Category: Stock Market

The AGL Energy Ltd (ASX: AGL) share price has had a stellar week, so what is going on?

AGL shares have jumped more than 5% since 21 March. They are currently trading at $7.65, a 0.92% gain so far today.

In comparison, the S&P/ASX 200 Index (ASX: XJO) has climbed 2% over the past week and is up 0.45% at the time of writing.

AGL’s share price performance is mirrored by the S&P/ASX 200 Energy Index (ASX: XEJ) which has also leapt 5% since 21 March.

Let’s take a look at what has been happening at AGL.

New battery deal

AGL will build a large battery at Broken Hill in New South Wales. The project is worth $41 million and includes a $14.84 million grant from the federal government’s Australian Renewable Energy Agency (ARENA).

The battery will include advanced inverter technology to improve system strength in weak parts of the grid.

Fluence and consortium partner Valmec will supply the 50 megawatt (MW), 50 megawatt hour (MWh) battery for the project.

Commenting on the project, AGL chief operating officer Markus Brokhof said:

Broken Hill’s unique edge-of-grid environment provides an ideal location for this advanced inverter technology to demonstrate how it can facilitate further penetration of renewable energy generation and add to the stability of the wider electricity network.

As Australia moves forward with its energy transition, we know that firming technologies like batteries play an important role in energy storage and supporting renewable energy supply.

The battery will be located about 6 km northwest of the Broken Hill airport. Construction completion is earmarked for early 2023. The project will provide up to 50 jobs for engineers, tradies, and contractors.

Commenting on the Federal Government grant, Minister for Industry, Energy and Emissions Reduction Angus Taylor said:

This is the 35th ARENA project we’ve invested in across New South Wales since January 2020. This battery will help stabilise the system, which is particularly important for areas such as Broken Hill that are at the edge of the electricity grid.

In other news, my Foolish colleague Zach recently reported broker sentiment is mixed on the AGL share price. JP Morgan and Credit Suisse rate AGL as a buy, while Barrenjoey Markets has placed a neutral rating on the share. The consensus price target for the share is $8.22.

AGL has also recently announced a plan for 200 EV smart chargers, my Foolish colleague Bernd reported.

Meanwhile, AGL is forging ahead with plans to demerge the company into two separate entities in June this year.

On 30 March, AGL will pay a dividend of 16 cents per share. This is a 60% cut on the previous interim dividend.

AGL share price snapshot

The AGL share price is up almost 25% year to date but has slid 26% lower in the past year.

In the past month, AGL shares are up nearly 2% boosted by their performance over the past week

For perspective, the S&P/ASX 200 Index (ASX: XJO) has returned around 9% in the past year.

AGL has a market capitalisation of roughly $5 billion based on its current share price.

The post The AGL (ASX:AGL) share price has jumped 5% in a week. What’s been happening? appeared first on The Motley Fool Australia.

More reading

• Down 8% since February, is the AGL (ASX:AGL) share price a buy?
• Own AGL shares? Here’s why the company has been making news this week
• Are AGL (ASX:AGL) shares worth buying prior to the planned demerger?
• 3 high-dividend ASX shares that are TRAPS: expert
• Why this broker says buy Origin (ASX:ORG) shares instead of AGL

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 Bruce Jackson.

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The St Barbara Ltd (ASX: SBM) share price is in negative territory today.

At the time of writing, the gold miner’s shares are trading for $1.49, down 1.97%.

What happened?

The St Barbara share price is being weighed down today as investors react to the company’s latest projections.

According to its release, St Barbara provided a FY22 guidance for its Simberi Operations in New Ireland Province, Papua New Guinea (PNG).

Simberi is forecasted to produce between 25-30koz at an all-in sustaining cost (ASIC) of $3,200-$3,600 per ounce in FY22.

As such, the group’s FY22 production guidance is expected to come to 275-290koz and AISC of $1,750-1,870 per ounce. The guidance for its operations at Leonora and Atlantic remains unchanged.

Last month, St Barbara withdrew its guidance at Simberi following a severe outbreak of COVID-19 across the Tabar Island group. This affected operations as personnel were forced into isolation.

At the peak, 270 people of the 600 strong workforce were at home recovering.

With limited operators and maintainers available, this impacted the amount of material mined and hauled. As a result, production for the third quarter is now expected to be roughly 11koz.

While the number of cases has fallen to 12 employees in isolation, the situation is deemed to be under control.

Nonetheless, the company has determined that ramp-up rates will be slower than previously anticipated. Securing expatriate maintenance specialists and operations management continues to be challenging.

This is expected to impact Q4 FY22, however the new guidance range reflects the latest assessment.

Quick take on Simberi operations

Acquired in 2012, Simberi operations is an open cut mining operation, situated on the northernmost island in the Tabar group of islands of PNG. The company has a 100% indirect interest in the Simberi Gold Project, through its wholly-owned subsidiary, Simberi Gold Company Ltd.

Recently the company announced its pre-feasibility study which highlighted that the project has potentially strong financial returns.

In addition, the mine life is expected to run for about 11 years.

About the St Barbara share price

Over the past 12 months, St Barbara shares have plummeted around 26%. Year to date, the shares are in the green, up 2%.

The company’s share price reached a 52-week low of $1.208 in January 2022 and has moved in circles since.

St Barbara has a price-to-earnings (P/E) ratio of 8.29 and commands a market capitalisation of roughly $1.06 billion.

The post Why the St Barbara (ASX:SBM) share price is slipping today? appeared first on The Motley Fool Australia.

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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 Bruce Jackson.

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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.

You don’t have to be an investing genius to make a lot of money with stocks. Don’t take my word for it. Just listen to what Warren Buffett, one of the greatest investors of all time, says.

Buffett wrote to Berkshire Hathaway (NYSE: BRK.A) (NYSE: BRK.B) shareholders last year about a way that any investor could amass significant gains. But the Oracle of Omaha didn’t stop there. Buffett thinks this investing strategy could even make a monkey rich. 

Monkey business

Buffett’s underlying premise is that “ownership of stocks is very much a ‘positive-sum’ game.” His reference was to a term used in game theory that describes a situation where the total of gains and losses will always be greater than zero. In other words, all players will be winners over the long run.

It’s important to remember that Buffett views buying stocks as buying a part of a business. That’s an accurate take. In fact, he wrote in his most recent letter to Berkshire shareholders that he and his longtime right-hand man Charlie Munger “are not stock-pickers; we are business-pickers.” 

So what is Buffett’s strategy that he thinks will make even a monkey rich? There are only three steps involved:

1. Throw 50 darts at a list of all of the stocks in the S&P 500 index. 
2. Buy the 50 stocks the darts land on.
3. Hold those stocks for the long term.

That’s it. Buffett did mention that the monkey should be “patient and level-headed.” In particular, he warned that the monkey shouldn’t be tempted to make changes along the way. The legendary investor stated, “All that’s required is the passage of time, an inner calm, ample diversification, and a minimization of transactions and fees.”

Testing Buffett’s strategy

Just out of curiosity, I decided to test Buffett’s “monkey strategy.” I’ll admit that I deviated a little from his prescribed approach, though. My wife wouldn’t be happy with me throwing 50 darts in our house. (She doesn’t trust my aim that much.)

Instead, I closed my eyes and randomly pointed to 50 different stocks that were members of the S&P 500 two decades ago. Why go back 20 years? I figured that was a sufficient period to meet Buffett’s long-term hold criterion. 

The average total return (including stock appreciation and dividends) of the 50 stocks in my “monkey portfolio” during this period was 741%. An initial investment of $10,000 spread across those stocks would be worth around $84,100. 

In case you’re wondering, the biggest winner was Altria (NYSE: MO). The tobacco giant delivered a total return of 3,050%. Some investors think that Altria is still a smart stock to buy now. 

Fourteen other stocks that I chose randomly were at least 10-baggers. No stock delivered a negative return during the period. However, Lumen Technologies (NYSE: LUMN) came close with a total return of only 7%. Considering inflation, I’d chalk Lumen up as a loser.

An even easier approach

Granted, my single test of Buffett’s strategy doesn’t prove that it works. I suspect that a large enough number of tests to be statistically valid would deliver a smaller total return than what I obtained.

In fact, I’m confident that would be the case. Why? There’s an even easier investing approach that Buffett also really likes: Buying an S&P 500 fund. Following this strategy would have generated a total return of around 485% over the last 20 years.

Also, I didn’t include the costs associated with buying 50 different stocks. That makes investing in an S&P 500 fund even more attractive than Buffett’s monkey-and-darts approach.

However, I truly believe that Buffett is onto something. And I wish that I had a patient and level-headed monkey following his approach to help me invest years ago. 

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

The post Warren Buffett thinks this investing strategy could even make a monkey rich appeared first on The Motley Fool Australia.

More reading

• Why the St Barbara (ASX:SBM) share price is slipping today?
• What is the current dividend yield on ANZ shares?
• Up 350% in a year, here’s why the Firefinch (ASX:FFX) share price is flying higher on Monday
• What’s the outlook for the Westpac share price in April?
• 5 questions to ask yourself in case the stock market keeps crashing

Keith Speights owns Berkshire Hathaway (B shares). The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended Berkshire Hathaway (B shares). The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended the following options: long January 2023 $200 calls on Berkshire Hathaway (B shares), short January 2023 $200 puts on Berkshire Hathaway (B shares), and short January 2023 $265 calls on Berkshire Hathaway (B shares). The Motley Fool Australia has recommended Berkshire Hathaway (B shares). The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson. 

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

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As a major ASX banking share, Australia and New Zeland Banking Group Ltd (ASX: ANZ) has long had a reputation as one of the top dividend-paying shares on the S&P/ASX 200 Index (ASX: XJO). That more or less comes with the territory of being a member of the big four ASX banks. But as many investors would be unfortunately aware, the ANZ share price hasn’t had the best time of it lately.

ANZ shares remain down by 0.7% year to date, despite today’s modest gain. Over the past 12 months, ANZ is also slightly in the red, having lost 1.14% on current pricing. By contrast, the Commonwealth Bank of Australia (ASX: CBA) share price has recorded a gain of close to 6% in 2022 so far, as well as a 12-month performance of almost 25%.

But ANZ’s laggardly share price performance has helped push the bank’s dividend yield rather high. ANZ is now the highest-yielding ASX big four bank on the ASX 200, beating out CBA as well as National Australia Bank Ltd (ASX: NAB) and Westpac Banking Corp (ASX: WBC).

Top of the ASX banking pile: ANZ dividend yielding north of 5%

So how much is the ANZ dividend worth right now? Let’s take a look.

Well, ANZ has paid out two dividends over the past 12 months, as is normal for most ASX blue-chip shares. Its last payment came in December last year – a final dividend worth 72 cents per share, fully franked. Before that, investors received ANZ’s interim dividend in July last year. That was worth 70 cents per share, also fully franked. That means ANZ has paid out a total of $1.42 in dividends per share over the past year.

At the time of writing, the ANZ share price is going for $27.82, up 0.76% for the day so far. At this share price, those two dividends give this ASX bank a trailing dividend yield of 5.12%. If we include the value of ANZ’s full franking, that grosses up to a healthy 7.31%.

At the current ANZ share price, this ASX 200 banking share has a market capitalisation of $78 billion.

The post What is the current dividend yield on ANZ shares? appeared first on The Motley Fool Australia.

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Motley Fool contributor Sebastian Bowen owns National Australia Bank 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 recommended Westpac Banking Corporation. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The Firefinch Ltd (ASX: FFX) share price is flying higher in morning trade, up 4.8% after posting earlier gains of 6.4%.

Firefinch shares closed on Friday at 95 cents and are currently trading for 99 cents.

Here’s why ASX investors are bidding up the Mali-focused gold miner and lithium developer’s shares.

What is the latest progress on the joint venture?

The Firefinch share price is marching higher after the company reported that the final conditions have been met regarding Jiangxi Ganfeng Lithium Co’s investment into its Goulamina Lithium Project.

After the transfer of the exploitation licence for the Goulamina to Lithium du Mali SA (LMSA) – a wholly-owned subsidiary of the joint venture (JV) company – Firefinch and Ganfeng now each hold a 50% interest in the JV company.

Firefinch said that all other conditions precedent had been satisfied. That includes a ‘letter of no objection’ from the Malian government.

The Firefinch share price could be getting a boost today from the report that under the JV agreement, Ganfeng will provide US$130 million of equity funding to the JV company. Ganfeng will also provide either US$40 million of Ganfeng direct debt or source US$64 million of third-party debt.

With the final conditions of the JV satisfied, Firefinch can now proceed with the demerger of Goulamina into Leo Lithium Limited. Firefinch expects to list Leo Lithium as a separate entity on the ASX later this year. Leo is the Firefinch group entity that holds its interest in the JV.

Firefinch managing director Michael Anderson commented on the progress:

This is a long-awaited and significant milestone. We have been working tirelessly to progress the joint venture and demerger process to deliver value for shareholders and are delighted to be on the brink of achieving the intended result.

Leo managing director Simon Hay added:

This is this a tremendous step along the path to listing Leo Lithium and developing Goulamina as one of the world’s largest lithium producers. The combined debt and equity funding package of at least US$170 million from Ganfeng means Leo can now accelerate work on the Goulamina Project.

Firefinch share price snapshot

The Firefinch share price has gained 52% over the past month and a whopping 350% since this time last year.

For some context, the All Ordinaries Index (ASX: XAO) is up 10% over the past 12 months.

The post Up 350% in a year, here’s why the Firefinch (ASX:FFX) share price is flying higher on Monday appeared first on The Motley Fool Australia.

More reading

• Why Allkem, Firefinch, JB Hi-Fi, and Piedmont Lithium are charging higher
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Motley Fool contributor Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The Westpac Banking Corp (ASX: WBC) share price has been fairly volatile since the beginning of 2022, like most ASX shares. But, it has managed an increase of 10% from the start of the year.

It’s impossible to know what the Westpac share price is going to do in any given week, month, or even year. For example, no one could have genuinely seen that the COVID-19 pandemic was going to happen when it did.

How are things looking for the Westpac share price? 

The broker Citi is optimistic about the big four ASX bank. Westpac is Citi’s top choice compared to the other big four ASX banks of Commonwealth Bank of Australia (ASX: CBA), National Australia Bank Ltd. (ASX: NAB) and Australia and New Zealand Banking Group Ltd (ASX: ANZ).

Citi notes that Aussie banks have been doing better than other international banks since the start of the Russian invasion of Ukraine, though this outperformance may not continue. Australian banks may be doing well because of their strong balance sheets and the fact that Australia has a lot of commodity exposure.

Banks such as Westpac could benefit from rising interest rates.

The US Federal Reserve has commented that interest rates could increase by 50 basis points in one go to combat the very high level of inflation in the US. Federal Reserve officials have indicated that interest rates are likely to increase at each meeting between now and the end of 2022.

Australian interest rates are expected to rise too. According to reporting by the Sydney Morning Herald, ANZ expects the RBA to increase rates in the third quarter of 2022. There are other predictions, such as CBA’s, that the RBA could raise interest rates as early as June 2022.

Citi rates Westpac as a buy, with a price target of $27.

However, there are other brokers with much lower expectations.

For example, Morgan Stanley is ‘equal weight’ on Westpac, with a price target of just $22.40.

Recent profit performance

Last month, the bank released its update for the three months to 31 December 2021. It showed that the $1.82 billion quarterly profit was 80% higher than the quarterly average for the second half of FY21. The cash earnings of $1.58 billion were up 74%, though it was only an increase of 1% when excluding notable items.

Lending was up $5 billion, or 0.7%, over the quarter across institutional, mortgages and New Zealand.

The net interest margin was 1.91%, down 8 basis points due to competition and higher liquid assets.

Expenses were down 26% to $2.7 billion. Excluding notable items, expenses were down 7%.

There was an impairment charge of $118 million, mostly from increased ‘provision overlays’ reflecting continuing COVID-19 uncertainty.

Westpac said that asset quality metrics continued to improve and it had a “strong” common equity tier 1 (CET1) capital ratio of 12.2%.

The post What’s the outlook for the Westpac share price in April? appeared first on The Motley Fool Australia.

More reading

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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 recommended Westpac Banking Corporation. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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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.

The Nasdaq Composite exploded higher by 9% over just five recent trading days, pulling the index out of its brief stint in a bear market. The index remains in correction territory, but the rebound is a big reprieve. But we aren’t out of the woods yet.

No one knows if the market will retest its 2022 lows. What we do know is that volatility remains high, and the month of March has been chock-full of broad market gyrations with several big days to the upside and the downside.

Given all the uncertainty, it’s better to prepare for further downside now than be complacent and get caught off guard. Here are five questions you should ask yourself in case the stock market keeps crashing.

1. Why are you investing?

The stock market is but one playing field upon which several different games are simultaneously being played. Some folks are day trading and care nothing about fundamentals. Instead, their focus is on short-term price action and technical analysis. Others are trying to bet big on a moon shot. Some people are trying to beat the market over a multi-decade time horizon. And many folks are simply focused on capital preservation or passive income generation in retirement. There’s a big difference between a Wall Street hedge fund with billions of dollars under management and an 18-year-old kid with $500 in spare cash they made over the summer.

Once you begin to understand the different types of investors and their different motivations, it becomes easier to understand why stock prices can do crazy things. Put a different way, knee-jerk reactions and market volatility become less surprising.

Although it can be tempting to try to time the market, the best an investor can do is be roughly right, pick good companies, keep a level head, and let the power of patience and compounding returns do their work over time. These are tools that are free to use, yet many investors ignore them in favor of gambling.

2. What is your time horizon?

Your investment horizon is heavily influenced by age. But it can also depend on different financial obligations or upcoming expenses. Some investors are in the asset accumulation phase, while others are in the asset distribution phase.

Younger investors who still have their highest-earning years ahead of them and fewer financial obligations can afford to take risks and can use decades of portfolio growth to their advantage. Investors nearing retirement, or any period where spending may begin to outpace income, tend to be more focused on safeguarding their nest egg and protecting against downside risk. In this sense, an investor with a longer time horizon can afford to have a higher percentage of their assets in growth stocks while a retiree may be more interested in the income from stable dividend payers.

3. What is your risk tolerance?

Looking at a chart of stocks that beat the market over the last few decades is a simple enough exercise. But not all gains are created equal. In fact, some of the best stocks have been extremely volatile and required nerves of steel to hold during certain time periods. For example, Amazon (NASDAQ: AMZN) stock lost nearly 90% of its value in less than 18 months during the dot-com bubble burst in the early 2000s.

Between 23 October 2007 and 20 November 2008, Amazon again lost 65% of its value. And then between 4 September 2018 and Christmas Eve 2018, Amazon lost over a third of its value. However, even if you bought Amazon stock at its peak right before the dot-com bust on 3 January 2000 and suffered through those declines, you would be sitting on a 3,500% gain as of this writing. 

The lesson here is to understand your temperament and risk tolerance before buying a stock. Investors who bought Amazon and panic sold missed out on some major gains. But the decision is all too clear in hindsight and never easy in the moment.

4. How vulnerable are you to volatility?

Exposure to volatility combines your personal investment objectives, time horizon, and risk tolerance. For example, a young investor who hates risk but is investing for the next few decades may find themselves with a higher equities allocation than a risk-tolerant investor who has some major purchases coming up or is nearing retirement.

Understanding you and your family’s exposure to volatility is a good exercise that can help build a portfolio that is best for you. Often, being vulnerable to volatility means taking fewer risks and allocating a higher percentage of your savings toward cash and bonds instead of stocks, even though stocks tend to outperform cash and bonds over the long term.

5. What kind of investor do you want to be?

Most of us have our favorite investor role models. Some gravitate toward the characters in Michael Lewis’ The Big Short who correctly predicted the financial crisis and made money from it. Others appreciate Peter Lynch’s grassroots style or Warren Buffett’s patience and wry wisdom. Some folks want to be gunslingers and take bold bets. Others want to stick to what they know and invest in a way that helps them sleep well at night.

At The Motley Fool, we try to foster principles that will give you upside potential, encourage creativity, and provide you with an overall balanced approach. By doing your own research and keeping a diversified portfolio that blends long-term upside with proven winners, you can structure your investments in a way that suits your style.

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

The post 5 questions to ask yourself in case the stock market keeps crashing appeared first on The Motley Fool Australia.

More reading

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• This ASX battery metals share has been taking investors on a wild ride of supercharged gains and falls. Here’s why
• 3 timeless Warren Buffett lessons to apply right now
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• Woolworths (ASX:WOW) share price higher on bullish broker note

Daniel Foelber has no position in any of the stocks mentioned. John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended Amazon. The Motley Fool Australia has recommended Amazon. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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

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The Rio Tinto Ltd (ASX: RIO) share price is in the green today amid the company striking a deal on a huge iron deposit.

The mining giant’s shares are currently swapping hands at $119.32, a 2.1% gain. In contrast, the  S&P/ASX 200 Index (ASX: XJO) is up 0.21% today.

The S&P/ASX 200 Resources Index (ASX: XJR) is also up 1.47% at the time of writing. Meantime, the BHP Group Ltd (ASX: BHP) share price is 1.91% higher so far today. The gains coincide with the iron ore price jumping 2.82% in a day, Trading Economics data reveals.

Let’s take a look at what is happening at Rio Tinto.

Deal struck

Rio Tinto has struck a deal with Guinea’s ruling junta on the massive Simandou iron ore deposit in the West African nation.

The agreement also includes the Aluminium Corp of China and SMB-Winning consortium, Reuters reported.

The project had recently been halted by Guinea’s military rulers who took control of the country in September. The iron ore deposit is said to hold more than 2 billion tonnes of high-grade ore.

Mines Minister Moussa Magassouba said on television, the companies “put aside many egos, many other interests to return to what is a win-win partnership for all parties”.

Rio Tinto owns a 45.05% stake in the southern half of the Simandou deposit, known as blocks three and four.

Commenting on the project, Rio Tinto Guinea country head Geraud Moussarie described the deal as “a historic step in the co-development of the Simandou project”, Reuters reported.

The agreement involves developing a 670 km railway from the Simandou site to a deepwater port at a cost of $15 billion.

Rio share price snapshot

The Rio Tinto share price is up 19% this year to date, gaining nearly 8% in the past 12 months.

In the past month, Rio Tinto shares have climbed by more than 4% and are up 8% over the past week alone.

For perspective, the S&P/ASX 200 Index (ASX: XJO) is up nearly 9% in the past 12 months.

Rio has a market capitalisation of about $44 billion based on its current share price.

The post Why is the Rio Tinto (ASX:RIO) share price up today? appeared first on The Motley Fool Australia.

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• How does Australia’s ban on alumina exports to Russia impact Rio Tinto (ASX:RIO)?
• Is it too late to jump on surging ASX 200 mining shares in 2022?

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 Bruce Jackson.

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2022 has been a milestone year for the share price of battery metals focused ASX newbie Belararox Ltd (ASX: BRX).

The minerals explorer only recently listed on the index, floating on 28 January after offering its shares for 20 cents apiece under its initial public offering (IPO).

That means initial investors have likely had their socks blown off between then and now.

At the time of writing, the Belararox share price is $1.20 – 500% more than the company’s IPO offer price.

That’s despite the stock suffering a 14.48% tumble in Friday’s session and slipping another 2.82% today.

So, what’s the latest news from the battery metals explorer? Let’s take a look.

What’s been going on with this ASX battery metals share?

The Belararox share price has had a rollercoaster performance over the last few days.

The stock surged through the middle of last week, amping up its performance on Wednesday and Thursday, gaining approximately 18% on both days.

Then, on Friday, it suffered a downturn, tumbling around 14.5%.

So, what’s been driving the zinc, copper, gold, silver, nickel, and lead explorer’s stock over the last few sessions? It appears to be news of Belararox’s Belara Project.

The company announced it had mapped potentially significant new targets at the project on Wednesday.

The additional targets seemingly support the company’s expectation that the project is home to greater resources than previously noted.

The project was previously found to house copper, lead, zinc, silver, and gold.

A gradient array IP survey was responsible for finding the new targets.

They include the potential for extensions to the massive sulphide mineralisation at the project’s Belara and Native Bee mines. The survey also identified a new kilometre-long anomaly to the south of Native Bee.

The ASX-listed battery metals explorer’s managing director Arvind Misra said the newly identified strike extensions and targets will be tested by drilling. Misra continued:

The intention of our maiden drill campaign is to upgrade the existing resource at Belara. We feel there is immense inherent value within Belara that is not currently encapsulated by the historical resource, and we look forward to systemically exploring to reveal that potential. It appears our drill rigs will remain busy beyond the current program.

Belararox share price snapshot

The Belararox share price is back in the red today despite the broader market’s gains.

Right now, the ASX battery metals explorer’s stock is trading at $1.20, 2.8% lower than its previous close.

Meanwhile, the S&P/ASX 200 Index (ASX: XJO) has gained 0.21% and the All Ordinaries Index (ASX: XAO) is up 0.17%.

The post This ASX battery metals share has been taking investors on a wild ride of supercharged gains and falls. Here’s why appeared first on The Motley Fool Australia.

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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 Bruce Jackson.

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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.

Warren Buffett’s Berkshire Hathaway (NYSE: BRK.A) (NYSE: BRK.B) has gotten a lot of attention as of late, and for good reason. Despite Buffett’s long-term outperformance, Berkshire Hathaway had been underperforming the S&P 500 and the Nasdaq Composite in recent years due to Berkshire’s lack of technology stocks that have been responsible for the bulk of the market’s gains.

But so far in 2022, Berkshire Hathaway stock is up 16%, while the S&P 500 is down for the year — largely thanks to the recent success of value stocks relative to growth stocks. What’s more, Berkshire Hathaway stock hit a new all-time high on Monday.

Short-term results aside, here are three Warren Buffett lessons that have proved invaluable over time and ring especially true today. 

1. Don’t follow the crowd

If there’s one thing we’ve learned over the last two years, it’s that following the crowd is a fantastic way to lose money.

After the COVID-19-induced stock market sell-off of spring 2020, meme stocks, unprofitable growth stocks, and pandemic-related stocks took center stage. Companies like Zoom Video Communications and Peloton Interactive produced monster gains, while the energy sector, financials, and real estate stocks got crushed. In 2021, the exact opposite was true, as many of these pandemic winners lost money while the energy sector was the best-performing sector in all of the S&P 500.

Fast-forward to 2022, and several top large-cap growth stocks have seen major drawdowns while value stocks and stable dividend payers have been the real winners. The lesson here is that jumping in and out of what is working or not working in a given time period is a bad idea. For years, Warren Buffett and his team were scrutinized for keeping a large cash position and not buying more stocks. But in the end, Buffett’s patience paid off, as Berkshire has had plenty of dry powder to pounce on opportunities, as evidenced by its recent acquisition of Alleghany. 

2. Invest in what you know

Buffett is a proponent of investing in what you know so that you have an advantage in the stock market. It’s a simple enough task, but it’s actually pretty hard to execute in practice.

Times change, and the economy is becoming more digitalized than ever before. Investors who may not understand technology-focused companies could follow Buffett’s footsteps and basically ignore the sector or invest in a relatively easy-to-understand business like Apple.

However, another option is to learn about a business and listen to the quarterly earnings calls. It requires more work but will also give you the tools you need to hold a company through tough times and let the investment thesis play out. And if the investment thesis begins to change or the company loses its edge over the competition, you’ll be better positioned to exit the position and avoid a falling knife.

3. Greed and fear

Typing it all together is Buffett’s famous quote to “be fearful when others are greedy, and greedy when others are fearful.” The advice applies perfectly to buying the dip in the U.S.-China trade war-induced sell-off at the end of 2018, the 2020 sell-off, and probably will apply well to the current sell-off we are in now. However, the advice to be fearful when others are greedy is also worth discussing.

Many growth companies saw their valuations pole-vault to astronomical levels that weren’t based on fundamentals or even the most optimistic forecasts. When that happens, Buffett’s advice is to be fearful, as it could be a sign of an unhealthy stock market.

Buffett has been a big believer in finding value where others aren’t looking. In many ways, the oil and gas industry was chock-full of high-yield dividend stocks and value stocks that investors were ignoring in favor of renewable energy and flashier names. Carbon neutrality is the future. But the world still runs on fossil fuels. Buffett’s ability to take criticism and invest in “ugly” stocks allowed him to make brilliant buys, such as the acquisition of some of Dominion Energy‘s energy infrastructure assets in July 2020, the gradual accumulation of Chevron stock, and other investments made through Berkshire Hathaway Energy, the conglomerate’s energy arm. 

Keep your cool when times are tough

When your screen is painted red and stocks keep falling with no end in sight, it’s easy to panic and make a decision you might later regret. By relying on timeless investing lessons, investors have a few tools they can pull out when times are tough. Instead of downplaying the emotional side of investing, it’s often better to accept the associated emotions and just try and make the best decision you can with what you know.

One of the most comforting facts to fall back on is the long-term performance of the U.S. stock market. That track record teaches us that every sell-off proved to be a great long-term buying opportunity. 

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

The post 3 timeless Warren Buffett lessons to apply right now appeared first on The Motley Fool Australia.

More reading

• This ASX battery metals share has been taking investors on a wild ride of supercharged gains and falls. Here’s why
• The BHP dividend is being paid today. Here’s what you need to know
• Woolworths (ASX:WOW) share price higher on bullish broker note
• How big will the Fortescue (ASX:FMG) dividend be in 2022?
• Here’s why Macquarie just upgraded the Santos (ASX:STO) share price

Daniel Foelber has the following options: long January 2024 $145 calls on Zoom Video Communications, long January 2024 $45 calls on Peloton Interactive, short January 2024 $150 calls on Zoom Video Communications, and short January 2024 $50 calls on Peloton Interactive. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended Apple, Berkshire Hathaway (B shares), Peloton Interactive, and Zoom Video Communications. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Dominion Energy, Inc and has recommended the following options: long January 2023 $200 calls on Berkshire Hathaway (B shares), long March 2023 $120 calls on Apple, short January 2023 $200 puts on Berkshire Hathaway (B shares), short January 2023 $265 calls on Berkshire Hathaway (B shares), and short March 2023 $130 calls on Apple. The Motley Fool Australia has recommended Apple, Berkshire Hathaway (B shares), and Zoom Video Communications. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson. 

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

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