When it comes to ASX dividend shares, it’s typically the stocks offering the highest fully-franked yields that get the most attention.

That’s why most investors will name the likes of Westpac Banking Corp (ASX: WBC) and BHP Group Ltd (ASX: WDS) when asked which ASX dividend shares they like rather than something like WiseTech Global Ltd (ASX: WTC) or Washington H. Soul Pattinson and Co Ltd (ASX: SOL).

Sure, there is something to be said of the massive and immediate flow of passive income when buying a high-yielding share. But are consistent high-paying ASX dividend shares better than those with small dividend payments but that grow them over time?

ASX dividend shares: growth vs. consistency

I think this question comes down to your personal circumstances and preferences. For older investors who have perhaps retired, cash flow and franking credits are usually the most important considerations when selecting income-paying shares, with capital growth and maximising returns playing second fiddle.

As such, it might make more sense to target those consistently high-yielding ASX dividend shares like Westpac or BHP if you fall into that category.

After all, if you’re in your 70s or 80s, there’s arguably less incentive to buy low-yielding ASX dividend shares that might have a massive yield in 20 years’ time.

However, that’s not the approach I’m taking with my own portfolio. Since I’m still many years away from retirement, maximising my overall returns is a far more pressing goal than maximising dividend cash flow.

Looking at the share prices of some of the ASX’s most prolific dividend payers, it’s clear that many of these companies sacrifice growth opportunities in order to keep their dividends at the highest levels possible.

Westpac? You can buy this ASX bank’s shares today for the same price as you could way back in April 2006. Sure, It’s got a 5.85% fully franked dividend yield at present. But you don’t get too much more than that.

It’s a similar story with BHP. Today, investors who picked up BHP shares at the height of the 2008 mining boom can sell them back without taking much in the way of gains.

High dividend payments have a price.

Income growth comes with share price growth too

I much prefer the likes of Washington H. Soul Pattinson. Soul Patts shares may only offer a dividend yield of 2.58% today. But, as we discussed just yesterday, someone who invested in this prolific dividend grower would have grown their dividend yield on cost from 2.67% up to 22.3%.

That’s the position that I think is most conducive to long-term returns. Remember, if an ASX dividend share is consistently growing its profits, it will be able to raise its shareholder payouts over time.

This usually walks hand in hand with the price rises too. Over the 23 years that Soul Patts has hiked its annual dividend from 10.4 cents to 87 cents, its share price has also grown by more than 765%.

Another ASX dividend share I’d consider for growing dividends, and a potentially high future yield on cost is Wisetech Global.

This tech stock first started paying dividends in 2017. That year, investors enjoyed a total of 2.2 cents per share in payouts. But in 2023, Wisetech doled out a total of 15 cents per share.

Yet despite this huge ramp-up in raw dividends going to shareholders, its yield still looks pitiful today at 0.2%. But bear in mind this is because the WiseTech share price has also ballooned 10-fold since 2017.

If it’s between WiseTech and Westpac, between BHP and Soul Patts, I’m going to take the ASX dividend share grower any day of the week.

The post ASX dividend shares: What’s better, growth or consistency? appeared first on The Motley Fool Australia.

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• Which Big Four ASX bank share will pay the biggest dividend this year?
• Why has the Westpac share price just hit a 52-week high?
• Soul Patts shares: Here’s how some investors are getting a 22% yield
• Why the Santos share price could surge in 2024 without Woodside
• 5 things to watch on the ASX 200 on Thursday

Motley Fool contributor Sebastian Bowen has positions in Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Washington H. Soul Pattinson and Company Limited and WiseTech Global. The Motley Fool Australia has positions in and has recommended Washington H. Soul Pattinson and Company Limited and WiseTech Global. 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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Retirement is a very important phase of our economic lives. ASX shares can help build our wealth, but does entering our golden years mean no more ASX investing?

Every retiree’s finances and budget are different. Some people may only have enough to pay for the bare essentials. Putting food on the table and having a roof over one’s head is more important than buying a few ASX shares.

But, is it a good idea to keep investing in ASX shares for the people in retirement who have some financial flexibility?

Make space for enjoying life

Being in retirement will hopefully mean cutting down on working and taking more time for leisure, entertainment, family and other enjoyable activities.

Some people may have spent a lifetime saving, so it may be a bit foreign to purposefully choose to spend money rather than accumulating as much as possible.

I occasionally make the point that there’s value in enjoying life today, rather than delaying it for many years down the track. For example, kids are only going to be kids for so long. My view is that there’s not much use saying to a 10-year-old that you’ll go to Disneyland in 10 years because it’s better for compounding money – they will be 20 by then and (probably) too old!

I’d suggest it’s a similar thing in retirement. If someone has a travel goal or something like that, it’s better to enjoy it now while we’re still most able to.

In my eyes, life experiences are the most important things to spend our money on.

Keep an eye on the ASX share portfolio, but don’t tinker needlessly

I’m a big advocate for long-term investing, so I hope that the number of ASX share sales in retirement can be minimal – unless the capital is needed. The less investment decisions we make, the less stressful that will be.

But, at the same time, I’d point out that if someone retires they’ll probably still need their money to last 10, 20 years or even more. Over that time, I think it’s certainly possible that investors may need to change their ASX share portfolio over that time and make new investments. Even Warren Buffett makes changes in the Berkshire Hathaway portfolio every so often.

Having said all of that, and assuming the retiree has enough money to keep spending on essentials and experiences, any leftover money could be invested in ASX shares to make sure the money works as hard as it can while it’s not needed.

In my opinion, (ASX) shares are capable of producing the best long-term returns of all asset classes, so while it may be wise to invest a bit more cautiously in retirement, there are still plenty of potential good years of investing in ASX shares. It could help the later years of retirement (such as aged care) or just fund better holidays.

Which ASX shares could retirees invest in? Well, that’s what The Motley Fool’s offering is all about – finding good ASX shares to invest in.

The post Should I still be buying ASX shares in retirement? appeared first on The Motley Fool Australia.

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• 2 sizzling-hot ASX stocks to buy right now
• 3 excellent ASX ETFs for beginner investors
• 2 ASX dividend shares to double up on right now
• No passive income at 50? I’d use Warren Buffett’s methods to get rich
• 6 oversold ASX shares to buy in February 2024

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. The Motley Fool Australia has recommended Berkshire Hathaway. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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Often when ASX stocks have risen strongly, investors will think they have missed the boat.

They may then think it’s better to wait for a pullback to happen in order to try and get in at a better price.

While sometimes this may happen, more often than not, high-quality, sizzling hot ASX stocks don’t come back to earth in a hurry.

Or at least, if they do, they’ve already gone another 25% higher before pulling back 10%. This means you end up paying more than you would have done if you just snapped them up earlier.

With that in mind, let’s take a look at a couple of ASX stocks that are sizzling hot and could still offer great returns for investors. They are as follows:

Megaport Ltd (ASX: MP1)

This elasticity connectivity and network services interconnection provider’s shares are the epitome of sizzling in 2024. Since the start of the year, the ASX stock has risen approximately 40%. This extends its 12-month return to 120%.

The driver of this has been the release of a strong quarterly update. Megaport reported total revenue of $48.6 million and EBITDA of $30 million, which was well ahead of expectations.

Analysts at Macquarie believe the strong form can continue. In response to the update, the broker has put an outperform rating and $15.50 price target on its shares. This implies 20% upside for investors.

NextDC Ltd (ASX: NXT)

Another ASX stock to look at is data centre operator NextDC. Its shares have rallied approximately 40% over the last 12 months and more than 120% since the start of 2020.

Investors have been buying the company’s shares due to its strong top line and profit growth, which is being underpinned by the insatiable demand for capacity in its data centres. Pleasingly, this is only expected to continue to increase as generative AI drives a third-wave of demand.

The team at UBS still sees a lot of value in its shares. It has a buy rating and $17.20 price target on them, which suggests almost 20% upside.

The post 2 sizzling-hot ASX stocks to buy right now appeared first on The Motley Fool Australia.

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• Why Macquarie shares could be poised for an AI windfall

Motley Fool contributor James Mickleboro has positions in Nextdc. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Macquarie Group and Megaport. The Motley Fool Australia has positions in and has recommended Macquarie Group. The Motley Fool Australia has recommended Megaport. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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If you’re a beginner investor and not overly keen on stock picking right now, then you could consider buying some exchange traded funds (ETFs) instead.

As these funds allow you to invest in a large number of shares in one fell swoop, it means you can effectively build a diversified portfolio instantly without having to break the bank.

But which ASX ETFs could be good options for beginners?

Listed below are three high quality option to consider buying. They are as follows:

BetaShares NASDAQ 100 ETF (ASX: NDQ)

The BetaShares NASDAQ 100 ETF could be a great option for beginners. This hugely popular fund gives investors access to the 100 largest non-financial shares on the famous NASDAQ exchange on Wall Street. These are the absolute titans of our time and include giants such as Alphabet, Amazon, Apple, Meta, Microsoft, and Tesla.

VanEck Vectors Morningstar Wide Moat ETF (ASX: MOAT)

Another great option for beginner investors could be the VanEck Vectors Morningstar Wide Moat ETF. This ETF gives investors exposure to the type of companies that Warren Buffett would buy. These are companies with sustainable competitive advantages and fair valuations. And given Buffett’s market-beating record over many decades, it could pay to follow his investment style.

Vanguard MSCI Index International Shares ETF (ASX: VGS)

A final ASX ETF for beginner investors to consider buying is the Vanguard MSCI Index International Shares ETF. It allows investors to buy a slice of a whopping ~1,500 of the world’s largest listed companies from major developed countries. Vanguard notes that this allows them to participate in the long-term growth potential of international economies.

The post 3 excellent ASX ETFs for beginner investors appeared first on The Motley Fool Australia.

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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. 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 James Mickleboro has positions in BetaShares Nasdaq 100 ETF. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Alphabet, Amazon, Apple, BetaShares Nasdaq 100 ETF, Meta Platforms, Microsoft, and Tesla. The Motley Fool Australia has positions in and has recommended BetaShares Nasdaq 100 ETF. The Motley Fool Australia has recommended Alphabet, Amazon, Apple, Meta Platforms, VanEck Morningstar Wide Moat ETF, and Vanguard Msci Index International Shares ETF. 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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Undervalued ASX dividend shares could be a great source of passive income.

At a time when interest rate cuts seem to be on the horizon, it could be a good idea to look at names that may be materially lower today than where they may be in a couple of years.

I’m not expecting 2024 to be the strongest, operationally, for the below two stocks, but I think the medium-to-longer-term is very promising.

Scentre Group (ASX: SCG)

Scentre is a real estate investment trust (REIT) that owns Westfield shopping centres in Australia and New Zealand. It has 37 locations in Australia and five in New Zealand.

A few months ago, the business reported its quarterly update for the period ending September 2023.

It reported portfolio occupancy of 99.1%, up 30 basis points (0.30%), year over year. The ASX dividend share also said that the average specialty rent escalation had been 7.6% in the year-to-date. New rental contracts saw a 3.6% increase in the three months to September 2023.

Total business partner (tenant) sales within Scentre were 13.7% higher in the three months to September compared to the same period in 2019.

The ASX dividend share continues to invest in its shopping centres to renovate and improve them and unlock stronger rental potential.

While online shopping is a headwind, the growing population is a tailwind. Plus, the limited space for new shopping centres in cities means the business has a strong economic moat, in my mind.

It’s forecast to pay a distribution of at least 17.8 cents per security in FY25 and 20.3 cents per security in FY26, which are forward distribution yields of 5.7% and 6.5%.

Dusk Group Ltd (ASX: DSK)

Dusk describes itself as the leading Australian omni-channel specialty retailer focused on home fragrance products. It has candles, ultrasonic diffusers, reed diffusers, essential oils, as well as fragrance-related homewares.

The Dusk share price has dropped 45% in the past year and it’s down around 75% from July 2021. It’s a lot cheaper than it was, reflecting the more difficult retail conditions.

The company’s total sales for the first 20 weeks of FY24 were down 11.3% year over year, with bricks and mortar sales down 12.3% and online sales up 8%. Compared to the pre-pandemic period of FY20, total sales were up 30.1%. It reported it saw a slight improvement in sales trends from October onwards.

The ASX dividend share has continued to open new stores in Australia, opening six in the first half of FY24, which are located in “outer suburban and regional centres where the returns on investment remain attractive.” It’s expecting to open another four new stores in Australia in the second half of FY24 and close one store.

In December 2023 it expanded onto the Amazon marketplace.

FY24 could be tricky, with earnings expected to sink. The forecast numbers suggest earnings per share (EPS) of 7.2 cents and a dividend per share of 5.1 cents, which would imply a forward price/earnings (P/E) ratio of 14 and a forward grossed-up dividend yield of 7.3%.

But, the forecast is for a recovery in FY25 and FY26. Dusk could pay grossed-up dividend yields of 13.7% in FY25 and 16.6% in FY26.

The post 2 ASX dividend shares to double up on right now appeared first on The Motley Fool Australia.

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Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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Over multiple decades, Warren Buffett’s investment strategy has been hugely successful.

The Oracle of Omaha’s long-term approach and investment in high-quality companies trading at fair valuations has allowed him to outperform the stock market and receive huge dividend windfalls each year.

The good news is that there’s nothing to stop you from following in Buffett’s footsteps, even from a starting age of 50.

In fact, by starting today, you could be generating a decent source of passive income in no time.

Passive income the Warren Buffett way

As mentioned above, one of the key parts of Warren Buffett’s investment strategy is to take a long-term approach.

Buffett isn’t interested in short-term fads. Instead, he seeks to maximise his returns over many years of compounding. There’s a very good reason for this. It provides the Berkshire Hathaway (NYSE: BRK.B) leader with the time his investments need to deliver on their potential.

A good example of this is actually the Berkshire Hathaway share price. There’s no doubting the company’s quality. But if you had invested in September 2021, your investment would have been down by approximately 5% a year later. No doubt you would have been somewhat disappointed at that point.

But if you fast-forward to today, its shares have climbed approximately 50% since September 2022. Clearly it has paid to be patient.

Now imagine that you kept doing this with a diverse portfolio of high quality, dividend-paying stocks with sustainable competitive advantages, in time they would start to provide you with a growing source of passive income.

But how much?

If you are in a position to invest $1,000 per month over 15 years and generated an average annual return of 10% (and reinvested your dividends), your portfolio would grow to be worth $400,000.

At that point, you could stop reinvesting your dividends and start using them as passive income. But how much income could you generate?

With a portfolio worth $400,000 and an average dividend yield of 5%, you would be pulling in $20,000 of passive income each year.

But it won’t stop there, even without any further contributions.

If your portfolio continued to grow by 5% each year after dividend redemptions, it would increase to $650,000 in 10 years. Earning a 5% dividend yield on this portfolio would mean passive income of $32,500.

It is also worth noting that by following Warren Buffett’s strategy of making patient investments in high quality companies with competitive advantages, it may be possible to beat the market returns and produce a larger portfolio and an even more generous source of income.

The post No passive income at 50? I’d use Warren Buffett’s methods to get rich 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 Berkshire Hathaway. The Motley Fool Australia has recommended Berkshire Hathaway. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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Investing legend Warren Buffett once said, “Never count on making a good sale. Have the purchase price be so attractive that even a mediocre sale gives good results”.

If you’re an admirer of the Oracle of Omaha (and, let’s face it, who isn’t?), you’ll likely already appreciate that the price at which you buy your ASX shares is just as important as that at which you sell!

But how to sort the oversold bargains from the falling knives?

For their thoughts, we asked our Motley Fool writers which ASX shares they reckon offer the best-value buying right now. Here is what the team came up with:

6 cheap ASX for February 2024 (smallest to largest)

• KMD Brands Ltd (ASX: KMD), $441.23 million
• Rural Funds Group (ASX: RFF) $860.39 million
• Domino’s Pizza Enterprises Ltd (ASX: DMP), $3.57 billion
• Block Inc (ASX: SQ2), $3.73 billion
• IDP Education Ltd (ASX: IEL), $5.38 billion
• Lynas Rare Earths Ltd (ASX: LYC), $5.51 billion

(Market capitalisations as of market close 9 February 2024).

Why our Foolish writers think these ASX stocks offer great value buying

KMD Brands Ltd

What it does: KMD Brands is a retail business that operates three leading brands: Kathmandu, Oboz and Rip Curl.

By Tristan Harrison: The KMD Brands share price is down 33% in the past year and has dropped close to 60% since October 2021.

The company’s recent trading update revealed group sales were down 12.5%, reflecting “ongoing weakness in consumer sentiment.” Kathmandu’s rainwear and insulation categories were down, while wholesale sales for Rip Curl and Oboz also declined as retailers reduced inventory holdings in the short term.

But there were some positives. The group gross profit margin improved, and operating costs were “well-controlled and actively managed”.

I think the current KMD share price reflects short-term weakness. Commsec numbers suggest earnings per share (EPS) could rise to 6.5 cents and 8.3 cents in FY25 and FY26, respectively. This puts the stock at 10x FY25’s and 8x FY26’s estimated earnings, which looks cheap to me. The FY26 dividend yield could also be an attractive 8.75%.

Motley Fool contributor Tristan Harrison does not own shares of KMD Brands Ltd.

Rural Funds Group

What it does: Rural Funds Group is a real estate investment trust (REIT) that owns a large portfolio of farmland and other agricultural assets.

By Sebastian Bowen: The Rural Funds unit price has not had a fun time over recent years. Back in early 2022, units of this REIT were asking for more than $3 each. But today, those same units were going for $2.22 at Friday’s close of trade.

Rising interest rates have hurt Rural Funds. As an REIT, this trust uses loans and other financing to help build out its portfolio. With rising rates, this financing has become a lot more expensive. 

Yet, I think this situation has resulted in Rural Funds stock becoming oversold. The REIT operates a strong portfolio of different agricultural assets, including vineyards, cattle and macadamia, almond, and cotton farms. Those are all commodities that have a strong and inelastic market. 

Additionally, Rural Funds is a strong dividend payer, having increased or maintained its quarterly dividend payments since 2017. Today, you can expect a dividend distribution yield of more than 5.28% from this REIT.

Motley Fool contributor Sebastian Bowen does not own units of Rural Funds Group.

Domino’s Pizza Enterprises Ltd

What it does: Australian-owned Domino’s is the master franchise holder for Domino’s Pizza stores in Australia, New Zealand, Belgium, France, the Netherlands, Japan, Germany, Luxembourg, Taiwan, Malaysia, Singapore, and Cambodia.

By Bernd Struben: It’s been a rough start to 2024 for Domino’s shares, with the stock down 32% year to date. Most of those losses came on 25 January, when shares closed down 31%.

This followed an update that showed significant half-year sales growth in its ANZ home markets and Germany, but was overshadowed by a sales slowdown in Malaysia and Japan.

Management forecast net profit before tax for the half year between $87 million and $90 million, down year on year but up from $74 million in the prior half. It will now focus on delivering the same successful strategies driving growth in ANZ to boost its Asian operations.

The stock should also get a longer-term lift as slowing inflation and falling interest rates boost discretionary consumer spending.

Domino’s shares trade on a 2.8% partly-franked dividend yield.

Motley Fool contributor Bernd Struben does not own shares of Domino’s Pizza Enterprises Ltd.

Block Inc

What it does: Block Inc is a US fintech that provides payment terminals for small retailers, a consumer finance app, and Afterpay, to name a few of its offerings.

By Tony Yoo: It might be odd calling a stock that’s risen 70% since the end of October “oversold”. But the fact remains the Block share price is more than 14% down over the past year and 43% lower since April 2022.

The financial services company is on the way up after cleaning up its act in recent months. Management has cut costs, reduced staff share issuances, and generally placed a greater emphasis on cash flow. The revival in the Bitcoin price has helped too, with co-founder Jack Dorsey a firm believer in cryptocurrencies.

All three analysts currently surveyed on CMC Invest rate Block shares as a strong buy.

Tony Yoo does not own shares of Block Inc CDI, but does own Block Inc shares listed on the NYSE.

IDP Education Ltd

What it does: IDP Education is a provider of international student placement services and high-stakes English language testing services.

By James Mickleboro: IDP Education shares have lost almost 40% of their value over the last 12 months after the company was hit with bad news after bad news. This included the loss of its language testing monopoly in Canada and changes to student visas at home and abroad.

While these events have undoubtedly had a negative impact on the stock’s near-term performance, I believe the selling has been severely overdone. In light of this, I feel it has created an opportunity for ASX investors to buy a high-quality company with strong long-term growth potential.

Analysts at Goldman Sachs agree with this view and remain bullish on its outlook. The broker highlights that “IEL’s fundamental quality and structural growth drivers remain intact while the company possesses levers to continue to grow earnings (e.g. costs).”

Goldman currently has a buy rating and a $27.60 price target on IDP shares.

Motley Fool contributor James Mickleboro does not own shares of IDP Education Ltd.

Lynas Rare Earths Ltd

What it does: Helmed by Amanda Lacaze, Lynas Rare Earths is one of the largest producers of rare earth elements, which are critical in many of our modern-day technologies. The company owns two highly regarded operations: the Mount Weld mine in Western Australia and a processing plant in Malaysia.

By Mitchell Lawler: The past year has not been kind to the Lynas share price. Coinciding with a drop in the going rate for rare earths, shares in the Australian miner have fallen 35% to reflect the shrinking revenue and profits. 

I’ll go out on a limb and say this could all be a temporary weakness in an otherwise strong long-term outlook. Interest rates have constricted the consumer’s appetite for electric vehicles recently, but with rates expected to be cut at the tail end of 2024, we may soon see strength again. 

I think Lynas’ current valuation is appealing based on the company’s recently increased production capacity and the Kalgoorlie facility achieving its first feed-on in December last year. 

Furthermore, management’s decision to pursue organic growth over a merger with MP Materials relays a level of confidence among management in the company’s own future prospects.

Motley Fool contributor Mitchell Lawler owns shares of Lynas Rare Earths Ltd.

The post 6 oversold ASX shares to buy in February 2024 appeared first on The Motley Fool Australia.

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The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Block, Domino’s Pizza Enterprises, Goldman Sachs Group, and Idp Education. The Motley Fool Australia has positions in and has recommended Block and Rural Funds Group. The Motley Fool Australia has recommended Domino’s Pizza Enterprises and Idp Education. 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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Everyone is busy these days.

Many people lament that all the technology that’s meant to help us feels like it’s actually burdened us with more things to monitor and action.

“Excuse me then if I’m a bit too busy to comment on your social media post about the sunset, answer your email survey, or pick up the phone to your stupid call centre,” said Marcus Today founder Marcus Padley.

“Sorry, but I’ve got a bit going on of my own.”

Because of this rushing around, Padley said on the Marcus Today blog, “the most precious gift you can give anyone these days, especially your family and kids, is time”.

“Simply turning up, ringing up, listening, and being there is now the biggest compliment you can ever pay anyone.

“Time. The most valuable asset on earth, and the most generous of gifts. Use it or lose it. Make it or waste it.”

So with that in mind, Padley used his vast investing experience to identify the top 10 time-wasters that investors need to ignore.

Spending your most valuable asset on any of these is time taken away from taking proper care of your ASX investments:

Useless information

The first three are all related to information that add little value to your investment decisions: Powerpoint presentations, clickbait, and media talking heads.

“PowerPoint has empowered even the most unimaginative, reclusive, bland, but credentialled introverts to present ‘well’. It is that good. Which is bad,” said Padley.

“Clickbait journalism has degraded the integrity of financial content, which is now being written for the internet, not for the reader.”

Padley himself appears on television regularly to talk about ASX investments, but he warns that it’s just for fun.

“We may look good and put on a good show, but we have no more ability to predict the future than you do. Take it for what it is, an entertainment, a show. But we are not clairvoyant.”

Human emotions

Paying attention to your own emotions is one of the biggest time-wasters for your ASX investments.

“[Emotions] do nothing for the investment process. Don’t let them get in the way,” said Padley.

“There is no ‘liking’ or ‘hating’ stocks. What you feel about a stock is irrelevant. Think like ‘Spock’. Be an algorithm. Dispassionate analysis is the goal.”

He has one tip to put this in practice.

“If you have a ‘feeling’ about a stock, you should be removed from your own investment process immediately.”

Thinking about the price you paid for your ASX investments

There is absolutely no point in worrying about the price you paid for an ASX stock.

The market doesn’t care, the stock doesn’t care, and nor should you.

“What you paid for a stock is completely irrelevant. Whether you are in profit or loss has absolutely no bearing on the future share price. So be detached,” said Padley.

“A client once said to me ‘Telstra Group Ltd (ASX: TLS) owes me five dollars’. No it doesn’t, it’s not your brother-in-law.”

Economists

Investors need to be acutely aware that all those economists from the big banks and investment houses have a financial interest in always being on the optimistic side.

Their predictions are not unbiased.

“They have a mission, to keep the clients of their large product selling wealth management companies happy and invested.”

Economist forecasts are simply to provide “a perception of control and certainty”

“They cannot afford to speak their minds, and they simply cannot tell anybody to sell, ever.”

False prophets and idols

Padley is not a fan of broker research, financial services peddling urgency, or anyone claiming to invest the same as Warren Buffett.

“Sorry, but you are not Warren Buffett, and you cannot do what he does, or someone would be doing it for us, and we would all be billionaires. 

“So stop pretending you can.”

He cautions investors to always think about the motivations of a broker making a particular stock recommendation.

“90% is marketing. 90% of it is designed to promote a corporate client. 90% of it is designed to suck up to a corporate client. It is not independent advice,” said Padley.

“It is not designed to make the reader money. It is designed to make the broker money. Read it with your eyes open to the corporate purpose.”

And rushing investment decisions inevitably ends in tears.

“There is no rush when it comes to the core purpose of a stock market investor, picking stocks over long periods, not snagging a lucky rise tomorrow. 

“Being urgent has but one destiny in a stock market context.”

Artificial intelligence

AI is wasting everyone’s time, according to Padley.

“Send me an email written by AI, and not only can I spot it, but it’s an insult. 

Not to me, but to you. To your intelligence. We’re all going to become acutely aware of it, very quickly. It’s not impressive. It’s a bit pathetic.”

The post 10 time-wasters that could destroy your ASX investments appeared first on The Motley Fool Australia.

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• This tiny ASX tech share is leaping 25% after striking a deal with Telstra
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• 7 must-see results this ASX reporting season before buying or selling

Motley Fool contributor Tony Yoo has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has positions in and has recommended Telstra Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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Putting forward an ASX share that someone could rely on forever in an investment portfolio is no small potatoes. The investing world is littered with the graves of companies that once seemed unassailable, and whose fortunes many could never see fading – until they did. Kodak, Blockbuster, Borders, Ansett… the list is endless.

But today, I’m going to attempt this hard task, and discuss five ASX shares that I think are worthy candidates for a buy-and-hold-forever investment.

5 ASX shares you can buy and hold forever

Lottery Corporation Ltd (ASX: TLC)

For as long as humans have been around, we’ve loved a flutter. And that’s the basic tenet that underpins my faith in this gaming company. Lottery Corp is the name that has exclusive rights to run lotteries and Keno services in almost all Australian states and territories. Many of these licenses only expire in many decades’ time.

I love lotteries from an investment perspective. The allure of buying a relatively cheap ticket in the hopes of winning it big is something that fundamentally attracts us all, and is also immune from normal economic maladies like inflation and recessions.

Safe in this knowledge, I’d be happy to name Lottery Corp as a buy-and-hold-forever investment.

Telstra Group Ltd (ASX: TLS)

Telstra has been a constant national companion throughout modern Australia’s history. First as the Postmaster General’s Department, then as the state-owned Telecom and now Telstra, this company has always underpinned our national communication services.

With the paramount importance of high-quality mobile connections and fast home internet in our modern economy, Telstra’s role as the go-to telecommunications services provider has arguably never looked more important.

Given this importance, I can’t envision a future where Telstra is not a major facilitator of this important facet of our economy and daily life. The company’s dominance in mobile and home internet connections gives it a highly defensive earnings base, as well as significant pricing power.

That’s why it’s my belief that Telstra will continue to be a quality investment for decades to come.

Woolworths Group Ltd (ASX: WOW)

This one is a little easier to tout. No matter the advances in technology that we might see over all of our lifetimes, the fact remains that we’ll need to eat, drink and stock our households. And Woolworths is probably going to remain the first choice of more Australians than any other to provide these services.

The company’s investments in automation, click-and-collect services, and home delivery have impressed me in recent years. No matter what happens with new technologies in the grocery space, I expect Woolworths to be leading the charge. As such, I’d be happy to label this company as a top buy-and-hold stock for ASX investors today.

Vanguard Australian Shares Index ETF (ASX: VAS)

Changing tack a little now, let’s discuss an exchange-traded fund (ETF). The Vanguard Australian Shares ETF is an index fund that faithfully holds a sliver of the 2300 largest shares on the ASX, weighted by market capitalisation. Whatever the largest 300 companies on the ASX are at any given moment, VAS will hold their shares within its portfolio.

This index fund structure inherently future-proofs this investment.

Let’s say, for argument’s sake, that Commonwealth Bank of Australia (ASX: CBA) and BHP Group Ltd (ASX: BHP) end up being usurped as the largest bank and miner on the ASX by the year 2060 by Bank of Queensland Ltd (ASX: BOQ) and Champion Iron Ltd (ASX: CIA). Well, instead of holding CBA and BHP shares as some of its largest investments (as is currently the case), VAS will instead be holding BoQ and Champion Iron.

This ETF is an easy and hassle-free way of investing in ASX shares in a passive manner. As such, I would happily recommend it to any investor looking for a future-proof investment.

iShares S&P 500 ETF (ASX: IVV)

Last but not least, let’s talk about another ETF. The iShares S&P 500 ETF is another index fund. It works in a similar fashion as VAS, holding a huge range of different companies, weighted by size. But instead of the largest 300 Australian shares, this ETF tracks the largest 500 shares listed on the US markets.

That’s everything from Apple, Microsoft and Amazon to Exxon Mobil, Walmart and Coca-Cola.

The United States of America has, for more than a century, been the home to the lion’s share of the world’s greatest and most successful companies. Despite challenges from other countries like China, I don’t see this changing anytime soon. As the legendary Warren Buffett likes to say, “never bet against America”. So why not bet on America with this simple, hands-off index fund?

The post 5 ASX shares to buy and hold forever in your investment portfolio appeared first on The Motley Fool Australia.

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• This tiny ASX tech share is leaping 25% after striking a deal with Telstra
• 3 reliable ASX dividend shares to beat inflation
• 5 reasons to buy an ASX index fund today
• 8 popular ASX ETFs smashing new 52-week highs
• Should I buy the Vanguard Australian Shares Index ETF (VAS) now or wait for an ASX dip?

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, Coca-Cola, Microsoft, Telstra 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, Lottery, Microsoft, Walmart, and iShares S&P 500 ETF. The Motley Fool Australia has recommended Amazon, Apple, Telstra and iShares S&P 500 ETF. The Motley Fool Australia has positions in 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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On Monday night, I submitted my order to buy more Apple Inc (NASDAQ: AAPL) shares, now the third-largest position in my portfolio.

I know what you might be thinking… pouring more money into a company with a US$2.9 trillion market capitalisation, valued at nearly 30 times earnings, and expected sales decline of its core product (the iPhone) — he’s lost the plot this time.

Yet, there I was, in the late hours of the night, gleefully adding to my shares in the 48-year-old US tech giant. See, I think many onlookers are missing the forest for the trees amid Apple’s newest addition to the product lineup: Apple Vision Pro.

Reminiscent of the iPhone release

Frivolous and unduly expensive… terms that some might label the futuristic-looking augmented reality headset. Does it sound familiar?

At US$3,500, the Vision Pro headset (pictured above) is certainly not a cheap piece of gear. However, the original iPhone was not either when it launched in 2007.

Apple’s first crack at a cell phone carried a price tag of US$499, or US$733 when adjusted for inflation, at a time when other phones valued between US$350 to US$400 were considered the top end. Plenty of naysayers dismissed the product, overlooking the value of its exceptional software and interface.

The real ‘aha’ moment came when developers flocked to iOS. Quality touchscreen displays unlocked endless possibilities for entertainment and productivity applications, allowing customers to assign more value to the iPhone beyond ‘just a phone’.

I’d argue the same could be true of Vision Pro once developers exploit the immersive interface.

A new wave for Apple shares?

Apple App Store developers generated US$1.1 trillion in billings and sales in 2022. Owning this enormous ecosystem, Apple collects fees of between 15% and 30% on its sales. This revenue stream forms part of the company’s ‘services’ segment, which accounted for about 19% of net sales in Apple’s last quarter.

The services category is critical to why I bought more Apple shares. As more use cases are addressed by apps, Apple can clip the ticket at near-nil cost.

With more of our everyday tasks and activities passing through a glass display, Apple’s toll booth-style business has delivered solid growth. Now imagine a world where even more actions (both menial and masterful) are traversed through an Apple product.

Interacting with 3D models

Working with your files in Vision Pro is wild pic.twitter.com/6Wp26U7AVc

— Aaron Levie (@levie) February 9, 2024

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Watching your favourite sport

F1 + Apple Vision Pro pic.twitter.com/jW5b9j7Tn7

— MΛRC VIDΛL (@marcvidal) February 4, 2024

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Learning an instrument

Piano: Flowing Tiles for Apple Vision Pro!

“A spatial computing app that brings a dynamic, interactive dimension to your keyboard.” pic.twitter.com/XZiS5Tv5nn

— M1 (@M1Astra) February 1, 2024

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Carrying out surgery

With our SurgicalAR trace registration, surgeons can now visualize a 3D holographic rendering of a patient’s anatomy mapped directly onto them in real-time. No more alternating views. No more cognitive gymnastics. Just an immersive, precise and confident approach to #neurosurgery pic.twitter.com/gMikonOMp9

— MEDIVIS (@Medivis_AR) October 11, 2023

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So here’s my elevator pitch on why I loaded up on Apple shares…

Developers will find more innovative ways to utilise Apple’s new platform over time. The hands-free, immersive experience lends the Vision Pro to high-value use cases. For this reason, Apple’s digital toll booth could see an order of magnitude more money flow through it in the next decade.

Meta Platforms Inc (NASDAQ: META) is the only serious competitor currently with its Meta Quest 3. As such, there’s a real chance a duopoly could form, allowing both companies to realise incredible shareholder returns.

Given Apple’s track record of marrying hardware and software, I’m confident it will repeat its success in the headset domain.

Apple shares now account for 7.9% of my portfolio after this week’s investment.

The post Big ticket clipping. Why I’m doubling down on Apple shares with $2,300 appeared first on The Motley Fool Australia.

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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. Motley Fool contributor Mitchell Lawler has positions in Apple and Meta Platforms. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Apple and Meta Platforms. The Motley Fool Australia has recommended Apple and Meta Platforms. 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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