The legendary investor Warren Buffett is obviously someone worth keeping tabs on if you want to see one of the world’s greatest investors at work. Although Buffett is well into his 90s, he has still been very much active over at his company Berkshire Hathaway Inc (NYSE: BRK.A)(NYSE: BRK.B) this year.

So what can we learn from Buffett’s 2022 moves here on the ASX?

Well, let’s check out how Buffett has been managing his cash over the year that (almost) was.

So according to a comprehensive analysis of Buffett’s moves from our Fool colleagues over in the US, Buffett made several big moves in Berkshire’s portfolio this year.

Buffett’s Berkshire bets big on oil

Amongst his bigger bets was a massive increase in Berkshire’s exposure to oil. Berkshire already owned significant chunks of oil giants Chevron and Occidental Petroleum. But Buffett more than quadrupled Berkshire’s stake in Chevron in 2022, growing the company into Berkshire’s fourth-largest position. He also boosted Occidental’s position significantly as well.

So Buffett clearly thinks the oil space is one well worth investing in for 2023 and beyond. This might not bode well for motorists in the new year.

Another sector Buffett has apparently been focusing on in 2022 is tech. Buffett has famously been slow on the uptake when it comes to tech shares. He barely owned any tech stocks until 2016. But that was when Berkshire started buying Apple.

A combination of aggressive buying and a ballooning Apple stock price has resulted in Apple now being the largest holding in Berkshire Hathaway’s portfolio. And by a mile too.

Berkshire’s tech portfolio is expanding

Buffett hasn’t bought too much more of Apple in 2022. but he has been loading up on two other tech stocks: HP and Taiwan Semiconductor Manufacturing Co (TSMC) HP is a dominant manufacturer of printers and PCs. he reportedly purchased a chunk of HP when it was sitting at a price-to-earnings (P/E) ratio of just 6, so this looks like a classic value play.

His purchase of TSMC is more interesting. TSMC is by far the most dominant manufacturer of advanced semiconductor chips in the world, with more than half the world’s market share. It’s Buffett’s first foray into the world of semiconductors, but one he has built out aggressively.

His purchase of more than US$4 billion worth of TSMC stock has made this company into Berkshire’s tenth-largest position today.

So what can we ASX 200 investors learn from Buffett’s 2022 moves?

Well, it’s pretty obvious that Buffett is still betting big on oil and tech – specifically semiconductors. Unfortunately, the ASX doesn’t have much in the way of semiconductor stocks. But there are plenty of oil and energy shares, including Woodside Energy Group Ltd (ASX: WDS) and Santos Ltd (ASX: STO) to choose from.

The post What can ASX 200 investors learn from Warren Buffett’s big moves in 2022? appeared first on The Motley Fool Australia.

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More reading

• 5 things to watch on the ASX 200 on Friday
• 5 things to watch on the ASX 200 on Thursday
• 5 things to watch on the ASX 200 on Wednesday
• Why is the Woodside share price smashing the ASX 200 on Tuesday?
• 5 things to watch on the ASX 200 on Tuesday

Motley Fool contributor Sebastian Bowen has positions in Apple and Berkshire Hathaway. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Apple, Berkshire Hathaway, and Taiwan Semiconductor Manufacturing. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended the following options: long January 2023 $200 calls on Berkshire Hathaway, long March 2023 $120 calls on Apple, short January 2023 $200 puts on Berkshire Hathaway, short January 2023 $265 calls on Berkshire Hathaway, and short March 2023 $130 calls on Apple. The Motley Fool Australia has recommended Apple and 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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“Dad, you’re so cringe.

”Yes, my young bloke has reached the age where I’m increasingly embarrassing.

Yes, I said increasingly.

He’s been suspecting it for a few years.

I’m becoming my father – I couldn’t care less what anyone thinks of what I wear, how loudly I sing in public just for the hell of it, and I am the possessor and teller of very questionable Dad jokes.

But he’s also young enough to be excitedly expecting a visit from Santa.

Seeing the wonder of Christmas through a kid’s eyes is truly one of life’s absolute joys.

We’re too serious, too often.

We don’t have enough fun.

Seeing the world, and its joys, possibilities and wonders, with childlike enthusiasm truly is its own reward.

Tomorrow morning, he’ll wake up too early, see if Santa has drunk the beer he’ll leave out, and if the reindeer have munched on the carrots.

Then he’ll check to see if Santa has left him anything under the tree

.If you could bottle the energy and joy of kids on Christmas morning, you could power the world for decades.

And I reckon kids have got it right.

Life is, for most of us, most of the time, wonderful.

I hope you enjoy some Christmas spirit tomorrow, and over the next week or so.

And if this Christmas is going to be sad for you, because you’re doing it tough, or missing absent friends or family, I hope the day isn’t too rough for you.

I hope you have memories of better times, and hopes of better times ahead. And I hope those better times return, quickly.

As Australians, we truly are incredibly lucky. In life’s ‘ovarian lottery’, those of us born here, or who have had the good fortune to arrive here, are jackpot winners.

I have no investing message, today.

Just a message of thanks, of hope, and of goodwill.

And speaking of being thankful, I want to pass on our thanks and appreciation to every single Motley Fool member and reader.

The Motley Fool is here because our founders believed finance could be done better. And our team is here because they share that belief; and that hard work can result in quality advice, useful education and support for our many, many members and readers.

But, because our business model relies on membership, we don’t get paid by anyone else except our members. You’d better believe that aligns our interests with yours. And it focuses the mind.

And it means that, without you, we don’t have a business, and I (and the team) go and get another job.

So we truly appreciate the trust you place in us. The loyalty you show us. And we are dedicated to being responsible stewards of that loyalty, and to continually deserving that trust.

2022 wasn’t a great year for most investors, including us.

These sorts of years are never fun. But history reminds us that, even though it’s easy to forget sometimes, the market does tend to fall about one year in three, on average.

And yet, over the long term, it has still created extraordinary wealth.

Our challenge – yours and our team’s – is to keep that perspective. To not be scared out of investing. To not give up in the tough times.

Because to benefit from the good times, you have to be in the arena.

I hope you’ve been able to keep the faith. I hope you’ll keep the faith in 2023, whatever next year brings.

And I hope that you’ll still be investing when the better times return. After all, as they say, the money isn’t made in the buying, or the selling… but in the waiting.

So thank you for waiting, with us.

Thank you for reading these articles, for being a part of our services, and for being part of the ongoing conversation as we navigate the market together.

Thank you from me. And from all of the team here at The Motley Fool.

We wish you a very Merry Christmas (and, if that’s not your cultural tradition, a wonderful festive season).

We hope you have a safe and enjoyable break, if you’re getting one.

And thank you to those of you who will be working tomorrow and over the break. Thank you to the members of our armed forces. Of our emergency services. Our doctors, nurses and other healthcare workers. And to the many others who keep the wheels turning in one way or another while the rest of us get a break.

We hope 2023 is a wonderful year.

And now, back to where we started. The ‘cringe’ bit.

Back in 2012, I started an annual tradition of rewording (some would say ‘mangling’) a Christmas song.

So. Cringe.

But I’m a Dad. Cringe is my thing.

Merry Christmas!

*****
Frosty the Snowman
Was a jolly happy soul
With a long-term view and a share or two
He stuck firmly to his goal

Frosty the Snowman
Should just sell his shares, they say
‘The market’s low, Frosty, don’t you know
Why not wait for a better day?’

But he knew there was some magic
In investing that was sound
For when he just ploughed on instead
The returns they came around

Oh, Frosty the Snowman
Was as cool as he could be
And the children say he didn’t trade by day
Because patience was the key

Frosty the Snowman
Was a jolly happy soul
With a long-term view and a share or two
He stuck firmly to his goal

Frosty the Snowman
Should just sell his shares, they say
‘The market’s low, Frosty, don’t you know
Why not wait for a better day?

He knew there was some magic
In being diversified all-round
And he just added calmly when
The market danced around

Frosty the Snowman
Knew the falls did hurt that day
But he said, “Let’s buy, before the market’s high
We’ll make more dough that way”

Frosty the Snowman
Didn’t didn’t turn his face away
He just made good buys, saying, “Don’t you cry
We’ll look back and smile some day!”

*****
Merry Christmas, fellow Fools!

The post Christmas wishes… appeared first on The Motley Fool Australia.

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More reading

• What can ASX 200 investors learn from Warren Buffett’s big moves in 2022?
• Yields of up to 7%… 3 ASX dividend shares I’d buy to hold for 10 years
• Boost your passive income with these ASX dividend shares after Christmas: Brokers
• Top brokers name 3 ASX shares to buy next week
• Could this beaten-down ASX share be the next 100-bagger?

Motley Fool contributor Scott Phillips 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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Ideally, I like to hold ASX dividend shares forever. Choosing the right buy price for an ASX share is hard enough.

So I tend to only buy shares where I (hopefully) don’t have to think about a potential sell price as well.

Of course, things can go wrong and these things change. But that’s the plan, regardless. So here are three ASX dividend shares I’d buy to hold for at least 10 years, hopefully forever.

3 ASX dividend shares I would buy and hold

Rural Funds Group (ASX: RFF)

Rural Funds Group is an agricultural real estate investment trust (REIT) that invests in a portfolio of farmland and other agricultural assets. These include macadamia farms, vineyards, and cattle.

I like this investment as it can deliver earnings that aren’t as affected by the economic cycle as other ASX dividend shares. Rural Funds Group has a solid dividend distribution track record. It pays out quarterly distributions and currently has a trailing dividend yield of 4.76%.

Vanguard Australian Shares Index ETF (ASX: VAS)

This exchange-traded fund (ETF) is another strong choice to consider for dividend income. The Vanguard Australian Shares Index ETF is an index fund, covering the largest 300 shares listed on the ASX. That’s a lot of dividend payers.

So you’ll find everything from BHP Group Ltd (ASX: BHP) and Commonwealth Bank of Australia (ASX: CBA) to Coles Group Ltd (ASX: COL) and Telstra Group Ltd (ASX: TLS) in this ETF’s underlying portfolio.

As you might expect, this enables this ETF to pay out hefty dividend distributions, which also come quarterly.  Its last four distributions add up to $6.30 per unit, which gives this fund a trailing yield of 7.16% on recent pricing.

Westpac Banking Corp (ASX: WBC)

Our third and final ASX dividend share needs little introduction. As a member of the big four ASX bank shares, Westpac has a firm reputation as a solid dividend payer. But this bank is offering one of the highest yields out of the big four right now. Westpac’s 2022 dividend payments give it a trailing dividend yield of 5.34% on recent pricing, which comes fully franked as well.

If the Australian economy grows over the next decade (highly likely, given its historic track record), Westpac will be along for the ride. This makes it the third ASX dividend share I would be happy to hold for at least the next decade.

The post Yields of up to 7%… 3 ASX dividend shares I’d buy to hold for 10 years appeared first on The Motley Fool Australia.

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More reading

• 2 reasons to buy BHP shares before 2023 (and 2 reasons to sell)
• Buy Telstra and this ASX 200 dividend share: analysts
• Better buy for 2023: CBA vs. NAB shares
• BHP share price higher on OZ Minerals $9.6b takeover agreement
• Should you buy Telstra shares for their ‘defensive qualities’?

Motley Fool contributor Sebastian Bowen has positions in Telstra Group and Vanguard Australian Shares Index ETF. 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 Coles Group, Rural Funds Group, and Telstra Group. The Motley Fool Australia has recommended Westpac Banking. 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 looking to boost your income after Christmas with some dividend shares, then you might want to consider the ones listed below.

Both dividend shares are rated as buys and expected to provide investors with attractive yields in the near term.

Here’s what you need to know about them:

Adairs Ltd (ASX: ADH)

Adairs has been named as an ASX dividend share to buy. It is the furniture and homewares retailer behind the Adairs, Mocka, and Focus on Furniture brands.

Goldman Sachs currently has a buy rating and $2.65 price target on the company’s shares. The broker was pleased with Adairs’ update at its annual general meeting, which revealed that it was performing in line with guidance in FY 2023. Its analysts said:

We view the re-affirmed guidance as a key positive for ADH, and we believe the market is pricing in EBIT that is 11-21% below the guidance range, and 12% below GSe. We view the core Adairs business as resilient in the current environment and do not believe the c.40% discount to discretionary retail peers is justified.

And while the weakness in the Adairs share price this year has been disappointing, it does potentially mean some very big dividend yields are on the horizon.

Goldman is forecasting fully franked dividends per share of 17 cents in FY 2023 and 20 cents in FY 2024. Based on the latest Adairs share price of $2.15, this will mean yields of 7.9% and 9.3%, respectively.

Dexus Industria REIT (ASX: DXI)

This industrial property company could be another dividend share to buy according to analysts at Morgans. It has an add rating and $3.25 price target on the industrial property company’s shares.

Morgans likes Dexus Industria due to its exposure to key industrial markets, which it notes remain robust and have a solid rental growth outlook thanks to strong tenant demand. The broker said:

DXI’s key industrial markets remain robust with the outlook for solid rental growth backed by strong tenant demand. The development pipeline also provides near and medium term upside potential. A key focus will be the leasing up of the business park assets and a potential divestment could be a positive catalyst. While the portfolio remains well positioned we acknowledge there will be near-term uncertainty around interest rates.

Another positive is that Morgans is expecting some attractive dividend yields in the coming years. Its analysts are forecasting dividends per share of 16.4 cents in FY 2023 and 16.9 cents in FY 2024. Based on the current Dexus Industria share price of $2.92, this will mean yields of 5.6% and 5.8%, respectively.

The post Boost your passive income with these ASX dividend shares after Christmas: Brokers appeared first on The Motley Fool Australia.

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More reading

• 10 ASX shares I think are buys for 2023
• The cheap ASX shares to buy for dividends: Goldman Sachs
• If I was 40 and had never invested, here’s how I’d aim to build a $500,000 ASX share portfolio
• Top ASX dividend shares to buy in December 2022
• I’d aim for $1 million, buying just 10 cheap ASX shares

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 Adairs. The Motley Fool Australia has positions in and has recommended Adairs. 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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Last week saw a number of broker notes hitting the wires once again. Three buy ratings that investors might want to be aware of are summarised below.

Here’s why brokers think investors ought to buy them next week:

Allkem Ltd (ASX: AKE)

According to a note out of Citi, its analysts have retained their buy rating and increased their price target on this lithium miner’s shares to $17.80. Although Citi suspects that lithium prices could have peaked amid slowing electric vehicle demand in China, it doesn’t appear too concerned due to strong contracted prices. Combined with production growth, Citi remains positive on Allkem’s outlook. The Allkem share price ended the week at $11.60.

Qantas Airways Limited (ASX: QAN)

A note out of Goldman Sachs reveals that its analysts have reiterated their conviction buy rating and $8.20 price target on this airline operator’s shares. The broker believes that Qantas’ shares are materially undervalued given the significant improvement in its profitability. In fact, it highlights that its market capitalisation is lower than pre-COVID levels despite its FY 2023 earnings per share expected to be some 60% higher than FY 2019’s earnings. The Qantas share price was fetching $6.11 at Friday’s close.

REA Group Limited (ASX: REA)

Another note out of Goldman Sachs reveals that its analysts have retained their conviction buy rating on this property listings company’s shares with a trimmed price target of $158.00. According to the note, the broker believes recent share price weakness has created a buying opportunity for investors. Particularly given that its shares trade at a 20% discount to historical earnings multiples. The REA share price ended the week at $110.62.

The post Top brokers name 3 ASX shares to buy next week appeared first on The Motley Fool Australia.

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More reading

• Should I buy Allkem shares this Christmas?
• This well-known ASX share is down 35% this year. Time to buy?
• Why European Lithium, Evolution, MedAdvisor, and REA shares are charging higher
• Why Qantas shares could be a bargain buy – Goldman Sachs
• 5 things to watch on the ASX 200 on Wednesday

Motley Fool contributor James Mickleboro has positions in Allkem. 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 REA 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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Airtasker Ltd (ASX: ART) shares could be a leading contender for strong returns over the long term. Could it be a 100-bagger?

A 100-bagger is an investment that turns $1 into $100, or $10,000 into $1 million.

Of course, that sort of return doesn’t happen overnight. Even for names like Apple and Amazon, it took many years to become the behemoths they are today. I’m not expecting Airtasker to become as big as those two US giants.

For a business to go up 100 times in value, it probably needs to start from a small base. It’s much easier for a $100 million company to double in size than a $1 trillion dollar business to double. Apple is a US$2 trillion business now, so even doubling from here would be a gigantic increase in dollar terms.

Airtasker is a much, much smaller business, with a market capitalisation of $150 million according to the ASX.

I think it’s worth saying that as the years go by, its profit could grow faster than revenue in percentage terms, because of how profit margins can rise as a business gets bigger.

I’ll soon explain why I think Airtasker’s profit can soar in the future. But, the fact that it’s starting from a cheaper Airtasker share price gives a helping hand to go up from here. It’s down around 60% in 2022 to date and it’s down 77% since 26 March 2021. I am expecting some volatility over the years.

For readers that haven’t heard of the ASX share, it runs a platform where people ask for help to do a task, and taskers can offer to do the work. There is an extremely wide array of task categories including furniture assembly, admin, cleaning, catering, delivery, gardening, removalists, pet care, photography, a wide array of tradesperson tasks and so on.

3 reasons why the Airtasker share price and profit could soar

Strong growth

One of the absolute key factors for whether Airtasker will be able to become worth billions is its ability to keep growing revenue.

It’s already generating excellent growth, in percentage terms. I think the FY23 first quarter showed very strong organic growth. Excluding the Oneflare marketplace contribution, Airtasker’s revenue grew by 36% year over year to $8 million. Including Oneflare, the revenue grew 80% to $10.5 million.

In the UK, where the ASX share is balancing growth of demand for tasks and supply of tasker offers, it saw gross marketplace volume (GMV) rise by 68% in the first quarter on an annualised basis. But, UK revenue soared 133.6% thanks to the introduction of a booking fee which improved unit economics.

The US saw the number of posted tasks in the US increase by 4.7 times year over year to 13,000.

Very large addressable market

Airtasker is investing across its business to grow.

In Australia, it’s looking to leverage its network effects to produce strong margins and positive cash flows. It’s investing to grow its core product to drive returning users and unlock new customer interactions (eg rebooking).

The ASX share has big hopes for both the UK and US. Remember, the Australian population is around 26 million, the UK population is more than 67 million and the US population is 334 million. The combined US and UK population is significantly larger than Australia’s.

Airtasker probably won’t just stop at these three countries. Places like Canada, New Zealand, and so on could make sense. Non-English-speaking countries could also be attractive places to expand, even if it means making the occasional acquisition.

With how many different services Airtasker is involved with, there are many more potential service improvements that Airtasker could offer taskers, like how Xero Limited (ASX: XRO) and REA Group Limited (ASX: REA) have increased prices but have also made their services even more useful for subscribers/users.

Very high profit margin

Airtasker has an incredibly high gross profit margin. It was 94% in the first quarter of FY23, with variable input costs being “largely untethered” to inflation.

This means that if Airtasker generates an extra $100 of revenue, $94 of it would turn into gross profit, which can then be spent on growth activities like marketing or software development.

When Airtasker doesn’t need to spend so much to achieve growth, its profit margins can improve substantially because of that incredibly high gross profit margin of 94%.

The Australian marketplace is already generating positive earnings before interest, tax, depreciation and amortisation (EBITDA) for the ASX share. Airtasker could grow a lot more in Australia, very profitably, allowing it to reinvest heavily for growth overseas and this could help drive long-term shareholder value and the Airtasker share price.

The post Could this beaten-down ASX share be the next 100-bagger? appeared first on The Motley Fool Australia.

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More reading

• 10 ASX shares I think are buys for 2023
• Prediction: 2 ASX shares I think could soar 1,000% in the next 10 years
• Why this one top fund manager is optimistic about 2023, and one little-known IPO that has hit it out of the park
• Why I’m buying ASX shares in this once-in-a-lifetime market to try and retire early

John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. 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 Amazon.com, Apple, and Xero. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Airtasker and has recommended the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple. The Motley Fool Australia has positions in and has recommended Xero. The Motley Fool Australia has recommended Amazon.com, Apple, and REA 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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If you’re looking for an easy way to invest in international shares for diversification in 2023, then exchange traded funds (ETFs) could be the answer.

But which ETFs should you look at? Listed below are three excellent ETFs that could be worth getting better acquainted with in January.

Here’s what you need to know:

BetaShares Global Cybersecurity ETF (ASX: HACK)

The first ETF for investors to look at is the BetaShares Global Cybersecurity ETF. As you might have guessed from its name, this ETF give investors access to the biggest players in the global cybersecurity sector. BetaShares notes that this is heavily under-represented on the ASX, making this ETF particularly attractive for local investors. And with cyberattacks becoming ever more prevalent (just ask Medibank and Optus), demand for cybersecurity services is forecast to increase materially in the future. Among the companies in the fund are cybersecurity giants Accenture, Cloudflare, Crowdstrike, Okta, and Palo Alto Networks.

BetaShares NASDAQ 100 ETF (ASX: NDQ)

Another ETF to consider in January is the BetaShares NASDAQ 100 ETF. This ETF is one of the most popular around and it isn’t hard to see why. It gives investors access to 100 of the largest non-financial shares on the famous NASDAQ index. This means you’ll be buying a stake in giants including Alphabet, Amazon, Apple, Facebook, Microsoft, Netflix, and Tesla, to name just a few. And with their shares down materially in 2022, now could be a great time to invest with a long term view

VanEck Vectors Video Gaming and eSports ETF (ASX: ESPO)

A final ETF for investors to look at in January is the VanEck Vectors Video Gaming and eSports ETF. This ETF could be a good option if you already own the NDQ ETF. That’s because this fund gives investors access to a portfolio of the largest companies involved in video game development, hardware, and esports. This includes Nvidia, Roblox, Take-Two, and Electronic Arts. VanEck notes that these companies are in a position to benefit from the increasing popularity of video games and eSports. It also points out that the ETF gives investors the opportunity to diversify their portfolio by providing tech options outside FAANG stocks.

The post 3 excellent ETFs for ASX investors to buy in January appeared first on The Motley Fool Australia.

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More reading

• 3 reasons to buy the BetaShares Nasdaq 100 ETF (NDQ) before 2023
• 3 fantastic ETFs for ASX investors to buy for 2023
• 2 high quality ETFs for ASX beginner investors to buy in 2023
• New kids on the ASX block: Why did Gen Z flock to the BetaShares Nasdaq ETF (NDQ) in 2022?
• Down 27% this year, is the Betashares Nasdaq 100 ETF (NDQ) a buy before 2023?

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. owns and has recommended BETA CYBER ETF UNITS. The Motley Fool Australia owns and has recommended BETA CYBER ETF UNITS. The Motley Fool Australia has recommended BetaShares Asia Technology Tigers ETF and VanEck Vectors ETF Trust – VanEck Vectors Video Gaming and eSports ETF. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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S&P/ASX 200 Index (ASX: XJO) investors might be approaching the end of the year with less enthusiasm than they closed 2021 with. Indeed, it’s been a trying year for market watchers. The index has so far backed up last year’s 13% gain with a 6.5% tumble. But I believe there’s a good reason to celebrate the ASX 200’s market correction.

It has likely created numerous buying opportunities capable of building riches.

Stock market correction or wealth-building opportunity?

There’s a bit more to the ASX 200’s 2022 fall than meets the eye. Namely, the vastly different performances posted by its various sectors.

The index has been buoyed by soaring energy shares and a strong performance from miners this year.

The S&P/ASX 200 Energy Index (ASX: XEJ) has jumped 37% year to date amid soaring oil and coal prices, mainly spurred by the conflict in Ukraine, and the S&P/ASX 200 Materials Index (ASX: XMJ) has outperformed the broader market by around 10% so far this year.

Conversely, the S&P/ASX 200 Real Estate Index (ASX: XRE) has plunged 25% amid rising inflation and resulting rate hikes.

Similar factors have likely dragged the S&P/ASX 200 Consumer Discretionary Index (ASX: XDJ) 24% lower.

Now, there’s no guarantee these embattled sectors will transform their poor performance into gains in 2023. Particularly as many of the factors compressing them haven’t abated yet.

However, I personally expect them to recover their losses over the longer term.

I’ll be hunting for ASX 200 bargains in 2023

I’ll be taking a good look at many compressed real estate and consumer discretionary shares in the new year in a bid to find diamonds in the rough of the ASX 200 correction.

If I find a few that I believe could be future winners, I’ll aim to hold them for the next five to ten years, at least. Here’s why.

Historically, the market has always recovered from downturns and corrections to post new highs. Take the Dotcom bust, the Global Financial Crisis, and the COVID-19 downturn for example.

Indeed, the ASX 200 has gained more than 50% over the last 10 years despite this year’s market correction. If we also factor in dividends, the index returned an average of around 9.3% over the decade to 2021.

Thus, I hope to employ a combination of buying the dip and compounding gains by reinvesting dividends in a bid to realise above-market returns on the back of 2022’s correction over the coming decade.

Though, no investment is guaranteed to provide returns or downside protection and past performance isn’t an indication of future performance.

The post Stock market correction: A once-in-a-decade chance to get rich? appeared first on The Motley Fool Australia.

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More reading

• 2023 ready: Here are my non-negotiables for investing in ASX shares next year
• 5 things to watch on the ASX 200 on Friday
• Here are the top 10 ASX 200 shares today
• Here are the 3 most heavily traded ASX 200 shares on Thursday
• 3 reasons to buy Wesfarmers shares before 2023

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

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The Retail Food Group Ltd (ASX: RFG) share price is satisfying the appetites of its shareholders today amid its latest update.

As we head into the afternoon, shares in the food and beverage company are trading 10.1% higher at 7.6 cents apiece. The performance is more impressive given the context of the broader market on Friday.

At the time of writing, the S&P/ASX 200 Index (ASX: XJO) is 0.81% weaker than yesterday.

Messy past comes due

Since 2017, Retail Food Group has been shrouded in controversy and contempt. Explosive allegations were made regarding the company’s dealings with franchisees following an investigation conducted by The Sydney Morning Herald.

At the time, it was alleged that Retail Food Group failed to provide adequate financial information for the stores being sold to franchisees — among other issues — leading to financial ruin, at times, for those that operated stores such as Michel’s Patisserie, Donut King, and Brumby’s.

Understandably, the market grew nervous about the situation, sending the Retail Food Group share price into the dirt. In the space of two years, the company’s shares descended a crippling 98%.

The reports prompted the Australian Competition and Consumer Commission (ACCC) to commence proceedings against Retail Food Group. Fast forward to today and we have our verdict.

According to the release, Retail Food has agreed to settle with the ACCC. As part of the agreement, the company will pay approximately $8 million to the impacted franchisees. Additionally, the company will waive around $1.8 million worth of franchisee debts.

Retail Food pointed out that the proceeding would be dismissed without:

• making any admission to the allegations
• paying any pecuniary penalty; or
• being subject to any injunction, disclosure, or adverse publicity order

Path travelled by the Retail Food Group share price

It has been a bumpy old ride for Retail Food shares in 2022, swinging between 4 cents and 8 cents. Yet, today’s gain takes the company’s shares into the green for the year.

In fact, the food and beverage business has outperformed the ASX 200 by approximately 14%. A title that not too many ASX shares can claim to hold at the end of this challenging 12-month stint.

The post It’s settled then: Why the Retail Food Group share price is prancing 10% today appeared first on The Motley Fool Australia.

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• Why AGL, Retail Food Group, Starpharma, and TPG shares are rising today

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

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Writing this – and expecting anyone to read it – on Christmas Eve-eve might be an optimistic thing to do.

After all, we’re apparently going to spend $440 million in a single hour – between 12pm and 1pm – today.

(I can neither confirm nor deny I’ll be one of the people sneaking out at lunchtime to do some last minute Christmas shopping that I should have done days ago!)

That’s part of the $66 billion we’re expected to spend over the Christmas period, overall – up 7% or so on last year’s figure.

What slowdown, huh?

Of course, those numbers are totals, and don’t show the range of circumstances for different people across our wide brown land.

Some have been doing it tough for a while. Some will see this as a ‘last hurrah’ of sorts, before tightening their belts in 2023. Others will go on, blissfully unimpacted.

Such, as always, is life.

That doesn’t make it fair. Or okay. But, as the cool kids say, it is what it is.

Which brings me to some Christmas wishes.

This is the sort of thing that can become pretty saccharine, if you let it.

Or cynical, if you push too hard in the other direction.

You probably know I’m an optimist.

I’m also, despite occasional evidence to the contrary from public and private figures, a believer in the better angels of our nature.

Faced with the choice to be too optimistic or too pessimistic, I’ll take the former, every time.

Indeed, you can’t be both a pessimist and a (successful) investor.

Investing is, at its core, the act that comes from believing things will get better, in time.

And if I’m going to get scorned for being too optimistic, too positive, and for hoping for a better future for us all, then go your hardest.

I’m going to keep believing in the incredible drive of the human spirit.

Oh, we’re a deeply flawed and imperfect species, for sure.

But we make things better, over time.

For every ‘but what about’, I’ll give you two-dozen examples of the progress that we’ve been responsible for.

Not to negate those very reasonable concerns, but to show you that with some effort and goodwill, we have both the ability and the track record to suggest that we can overcome.

If you’re offended by optimism, stop reading now. There’s plenty of doom and gloom being offered by the usual suspects, if you prefer to read that, instead.

Christmas, 1939, felt pretty rough for many, as war raged.

Christmas, 1981, felt pretty ordinary, as high oil prices and rising interest rates confronted out economy.

Christmas, 1999, felt good… but the market crashed soon after.

And?

And we overcame.

We got better.

Our world is a much, much better place, today, than before any of those times, despite our current challenges.

Christmas, 2019, was to be the calm before the pandemic storm.

And it’s not over.

But I have a supremely high level of confidence that we’ll look back on that time, in years to come, and marvel at what we achieved in the 3, 5, 15 and 25 years since.

And I think investors will be, as a group, much richer.

And so, those wishes?

Well, I hope interest rates peak soon. Not because the pollies have said they should (they’re talking out of barely-concealed self-interest), but because I hope those higher rates achieve their aim of bringing down inflation during 2023.

I hope, as inflation cools, the share market rises. Not too fast – we don’t need more irrational exuberance – but in keeping with the rising potential of the companies listed on it.

I hope investors, traders and speculators manage to avoid the next bubble. The next ‘hot stock’, sector or commodity. The only thing worse than your neighbour getting rich while you miss out is joining him and both of you losing your shirts. There are too many examples of the latter.

I hope our politicians – whole parliaments, not just governments – make laws that improve our society and economy. For the long term. Increasing wide-spread prosperity is its own fly-wheel, creating more and more prosperity as it goes. Short-termism that favours a little money now will cost us a lot of money later – the very opposite of smart investing… and smart governance.

I hope our members and readers keep the faith. Not for our sake, but for yours. We’ve been here before. Countless times. But the market is higher than at those previous times, just as it was those times, too. I hope the lessons of history convince you that continuing to invest is the right thing to do.

And I hope that, as we climb to (all-but inevitable) higher heights in the future, we remember how this felt, and what comes next, so that during the next downturn we are able to more easily keep that faith.

Saccharine enough for you?

I hope so.

Because the long term future has always belonged to the optimists. Optimists with fortitude, to be sure, but optimists nonetheless.

Thank you to those of you who are Motley Fool members. Thank you to those of you who are regular – or even occasional – readers. And thank you to those who take the time to respond – to let me know where I’ve got it right… and wrong.

I like picking stocks. I like making money. But mostly, am I privileged to have a job that allows me to help others work toward their financial goals.

I hope 2023 takes you one year closer to yours.

Fool on!

The post What I’m asking Santa for this Christmas appeared first on The Motley Fool Australia.

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More reading

• Why AGL, Retail Food Group, Starpharma, and TPG shares are rising today
• Why BWX, Earlypay, Evolution, and Pointsbet shares are dropping today
• This ‘very attractive’ ASX share could be a takeover target with over 50% upside
• 2023 ready: Here are my non-negotiables for investing in ASX shares next year
• Brokers name 3 ASX shares to buy for Christmas

Motley Fool contributor Scott Phillips 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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