Category: Stock Market

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

Billionaire investor Warren Buffett and his company Berkshire Hathaway (NYSE: BRK.A)(NYSE: BRK.B) had their annual meeting earlier this month. As always, the event was full of insights for investors, who often mimic Buffett’s investing moves. This time around, what stuck out to me wasn’t what Buffett was saying or which stocks he was buying, but about what he was not doing. And that’s evident through one number.

Berkshire’s cash pile to top $200 billion this quarter

As of the end of March, Berkshire had $189 billion in cash and equivalents on its books, which is a record for the company. And Buffett says that figure is likely to grow even higher. “It’s a fair assumption that they’ll probably be at about $200 billion at the end of this quarter,” he said.

Perhaps equally surprising is that Berkshire has also been reducing its position in iPhone and iPad maker Apple, selling 13% of its shares in the business. Apple, however, remains Berkshire’s largest holding, accounting for approximately 40% of its overall portfolio.

Why isn’t Buffett loading up on stocks?

With Berkshire’s record levels of cash on hand, investors may find it odd that the billionaire investor isn’t on a buying spree, especially at a time when the markets appear to be hot. It’s definitely a notable development at a time when investors generally seem bullish. Year to date, the S&P 500 has risen more than 9% and has been hitting record levels of its own.

But Buffett isn’t seeing great buying opportunities out there. “We’d love to spend it, but we won’t spend it unless we think they’re doing something that has very little risk and can make us a lot of money,” he said.

Buffett is a value investor at heart and if he’s not seeing much in the way of buying opportunities out there, and that should raise flags for investors. He always preaches that investors should be “fearful when others are greedy.” And given the greed in the markets over the past year, it may not be a bad idea for investors to rethink which buying opportunities are actually good ones in the markets these days.

Have valuations become excessive?

The S&P 500 is averaging a price-to-earnings multiple of 27 right now. While that is higher than it has been in the past, it’s below the 30 times earnings it was averaging in 2020 when meme stocks were starting to take off.

Many stocks, however, have been hot buys over the past year and are now trading at some high earnings multiples. These stocks have been the S&P 500’s top performers in the past 12 months:

Stock	12-Month Performance	P/E Ratio
Super Micro Computer	485%	44
Vistra	274%	56
Nvidia	219%	76
Constellation Energy	168%	29
NRG Energy	153%	12

Data source: YCharts. Returns as of May 13, 2024.

Not only have the returns for some of these stocks become sky high, but the majority of their earnings multiples are now in excess of 40. Finding good quality stocks is becoming more challenging for investors. While a stock such as Nvidia certainly has a lot of long-term potential and that future growth may be worth paying a premium for, it also makes the stock vulnerable to a sell-off if it falls short of expectations given the high expectations that come with such inflated prices.

Now may be an optimal time for investors to reassess their positions

Buffett has trimmed his stake in Apple and taken some profits, and investors may want to consider doing the same with their own holdings. While you may not necessarily want to try timing the market, it’s important to always consider valuations when buying and holding stocks because there is an opportunity cost associated with tying up money in an investment that may not be optimal.

There are many good, cheap stocks out there to buy. And unless you’re incredibly bullish on a growth stock that’s trading at a high multiple, you may want to consider other options. 

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

The post 1 concerning number from Warren Buffett’s annual shareholder meeting that should raise flags for investors appeared first on The Motley Fool Australia.

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David Jagielski has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Apple, Berkshire Hathaway, Constellation Energy, and Nvidia. The Motley Fool has a disclosure policy. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Berkshire Hathaway, Constellation Energy, and Nvidia. The Motley Fool Australia has recommended Berkshire Hathaway and Nvidia. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The post Here are the top 10 ASX 200 shares today appeared first on The Motley Fool Australia.

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Motley Fool contributor Sebastian Bowen has positions in A2 Milk. 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 Bendigo And Adelaide Bank. The Motley Fool Australia has recommended A2 Milk. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Long-term investors in the iShares S&P 500 ETF (ASX: IVV) would be a pretty happy lot on the ASX today. After all, this exchange-traded fund (ETF) has given investors some truly stunning returns over the last few years.

How stunning? Well, according to the provider, the iShares S&P 500 ETF has delivered a total return (growth and dividend distributions) of 24.47% over the 12 months to 30 April 2024.

IVV investors have also enjoyed an average return of 14.17% per annum over the three years to 30 April. That rises to 14.69% per annum over the past five years and peaks at 16.24% per annum over the past ten.

To give you a sense of just how lucrative a 16.24% return is, an investor who put $10,000 into IVV units a decade ago would have approximately $50,000 today, thanks to those high returns compounding. That’s assuming they reinvested all dividend returns of course.

Those ten-year returns IVV investors have enjoyed would have been more than double what an investor putting money into an ASX index fund like the Vanguard Australian Shares Index ETF (ASX: VAS) received. Over those same 10 years, VAS investors bagged an average of 7.83% per annum.

So does this stellar track record make the iShares S&P 500 ETF a no-brainer buy today?

Well, let’s clear up why this American index fund has been such a good investment.

What is this ‘slice of America’?

The iShares S&P 500 ETF tracks the S&P 500 Index (SP: .INX), which is the flagship stock market index of the United States. It represents an investment in the largest 500 companies on the American markets, weighted by market capitalisation.

That means you are getting exposure to almost any public American company you can think of here –everything from Apple, Amazon, Microsoft and NVIDIA to Mastercard, Kellogg, Coca-Cola and Nike.

This is why the legendary Warren Buffett has called an S&P 500 Index fund a ‘slice of America’. Buffett has even recommended it as an investment to anyone who doesn’t want to try and actively beat the market by picking their own stocks.

How have ASX investors bagged 16% per annum from the IVV ETF?

Over the past decade, the S&P 500 has been turbocharged by the performance of what are now its largest holdings – the US tech giants.

To give you an idea of how much this has helped the S&P 500, Amazon stock has risen by around 1,130% since May 2014. Apple is up by around 730%, while Microsoft has enjoyed a 965% increase. But that pales against Nvidia, whose lucky long-term investors have been showered with proverbial gold. Nvidia stock has exploded by almost 21,000% over the past decade.

Without the ‘magnificent seven’ US tech giants, the iShares S&P 500 ETF’s returns would not nearly be as stunning.

Another factor to consider has been the Australian dollar’s weakening value against the American dollar. Ten years ago, one Aussie dollar was buying 94 US cents. Today, it will only fetch 66.65 US cents.

This means that any assets priced in American dollars are inherently more valuable in Australian dollars today than they were in 2014, even if they haven’t changed in US dollar terms.

To give you an insight into how much this has affected IVV’s ASX returns, consider that the currency-hedged iShares S&P 500 (AUD Hedged) ETF (ASX: IHVV) has returned 10.13% per annum over the past five years, against the unhedged IVV’s 14.69%.

Should investors buy the iShares S&P 500 ETF today?

I think this index fund is a great investment for any passive-minded investor who wants a diversified slice of some of the best companies in the world. This index fund can add some healthy international diversification to any ASX share-based portfolio. Plus, it comes with an endorsement from the great Warren Buffett, so what more can one ask for?

However, this comes with a caveat. I think the massive returns investors have enjoyed over the past decade are something of a fluke. As such, I don’t think anyone buying this ETF today should be expecting anything close to 16% per annum over the coming 10 years.

It’s highly unlikely in my view that the likes of Apple, Microsoft and Amazon are going to grow by another 700 or 1,000% over the next decade. And Nvidia’s 21,000% return is almost certainly not going to be repeated.

Plus, the Australian dollar is probably not going to lose another 30 cents against the US dollar by 2034.

So by all means, buy this ETF today. Just don’t expect it to turn every $10,000 invested into $50,000 in ten years time.

The post 16% per annum: Is the iShares S&P 500 ETF (IVV) too good to turn down? appeared first on The Motley Fool Australia.

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John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Motley Fool contributor Sebastian Bowen has positions in Amazon, Apple, Berkshire Hathaway, Coca-Cola, Mastercard, Microsoft, Nike, and Vanguard Australian Shares Index ETF. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Amazon, Apple, Berkshire Hathaway, Mastercard, Microsoft, Nike, Nvidia, and iShares S&P 500 ETF. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended WK Kellogg and has recommended the following options: long January 2025 $370 calls on Mastercard, long January 2025 $47.50 calls on Nike, long January 2026 $395 calls on Microsoft, short January 2025 $380 calls on Mastercard, and short January 2026 $405 calls on Microsoft. The Motley Fool Australia has recommended Amazon, Apple, Berkshire Hathaway, Mastercard, Microsoft, Nike, Nvidia, and iShares S&P 500 ETF. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

If you have a high tolerance for risk and are on the lookout for big returns, then read on.

That’s because Bell Potter is tipping one speculative ASX stock to rise more than 200% from current levels.

Let’s dig a bit deeper now and see which stock could potentially more than triple your money if everything goes to plan.

Which ASX stock?

The ASX stock in question is Talga Group Ltd (ASX: TLG). It is a battery anode and advanced materials company aiming to accelerate the global transition towards sustainable growth.

Talga’s Lulea Anode Refinery is the first of its kind in Europe. It will manufacture sustainable anode material for greener lithium-ion batteries from the high grade natural graphite mined from Talga’s own deposits near Vittangi.

According to the note, the broker has retained its speculative buy rating and $2.35 price target on the company’s shares.

Based on its current share price of 75 cents, this implies potential upside of 213% for investors over the next 12 months.

To put that into context, a $5,000 investment would become over $15,000 if Bell Potter is on the money with its recommendation.

What is the broker saying?

Bell Potter highlights that Talga has just released an updated Exploration Target (ET) for its Vittangi natural graphite project in Northern Sweden. It said:

The ET lifts from 170-200Mt to 240-350Mt at the same grade range of 20-30% graphitic carbon (Cg). The expanded range was supported by electro-magnetic surveys and conventional field mapping conducted since 2014, which identified significant conductors at depth and along strike from the existing Mineral Resource Estimate (MRE). Management believes the ET aligns with future demand from offtake partners.

The broker believes this project will be operational for a very long time. It adds:

We currently estimate a 24-year LOM on Stage-1, which consists of a 100ktpa mining rate producing ~19.5ktpa of Anode material. Stage-2 (BPe commencing 4 years post Stage-1) lifts production to over 100ktpa of anode material over 14 years. In our view, the updated guidance indicates to potential offtake partners (and strategic equity) that the Vittangi project is a long-life, high-grade and large-scale anode project of strategic significance.

Finally, supporting its speculative buy rating are the following factors. It concludes:

We maintain our speculative Buy rating and our valuation of $2.35/sh fully diluted and funded. Key milestones over the next 12 months which support our thesis for TLG include 1) Environmental permit clearance 2) Binding offtake for ~75% of production, 3) project funding (BPe 60/40 debt/equity) and 4) construction commencement (BPe 2HCY24).

Time will tell if the broker makes the right call on this speculative ASX stock.

The post Bell Potter says this speculative ASX stock could rise 200%+ appeared first on The Motley Fool Australia.

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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 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.

It has been another busy week for Australia’s top brokers. This has led to the release of a number of broker notes.

Three broker buy ratings that you might want to know more about are summarised below. Here’s why brokers think these ASX shares are in the buy zone:

Aristocrat Leisure Limited (ASX: ALL)

According to a note out of Citi, its analysts have retained their buy rating and $51.00 price target on this gaming technology company’s shares. This follows the release of a first half result which came in well ahead of the broker’s expectations. This was driven largely by lower than expected costs and a strong performance from its Rest of World segment. The latter offset a slightly softer than expected performance in the United States. Outside this, the broker is supportive of the company’s plan to look at the sale of its digital assets given how their growth has slowed. Though, the price it receives for these assets will be key. All in all, the broker remains very positive on the company and sees value in its shares despite yesterday’s rally. The Aristocrat Leisure share price is trading at $45.71 today.

Graincorp Ltd (ASX: GNC)

A note out of Bell Potter reveals that its analysts have retained their buy rating on this grain exporter’s shares with an improved price target of $9.50. This follows the release of a half year result that was modestly ahead of the broker’s expectations. Bell Potter was also pleased to see that its FY 2024 guidance remains unchanged and that its through the cycle EBITDA has been upgraded from $310 million to $320 million. This reflects the inclusion of the XF Australia feeds acquisition. But it may not stop there. It notes that its through the cycle earnings would likely lift on any new oilseed crush capacity, which is being investigated. The Graincorp share price is fetching $8.53 this afternoon.

Incitec Pivot Ltd (ASX: IPL)

Analysts at Goldman Sachs have retained their buy rating on this fertiliser and commercial explosives company’s shares with an improved price target of $3.35. Goldman was pleased with Incitec Pivot’s half year results, noting that there was solid APAC pricing momentum. In addition, it highlights that the Fertiliser sale process is ongoing with PT Pupuk Kalimantan Timur and that management has flagged a transformation program. The latter is expected to target pricing, cost and working capital disciplines. But importantly, it believes the program could represent upside to consensus estimates. The Incitec Pivot share price is trading at $2.92 on Friday.

The post Brokers name 3 ASX shares to buy now appeared first on The Motley Fool Australia.

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Citigroup is an advertising partner of The Ascent, a Motley Fool company. 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 Goldman Sachs Group. 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.

Mineral Resources Ltd (ASX: MIN) shares have been on a tear since mid-January, when the ASX 200 mining stock hit a 52-week low of $52.52.

That was back on 22 January, and since then, Mineral Resources shares have had one heck of a rebound.

At the time of writing on Friday, they’re up 0.59%, trading at $78.45 after touching a 52-week high of $79.27.

In fact, the S&P/ASX 200 Materials Index (ASX: XMJ) is the only market sector in the green on Friday following news of A$210 billion of economic stimulus in China which is likely to boost iron ore demand.

The rest of the market seems to be cooling off from yesterday’s excitement. The S&P/ASX 200 Index (ASX: XJO) is limping along on Friday afternoon, carrying a 0.72% loss.

Now, back to Minerals Resources shares and whether it’s too late to buy them after this recent run.

Is it too late to buy Mineral Resources shares?

The answer to this question depends on who you ask.

First to top broker, Morgan Stanley.

Earlier this month, the broker upped its share price target on Mineral Resources shares by 24% to $83.

So by this measure, Mineral Resources shares still have a little bit of upside to offer at 4.8%.

Next, Bell Potter.

Its analysts retained their buy rating on Mineral Resources shares in a note published in late April.

They raised their 12-month share price target to $85. So, the potential upside is a tad better at 7.35%.

Bell Potter liked the company’s quarterly update released on 24 April.

The broker noted sales volumes were above its own forecasts and it was happy to see the recommencement of spodumene concentrate sales from the Wodgina lithium mine.

Mineral Resources also reported an improvement in its spodumene prices at the end of the quarter with a 22,000 tonnes shipment sold at US$1,300 per tonne for SC6 equivalent. This compares to the quarterly average of US$1,030 per tonne.

Another positive was the Onslow Iron Project remaining on track to export its first ore in June.

Finally, we look to Goldman Sachs for their view on Mineral Resources shares.

It’s vastly different from Bell Potter and Morgan Stanley.

Mining giant has 40% potential downside from here

Goldman not only has a sell rating on Mineral Resources, it also thinks the shares were too expensive to buy at their 52-week trough!

The broker has a 12-month share price target of $47 on Mineral Resources today. This implies a significant potential downside of 40% over the next 12 months.

This broker had a different take on the company’s quarterly report, noting that lithium and iron ore production and realised prices had not met Goldman’s own forecasts.

However, Goldman still likes the company and its track record for delivering impressive returns.

The broker commented:

We continue to highlight that MIN has an impressive 20-yr track record of generating high returns on capital with an average ROIC of >20% since listing.

This has been achieved through MIN’s ability to build and operate crushing plants and mining projects faster and at lower capital intensity than most other companies.

Despite this impressive track record, we continue to rate MIN a Sell …

Goldman said the reasons for its sell rating included Mineral Resources being fully valued compared to its peers. It is also trading well above its net asset value (NAV), which Goldman places at $54.60 per share.

The broker also cited its expectations of further falls in lithium prices.

This, coupled with higher capex costs at Onslow, leads the broker to believe that Mineral Resources will generate low or negative free cash flow in FY24 and FY25.

Goldman also says the company’s balance sheet is “highly geared but debt covenant light”.

The post Up 51% from their 52-week low, is it too late to buy Mineral Resources shares? appeared first on The Motley Fool Australia.

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Motley Fool contributor Bronwyn Allen 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 Goldman Sachs Group. 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.

Fancy investing in an ASX All Ords stock that would have seen your investment balloon by an eye-watering 292% in just three years?

Me too!

After all, the All Ordinaries Index (ASX: XAO) returned a far more ordinary 11.5% (excluding dividend payouts) over this same period.

The star performer in question is ASX coal miner Yancoal Australia Ltd (ASX: YAL).

Here’s how the company would have grown a $9,000 investment three years ago into a whopping $35,234 today.

ASX All Ords stock delivers the goods

Three years ago, in mid-May 2021, you could have bought the ASX All Ords stock for $2.01 a share.

Meaning your $9,000 investment would have netted you 4,477 Yancoal shares and a bit of pocket change.

By the end of 2021, your ASX investment would already be up some 30%, while you probably spent that pocket change.

And things really began to heat up in 2022.

That year, thermal coal prices more than doubled to reach all-time highs following Russia’s invasion of Ukraine. The Yancoal share price also notch its own record highs.

Although the coal price has tumbled more than 65% since those record highs, the Yancoal share price has held up much better, as the ASX All Ords share continues to be a cash-generating machine.

In afternoon trade today, Yancoal shares are swapping hands for $5.95 apiece.

So, the 4,477 shares you bought three years ago would be worth a rounded $26,460 today. Which, you might be thinking, is well below the headline-grabbing $35,234 mentioned above.

What gives?

The dividends, of course!

Don’t forget the passive income

Over the past three years the ASX All Ords stock has not only seen its share price rocket, it’s also delivered shareholders some seriously outsized passive income.

If you’d bought shares in May 2021, you have been eligible to receive the past three dividend payouts, all but one of which were fully franked.

Those four payouts work out to $1.92 per share.

So, if we add that into the current Yancoal share price of $5.95, the accumulated value of this ASX All Ords stock over the past three years works out to $7.87 per share.

Meaning your 4,477 shares would have netted you $35,234 by today, with some potential tax benefits from those franking credits.

Boom!

Now, as always, before investing in Yancoal shares or any other ASX stock, do your own research or seek expert advice.

The post How a $9k investment in this ASX All Ords stock ballooned to $35,234 in just 3 years! appeared first on The Motley Fool Australia.

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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 Scott Phillips.

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

Nvidia (NASDAQ: NVDA) stock is having another great year. In 2024, shares of the artificial intelligence (AI) tech giant have gained 91.9% through May 15, crushing the S&P 500 index’s 11.9% return. The stock’s longer-term performance is even more stunning, as it turned an investment of $5,000 into nearly $1 million over the last decade through April 29.

A catalyst that might propel Nvidia stock higher is coming on Wednesday, May 22, after the market close. That’s when the company is scheduled to release its results for its quarter ended on April 28.

Given Nvidia stock’s fantastic recent performance, expectations are high and built into the stock price. For the stock to rise after the report, the company will likely have to at least comfortably beat Wall Street’s estimates for the quarter and issue guidance for the next quarter that’s notably higher than analysts are projecting.

What are Wall Street’s expectations?

You can use the below chart to gauge Nvidia’s fiscal first-quarter results.

Metric	Fiscal Q1 2024 Result	Nvidia’s Fiscal Q1 2025 Guidance	Nvidia’s Projected Change	Wall Street’s Fiscal Q1 2025 Consensus Estimate	Wall Street’s Projected Change
Revenue	$7.19 billion	$24 billion	234%	$24.57 billion	242%
Adjusted earnings per share (EPS)	$1.09	$5.41*	396%	$5.57	411%

Data sources: Nvidia and Yahoo! Finance. Fiscal Q1 2025 ended April 28, 2024. *Calculated by the author based on the metrics for which management provides guidance. Data as of May 15, 2024.

The below chart can be used to gauge Nvidia’s guidance for its fiscal second quarter.

Metric	Fiscal Q2 2024 Result	Wall Street’s Fiscal Q2 2025 Consensus Estimate	Wall Street’s Projected Change
Revenue	$13.51 billion	$26.57 billion	97%
Adjusted EPS	$2.70	$5.92	119%

Data sources: Nvidia and Yahoo! Finance. Fiscal Q2 2025 ends in late July 2024. Data as of May 15, 2024.

Two reasons Nvidia seems poised to beat Wall Street’s expectations

The first reason Nvidia looks poised to beat Wall Street’s estimates has to do with management “visibility.” Nvidia’s top management team has said on the company’s recent quarterly analyst earnings calls that it has good visibility into near-term sales in its data center business. That’s because the company has a backlog of orders to fulfill due to demand being so strong for its AI-enabling data center chips and related products.

Management probably has less of a handle on near-term demand for products in some of its other businesses. But that doesn’t matter much because data center is by far Nvidia’s largest market platform, and so it drives overall results.

The better management’s visibility into near-term sales, the better idea it has of its near-term financial results. You can be sure Nvidia’s savvy top management team set fiscal Q1 guidance at levels it feels very confident the company will exceed. Wall Street analysts use Nvidia’s guidance to help establish their estimates. For many years analysts have underestimated the company’s growth potential, and my bet is this dynamic will continue.

The second reason that Nvidia’s upcoming report — including from a fiscal Q2 guidance standpoint — seems poised to be better than analysts expect stems from the recent quarterly reports of several of Nvidia’s biggest customers. Companies such as Facebook parent Meta Platforms, Alphabet, and Microsoft are continuing to ramp up their already significant spending on AI initiatives, which is a positive for Nvidia.

For instance, Meta now expects its full-year 2024 capital expenditures to range from $35 million to $40 million, up from its prior plan of $30 million to $37 billion. This is due to the company continuing to “accelerate our infrastructure investments to support our AI roadmap,” CFO Susan Li said on the Q1 earnings call.

Should you buy Nvidia stock before May 22?

Of course, there are no guarantees, but I think it’s more likely than not that Nvidia stock will rise after the upcoming earnings release for the reasons just outlined. And there’s another possible catalyst: The timing seems good for the company to announce a stock split.

That said, if you’re a long-term investor, you don’t need to concern yourself with trying to time your stock buys. Over the long term, if your bullish thesis is correct for Nvidia, it shouldn’t make that much difference if you paid a bit more or less for its stock many years back.

Let’s look at an example. Nvidia stock closed at $946.30 per share on May 15. Exactly five years ago, the stock closed at $39.90, adjusted for stock splits. If you invested $1,000 in Nvidia stock five years ago, your investment would now be worth $23,717. Had you invested in the stock about five years ago and its price per share was, say, 15% higher than $39.90, or $45.89, your investment would now be worth $20,621. I’m guessing you’d be thrilled to have turned your $1,000 into nearly $21,000 in five years, and not kicking yourself for not doing a little better.

A smart way to build your position in any stock is to invest the same dollar amount at regular intervals, such as monthly or quarterly. This method eliminates the potential that you’ll invest your entire amount at what turns out to be a near-term peak for the stock price. 

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

The post Nvidia stock’s next big catalysts could come on May 22. Should you buy shares before then? appeared first on The Motley Fool Australia.

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Beth McKenna has positions in Nvidia. Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool’s board of directors. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Alphabet, Meta Platforms, Microsoft, and Nvidia. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool Australia has recommended Alphabet, Meta Platforms, Microsoft, and Nvidia. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The uranium industry has been one of the hottest areas of the market this year.

In light of this, it is hardly surprising that one ASX uranium stock is charging higher today despite the market being a sea of red.

The uranium stock in question in is Alligator Energy Ltd (ASX: AGE).

In afternoon trade, its shares are up 5% to 6.2 cents. This means that they are now up over 100% since this time last year.

Why is this ASX uranium stock charging higher today?

Investors have been buying the company’s shares today after it released an announcement in relation to the Big Lake Uranium Project in the Cooper Basin, South Australia.

According to the release, its inaugural stratigraphic drill program for the Big Lake project is now underway.

The release notes that the Big Lake project is targeting northern extensions of the same Namba, Eyre and Winton sedimentary formations which host the Beverley, Four Mile and Honeymoon In-Situ Recovery (ISR) uranium mining operations in South Australia.

The ASX uranium stock has high hopes for the project. It highlights that it has many attributes of similar global hydrocarbon-related ISR uranium fields. Furthermore, an historical drilling program in the region by a previous company ~16 years ago indicated the presence of uranium in thin bands.

Drilling contractor Wallis Drilling has been engaged to conduct up to 40 aircore holes on 3 to 4 hole fences, with an average depth of 150 metres.

The good news for shareholders is that they may not have to wait long to find out what lies underground. That’s because subject to final drilling metres, assays and analysis of the results are expected to be available in either August and September.

After which, management notes that results from this field program will inform a more targeted drilling program focused on the best opportunities to intersect uranium mineralisation within this portion of the Cooper Basin. This is scheduled for either later in 2024 or early 2025.

Commenting on the drilling program, the ASX uranium stock’s CEO, Greg Hall, said:

We are very pleased to begin this long-awaited program and are fully appreciative to the Traditional Owners and other Stakeholders that have facilitated access. While at a very early green-field stage of the exploration/resource pipeline, all the signs are there that this has the potential to be a uranium-bearing basin following the Kazakhstan model. This drilling program is the start of our proof-of-concept work.

The post Guess which ASX uranium stock is charging higher today appeared first on The Motley Fool Australia.

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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 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.

The S&P/ASX 200 Index (ASX: XJO) is having a disappointing finish to the week. In afternoon trade, the benchmark index is down 0.7% to 7,824.2 points.

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

Clearview Wealth Ltd (ASX: CVW)

The Clearview Wealth share price is down 2.5% to 68.5 cents. This follows news that a major shareholder is selling down its holding in the financial services company. It advised that certain funds managed or advised by Crescent Capital Partners have agreed to sell in aggregate 73,114,246 shares to a range of sophisticated and institutional investors by way of a block trade at 59 cents per share. Crescent Funds will be left holding 225,174,975 Clearwiew Wealth Shares, representing approximately 34.59% of the shares on issue.

Loyal Lithium Ltd (ASX: LLI)

The Loyal Lithium share price is down 5.5% to 25.5 cents. This morning, the lithium explorer announced that it has received firm commitments to raise $3.3 million through the issue of 7,345,744 new shares at an issue price of ~$0.45 per share. This represents a significant premium to its current share price. However, this premium is the result of the company utilising the “flowthrough shares” provisions under Canadian tax law. These shares provide tax incentives to investors for expenditures that qualify as flow-through critical mineral mining expenditures.

Polynovo Ltd (ASX: PNV)

The Polynovo share price is down 3.5% to $2.12. This may have been driven by profit taking from some investors during today’s very red session. After all, this medical device company’s shares have been on a great run of late. For example, since this time six months ago, Polynovo’s shares have risen over 50%. Over the same period, the ASX 200 index is up by 11%. Strong sales growth appears to have been the driver of Polynovo’s gains.

Weebit Nano Ltd (ASX: WBT)

The Weebit Nano share price is down a further 7% to $2.26. This is despite there being no news out of the semiconductor company. However, it is worth noting that its shares have been under significant pressure since the release of its quarterly update. So much so, they are down almost 30% since its release. Investors appear to be finally waking up to the fact that it doesn’t deserve to trade with such a lofty valuation when it is pulling in zero cash receipts and burning through cash like it is kindling.

The post Why Clearview, Loyal Lithium, Polynovo, and Weebit Nano shares are falling appeared first on The Motley Fool Australia.

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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 PolyNovo. 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.