. 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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This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

As fractional share buying has exploded in popularity over the past few years, building a diversified portfolio has never been easier. Generally, a good starting point for well-diversified investors is to buy somewhere around 25 stocks.

However, I go well beyond this threshold for the three reasons we will look at today. In doing so, I run the risk of diversifying too much and simply matching the market’s returns, yet I remain optimistic I can outperform with a more expansive portfolio.

Now, let’s look at why I believe that — and why owning over 100 stocks helps me sleep at night.

FOMO: Fear of missing out

Most people fear letting their portfolio grow too big as it becomes difficult to keep track of all the moving parts. However, I am odd because I am even more scared of missing out on potential multibaggers — even if I don’t have a deep knowledge of them.

What’s more important to me is whether or not a business fascinates me. This fascination can come in many forms. Possibly it’s a financial metric that blows me away. Or perhaps it’s an industry chart that shows a megatrend providing a tailwind for the company’s operations. Or maybe the CEO is an undeniable innovator, and I want to bet on that success.

It can be anything — as long as I’m fascinated. To put it very simply, I would be more heartbroken to see a stock I admire skyrocket without my having any skin in the game than I would be to own it and see it go to zero. While capital preservation may be paramount to some investors, growth is more important to me, regardless of what volatility I may have to face.

But of course — and here’s the big caveat — this strategy definitely isn’t for everybody, and that’s what makes investing unique to each of us and why it is essential to have your portfolio match your temperament.

Adding to my winners

By taking tiny positions (sometimes even $5) in businesses that fascinate me, I do two things:

1. Make sure I don’t forget them.
2. Put some skin in the game, however marginal it may be.

With this little bit of skin in the game, I can let these companies I admire percolate on the back burner. Not forgetting about them — but not worrying about their day-to-day price swings either.

From here, I can add to the position if a stock’s investing thesis becomes more alluring and my knowledge of the company grows. But for the most part, I just let the stocks run on their own.

However, once their stock price doubles, I use that as a natural opportunity to do more research on them and, more importantly, add a little to my holding (once again, perhaps just $5). 

And if it triples, I do the same. And if it quadruples, again the same, and so on until it has grown to a position in my portfolio that requires no further investment (i.e., becomes too large of a holding for me to sleep well at night).

This explanation is a long-winded way of saying I water my flowers (or add to my winners) and let them continue to grow.

The best part about “having” to continue to learn about these winning stocks is that I was already fascinated by them at some point or they wouldn’t be in the portfolio — making the added learning fun and not tedious.

Letting losers fade away

In addition to allowing me to add to my winners over time, owning over 100 stocks also offers natural diversification, allowing my losers to fade away into obscurity in a worst-case scenario.

Look no further than Teladoc Health (NYSE: TDOC) and the huge decline I faced as a shareholder. Yet, even with a considerable 4% portion of my holdings allocated to the company, my portfolio remained flat the following day after the company’s concerning earnings report, thanks to an otherwise strong day in the market and success elsewhere in what I held.

So now what? Well, in Teladoc’s case — nothing. It still accounts for 2% of my portfolio, so it doesn’t necessarily warrant new buying. Down nearly 90% from its all-time highs, there’s no real reason to sell here either.

Am I upset with management? Absolutely! However, I am still fascinated by its ideas and its mission statement “that everyone should have access to the best healthcare, anywhere in the world on their terms.”

With that said, and regardless of your investing temperament, buy what you love, add to your winners, and leave things alone if possible. 

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

The post Why owning over 100 top stocks helps me sleep well at night appeared first on The Motley Fool Australia.

More reading

• 3 ASX shares that could cash in on higher interest rates
• Why the AVZ share price went from being up 19% to down 20% today
• ASX 200 mining shares slump, dragging index into the red
• What’s the outlook for the Telstra share price in May?
• Why did the AFIC share price go backwards in April?

Josh Kohn-Lindquist has positions in Teladoc Health. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Teladoc Health. 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.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

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Yesterday, the Australian share market witnessed an event that has not been seen since 2010. For more than 11 years the cash rate has been falling, but now investors are grappling with rising interest rates and their impact on ASX shares.

The Reserve Bank of Australia (RBA) made the call to bump the cash rate up to 0.35% amid higher than expected inflation numbers. While the response had been anticipated for some time, the S&P/ASX 200 Index (ASX: XJO) still slipped on the news.

Now, the challenge for market participants is to find the opportunities that might arise from this situation.

Why certain ASX shares might get a boost

Over the years, interest earned on cash has faded away to the point of being a negligible amount. However, with Governor Philip Lowe remarking that the cash rate could reach 2.5% over the next couple of years, the potential for earned interest is looking more appealing.

The balance sheet of a company has always been important but if rates continue to rise, they might become even more important. In short, debt will become expensive and cash will receive a greater return.

For this reason, let’s review three ASX shares with little to no debt and a tonne of cash stashed away.

IGO Ltd (ASX: IGO)

The first ASX-listed share on our list is also one of the most loaded up with cash. With around $440 million at the end of the March quarter, mining and exploration company IGO holds a considerable amount of cash with zero debt.

In addition, the battery metals miner recorded a solid quarter recently in terms of net profits after tax (NPAT). During the third quarter, IGO raked in $133 million in earnings, representing an increase of 154% from the previous quarter.

However, the IGO share price has been struggling over the last month as the company wrangles with making a bid for Western Areas Ltd (ASX: WSA).

Zimplats Holdings Ltd (ASX: ZIM)

Another ASX share that could be set to capitalise on higher interest rates is Zimbabwean platinum metals group miner Zimplats.

According to the half-year report, the company had approximately US$429 million (A$603 million) in cash and cash equivalents at the end of December. Meanwhile, Zimplats’ debt level is non-existent with $0 owing on the balance sheet.

In the latest quarterly report, Zimplats managed to increase production by 6% while costs only climbed 2% higher.

GQG Partners Inc (ASX: GQG)

Lastly, our final ASX share that could be set to earn some extra interest is boutique asset management firm GQG Partners.

To be clear, this company does not hold hundreds of millions in cash like IGO or Zimplats. Though, at $78.1 million of cash and $0 of debt, the financial operator is still poised to benefit from higher interest rates.

This would be a pleasant turn of events for GQG shareholders, considering the share price is down 15% year-to-date.

The post 3 ASX shares that could cash in on higher interest rates appeared first on The Motley Fool Australia.

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Motley Fool contributor Mitchell Lawler 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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