Warren Buffett has said many memorable quotes over the decades. And his track record demands that investors pay attention.

One of his most famous sayings is:

“The first rule of investment is don’t lose [money]. The second rule of investment is don’t forget the first rule.”

Buffett made this comment to emphasise that if one buys shares for way below what the business is actually worth, “you can’t lose”.

But everyone who has dabbled in ASX shares knows, in reality, it’s not as simple as that.

So to supplement Buffett’s advice, Marcus Today founder Marcus Padley recently wrote down his top 10 tips on how not to lose your money.

1. Beware of gurus

Be wary of market and stock commentators. Do your own research and make your own decisions — because no one really knows what the market or a particular stock will do.

The trap is that market commentators exist because they want to sell you something.

“It is a human need to be able to answer the unanswerable questions and we do it by deifying someone or something,” Padley said on the Marcus Today blog.

“In our search for answers to the stock market’s unanswerable questions, we credit our commentators with vastly more powers than they could possibly deserve or possess. And dangerously, he who guesses the most sells the most.”

2. Don’t pretend to be Warren Buffett

Padley urged investors to avoid salespeople that claim to emulate what Buffett has done or will advise you how to do so. Such attempts have cost investors more money over the years than they’ve made.

“No one has ever managed to replicate Warren Buffett’s performance. If they had, they would run a fund, we would all be invested and we would all be billionaires as well,” said Padley.

“But there is no fund. Because it’s just marketing.”

The idea of investing the ‘Buffett way’ is a massive drawcard for finance marketing — but it is all a lie, according to Padley.

“Buffett sells. The second best investor in the whole world, and the other 98 below that, we’ve never heard of. Because they don’t sell.”

3. Leave your greed at the door

Padley called greed in investors the “biggest killer of them all”.

“Approaching the stock market with greed is like running onto a battlefield in a bright orange vest. We’ll get you.”

4. Set realistic expectations

Setting realistic goals is important for healthy investing.

“Expectations. The root of all happiness. The root of all unhappiness,” said Padley.

“Expect the unexpectable and expect the inevitable. Best you expect the expectable.”

5. Avoid laziness

Padley said that there’s been “more money lost through laziness than mistakes”.

Active maintenance of one’s portfolio is mandatory for satisfactory performance.

“There is no easy route to riches in the stock market,” he said.

“There is no free lunch — participation without effort is not enough.”

6. Ignore so-called ‘inside information’

If someone whispers a hot tip to you, first have a think about their motivations.

Padley recalled a profound comment from a veteran investment professional:

If I had never been given any inside information, I would be a million pounds better off than I am today. 

Anyone offering inside info is doing it out of their self-interest, not yours.

“The only reason people pass on information as inside information is because they want you to buy what they’ve just bought to get the share price up so they can sell.”

7. Initial public offers

Retail investors have often complained about the lack of access to hotly demanded initial public offers of companies about to list on the ASX.

Padley recommends carefully thinking about the motivations of a public float, especially for mediocre businesses.

“IPOs are not a road to gold. Most of them are insiders selling you their company at the highest price they can get,” he said.

“The golden rule of IPOs is that if it’s any good you won’t get offered it. If you get offered it, you don’t want it.”

8. Avoid leverage

Leverage refers to borrowing money to invest.

Padley points out that it is marketed as a way to magnify returns, but investors need to be aware of the other side of that coin.

“It works both ways. You lose much faster as well.”

This means that leverage works only some of the time, and being in the right place at the right time is difficult.

“It only works when you are right [with the stock pick] and with average equity returns after interest, transaction costs, inflation and tax of close to zero, you had better be right and right at the right time.”

Borrowing can’t be used regularly unless the investor has “a massive financial cushion”. 

“Any broker will tell you, it’s for confident (or over-confident) traders and to make it work they have to trade at the right time — not all the time. That’s a big ask for someone with a day job.”

9. Don’t mistake confidence for future performance

Is the core function of the finance industry to make money for clients?

No, according to Padley. It’s marketing. Selling success.

“When it comes to marketing, losers are kryptonite. But luckily investment is seen as an intellectual pursuit, so the winners make noise whilst the losers, conveniently, go away,” he said.

“And thank goodness for that. Imagine how much product would get sold if they didn’t.”

10. Remember your life outside investing

Padley reminded investors that there are more important things in life than your ASX shares.

“They say there are three foundations to spiritual and financial happiness and success: your relationship, your job and where you live,” he said.

“Get one of those wrong and they all go wrong. No mention of the stock market in there.”

The share market is not life, and it should only ever be “a side issue”.

“The biggest financial decisions you will make in your life have nothing to do with the stock market — like getting married, getting divorced, having kids, investing in your home and committing to your career or your business,” said Padley.

“These are the biggest financial decisions you’ll ever make. Look after them first. The stock market comes second.”

The post 10 ways to not lose money investing in ASX shares appeared first on The Motley Fool Australia.

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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 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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One of my worst performers in my ASX share portfolio this year has been Newcrest Mining Ltd (ASX: NCM). Newcrest, the largest ASX 200 gold miner on the share market, has had a shocker in recent years.

Not only have Newcrest shares suffered a 31.8% fall year to date in 2022, but the company has also lost almost 50% of its value over the past two years. Newcrest has also just hit a new 52-week low of $16.51 a share in the past month or so. That’s the lowest share price Newcrest has commanded since 2016.

So why on earth am I still happy to hold this loser in my portfolio?

Why I still own Newcrest Mining shares

Well, I confess part of my thesis is an insurance policy. Gold, the precious metal that Newcrest mines, is traditionally viewed as a hedge against economic calamities. If there is another financial crisis on the horizon, gold, in my view, is likely to do well. And if gold does well, so will the companies that own vast stores of it.

I would rather my Newcrest position underperform and my other ASX shares prosper. But owning Newcrest does lend me some ‘sleep well at night’ value.

But I also see considerable value in the Newcrest share price itself. In its FY2022 annual report, Newcrest estimated that its gold reserves stood at 3.5 million ounces of proven reserves, with another 58 million ounces of probable reserves.

The proven reserves alone would be worth a total of US$5.86 billion ($8.84 billion) at today’s price of US$1,673 per ounce. The probable reserves would add another US$97.03 billion ($146.33 billion) if fully realised.

Now, Newcrest’s entire market capitalisation stands at $14.99 billion today, going off of Friday’s closing share price. Buying a gold reserve potentially worth north of $100 billion for just $14.99 billion seems like a good deal to me.

So that’s why I continue to hold my Newcrest shares. It may not be one of my best performers. But I never expected it to be. It is currently filling the role in my portfolio that I always hoped it would.

The post The market has been hating on this ASX 200 share in 2022. Here’s why I still love it appeared first on The Motley Fool Australia.

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Motley Fool contributor Sebastian Bowen has positions in Newcrest Mining Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has 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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While the recent market volatility has unfortunately put a lot of pressure on ASX shares, every cloud has a silver lining.

The silver lining on this occasion is the attractive prices that some shares have been left trading at.

Two beaten down ASX shares that could be in the buy zone now are listed below. Here’s what analysts are saying:

Hipages Group Holdings Ltd (ASX: HPG)

The first beaten down ASX share to look at is Hipages. It is a leading Australian-based online platform and software as a service (SaaS) provider.

Hipages has been growing at a solid rate in recent years thanks to the increasing popularity of its platform which connects consumers with trusted tradies to simplify home improvement.

Despite this solid growth and its massive market opportunity, the Hipages share price is down a sizeable 66% since the start of the year.

Analysts at Goldman Sachs appears to see this as a buying opportunity for investors. Particularly given their belief that Hipages has a huge growth runway ahead as its ecosystem builds. In fact, the broker has likened the company to REA Group Limited (ASX: REA) in its early years. There is no higher praise.

Goldman currently has a buy rating and $2.20 price target on its shares.

WiseTech Global Ltd (ASX: WTC)

Another beaten down ASX share to consider is this logistics solutions company.

WiseTech is the company behind the popular CargoWise One solution, which allows users to execute complex logistics transactions and manage freight operations from a single, easy to use platform.

Demand has been growing very strongly over the last decade, underpinning incredible sales and profit growth. And despite its outlook looking very positive thanks to its high quality platform, strong market position, and growing freight volumes globally, its shares are still down 16% since hitting a record high earlier this month.

The team at Morgan Stanley are likely to see this as a buying opportunity. The broker currently has an overweight rating and $62.00 price target on its shares.

The post Analysts say these beaten down ASX shares are buys 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 Hipages Group Holdings Ltd. and WiseTech Global. The Motley Fool Australia has positions in and has recommended Hipages Group Holdings Ltd. and WiseTech Global. The Motley Fool Australia has recommended REA Group Limited. 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 interested in adding some ASX growth shares to your portfolio in September? If you are, you may want to look at the two listed below that have recently been named as buys.

Here’s what you need to know about them:

Allkem Ltd (ASX: AKE)

If you’re not averse to investing in the resources sector, then the first ASX growth share to consider is Allkem.

It is the result of the merger between lithium miners Galaxy Resources and Orocobre. This created a giant in the making, bringing together a collection of quality projects across several lithium types. These include Olaroz, Mt Cattlin, and the Sal de Vida brine project.

And with lithium prices at sky high prices and looking likely to stay that way in the near term, Allkem appears well-placed to deliver strong earnings growth. Particularly given its production growth plans. Management is aiming to grow its production 3x by 2026 and command a 10% share of global lithium production over the long term.

Macquarie is a big fan of the company. It has an outperform rating and $21.00 price target on its shares.

Breville Group Ltd (ASX: BRG)

Another ASX growth share that has been tipped as a buy is Breville.

It is the leading appliance manufacturer behind a growing stable of brands such as Breville, Sage, Kambrook, and Baratza.

Thanks to its consistent investment in research and development and ongoing global expansion, Breville’s appliances are now found in kitchens across the world.

Goldman Sachs is very positive on the company. It highlights that Breville is exposed to some powerful trends and its strong brands are well-placed to benefit from them. In light of this, it is forecasting further solid earnings growth in the coming years.

The broker currently has a buy rating and $24.70 price target on the company’s shares.

The post 2 stellar ASX growth shares that experts say are buys appeared first on The Motley Fool Australia.

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• Is it too late to invest in ASX lithium shares? Apparently not…

Motley Fool contributor James Mickleboro has positions in Allkem Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has 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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If you’re looking to boost your income portfolio, then you may want to look at the shares listed below.

Here’s why these ASX dividend shares have been tipped as buys:

Dicker Data Ltd (ASX: DDR)

The first ASX dividend share for income investors to look at is Dicker Data. It is a leading technology hardware, software, and cloud distributor.

Dicker Data has been growing its earnings and dividends at a consistently strong rate for well over a decade and has continued this trend in FY 2022.

The good news is that it looks well-placed to build on this in the coming years thanks to growing demand, favourable industry tailwinds, its strong market position, recent acquisitions, and its warehouse expansion. The latter is boosting capacity materially, allowing the company to capture the increasing demand.

Morgan Stanley is a big fan of the company. It currently has an overweight rating and $14.00 price target on its shares.

As for dividends, the broker is expecting the company’s dividend to continue growing and is forecasting fully franked dividends per share of 35.3 cents in FY 2022 and 40.5 cents in FY 2023. Based on the current Dicker Data share price of $10.03, this will mean yields of 3.5% and 4%, respectively.

Wesfarmers Ltd (ASX: WES)

Another ASX dividend share that has been named as a buy is Wesfarmers.

It is the conglomerate behind a collection of businesses across several sectors. This includes retailers such as Bunnings and Kmart, as well as industrial businesses Coregas and Covalent Lithium.

Morgans is very positive on the company. Its analysts believe Wesfarmers is well-placed for growth. This is thanks to it having “one of the highest quality retail portfolios in Australia” and a “highly regarded management team.”

The broker currently has an add rating and $55.60 price target on its shares.

In respect to dividends, Morgans is forecasting fully franked dividends per share of $1.82 in FY 2023 and $1.89 in FY 2024. Based on the current Wesfarmers share price of $43.28, this will mean yields of 4.2% and 4.35%, respectively.

The post Experts name 2 top ASX dividend shares to buy next week 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 Dicker Data Limited. The Motley Fool Australia has positions in and has recommended Dicker Data Limited and Wesfarmers Limited. 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 New Hope Corporation Limited (ASX: NHC) share price was on form again on Friday.

The coal miner’s shares continued their impressive run with a 3% gain to $6.33.

That’s despite the ASX 200 index falling 1.9% following a broad market selloff.

Today’s gain means that the New Hope share price is now up a remarkable 173% since the start of the year.

Can the New Hope share price keep rising?

One leading broker believes the New Hope share price is now seriously overvalued following its strong run.

According to a note out of Goldman Sachs, its analysts have put a sell rating and $3.80 price target on the coal miner’s shares.

This implies potential downside of 40% for investors over the next 12 months.

What did the broker say?

Goldman was pleased with New Hope’s full year results release from earlier this week. It commented:

NHC reported FY22 underlying EBITDA of A$1.58bn (vs. unaudited $1.56bn pre-disclosed) for FY22 and NPAT of A$1.0bn, in-line with GSe and 1% ahead of VA consensus of A$992mn. […] NHC paid a final dividend of A56cps (incl. A25cps special), slightly below GSe of ~A60cps and took total payout to ~70% of NPAT. NHC stated they expect to continue paying special dividends but are also assessing share buybacks as they believe NHC stock is undervalued.

However, the broker doesn’t agree with management on the New Hope share price being undervalued. It explained:

We rate NHC a Sell on: 1. Valuation: The stock is trading at c.2.0x NAV (A$3.00/sh) and is discounting a long-run thermal of >US$145/t (real) vs. our US$75/t estimate (based on our view of long run global marginal costs).

2. Only modest near term production growth: while NHC operates the low cost high margin 10Mtpa Bengalla thermal coal mine in NSW, the company has only modest production growth potential at Bengalla (which we already model), and its 5Mtpa New Acland Stage 3 (NAC3) project is still pending the final approval of the Associated Water Licence. At full production Malabar will only deliver 0.9Mtpa of met coal to NHC.

It is also worth noting that Goldman Sachs doesn’t expect coal prices to remain as high as they are for too much longer. This could put pressure on its shares if its prediction proves accurate. It commented:

NHC expect thermal coal prices to remain at current/elevated levels (>US$400/t) for at least the next 6-12 months (vs. GSe US$200/t for CY23) and noted the upcoming Northern hemisphere winter as a driver.

The post Goldman Sachs warns that the New Hope share price could crash 40% appeared first on The Motley Fool Australia.

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More reading

• 2 ASX 200 shares rated as buys by leading brokers
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• Here are the top 10 ASX 200 shares today
• 3 ASX 200 shares paying out ‘special’ dividends in 2022

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

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The S&P/ASX All Ordinaries Index (ASX: XAO) closed in the red on Friday, down 1.9% to just below 6,789 points. But as is often the case, a few ASX All Ords shares defied the index and ramped higher today.

Let’s take a look.

KMD Brands Ltd (ASX: KMD)

The first All Ords share we’ll take a look at today is KMD Brands. Formerly known as Kathmandu Holdings, KMD Brands is the mob behind popular retail brands Kathmandu, Rip Curl, and Oboz. Today the KMD Brands share price had a 1.66% bump to 92 cents. There was no news from the company today. However, on Tuesday it released its FY22 full-year results and announced a final dividend of 3 NZ cents per share.

KMD Brands reported a 6.5% bump to its gross underlying profit, compared to FY21, at NZ$576.7 million. But operating expenses were 12.2% higher, contributing to a 33.7% dip in underlying net profit after tax (NPAT). Given the impact of COVID lockdowns on ASX retail shares, perhaps the market expected worse and that’s why KMD shares have risen by almost 4% this week.

Myer Holdings Ltd (ASX: MYR)

Myer had a rocking day on the market closing up 3.5% to 59 cents. This one is a bit of a mystery though. There’s been no price-sensitive news from the All Ords retail giant today, or even this week.

Last week Myer dropped its FY22 full-year report, in which the company revealed an NPAT of $60.2 million, 103.8% higher than FY21 (adjusted for Jobkeeper). It declared a final dividend of 2.5 cents per share. So far in FY23, CEO John King says Myer has had “… our best sales start to a financial year since 2006”.

Paradigm Biopharmaceuticals Ltd (ASX: PAR)

This ASX biotech share was another star performer amongst the All Ords shares today. The Paradigm Biopharmaceuticals share price rose by 1.6% to $1.27. While today’s price movement is also a mystery, we note that a change of director’s interest notice was filed on Monday for CEO and Founder Paul Rennie.

The notice showed Rennie participated in the company’s recent entitlement offer by purchasing 100,410 shares through a personal investment trust and another 133,435 shares through his superannuation fund. The total consideration was more than $300,000. The entitlement offer raised $66 million. The capital raise will be used to support the company’s phase 3 clinical program and other activities through to 2024.

The post 3 ASX All Ords shares that marched higher on Friday appeared first on The Motley Fool Australia.

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ASX 200 retail shares JB Hi-Fi Limited (ASX: JBH) and Harvey Norman Holdings Limited (ASX: HVN) had a rough end to the week.

JB Hi-Fi shares fell 4.36% on Friday, while Harvey Norman shares descended 4.66%. For perspective, the S&P/ASX 200 Index (ASX: XJO) slipped nearly 1.9% on Friday.

Let’s take a look at what may have impacted ASX 200 retail shares.

Interest rate rise

ASX 200 shares, including retail shares, struggled on Friday following grim news out of the United States. The US Federal Reserve lifted interest rates by 0.75%. More rate hikes are planned and there are fears of a recession.

Higher interest rates not only increase borrowing costs for companies, they can also dampen retail spending as consumers have less available cash.

The Reserve Bank of Australia often takes its lead from the US Federal Reserve. Commenting on the prospect of the RBA lifting rates in the Australian Financial Review, BetaShares chief economist David Bassanese said:

It now seems more likely than not that the RBA will lift rates by 0.5 per cent in October.

Meanwhile, AMP’s Shane Oliver is predicting retail sales will rise “just 0.1% in August” after lifting 1.3% in July, the publication reported.

Share price snapshot

The JB Hi-Fi share price has fallen nearly 16% in a year, while Harvey Norman shares have slipped nearly 19%.

For perspective, the ASX 200 has fallen nearly 11% in the past year.

The post 2 ASX 200 retail shares ravaged following US rate decision appeared first on The Motley Fool Australia.

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Motley Fool contributor Monica O’Shea 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 Harvey Norman Holdings Ltd. The Motley Fool Australia has positions in and has recommended Harvey Norman Holdings Ltd. The Motley Fool Australia has recommended JB Hi-Fi Limited. 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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Shares of Domino’s Pizza Enterprises Ltd (ASX: DMP) have faltered in 2022. Domino’s shares now rest at 52-week lows to finish the week of trade.

After an impressive run, shares in the pizza giant reached all-time highs in September 2021, before tumbling in vertical fashion, much like many other ASX shares.

Domino’s now rests at $53.25 per share, more than 67% off the previous high of $161.98.

What’s happened to Domino’s shares?

It’s been a series of unfortunate events for the pizza giant. Most prominently, the broad sell-off in equity markets has been unkind to the share.

With the shift away from risk assets this year, more safe-haven assets such as the US dollar have flourished, leaving shares well behind.

Spurring the downside has been two central themes – inflation, and rising interest rates. Neither are good for retailers such as Domino’s and their shares.

As such, the stage was already set for a difficult year come 2022.

Then, the global pizza brand came in with a weak set of numbers in its FY22 results. It grew sales 4.6% globally year over year to $3.92 billion. However, this carried through to a 12.5% decrease in after-tax profit to $165 million.

This is classic of the impacts of inflation – greater revenues, due to the higher price of units sold, however, these costs are also recognised at the margin level for the company.

As a result of its FY22 performance, investors haven’t been keen to nibble at each consecutive drop in its share price.

Despite this, brokers still advocate buying the stock. Seven out of 14 analysts recommending it’s a buy, and the remaining seven saying to hold, per Refinitiv Eikon data.

The consensus price target from this list is $79.57, down from $89.35 in June. Nonetheless, the price target suggests a correction in the Domino’s share price, should they be right.

Citi certainly feels it’s a buy, and remains positive on the medium- to long-term outlook for the company. Consequently, it feels investors could be getting shares at a good price when fishing at its 52-week lows.

Citi values the company at $84.40, well above the consensus target.

Alas, we will have to wait and see the next moves yet, and if the analyst’s projections eventually are reflected in Domino’s share price.

The post Down 65% from its all-time high, are Domino’s shares a deliciously-priced buy? appeared first on The Motley Fool Australia.

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More reading

• Why Block, Brainchip, Domino’s, and Vulcan shares are sinking today
• Why did the Domino’s share price just slump to a two-year low?
• Here are 3 ASX growth shares analysts rate as buys
• Top brokers name 2 ASX growth shares to buy now
• Own Domino’s shares? Get ready for a delivery

Citigroup is an advertising partner of The Ascent, a Motley Fool company. Motley Fool contributor Zach Bristow 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 Dominos Pizza Enterprises Limited. 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 Fortescue Metals Group Limited (ASX: FMG) share price has beaten the broader market by a significant margin this afternoon.

Shares in the iron ore miner closed 1.33% higher at $16.76 on Friday. Meanwhile, the S&P/ASX 200 Index (ASX: XJO) was steep in the red, posting a hefty 1.87% loss.

The S&P/ASX 200 Materials Index (ASX: XMJ) also struggled, closing the day with a 0.49% loss.

So why is Fortescue green in a sea of red?

Investors may be staying optimistic amid the company’s massive $9.2 billion decarbonisation plans that were announced on Tuesday. Fortescue intends to emit zero terrestrial emissions from its iron ore operations by 2030, which will confer the company several benefits.

First, it will reportedly derisk its product as governments use increasingly heavy-handed tactics to get emissions under control, including by issuing penalties. Staying behind the ball now may prevent Fortescue from being blindsided by fines and possible restrictions on its operations later.

There may also be more tangible benefits for the company to offer a net-zero product.

Increased demand

ASX lithium shares like Vulcan Energy Resources Ltd (ASX: VUL) are building an economic moat by exploring lithium geothermal extraction methods that release no emissions into the atmosphere. It’s posited that Vulcan’s output may command higher prices over lithium produced from hard-rock mining.

A carrot and stick situation may unfold where governments may favour or even enforce that companies buy from aspiring net-zero producers such as Fortescue and Vulcan. This, in turn, would shrink the total supply of net-zero elements and commodities, creating further scarcity.

My Fool colleague James also notes that Fortescue expects to realise significant cost savings from the transition to net zero.

Decreased costs

Fortescue expects to save $US818 million per year by 2030. It’s expected to recoup its multi-billion dollar investment by 2034.

Cost savings will reportedly be seen from the company moving away from fossil fuels and instead relying on renewable energy generators. Its savings will also be boosted by Australian carbon credit units and not paying carbon offset purchases.

In practice, the company will deploy renewable energy generators and green-powered vehicles for its fleet and mining equipment. Studies are underway to harness wind and solar energy sources at its exploration sites.

Fortescue share price snapshot

The Fortescue share price is down 15.57% year to date. Meanwhile, the S&P/ASX 200 Index is down 13.37% over the same period.

The company’s market capitalisation is $51.6 billion based on the current share price.

The post The Fortescue share price has outpaced the ASX 200 today. Could green dreams be why? appeared first on The Motley Fool Australia.

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More reading

• Why Block, Brainchip, Domino’s, and Vulcan shares are sinking today
• Is the Fortescue dividend at risk from the miner’s $9b decarbonisation strategy?
• Why has the Fortescue share price been having such a rough trot lately?
• This is how I found a 15-bagger ASX share: fund manager
• Are ASX hydrogen shares worth buying right now?

Motley Fool contributor Matthew Farley 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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