Are Star Entertainment Group Ltd (ASX: SGR) shares about to depart from the Australian stock market? There are certainly some rumours swirling around that they might be.

We’ve seen a few developments in the mergers and acquisitions space on the ASX over 2024 so far. It looks like Virgin Money UK plc (ASX: VUK) might leave the ASX boards later this year after a generous takeover offer earlier this month.

It was a similar story with Prospa Group Ltd (ASX: PGL) shares last month. And there have been some huge moves with the Appen Ltd (ASX: APX) share price this year after an announced and subsequently withdrawn takeover bid from US stock Innodata Inc.

Star Entertainment shares have been a volatile investment to have held in recent times. Long-term investors have been punished for owning this casino operator, with the Star share price down almost 86% from its 2021 peak of around $3.80 a share. Today, those same shares are worth just 53 cents each after dropping as low as 42 cents in December last year.

Star has evidently yet to recover from years of regulatory scrutiny over its ability to lawfully operate its casino assets. It was only last month that the NSW Independent Casino Commission (NICC) revealed that it would hold a second inquiry into Star’s suitability as a casino operator.

And just last week, the company revealed that its CEO Robbie Cooke would be leaving Star after just 16 months in the job.

Are Star Entertainment shares primed for a takeover bid?

So perhaps this makes Star a prime target for a takeover. After all, it was the legendary Warren Buffett who once said “The best thing that happens to us is when a great company gets into temporary trouble. … We want to buy them when they’re on the operating table”.

Some ASX experts even suggest this is likely.

According to reporting in The Australian, ASX brokers believe that following Star’s abrupt CEO exit last week, a sale of the company to a private equity buyer is “the most likely outcome” of Star’s recent woes.

Of course, this is just rumours and speculation at this point. But objectively, there’s a strong possibility that Star’s embattled investors might be open to an exit strategy after the horrid few years they’ve collectively endured.

Only time will tell if this speculation leads to any developments. But it is sure shaping up to be an interesting space to keep an eye on.

The post Could Star Entertainment shares be next in line to catch a takeover bid? appeared first on The Motley Fool Australia.

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• 5 things to watch on the ASX 200 on Monday
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• Why Harvey Norman, Macquarie Technology, Ramsay Health Care, and Star are rising

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 positions in and has recommended Appen. 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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Are you looking for some ASX shares to add to your retirement portfolio?

If you are, then the shares listed below could be top options for a retirement portfolio that analysts are bullish on. Here’s what you need to know about them:

Rural Funds Group (ASX: RFF)

Rural Funds could be an ASX retirement share to buy. It is an agriculture-focused real estate property trust with a high-quality portfolio of assets including vineyards and orchards.

It could be a good option due to its long-term tenancy agreements (weighted average lease expiry of 12.8 years) and its built-in rental increases. Combined, they provide great visibility on its future earnings.

Bell Potter is a fan of the company and has a buy rating and $2.40 price target on its shares.

As for dividends, it is forecasting dividends per share of 11.7 cents in FY 2024 and FY 2025. Based on the current Rural Funds share price of $2.10, this will mean yields of 5.6%.

Telstra Group Ltd (ASX: TLS)

Another ASX retirement share to look at is Australia’s largest telco, Telstra.

When looking for retirement portfolio additions, you arguably want companies with defensive qualities. Well, Telstra has them in spades. It also has an above-average forecast dividend yield, which is tipped to grow.

For example, Goldman Sachs is forecasting fully franked dividends per share of 18 cents in FY 2024 and 19 cents in FY 2025. Based on the current Telstra share price of $3.75, this will mean yields of 4.8% and 5.1%, respectively.

Goldman also sees plenty of upside for its shares with its buy rating and $4.55 price target.

Transurban Group (ASX: TCL)

Another ASX retirement share to consider is Transurban.

It owns a portfolio of toll roads in Australia and North America, as well as a significant project pipeline that should support its long-term growth.

Given that these roads are always in need, particularly given population growth and urbanisation, Transurban also has defensive qualities that could make it attractive for a retirement portfolio.

Citi appears to believe this is the case. The broker currently has a buy rating and $15.60 price target on its shares.

As for income, its analysts are forecasting dividend yields of 4.85% and 5% for FY 2024 and FY 2025, respectively.

The post 3 high-quality ASX retirement shares to buy this week 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 and Transurban Group. The Motley Fool Australia has positions in and has recommended Rural Funds Group and Telstra Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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When one steps back from the excitement, it’s hard not to think of the current ASX share market as a greedy one. After all, the S&P/ASX 200 Index (ASX: XJO) has appreciated by over 15% since the beginning of November last year and hit several new all-time highs in the process.

It’s normal for the markets to occasionally hit new highs of course. But it is not normal for the ASX 200 to gain over 15% in just five months or so. In fact, it’s unusual to see that kind of rise over an entire year.

Unfortunately, analysts at Macquarie believe that these gains are unlikely to last. As reported in the Australian Financial Review (AFR), Macquarie strategists Matthew Brooks and Sophie Bolton have built a new FOMO (fear of missing out) Meter, which is designed to gauge investor sentiment on the US markets, and whether it is being overly influenced by emotional whims. That would be fear or greed.

This Meter is reportedly constructed using seven different indicators, including the VIX volatility index and measuring how many stocks on the S&P 500 Index are above their 200-day moving averages.

Their verdict of the current market is sobering: “We continue to believe that sentiment needs to cool a little and that investors should wait for a correction before rotating more to risk”.

They go on to point out that this might mean that US returns from shares will be “below average” and that ASX shares could deliver a “slightly negative return”.

Defensive ASX shares for a greedy market

Brooks and Bolton have a potential solution for this conundrum: focus on defensive ASX shares. Pointing out that sectors like tech stocks and consumer discretionary shares tend to rise and fall alongside investor sentiment, the analysts instead recommend investors look to more defensive plays while the market is still hot.

They have four shares in mind for this endeavour. The analysts name packaging and logistics company Brambles Ltd (ASX: BXB), grocer Coles Group Ltd (ASX: COL), healthcare stock ResMed Inc (ASX: RMD) and real estate investment trust (REIT) Goodman Group (ASX: GMG).

Brooks and Bolton point out that these four stocks reported positive earnings during the recent reporting season, and all currently enjoy outperform ratings from Macquarie.

They also suggest that investors might want to take a look at Woolworths Group Ltd (ASX: WOW), Telstra Group Ltd (ASX: TLS), Endeavour Group Ltd (ASX: EDV) and Orora Ltd (ASX: ORA) as more “adventurous” defensive ASX shares.

So an interesting insight from these Macquarie analysts. It will be interesting to see if these FOMO Meter predictions are indicative of what happens next on the share market. As with all investing forecasts, they will only be obvious in hindsight

The post 4 defensive ASX shares to own in a greedy market: Macquarie appeared first on The Motley Fool Australia.

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Motley Fool contributor Sebastian Bowen has positions in Endeavour Group and Telstra Group. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Goodman Group, Macquarie Group, and ResMed. The Motley Fool Australia has positions in and has recommended Coles Group, Macquarie Group, ResMed, and Telstra Group. The Motley Fool Australia has recommended Goodman Group and Orora. 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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With so many shares to choose from on the ASX, it can be difficult to decide which ones to buy. The good news is that brokers across the country are doing a lot of the hard work for you.

Three top ASX shares that leading brokers have named as buys this week are listed below. Here’s why they are bullish on them:

ALS Ltd (ASX: ALQ)

According to a note out of Goldman Sachs, its analysts have retained their buy rating and $13.70 price target on this testing services company’s shares. This follows news that ALS is acquiring the remaining 51% in the Nuvisan business that it does not already own for nil cost. It notes that ALS previously had a call option to acquire the remaining stake for 13x the adjusted EBITDA. In addition, the broker notes points out that ALS now expects its earnings to be at the low end of its guidance range in FY 2024. Nevertheless, it remains positive. The ALS share price is trading at $12.86 today.

Sims Ltd (ASX: SGM)

A note out of UBS reveals that its analysts have upgraded this scrap metal company’s shares to a buy rating with an improved price target of $14.50. The broker is feeling more positive thanks to improving scrap metal prices. And with its shares trading at a discount to book value despite these improvements, the broker feels now is the time to invest. It has also upgraded its earnings estimates to reflect higher margin assumptions. The Sims share price is fetching $12.21 this afternoon.

Webjet Ltd (ASX: WEB)

Another note out of UBS reveals that its analysts have retained their buy rating on this online travel agent’s shares with an improved price target of $10.00. This follows the release of an update on the WebBeds business last week. The broker believes that the company is well-positioned to accelerate its growth through the use of big data and artificial intelligence. In fact, UBS believes the company can grow quicker than the market is currently pricing in. The Webjet share price is trading at $8.94 on Monday.

The post Leading brokers name 3 ASX shares to buy 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 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.

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According to the pundits of yesteryear, S&P/ASX 200 Index (ASX: XJO) energy shares focused solely on renewables should be leading the charge by now.

And coal stocks like New Hope Corp Ltd (ASX: NHC) and Whitehaven Coal Ltd (ASX: WHC) should have been relegated to the history books.

The reality, however, is playing out quite differently.

Although significant progress has been made in the transition to solar, wind and hydro power, the truth is that global demand for the reliable baseload power provided by fossil fuels is resilient.

Here’s what’s happening.

ASX 200 energy shares lengthy lifeline

The bulk of the booming demand for coal that could unexpectedly see these two ASX 200 energy shares burn brighter over the medium term comes from China, India and Indonesia.

All three countries brought new coal-fired power plants online over the past year. And all three are still constructing more.

That’s particularly important because together the three nations have a staggering population of some 3.2 billion people. Or some 123 times the population of Australia.

Indeed, coal consumption in China, which mines and burns half the world’s coal, hit a record high in 2022 before soaring 5.6% in 2023 to post another all-time high.

According to the International Energy Agency (IEA), global coal output reached new all-time highs in 2023 as well. And coal continues to provide more than 30% of the world’s electricity needs.

This has helped stabilise thermal coal prices at around US$130 per tonne, up from US$116 per tonne in late February this year.

While far below the record levels of US$440 per tonne reached in September 2022, that’s still well above the costs New Hope and Whitehaven pay to dig up and ship their coal. And it’s higher than any time between 2011 and 2020.

Commenting on the booming demand from Asia that could offer ASX 200 energy shares sustained support, New Hope’s CEO Rob Bishop said (courtesy of Bloomberg), “You look at Asia, the demand and the build out of coal-fired power plants, particularly in India – coal’s not going anywhere anytime soon.”

And like oil and gas, Bishop said coal remains vital in the long-running global transition to low-emissions energy.

“We see that the world needs more operators to mine coal and support the transition over many decades to come,” he said.

As for ASX oil and gas stocks

It’s a similar story for ASX 200 energy shares drilling for oil and gas, like Woodside Petroleum Ltd (ASX: WDS) and Santos Ltd (ASX: STO).

According to data released by China’s National Bureau of Statistics last week (quoted by Bloomberg), Chinese oil consumption increased 9.1% year on year in 2023. And gas consumption was up 7.2%.

The post How these ASX 200 energy shares could unexpectedly burn brighter 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.

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The S&P/ASX 200 Index (ASX: XJO) has started the week positively. In afternoon trade, the benchmark index is up 0.5% to 7,811.3 points.

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

Fortescue Ltd (ASX: FMG)

The Fortescue share price is up 3% to $25.40. This may have been driven by news that the mining giant’s recently deployed electric excavator has now moved one million tonnes of material since going into action. Importantly, management advised that at times the electric excavator was performing better than its diesel equivalent.

Gold Hydrogen Ltd (ASX: GHY)

The Gold Hydrogen share price is up 14% to $1.47. This morning, this natural hydrogen and helium exploration and development company announced strong results from its Ramsay 1 and Ramsay 2 well testing. According to the release, the test confirmed up to 17.5% purity for helium, which ranks amongst the highest purity levels globally.

MMA Offshore Ltd (ASX: MRM)

The MMA Offshore share price is up 11% to $2.61. This follows news that the marine service provider has received and accepted a takeover offer. According to the release, the company has entered into a binding scheme implementation deed with Cyan MMA Holdings for the proposed acquisition of all its shares via a scheme of arrangement. The board unanimously recommends shareholders vote in favour of the $2.60 cash per share offer at the scheme meeting. Though, with its shares now trading above the offer price, it’s possible that some investors believe a competing bid will materialise.

Sims Ltd (ASX: SGM)

The Sims share price is up almost 3% to $12.22. This morning, analysts at UBS upgraded the scrap metal company’s shares to a buy rating with an improved price target of $14.50. The broker believes that its outlook is improving and highlights the discount its shares trade at compared to book value.

The post Why Fortescue, Gold Hydrogen, MMA Offshore, and Sims shares are pushing higher 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 recommended Mma Offshore. 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 decent gain. At the time of writing, the benchmark index is up 0.6% to 7,819.2 points.

Four ASX shares that have failed to follow the market higher today are listed below. Here’s why they are dropping:

ALS Ltd (ASX: ALQ)

The ALS share price is down over 6% to $12.85. This morning, the testing services company announced an agreement to acquire the remaining 51% interest in Nuvisan for zero cost. It is a European-based contract research organisation with two distinct and separable entities, Nuvisan GmbH focused on pre-clinical and clinical development services, and ICB focused on drug discovery services. It generated revenues of ~A$245 million in calendar year 2023. The market doesn’t appear keen on the deal.

Electro Optic Systems Holdings Ltd (ASX: EOS)

The EOS share price is down 18% to $1.70. This follows the completion of the space and defence systems company’s institutional placement. It raised $35 million from investors at a discount of $1.70 per new share. The company will now push ahead with a $5 million share purchase plan at the same price. These funds will be used to support future sales growth in key global markets.

NRW Holdings Limited (ASX: NWH)

The NRW Holdings share price is down 3% to $2.84. This has been driven by the diversified contract services provider’s shares going ex-dividend this morning for its upcoming dividend. Eligible shareholders can look forward to receiving its 6.5 cents per share fully franked dividend next month on 11 April.

Patriot Battery Metals Inc. (ASX: PMT)

The Patriot Battery Metals share price is down 3% to 88.5 cents. This is despite the lithium explorer announcing the discovery of a new spodumene pegmatite occurrence at the Corvette project in Canada. Management commented: “The discovery highlights the extensive nature of the spodumene mineralized system along the CV Lithium Trend, which extends across the Property where a large portion remains unexplored for lithium pegmatite.”

The post Why ALS, EOS, NRW, and Patriot Battery Metals are dropping 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 positions in and has recommended Electro Optic Systems. 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 Vanguard Australian Shares Index ETF (ASX: VAS) is the most popular exchange-traded fund (ETF) on the ASX. In this article, we’re going to look at if it’s feasible for someone to have a comfortable retirement owning VAS ETF units.

Owning ETFs can be very useful because they can provide useful diversification in a single investment.

The Vanguard Australian Shares Index ETF gives investors exposure to the S&P/ASX 300 Index (ASX: XKO), which are 300 of the biggest businesses listed in Australia. Its biggest five positions make up 32% of the portfolio. They are: BHP Group Ltd (ASX: BHP), Commonwealth Bank of Australia (ASX: CBA), CSL Ltd (ASX: CSL), National Australia Bank Ltd (ASX: NAB) and Westpac Banking Corp (ASX: WBC).

Can VAS ETF fund a comfortable retirement?

The fund certainly ticks the diversification box. In terms of dividend income, the VAS ETF receives dividends over 12 months, and it distributes the money it has received every quarter.

According to Vanguard, the ETF currently has a dividend yield of 3.9%. This excludes the benefit of franking credits, which could be an after-tax bonus for some retirees. I’m not going to include it as a benefit in this article because everyone’s tax positions are different – the franking credits may be needed to offset tax charged by the ATO.

According to the AFSA Retirement Standard, a retired couple aged between 65 to 84 years old currently needs $72,148.19 per annum for a comfortable retirement, while a single person needs $51,278.30.

At a dividend yield of 3.9%, a couple would need $1.85 million invested in the VAS ETF while a single person would need $1.31 million invested. If investors can benefit from franking credits, and see minimal (or no) taxes, then those balance requirements would be lower.

Foolish takeaway

The VAS ETF is a good investment choice, with very low management fees. However, I think it’s worthwhile considering global shares to be part of a portfolio mix because of the stronger growth potential.

There are ASX dividend shares out there that can pay bigger dividend yields, which is the type of investment I like to regularly look at.  

The post How much would I need invested in the Vanguard Australian Shares ETF (VAS) for a comfortable retirement? appeared first on The Motley Fool Australia.

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Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended CSL. The Motley Fool Australia has recommended CSL. 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 500 Index (SP: .INX) has had a stellar run over the past 12 months.

Since this time last year, the benchmark US index has soared 31.6%, closing down 0.1% on Friday at 5,234 points.

Spurred by strong earnings results amid a resilient US economy alongside investor exuberance over pending interest rate cuts from the US Federal Reserve as inflation comes off the boil, the S&P 500 has notched a series of new record highs this year.

It’s a similar story with the tech-heavy Nasdaq Composite Index (NASDAQ: .IXIC). And, here in Australia, with the S&P/ASX 200 Index (ASX: XJO).

The ASX 200 is up 0.4% in afternoon trade today at 7,804.4 points. That puts the Aussie benchmark index within striking distance of surpassing the 8 March all-time closing high of 7,847.0 points.

Turning back to US markets, here’s what Goldman Sachs says could send the S&P 500 soaring another 15% in 2024.

More big gains for the S&P 500 ahead?

To be clear, Goldman Sachs’ base case remains for the S&P 500 to close the calendar year right around current levels, at 5,200 points.

But Goldman’s analysts also foresee the possibility that ongoing investor exuberance with artificial intelligence could see the big tech stocks propel the index to 6,000 points by the end of 2024.

Or 14.6% above current levels.

According to Goldman’s analysts (quoted by Bloomberg), “Although AI optimism appears high, long-term growth expectations and valuations for the largest TMT [technology, media, and telecom] stocks are still far from ‘bubble’ territory.”

The broker also noted that the resilient US economy and potential Fed rate cuts have already been fully priced into the markets.

In order for the US benchmark index to soar to 6,000 points by year end then, they said, “A shift in the interest rate outlook without a deterioration in the economy is necessary for the market rally to broaden.”

An ASX share to mirror the US stock market performance

ASX investors looking to track the performance of the S&P 500 without buying all those stocks may want to run their slide rule over the SPDR S&P 500 ETF Trust (ASX: SPY).

The ASX-listed exchange-traded fund (ETF) provides investors with exposure to 500 of the largest US-listed companies. SPY aims to track the performance returns of the benchmark. And it comes with low management costs of just under 0.10% per year.

Over the past 12 months, the ETF has gained 33.7%.

As always, before you invest a single dollar in SPY or any other ASX share, be sure to do your own thorough research.

If you’re uncomfortable with that, or just don’t have the time, reach out for some expert advice.

The post Up 32% in a year, here’s why Goldman says the S&P 500 could soar another 15% in 2024 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 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.

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I consider Warren Buffett as one of the greatest investors the world has ever seen. He has shown a love and preference for American companies over his lifetime, but I think there are a few ASX shares he’d definitely want to own if he hunted here.

There are a number of traits that the investing legend looks for, such as a good valuation, honest and hardworking management, appealing potential to put more money to work within the business at a high rate of return, and that these businesses are in industries he understands.

A lot of share prices have risen recently, so it’s a bit harder to find value. However, Buffett has said a number of times that he would rather buy a wonderful business at a fair price rather than a fair business at a wonderful price.

Below are the three ASX shares I think Warren Buffett would love to own.

Premier Investments Limited (ASX: PMV)

Premier Investments is an ASX retail share that owns a number of brands including Smiggle, Portmans, Just Jeans, Peter Alexander, Jay Jays, Jacqui E and Dotti.

The company also owns investments in two other ASX companies – Breville Group Ltd (ASX: BRG) and Myer Holdings Ltd (ASX: MYR).

The two brands I really like within the portfolio are Smiggle and Peter Alexander.

Smiggle sells school-related items such as lunchboxes, drink bottles, bags, stationery and so on. Some of the current brands it’s working with include Jurassic Park, AFL, Spider-Man, Minecraft, Barbie and Mickey and Minnie.

Now that the COVID-19 impacts on schools have dissipated, the growth potential of Smiggle has returned to normal.  

The company is planning a lot of international growth for Smiggle and Peter Alexander. I think store growth can be a big driver of earnings in the coming years, so the company has a promising outlook, in my opinion. Smiggle can expand in numerous countries.

A bonus could be if the business’ strategic review manages to unlock value for shareholders.

According to Commsec, the Premier Investments share price is valued at 24 times FY24’s estimated earnings.

Beacon Lighting Group Ltd (ASX: BLX)

Beacon Lighting is best known for its stores across Australia, which has tailwinds like population growth in Australia. Any interest rate cuts this year could be a boost for demand.

One the things that excites me most about this business is its international growth. Australia is a great country, but the global population is much bigger – tapping into this addressable market is compelling. It has offices in Hong Kong, mainland China, the USA and Germany. In 2023 it made sales to customers from 45 countries.

It’s looking to build trade and commercial partnerships, growing its sales to business customers. The ASX share would also like to expand its store network and grow its e-commerce sales.

According to the projection on Commsec, the Beacon Lighting share price is valued at 20 times FY24’s estimated earnings.

Wesfarmers Ltd (ASX: WES)

Wesfarmers owns a number of Australis’s leading retailers including Bunnings, Kmart and Officeworks. Other businesses it operates include Target, Catch and Priceline.

I think Warren Buffett would definitely want a piece of Wesfarmers. The company has proven to be a long-term performer, with a track record of making good decisions for shareholders and generating a good return on equity (ROE).

Berkshire Hathaway has built up a diversified portfolio of businesses, and Wesfarmers is diversified too. Wesfarmers is expanding into areas like healthcare and lithium. The more growth avenues the company has, the more choices it has to invest in the best-returning option.  

According to the estimate on Commsec, the Wesfarmers share price is valued at 30 times FY24’s estimated earnings.

The post If I were Warren Buffett, I’d buy these ASX shares in a heartbeat appeared first on The Motley Fool Australia.

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More reading

• How a potential demerger could deliver a 10% upside for this ASX 200 stock
• How many Wesfarmers shares must I buy to get $100 in monthly passive income?
• 2 ‘very high-quality’ ASX retail shares with significant inside ownership
• If I’d put $5,000 in Wesfarmers shares at the start of 2024, here’s what I’d have now
• If you’d put $1m into shares vs property at the start of COVID, how much would you have now?

Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Berkshire Hathaway and Wesfarmers. The Motley Fool Australia has positions in and has recommended Wesfarmers. The Motley Fool Australia has recommended Berkshire Hathaway and Premier Investments. 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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