If you are looking to bolster your portfolio with some ASX 200 blue chip shares, you may want to look at the two listed below.

Here’s why these ASX 200 shares are highly rated by experts right now:

Coles Group Ltd (ASX: COL)

The first ASX 200 share that could be a buy is supermarket giant, Coles.

Coles could be a good option for investors in the current environment due to its defensive qualities, strong market position, positive outlook, and favourable exposure to rising inflation.

In addition, the company continues to work hard on its refreshed strategy, which is focusing on cutting costs with automation and efficiencies. This includes two new warehouses with Ocado that are expected to boost its online business in 2023.

Analysts at Morgans remain very positive on the company. They currently have an add rating and $20.00 price target on its shares.

Another positive is that Coles shares a significant portion of its profits with its shareholders. Morgans expects this to lead to the company paying fully franked dividends of 65 cents per share in FY 2023 and then 66 cents per share in FY 2024. Based on the latest Coles share price of $16.60, this will mean yields of 3.9% and 4%, respectively, over the next two years.

REA Group Limited (ASX: REA)

Another ASX 200 share that could be a buy right now is property listings company REA Group.

It is the owner over the realestate.com.au website (among others), which is dominating the ANZ market. For example, in FY 2022, the company averaged 12.7 million unique visits each month, which represents 62% of Australia’s adult population. And these people didn’t just visit once. REA reported a total of 124.1 million average monthly visits, which is 3.36x greater than its nearest competitor.

It is thanks to this dominant market position, together with new acquisitions and revenue streams, that REA Group has been tipped to grow strongly in the coming years.

Goldman Sachs is one of those brokers tipping solid growth in the coming years. In light of this, its analysts currently have a buy rating and $164.00 price target on the company’s shares.

The post Here are 2 ASX 200 blue chip shares that experts rate as buys appeared first on The Motley Fool Australia.

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More reading

• 5 things to watch on the ASX 200 on Friday
• Looking to buy ASX shares? Expert reveals ‘one metric to assess the quality of a business’
• Viva Energy share price leaps 5% on Coles acquisition
• Coles share price falls despite $300m Coles Express sale
• Coles shares on watch after massive $300 million selloff to Viva Energy

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 positions in and has recommended COLESGROUP DEF SET. 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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On Wednesday, the S&P/ASX 200 Index (ASX: XJO) was well and truly out of form and sank deep into the red. The benchmark index dropped 1.6% to 6,700.2 points.

Will the market be able to bounce back from this on Friday and end the week on a high? Here are five things to watch:

ASX 200 expected to sink again

The Australian share market looks set to end the week in the red following two consecutive nights of sizeable declines on Wall Street. According to the latest SPI futures, the ASX 200 is expected to open 52 points or 0.8% lower this morning. In the United States, the Dow Jones was down 0.35%, the S&P 500 dropped 0.85%, and the Nasdaq tumbled 1.4% lower. Investors have been selling down stocks amid recession fears following another big hike from the US Federal Reserve on Wednesday night.

Oil prices rise

Energy producers such as Beach Energy Ltd (ASX: BPT) and Woodside Energy Group Ltd (ASX: WDS) could have a decent finish to the week after oil prices pushed higher overnight. According to Bloomberg, the WTI crude oil price is up 0.7% to US$83.52 a barrel and the Brent crude oil price is up 0.6% to US$90.40 a barrel. Oil price rose on Russian supply concerns.

Coles rated as a sell

The Coles Group Ltd (ASX: COL) share price could be heading lower from current levels according to analysts at Goldman Sachs. This morning the broker has retained its sell rating and $15.60 price target on the supermarket giant’s shares. This follows news that Coles is selling its Coles Express business. Goldman said: “We do not view this transaction as material to impact our view on the core supermarkets business given the relative size of the segment compared to the group’s business.”

Gold price rises

Gold miners including Newcrest Mining Ltd (ASX: NCM) and St Barbara Ltd (ASX: SBM) could finish the week on a relatively positive note after the gold price edged higher overnight. According to CNBC, the spot gold price is up 0.3% to US$1,680.30 an ounce. This followed the softening of the US dollar and treasury yields.

Premier Investments results

The Premier Investments Limited (ASX: PMV) share price will be on watch today if the retail conglomerate finally releases its full year results. The company didn’t release its FY 2022 results as expected on Wednesday, so today looks set to be the day. According to a note out of Goldman Sachs, its analysts are expecting the Smiggle owner to report revenue of $1,416 million and EBITDA of $480.4 million.

The post 5 things to watch on the ASX 200 on Friday appeared first on The Motley Fool Australia.

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• Why Imugene, Link, Newcrest, and Zip shares are dropping
• Viva Energy share price leaps 5% on Coles acquisition
• Coles share price falls despite $300m Coles Express sale
• Coles shares on watch after massive $300 million selloff to Viva Energy
• Could international demand keep boosting Woodside shares for the next 20 years?

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 positions in and has recommended COLESGROUP DEF SET. The Motley Fool Australia has recommended Premier Investments 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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If you’re building an income portfolio but don’t feel like you have sufficient funds to maintain a truly diverse portfolio, then exchange traded funds (ETFs) could be the answer.

There are a number of ETFs that have been set up to give investors exposure to a collection of dividend shares. All through a single investment.

Two that could be worth considering are listed below:

BetaShares S&P 500 Yield Maximiser (ASX: UMAX)

The first ETF for income investors to consider is the BetaShares S&P 500 Yield Maximiser.

This ETF has been designed to generate attractive quarterly income and reduce the volatility of portfolio returns. To achieve this, BetaShares has implemented an equity income investment strategy over a portfolio of shares comprising the S&P 500 Index.

This index is of course home to 500 of the largest companies listed on Wall Street. Among the companies you’ll be investing in include Apple, Exxon Mobil, Johnson & Johnson, Microsoft, and United Health.

At the last count, its units were providing investors with a 6.4% distribution yield.

Vanguard Australian Shares High Yield ETF (ASX: VHY)

Another ETF that could be a good option for income investors is the Vanguard Australian Shares High Yield ETF.

This ETF provides investors with exposure to companies that have higher than average forecast dividends. Importantly, this is done with diversification in mind. Vanguard restricts the proportion invested in any one industry to 40% of the total ETF and 10% for any one company. This ensures that you’re holding a diverse collection of dividend shares.

Among the companies included in the fund are Commonwealth Bank of Australia (ASX: CBA) and the big four banks, as well as mining giants such as BHP Group Ltd (ASX: BHP) and Rio Tinto Limited (ASX: RIO).

The Vanguard Australian Shares High Yield ETF currently trades with an estimated forward dividend yield of 5.8%.

The post 2 ETFs for ASX income investors to buy for dividends appeared first on The Motley Fool Australia.

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• Top ASX dividend shares to buy in September 2022
• Here are 2 ASX dividend shares with attractive yields
• Could these ASX ETFs soon play a bigger role in Aussie super funds?

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 positions in and has recommended BetaShares S&P500 Yield Maximiser. The Motley Fool Australia has recommended Vanguard Australian Shares High Yield 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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It’s fair to say that investing in the small side of the share market carries more risk than other areas.

However, if your risk tolerance allows for it, having a bit of exposure to this side of the market could be a good thing for a balanced portfolio due to the potential returns on offer.

After all, if you can find a future mid or large cap whilst it is still a small cap, the returns could be incredible.

With that in mind, listed below are two small cap ASX shares that have been tipped as buys. They are as follows:

Hipages Group Holdings Ltd (ASX: HPG)

The first ASX small cap share to look at is Hipages. It is a leading online platform and software as a service (SaaS) provider that connects consumers with trusted tradies.

The Hipages platform helps tradies grow their business by providing job leads from homeowners and organisations looking for qualified professionals.

Goldman Sachs is a very big fan of Hipages and believes “HPG presents a compelling long term growth opportunity as it scales to become the leading trade services marketplace in Australia.”

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

Silk Laser Australia Limited (ASX: SLA)

Another small cap ASX share that has been tipped as a buy is Silk Laser.

It is one of Australia’s largest specialist clinic networks. Silk offers a range of nonsurgical aesthetic products and services including laser hair removal, cosmetic injectables, skin treatments, body contouring, and skincare products.

Demand for Silk’s services has been strong in recent years and continued in FY 2022. This and recent acquisitions helped the company deliver a 91% increase in sales to $162.7 million.

Pleasingly, management remains positive on the future and “expects to continue its growth trajectory in FY23.”

This went down well with the team at Wilsons. In response to its results, the broker has put an overweight rating and $3.62 price target on the company’s shares.

The post 2 growing small cap ASX shares analysts rate as buys appeared first on The Motley Fool Australia.

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More reading

• Goldman Sachs names 3 mid cap ASX shares to buy
• Goldman Sachs names 2 exciting small cap ASX shares to buy
• SILK Laser share price surges as FY22 earnings beat guidance
• Goldman Sachs names 2 ASX shares to buy right now
• Hipages share price sinks as ‘perfect storm’ hits profit

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. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended SILK Laser Australia Limited. The Motley Fool Australia has positions in and has recommended Hipages Group Holdings Ltd. The Motley Fool Australia has recommended SILK Laser Australia 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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Warren Buffett is one of the world’s richest people and has been a leading investor for decades. I think there are some interesting All Ordinaries (ASX: XAO), or All Ords, ASX shares that would fit right into the Berkshire Hathaway portfolio.

Berkshire Hathaway owns plenty of banks in its portfolio, but there are plenty of other businesses that it invests in, including furniture.

Included in the Berkshire Hathaway portfolio are: Jordan’s Furniture, Nebraska Furniture Mart and Star Furniture. With that in mind, I think that Nick Scali Limited (ASX: NCK) shares would fit into Warren Buffett’s investment strategy for a number of reasons.

Management team

Warren Buffett likes to find businesses that have good management teams. The current managing director of the business is Anthony Scali, who joined the business in 1982. He has almost 40 years’ experience in furniture retailing. He owns just over 11 million Nick Scali shares. That’s a hefty holding considering the Nick Scali share price is around $10 at the moment.

I think it’s a very good sign that the business is still managed by the same family. It naturally makes Anthony Scali very motivated to continue managing the business in a long-term, sustainable way. Ordinary shareholders are very aligned with management.

Growth potential

Nick Scali is looking to grow in a number of different ways.

Warren Buffett likes to find businesses that could have a long growth runway so that they have plenty of compounding potential.

The All Ords ASX share is looking to grow its Nick Scali store network in Australia to at least 85 stores. It’s expanding geographically into New Zealand. It recently bought the Plush furniture business, which also has a store rollout plan. Nick Scali also wants to grow its online sales across the business.

Dividends

Warren Buffett isn’t exactly known for being a dividend investor. But, Nick Scali’s dividend payments are a good boost for overall returns from this business.

In FY22, the All Ords ASX share paid a final dividend of 35 cents per share (up 40%) and total dividend of 70 cents per share (up 6.7%).

The full-year dividend translates into a grossed-up dividend yield of 9.75% at the current Nick Scali share price.

Outlook

Uncertainty may be increasing amid an increase in inflation. Nick Scali itself said that “given the current global economic environment, the business will face challenges in respect of potential rising freight costs and inflationary pressure on operating costs over the next 12 to 24 months”.

But, despite that, it had an elevated order book at the end of June. It also gets a boost from the revenue of the acquired Plush business. It’s expecting the FY23 first-half revenue to be “materially above” the previous year.

July trading was “positive”, with total written sales orders for the group of $43.2 million, up 64.1%.

Foolish takeaway

With the Nick Scali share price valued at just 11x FY22’s earnings, I think it could be worth jumping on considering it has dropped by around 33% in 2022. I think this decline more than makes up for the possible economic decline that could happen in the next 12 months.

The post Why I think Warren Buffett should buy this ASX All Ords share appeared first on The Motley Fool Australia.

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More reading

• Why is the Nickel Industries share price dipping on Wednesday?
• Here’s why the ASX 200 could be set up for an almighty rally before the end of this horrible year for stocks
• ‘Better chance of making good money when markets are down’: fundie
• Top brokers name 3 ASX shares to buy today

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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The Motley Fool’s Tim Hanson in the US conceptualised what he dubbed the ‘humility curve’. 

It depicts the typical journey of an investor. Usually, investors start out with shares they understand. 

They’ll then crank the complexity of an investment up a few notches (or 10), throwing money into riskier prospects in the hope of higher returns.

With years of experience, investors blossom from naive to humble, realising that complexity doesn’t necessarily have a positive correlation with making money.

Tim Hanson illustrated his own humility curve, which you can see below.

My own investing journey has followed a similar curve, though I’m not nearly as far along.

But going right back to where it all began, I kept it very simple.

My first ASX investment

If I could pinpoint the impetus of my investing journey, I’d say it was the Commonwealth Bank of Australia (ASX: CBA) that really set the wheels in motion.

See, I was signed up to CBA’s ‘Youthsaver’ bank account. Which, as the name suggests, was only available to youths. 

As I neared my 18th birthday, the bank sent me a booklet in the mail. They explained that as I was (officially) becoming an adult, I would have to transition to a new account. So, the booklet detailed different options on offer, along with the various features and ‘perks’.

As I read through the options, I distinctly remember the proposed interest rates catching my eye. From memory, they were around 1%; far too low for my untrained eye.

So here, my journey into personal finance, and eventually investing, began.

My research led me to high-interest savings accounts. And it introduced me to the wonderful world of ASX exchange-traded funds (ETFs). 

At the time, there was one ASX ETF, in particular, that I kept seeing everywhere. And I thought it suited my investment objectives to a tee. 

That ASX ETF was… the Vanguard Diversified High Growth Index ETF (ASX: VDHG).

What’s so good about the VDHG ETF?

Vanguard’s range of diversified ETFs was the first of its kind on the ASX.

They’re basically an ETF of ETFs. Or more simply, an ETF that’s made up of other ETFs. 

They’re designed to make life easy for investors. 

In one investment, you get access to a ready-made, diversified portfolio of sorts. 

At the time, I was considering buying a few ETFs across Aussie shares, global shares, and bonds. With VDHG, I could get all of that in one fell swoop. And I’d have Vanguard to take care of the rebalancing for me. 

At 0.27%, I think the management fees are fairly reasonable as well, sitting somewhere in between a plain index-tracking ETF and a more targeted thematic ETF.

The VDHG ETF, specifically, primarily invests in wholesale versions of the Vanguard Australian Shares Index ETF (ASX: VAS) and the Vanguard MSCI Index International Shares ETF (ASX: VGS). 

It also has smaller weightings than other Vanguard funds across small companies, emerging markets, and bonds.

As the ‘high growth’ version, VDHG targets a 90% allocation to growth assets (e.g. shares) and a 10% allocation to income assets (e.g. bonds).

As Vanguard aptly describes, VDHG is “designed for investors with a high tolerance for risk who are seeking long-term capital growth”. Being able to ride out inevitable market volatility over (hopefully) many decades, I thought this was the ETF for me.

But for investors with shorter investment horizons and/or lower tolerances for risk, Vanguard has three other diversified ETFs: VDGR (growth), VDBA (balanced) and VDCO (conservative). These ETFs have different target allocations across growth and income assets.

But nowadays, Vanguard isn’t alone in offering diversified ETFs. BetaShares has also thrown its hat in the ring. And the one I’m especially interested in is the BetaShares Ethical Diversified High Growth ETF (ASX: DZZF). It offers a similar target allocation to VDHG but with an ethical tilt.

Where does the VDHG ETF sit in my portfolio?

To this day, the VDHG ETF forms a large part of the core of my portfolio. I know it’s running along in the background, dividend reinvestment plan (DRP) and all, at worst achieving market returns. 

And with my core taken care of, I’m comfortable taking higher-risk positions elsewhere, investing in individual ASX shares. 

This is often known as the ‘core and satellite’ approach to portfolio construction. It combines the best of both worlds of passive and active investing. 

As I continue along my humility curve, I’ve learned that it often pays to keep things simple. The VDHG ETF helps me to do just that.

The post This ASX ETF was my first investment, and I’ll be holding it for the long term appeared first on The Motley Fool Australia.

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More reading

• How much is too little to start investing in ASX shares?
• Is the Vanguard Australian Shares Index ETF (VAS) dividend growing?
• Could right now be the perfect time to buy the Vanguard Index International Shares ETF?
• Here are 2 high quality ETFs for ASX investors to buy right now
• Why making your first purchase of ASX shares can be scary

Motley Fool contributor Cathryn Goh has positions in Vanguard Diversified High Growth Index ETF. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Vanguard MSCI Index International Shares ETF. The Motley Fool Australia has recommended 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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This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

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

Throughout 2022, one of the industries that has been affected the most by supply chain disruptions and inflation is the semiconductor industry. As if navigating these economic headwinds weren’t challenging enough, the federal government recently imposed restrictions on the sale of chips designed by the likes of market leaders Nvidia (NASDAQ: NVDA) and Advance Micro Devices, Inc.(NASDAQ: AMD) to China and Russia, citing national security threats. This news came one week after Nvidia’s lackluster second-quarter fiscal 2023 results.

The company’s earnings flop and the new sale restrictions led some investors to dump Nvidia stock. As a result, Nvidia plummeted to a new 52-week low. While the company seems to have a mountain to climb, there are several reasons investors may want to take a second look at Nvidia. One of the most interesting aspects of semiconductors in general is how central the products are to power industries such as cryptocurrency, big data, and gaming. Despite subpar results in its latest earnings, Nvidia has several tailwinds that could propel the company forward in the long run.

Peeling back the onion  

Nvidia reports its revenue in two primary segments: graphics and compute and networking. For the second quarter (ended July 31), Nvidia reported $2.8 billion in graphics revenue, which represented a 28% decline year over year (YOY). By comparison, the company’s compute and networking segment generated $3.9 billion in quarterly revenue, up 50% YOY. Given the disparity between these two primary segments, prudent investors may want to take a deeper dive into Nvidia’s five market platforms, which combine to form the two main segments. 

The table below illustrates Nvidia’s five market platforms and the respective growth profile of each:

Market Platform	Q2 FY23 Revenue	YOY Change
Gaming	$2.0	(33%)
Data center	$3.8	61%
Professional visualization	$0.5	(4%)
Automotive	$0.2	45%
OEM and other	$0.1	(66%)

Investors can see that Nvidia’s gaming and data center businesses combine to form the majority of the company’s revenue. The data center business grew by a whopping 61%, reaching $3.8 billion in revenue. According to management, the increase in data center revenue was driven by the company’s hyperscale business doubling. Hyperscale data centers are much larger than traditional data centers and typically outperform them because of the volume of data they can process and the superior storage services they can provide. As corporations of all sizes become more reliant on data to make decisions, it is not surprising to see Nvidia benefit from this tailwind.

It is important to note that Nvidia’s management explained to investors that while hyperscale customers increased in North America, the company’s business in China slowed down significantly due to lingering economic challenges from the pandemic.  

While Nvidia is far from the only technology company that faced revenue challenges in certain geographic regions, the company may be facing a longer period back to robust growth — alongside other tech companies — given the federal government’s recent mandate prohibiting the sale of chips and data processing products to China and Russia. While this might spook some investors easily, we must remember that Nvidia is a global organization with several different operating segments. Although its hyperscale data center business is likely to face some near-term headwinds, the company has several other end markets it can benefit from. 

Is gaming just a fad?

Nvidia’s gaming segment generated $2.0 billion in quarterly revenue, down 33% YOY. The gaming segment is interesting because it serves as the nucleus to so many other industries, such as personal computing, graphics cards, and cryptocurrency. In fact, one of Wall Street’s most highly regarded technology analysts, Gene Munster, recently said during an interview with CNBC that for Nvidia’s business, the term “gaming” is code for “crypto.”  

Although the diminishing enthusiasm for crypto has affected the sale of high-end computer hardware, it is important to understand that the economic challenges companies and investors alike are facing will eventually subside. Stated differently, investors should use a long-term time horizon when analyzing an investment. While the company’s gaming segment has slowed down materially, it is highly unlikely that the crypto market or demand for graphic processing units (GPUs) has been permanently destroyed.      

Year to date, leading crypto tokens Bitcoin (CRYPTO: BTC) and Ethereum (CRYPTO: ETH) are down 60% and 64%, respectively. Given the volatility of the stock market and the general economic outlook, many investors have trimmed positions in equities and alternative assets such as cryptocurrency in an effort to flock to cash as a safe haven.

Keep an eye on valuation

The entire year of 2022 has been rough for Nvidia. Earlier this year, the company scrapped its plans for its proposed megamerger with competitor Arm Semiconductor. Additionally, economic conditions in China due to the pandemic have affected the company’s data center business. Moreover, the federal government has banned Nvidia from selling certain products to China and Russia, citing national security concerns. Lastly, the cratering crypto market has significantly affected demand in Nvidia’s gaming division. All of these hiccups have contributed to a massive sell-off, with the stock hitting a 52-week low last week. 

But even with all of that said, some on Wall Street remain bullish. Mizuho analyst Vijay Rakesh recently reiterated a buy rating on the stock, citing strong demand in the hyperscale business. Additionally, several investors on a CNBC panel recently claimed that given management’s weak guidance for the next quarter, the stock is likely not headed higher anytime soon. For this reason, Nvidia could soon be a compelling buy.

The most prudent action for investors is to assess the company’s next-quarter results and pay close attention to management’s guidance as we head into next year. Should Nvidia stock continue to slide over the next few months, investors with a long time horizon may have a lucrative chance to lower their cost basis before the stock rises again.

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

The post Check out this US stock if you’re worried about crypto and chip shortages appeared first on The Motley Fool Australia.

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Adam Spatacco has positions in Nvidia. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Advanced Micro Devices, Bitcoin, Ethereum, and Nvidia. The Motley Fool Australia has recommended Nvidia. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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

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The tech sector has been well and truly out of form this year. For example, the S&P ASX All Technology index is down a sizeable 32% in 2022.

While this is disappointing, it could have dragged a number of ASX tech shares down to very attractive levels for a patient long term focused investors.

Two such shares are listed below. Here’s why Goldman Sachs rates them highly at present:

Megaport Ltd (ASX: MP1)

The first ASX tech share that could be in the buy zone according to Goldman Sachs is Megaport.

It is the leading global provider of elastic interconnection services. Megaport’s business is hard to get your head around. But essentially, its software layer provides users with an easy way to create and manage network connections. Through the Megaport network, businesses can then deploy private point-to-point connectivity between any of the locations on its global network infrastructure.

Importantly, with the structural shift to the cloud continuing, Megaport appears well-positioned to benefit from increasing demand and higher spending on enterprise networking.

Goldman Sachs certainly expects this to be the case. The broker believes Megaport’s “opportunity for further growth is immense [with] GSe A$129bn p.a. spent on fixed enterprise networking across MP1 geographies.”

The broker has a buy rating and $10.30 price target on its shares.

Xero Limited (ASX: XRO)

Another ASX tech share that could be a top option for investors according to Goldman Sachs is Xero.

It is a cloud accounting platform provider with ~3.3 million subscribers globally. From these subscribers, the company recently reported annualised monthly recurring revenue (AMRR) of NZ$1.2 billion. This was up 28% year over year.

And while Xero’s subscriber numbers appears very large on paper, it is still only a fraction of its addressable market. Management estimates that it has an addressable market of 45 million subscribers, which means it has only captured 7.3% of its market so far.

Goldman Sachs is a big fan of Xero and believes the company is “well-placed to navigate this uncertainty given the stickiness & importance of its software.”

The broker has a buy rating and $111.00 price target on Xero’s shares.

The post Goldman Sachs names 2 ASX tech shares to buy now appeared first on The Motley Fool Australia.

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More reading

• 3 hot small-cap ASX growth shares Firetrail’s backing right now
• 5 things to watch on the ASX 200 on Tuesday
• Here are the 10 most shorted ASX shares
• Why Lake Resources, Lovisa, Megaport, and St Barbara shares are dropping
• Megaport share price slumps 10%: Is it a buy now?

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 MEGAPORT FPO and Xero. The Motley Fool Australia has positions in and has recommended Xero. The Motley Fool Australia has recommended MEGAPORT FPO. 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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Investors snapping up shares in loss-making ASX companies might be short-changing themselves in the hunt to find the next millionaire maker, according to experts.

Equities research platform MST Marquee has reportedly established that rigorously investing in unprofitable shares can be a surefire way to erode wealth.

Keep reading to find out how a portfolio full of loss-makers could have performed since the turn of the century.

Why do Aussies love loss-making ASX shares?

Research conducted by MST Marquee, as cited by the Australian Financial Review, found strictly investing in only non-profitable ASX shares could have seen a shareholder lose 99.7% of their invested capital since 2000.

The research company is said to have built a model portfolio valued at $100 at the turn of the century.

The portfolio was then rebalanced annually, according to previous reporting, to remove companies that had since posted their maiden profits.

As of 2011, the initial $100 investment had eroded to be worth just $4.10. And, nowadays, it holds only 24 cents of value.

That’s what an average compound loss of 23% each year will do, folks.

But it wasn’t all bad.

MST Marquee senior research analyst Hasan Tevfik reportedly said the portfolio gained a whopping 37% in 2009. It was also said to have surged 60% between March 2020 and October 2021.

Interestingly, the risk of long-term losses apparently hasn’t been enough to deter investors from buying unprofitable ASX shares.

Many market watchers appear to be on the hunt for the ‘next big thing’, with the S&P/ASX 300 Index (ASX: XKO) seemingly reflecting such ambition. Fifty ASX 300 shares were reportedly found to be posting red balance sheets right now.

Tevfik said, courtesy of the AFR:

Despite the dismal track-record, investors still buy these profitless companies … [they could] be hoping that a few of these birds will develop wings and start soaring like an eagle, perhaps.

While our birds-without-wings portfolio will be buying these stocks, we suggest other investors tread with caution.

However, there are likely plenty of diamonds to be found in the rough.

Indeed, Pilbara Minerals Ltd (ASX: PLS) only posted its maiden profit last month.

Shares in the ASX lithium favourite have increased ten-fold over the last five years, rising from 49 cents in September 2017 to close Wednesday’s session at $4.94.

The post Here’s what can happen when you buy up ASX shares in loss-making companies appeared first on The Motley Fool Australia.

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More reading

• Goldman Sachs names 2 ASX tech shares to buy now
• These could be 2 of the most exciting ETFs for ASX investors to buy
• Which ASX lithium shares are performing best in 2022?
• Is the party just getting started for ASX 200 coal shares?
• Morgans names 2 ASX growth shares to buy

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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If you’re interested in exchange traded funds (ETFs), then you may want to check out the two ETFs that are listed below.

These ETFs are among the more exciting options out there and could be suitable for investors with a higher tolerance for risk.

Here’s what you need to know about them:

BetaShares Crypto Innovators ETF (ASX: CRYP)

The first ETF for investors to look at is the BetaShares Crypto Innovators ETF.

This ETF could be a good option if you believe that the cryptocurrency industry is here to stay and will thrive in the future.

Rather than investing in coins, this fund allows investors to invest in companies that are heavily involved in the industry. These are companies that provide mining equipment, trading platforms, and even the mining of bitcoin and other cryptocurrencies.

Among the shares you’ll be owning a slice of are crypto mining hardware manufacturer Canaan, crypto trading platform Coinbase, and crypto mining company Riot Blockchain.

BetaShares Global Cybersecurity ETF (ASX: HACK)

Another exciting ETF for investors to consider is the BetaShares Global Cybersecurity ETF.

This ETF gives investors exposure to the cybersecurity sector, which continues to benefit from the shift of infrastructure to the cloud and the rising threat of cyberattacks.

In respect to the latter, with online threats only getting greater each year, demand for cybersecurity services has been tipped to continue increasing for a long time to come.

This will be good news for the shares in the ETF, which includes many of the leaders in the global cybersecurity sector. Among the companies you will be owning a slice of are Accenture, Cisco, Cloudflare, Crowdstrike, Okta, and Palo Alto Networks.

The post These could be 2 of the most exciting ETFs for ASX investors to buy appeared first on The Motley Fool Australia.

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More reading

• Don’t miss out on these high quality ASX ETFs
• 2 excellent ETFs for ASX investors to buy this month
• I rate these top ASX growth shares as buys in September
• 2 popular ETFs that could be buys for ASX investors
• Why I’d buy these 2 ASX ETFs right now

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 BETA CYBER ETF UNITS and Betashares Crypto Innovators ETF. The Motley Fool Australia has positions in and has recommended BETA CYBER ETF UNITS. 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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