ASX lithium shares have become market darlings over the past couple of years. They’ve arguably replaced technology shares, which were the ‘in thing’ before the COVID-19 pandemic turned everything upside down.

The price of lithium has risen astronomically as the world continues to grow a whole new industry in electric vehicle (EV) manufacturing.

In fact, the value of lithium carbonate hit a record high this month at US$71,370.50 per tonne.

According to Trading Economics, that’s an 80% increase year to date “as surging demand coincides with lower supply”.

No wonder ASX lithium shares are garnering a lot of attention.

Which ASX lithium shares are performing best right now?

Let’s do a snapshot of how some of the largest ASX lithium shares (by market capitalisation) are performing year to date in 2022.

• The Pilbara Minerals Ltd (ASX: PLS) share price is 40.3% higher (market cap $14.59 billion)
• The Allkem Ltd (ASX: AKE) share price is 39.9% higher ($10.17 billion)
• The Core Lithium Ltd (ASX: CXO) share price is 123% higher ($2.5 billion)
• The Sayona Mining Ltd (ASX: SYA) share price is 78.6% higher ($2.2 billion)
• The Lake Resources NL (ASX: LKE) share price is down 2.75% ($1.45 billion).

Here’s a snapshot of how some of the junior ASX lithium shares are doing this year. Always remember, buying nano, micro and small-cap shares can be risky business, so tread carefully and do your research.

• The Global Lithium Resources Ltd (ASX: GL1) share price is 121% higher (market cap $535 million)
• The Anson Resources Ltd (ASX: ASN) share price is 160.7% higher ($396.74 million)
• The Arizona Lithium Ltd (ASX: AZL) share price is down 29.2% ($209.66 million)
• The Iris Metals Ltd (ASX: IR1) share price is 186.2% higher ($198.94 million)
• The Ragusa Minerals Ltd (ASX: RAS) share price is 300% higher ($35.34M).

Business performance vs. share price performance

As seasoned investors know, the performance of a business doesn’t necessarily correspond with the performance of its share price and vice versa. Annoying, right?

This is especially the case with young, growing companies that the market is excited about. Investors can sometimes bid the share price up on expectations of future profits, not current profits.

Share price growth doesn’t necessarily indicate great revenue and profit, or superior management. So when assessing ASX lithium shares for investment, you can’t just look at what the share prices have done lately. You need to get under the hood and check the inner workings of each company are sound.

With reporting season just behind us, let’s compare a few metrics on the two largest ASX lithium shares.

Pilbara Minerals FY22 results

• Revenue up 577% year-over-year (yoy) to $1.2 billion
• EBITDA of $814.5 million, up from $21.4 million in FY21
• Statutory net profit after tax (NPAT) of $561.8 million, up from a loss of $51.4 million loss in FY21
• Share price went up 53.4% over FY22
• Price-to-earnings (P/E) ratio of 17.86 compared to 9.51 for the sector today.

Allkem FY22 results

• Revenue up 800% yoy to US$770 million
• EBITDAIX of US$513.1 million
• Consolidated NPAT of US$337 million, up from a loss of US$89.5 million in FY21
• Share price went up 54.8% over FY22
• P/E ratio today of 17.53 compared to 9.51 for the sector today.

Why is the value of lithium rising?

The reasons behind this month’s record lithium price are clear.

According to Trading Economics analysis:

Added stimulus and cash incentives by local Chinese governments spurred growth in demand of electric vehicles in the world’s second largest economy, notching a 100% year-on-year increase in August.

In the US, demand for electric vehicles is set to increase as the newly passed “Inflation Reduction Act” extends tax breaks for new electric vehicle purchases.

On the supply side, the energy crisis in China brought by record-setting heat waves led multiple lithium producers in Sichuan to suspend operations, adding to the upside of soaring lithium costs in the near-term.

Scarcity led auto manufacturers with large bets on battery electric vehicles to compete for long-term supply contracts, including Ford and Stellantis. Also, electric vehicle giant Tesla mulled building its own lithium refinery in Texas.

The post Which ASX lithium shares are performing best in 2022? appeared first on The Motley Fool Australia.

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More reading

• Is it too late to invest in ASX lithium shares? Apparently not…
• These 8 companies joined the ASX 200 on Monday. Here’s how they’re performing
• Here are the top 10 ASX 200 shares today
• These three ASX lithium shares defied Wednesday’s selloff
• Here are the 3 most heavily traded ASX 200 shares on Wednesday

Motley Fool contributor Bronwyn Allen 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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S&P/ASX 200 Index (ASX: XJO) coal shares have soared ahead in the year to date, but could they go even higher?

Coal explorers on the ASX 200 include New Hope Corporation Limited (ASX: NHC) and Whitehaven Coal Ltd (ASX: WHC).

Let’s take a look at the outlook for ASX 200 coal shares.

Coal prices to rise

On Tuesday, New Hope shares soared after the company reported a 1,138.8% lift in profit in FY22. The major driver for this result, as my Foolish colleague James noted on the day, was higher coal prices.

In Tuesday’s report, New Hope said coal pricing is “at record levels”. The company noted demand is outstripping supply and a “limited supply response is expected”. New Hope said:

With global energy demand to remain flat to 2030, stronger longerterm pricing is expected to remain considering constrained supply.

New Hope noted there is a “robust market demand” for high energy and lower emission thermal coal, adding that the Russia and Ukraine conflict has “further tightened supply.

The company said even if global demand reduces, New Hope’s operations “remain resilient. New Hope said:

The company is focused on remaining in the lowest quartiles of the global cost curve, maximising shareholder returns.

Whitehaven Coal also highlighted the “record” thermal coal prices in its FY22 results presentation in late August. Whitehaven said the “strong demand” and tight supply” are underpinning these price rises.

Events over the past two years have caused a shift in global trade flows and tightened the supply of all coal products, leading to strong demand and record high prices – especially for
high-CV coal.

The company reported a record $3.1 billion EBITDA and $2 billion net profit after tax (NPAT) in FY22.

Share price snapshot

ASX coal shares are having a stellar year. The Whitehaven Coal share price has exploded 243% year to date, while it has risen 214% in the past year.

Meanwhile, the New Hope share price has risen 176% in the year to date and 187% in the past year.

For perspective, the S&P/ASX 200 Energy Index (ASX: XEJ) has risen 40% in the past year and 35% in the year to date.

The post Is the party just getting started for ASX 200 coal shares? appeared first on The Motley Fool Australia.

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More reading

• Brokers name 2 ASX dividend shares to buy
• Here are the top 10 ASX 200 shares today
• 3 ASX 200 shares paying out ‘special’ dividends in 2022
• Why is the Whitehaven share price soaring another 5% on Wednesday?
• Dividend beasts: 5 ASX shares with monster yields and no debt

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 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 growth shares, then read on. Morgans has recently named a number of shares that it is very positive on.

Two growth shares that have received the thumbs up are listed below. Here’s what it is saying about them:

Pro Medicus Limited (ASX: PME)

Morgans is a big fan of this health imaging technology company and has suggested that investors take advantage of any share price weakness.

It likes the company due to its strong long term growth potential thanks to the quality of its offering and industry tailwinds. It commented:

Pro Medicus is a leading healthcare end-to-end imaging software and service provider, servicing a number of the world’s largest imaging centres and health care groups. We like the space, with high single digit organic volume growth and long-term industry tailwinds. Profitability in the business is backed up by long-term contracted revenues with some of the world’s largest hospital systems and growing pipeline of tenders which we view will provide continued growth over the medium to long term. We view the business as best-in-class as it heads into CY22 with a step-change in billable contracts following the significant volume and value of contracts signed over the last 12-18 months. The recent market weakness in high growth tech names has provided an opportunity for reasonable entry points.

Morgans has an add rating and $58.18 price target on the company’s shares.

Webjet Limited (ASX: WEB)

Another ASX growth share that could be a buy according to Morgans is Webjet. The broker believes that the online travel agent will come out of the COVID crisis in a much strong position. It explained:

Based on our forecasts, WEB is trading on an FY24 recovery year PE which is at a discount to its five-year average PE (pre-COVID). Its WebBeds (B2B) business is highly leveraged to the northern hemisphere summer holiday season which is forecast to be strong. Webjet OTA is leveraged to ANZ domestic and international travel. Management also wasted a crisis and cost reduction initiatives will reduce its cost base by 20% across the group once the business returns to scale.

Morgans has an add rating and $6.40 price target on Webjet’s shares.

The post Morgans names 2 ASX growth shares to buy appeared first on The Motley Fool Australia.

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More reading

• Here are 3 top ASX growth shares that analysts rate as buys
• Looking to buy ASX shares? Expert reveals ‘one metric to assess the quality of a business’
• Here are the top 10 ASX 200 shares today
• Why is the Webjet share price heading 5% skywards on Tuesday?
• Broker names 2 of the best ASX shares to 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 Pro Medicus Ltd. The Motley Fool Australia has positions in and has recommended Pro Medicus Ltd. The Motley Fool Australia has recommended Webjet Ltd. 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 ASX may be closed today. But that doesn’t mean investors can’t enjoy some returns from their ASX shares. So let’s talk about the Rio Tinto Limited (ASX: RIO) dividend.

Amongst all of the ASX dividend shares that have paid out shareholder income this year, none have arguably been as exciting as resource shares like Rio. The past year or so has seen record high commodity prices. Oil, coal, and gas have all seen massive gains. As have other commodities like iron ore.

This has translated into massive dividend payments from mining and drilling giants like BHP Group Ltd (ASX: BHP), Woodside Energy Group Ltd (ASX: WDS), and, of course, Rio Tinto.

Rio revealed its FY22 full-year earnings report back in July. In this, the miner declared an interim, fully franked dividend of US$2.76 per share. That’s $3.837 in our dollars. Rio shares traded ex-dividend for this payment back on 11 August. And investors will be receiving the paycheque very soon.

The Rio Tinto dividend is inbound

The original payment date was set for today, 22 September. But the public holiday today commemorating the death of Queen Elizabeth threw a spanner in the works. Last week, Rio told investors that the dividend pay date is still today. However, it added the following:

Due to the National Day of Mourning declared by the Australian Federal Government to commemorate Queen Elizabeth II, 22 September 2022 is now a non-business day for banking and ASX purposes.

As a result, payments for Rio Tinto Limited shareholders who have elected to receive their dividends via direct credit in Australian dollars will be processed on 21 September 2022.

So perhaps investors will still receive their cash today. But due to the holiday, many investors might have gotten a one-day early mark for their money, and seen the money come in yesterday. It’s also possible that for some investors, the cash will arrive tomorrow.

We do know for sure that any additional shares to be distributed under Rio’s optional dividend reinvestment plan (DRP) will be issued tomorrow.

Whatever happens, it’s certainly a good week for Rio Tinto investors.

At yesterday’s closing Rio Tinto share price, this ASX 200 mining giant had a dividend yield of 10.53%

The post Own Rio Tinto shares? It’s time to dig into your dividends appeared first on The Motley Fool Australia.

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More reading

• $18 billion of ASX dividends are being paid out this week. Here’s the lowdown
• Why China’s slowdown isn’t as bad as it looks for ASX 200 mining shares
• Down 19% since June, where to next for the Rio Tinto share price?
• Could the latest news out of China bode well for ASX 200 iron ore shares?
• Hanging out for your Rio Tinto dividend? Here’s the latest

Motley Fool contributor Sebastian Bowen has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has 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 rates are rising fast, savings accounts and term deposits still can’t compete with the yields on offer with ASX dividend shares.

For example, two high yield ASX dividend shares that are rated as buys are listed below. Here’s what you need to know about them:

GQG Partners Inc (ASX: GQG)

The first ASX dividend share that has been tipped as a buy is fund manager GQG.

It has been tipped as a buy by analysts at Goldman Sachs, who see significant value in the company’s shares at the current level. They have a buy rating and $1.92 price target on them.

Goldman likes the company due to its strong investment performance and low fees. It highlights that the latter puts GQG in the lowest quartile among global peers. Another positive for Goldman, is that GQG’s co-founders have the majority of their net wealth invested in the company and its investment strategies.

As for dividends, Goldman is forecasting dividends per share of 8 cents in FY 2022 and 9 cents in FY 2023. Based on the current GQG share price of $1.51, this will mean yields of 5.3% and 6%, respectively.

National Australia Bank Ltd (ASX: NAB)

Another ASX dividend share that could be a good option right now for income investors is this banking giant.

NAB appears well-placed to profit in the current environment with rates rising and its significant liquidity. In fact, it is for these reasons that Citi recently upgraded its shares to a buy rating with a $32.75 price target. The broker believes that historic levels of excess liquidity will boost NAB’s net interest margin as interest rates rise rapidly.

In addition, Citi is expecting some attractive dividend yields from NAB’s shares. It is forecasting a $1.50 per share dividend in FY 2022 and then a $1.85 per share dividend in FY 2023. Based on the current NAB share price of $29.82, this will mean fully franked yields of 5% and 6.2%, respectively.

The post Analysts say these high yield ASX dividend shares are buys appeared first on The Motley Fool Australia.

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More reading

• NAB shares: Buy, hold, or fold?
• Here’s why I decided to buy each of the big 4 ASX 200 bank shares
• NAB shares: Boring or beautiful?
• Looking to buy CBA shares? Here’s how the bank’s balance sheet stacks up
• The NAB share price has gained 10% in 3 months. Too late to buy?

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 Insurance Australia Group Ltd (ASX: IAG) dividend should be landing in your bank accounts today.

Despite the ASX being closed due to the Queen of England’s memorial public holiday, the insurance giant went ahead with the dividend payment.

At yesterday’s market close, IAG shares finished at $4.44, down 1.11%.

For context, the S&P/ASX 200 Index (ASX: XJO) was deep in the red ahead of the US Fed Reserve meeting today.

The benchmark index fell 1.56% to 6,700.2 points.

Let’s take a look at what shareholders will be getting from the IAG dividend.

IAG pays out final dividend

On 12 August, IAG reported a relatively mixed performance in its full-year results for the 2022 financial year.

This led the board to declare the smallest dividend for more than a decade, not inducing during COVID-19.

As such, a partially franked final dividend of 5 cents per share will be paid on today to eligible shareholders.

This brings the full-year dividend to 11 cents apiece, which equates to a payout of 78.1% on reported NPAT.

IAG’s dividend policy is to distribute between 60% to 80% of NPAT excluding any after-tax earnings impact.

When calculating against the current share price, IAG is trailing on a dividend yield of 2.47%.

Investors who elected for the dividend reinvestment plan (DRP) will see a number of shares added to their portfolio. This was based on the volume weighted average price from 29 August to 2 September which resulted in $4.64 per share.

No DRP discount rate was offered to shareholders.

IAG share price summary

Whilst moving in circles during recent times, the IAG share price has gained more than 4% in 2022.

When looking at the last 12 months, its shares have travelled the other way to post a loss of 12%.

IAG has a price-to-earnings (P/E) ratio of 33.67 and commands a market capitalisation of roughly $10.95 billion.

The post The IAG dividend is hitting bank accounts today. What you need to know appeared first on The Motley Fool Australia.

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More reading

• IAG shares ‘highest quality’ in the sector: fundie
• Here’s how many IAG shares the company’s executives have been buying in the past 2 weeks
• Why is the next IAG dividend not fully franked?
• Here are the top 10 ASX 200 shares today

Motley Fool contributor Aaron Teboneras 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 Insurance Australia 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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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.

Amazon (NASDAQ: AMZN) is no stranger to antitrust lawsuits. Just the other day, California filed a suit against Amazon alleging anticompetitive pricing policies. This filing isn’t the first time these allegations have come up, and it likely won’t be the last.

Because of the current environment, it’s not a far-fetched idea that Amazon could be split up voluntarily or by the government. It’s a worthwhile exercise to value each business segment of the company separately for two reasons. First, it could prepare investors for a split. Second, it also serves as a method to value the company and determine if it’s worth an investment today.

Let’s see how each segment is valued and if Amazon is worth your investment dollars.

A large business with multiple segments

Amazon’s business can be split into two main segments: commerce and cloud computing. Commerce is much broader than the website you order items from. It also includes advertising, third-party seller services, and subscription products. Cloud computing, better known as Amazon Web Services (AWS), provides the infrastructure to process workloads through the cloud.

The commerce segment also generates the bulk of Amazon’s revenue. Over the past 12 months, the company brought in $485.9 billion in sales overall, and 85% of that came from commerce. However, that segment hasn’t made any money over the past year. It lost $7.1 billion; whereas, AWS made $22.4 billion in operating income.

Those figures group all of the many commerce segments together. Amazon doesn’t break out its expenses for each segment, but it does break out its sales.

Segment	Q2 Net Sales	Q2 YOY Growth	Share of   Total Revenue
Online stores	$50.9 Billion	0%	42%
Physical stores	$4.7 Billion	13%	4%
Third-party seller services	$27.4 Billion	13%	23%
Subscription services	$8.7 Billion	14%	7%
Advertising services	$8.8 Billion	21%	7%
Amazon Web Services (AWS)	$19.7 Billion	33%	16%
Other	$1.1 Billion	135%	1%

Source: Amazon. YOY = year over year.

This table provides valuable insights. First, its online-store segment didn’t grow its sales but is still the largest. Second, AWS is the fastest-growing segment (the “other” segment is volatile, so growth likely isn’t sustainable) and the second largest. Lastly, advertising services still grew 21% year over year during a difficult ad environment.

Overall, Amazon’s quarter was strong; it was just dragged down by its largest segment having difficult comparisons, because 2021’s second quarter was still during the height of COVID-19. But should the company need to be split, it’s challenging to determine which segments would go where.

AWS would likely need to be its own entity because it is unrelated to commerce. Advertising could be seen as a conflict of interest, as it should theoretically be a neutral marketplace. One seller could pay Amazon to place its product above other similar ones, even if it is lower rated or more expensive. The rest of the divisions — online stores, physical stores, third-party services, and subscriptions — could remain a separate company.

That leaves three separate businesses: cloud computing, advertising, and commerce. Now it’s time to determine what each business is worth.

Valuation by parts

To determine what each entity is worth, I’ll apply a valuation comparable to companies that perform services similar to the newly formed Amazon businesses. While this approach has flaws, it’s a good way to estimate a valuation for each business.

First, investors could compare the commerce business to retail giants like Target Corporation (NYSE: TGT) or Wal-mart Stores, Inc.(NYSE: WMT). These two trade for 0.7 and 0.6 times sales, respectively. While these two companies have a more expensive physical footprint, Amazon has to pay for delivery. However, unlike Amazon’s commerce business, Walmart and Target are consistently profitable. Because of this, I will apply a valuation of 0.5 times sales to Amazon’s commerce business.

For advertising, The Trade Desk (NASDAQ: TTD) is a similar business. Its ad-tech platform connects buyers to sellers to ensure advertisers get the best results. Amazon’s platform has similar capabilities but also deals directly with ads, unlike The Trade Desk. Because of this, I’m going to discount this business significantly. The Trade Desk is valued at 22 times sales, but I’m going to cut that in half for Amazon’s ad business to 11 times sales.

Lastly, AWS is likely the most valuable. It’s growing quickly and is highly profitable. Its two main competitors, Microsoft’s (NASDAQ: MSFT)Azure and Alphabet’s (NASDAQ: GOOGL)(NASDAQ: GOOG)Google Cloud, aren’t stand-alone companies, so a valuation can’t be deduced from them.

There aren’t many businesses like it, but Adobe Inc.(NASDAQ: ADBE) comes close. The product isn’t close to AWS, but its subscription revenue stream and high operating margins (35%) are similar to AWS. Adobe trades at 8.5 times sales, which is influenced by recent acquisition news. Before then, it traded at 11 times sales. I’ll apply a valuation of 13 times sales to AWS to adjust for this drop and account for AWS’ faster sales growth.

Now, let’s see the value of all three businesses.

Business	TTM Revenue	P/S Valuation	Business   Valuation
Commerce	$379.9 Billion	0.5	$189.9 Billion
Advertising	$33.9 Billion	11	$372.9 Billion
AWS	$72.0 Billion	13	$936.0 Billion

Source: Amazon. P/S = price to sales. TTM = trailing 12 months.

Now, let’s add up those three segments. Using this method, Amazon’s entire business is worth $1.5 trillion. However, its current market cap is $1.26 trillion. That means, according to my valuation method, the company’s stock is currently undervalued by 19%. 

So, if Amazon gets broken up by regulators or through its own decision, investors will likely make a quick profit through a split. But that action might not happen.

One thing that is certain is that investors can purchase Amazon’s stock today. With its recent price movement, it looks undervalued, and investors should consider establishing a position and holding it for an extended period, even if it gets broken up.

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

The post Here’s why splitting up Amazon could mean huge returns for shareholders appeared first on The Motley Fool Australia.

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More reading

• Microsoft just hiked its dividend. Who’s next?
• Is Tesla stock recession-proof?
• Why Amazon and these other leading tech stocks fell today
• Move over, cryptocurrencies: a digital euro could be coming with help from Amazon
• Which of these Warren Buffett stocks is the better buy?

Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Keithen Drury has positions in Adobe Inc., Alphabet (C shares), and The Trade Desk. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Adobe Inc., Alphabet (A shares), Alphabet (C shares), Amazon, Microsoft, Target, The Trade Desk, and Walmart Inc. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended the following options: long January 2024 $420 calls on Adobe Inc. and short January 2024 $430 calls on Adobe Inc. The Motley Fool Australia has recommended Adobe Inc., Alphabet (A shares), Alphabet (C shares), Amazon, and The Trade Desk. 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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There’s no denying that the lithium industry is hot right now.

In fact, some of the returns that have been generated in the industry this year are staggering when you consider that the ASX 200 index has dropped almost 12% year to date.

The good news is that you’re not too late to the party. Listed below are two ASX lithium shares that have been tipped as buys:

Allkem Ltd (ASX: AKE)

The first ASX lithium share to look at is Allkem. It is a top five global lithium miner with a collection of world class operations.

From these operations, the company recently revealed plans to increase its production three times over by 2026. This is expected to allow Allkem to maintain a 10% share of the global lithium market over the next decade.

Macquarie is very bullish on Allkem. Earlier this month, the broker put an outperform rating and lofty $21.00 price target on its shares. Its analysts like the company due to its plan to triple production by 2026 and even see potential increases beyond this.

Pilbara Minerals Ltd (ASX: PLS)

Another ASX lithium share that has been tipped as a buy is Pilbara Minerals.

This lithium giant is the company behind the Pilgangoora Lithium-Tantalum Project, which is located approximately 120kms from Port Hedland in the Pilbara region of Western Australia.

In FY 2022, Pilbara Minerals produced 377,902 dmt of spodumene concentrate. This and sky high lithium prices underpinned stellar sales and profit growth.

The good news is that management isn’t resting on its laurels. Like Allkem, it is aiming to capitalise on strong lithium prices with material production growth. Management is aiming to grow its production to 1 million dmt per annum in the coming years.

The team at Macquarie is also very positive on Pilbara Minerals. Earlier this week, the broker reiterated its outperform rating and $5.60 price target on the company’s shares. Macquarie was impressed with Pilbara Minerals’ latest lithium auction and believe the strong pricing reflects tight market conditions.

The post Is it too late to invest in ASX lithium shares? Apparently not… appeared first on The Motley Fool Australia.

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More reading

• Here are the top 10 ASX 200 shares today
• These three ASX lithium shares defied Wednesday’s selloff
• Here are the 3 most heavily traded ASX 200 shares on Wednesday
• Top brokers name 3 ASX shares to buy today
• Pilbara Minerals share price hits record high following lithium auction

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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I believe that investing in ASX shares is one of the best things that people can do to grow their long-term wealth. But how much does a beginner investor need to start?

The length of time people spend growing their fortune can make just as much difference as how much money people invest and what they invest in. The power of compound returns is very strong.

Albert Einstein once supposedly said about compounding:

Compound interest is the eighth wonder of the world. He who understands it earns it, he who doesn’t pays it.

Compound interest in action

The Moneysmart website has a number of useful calculators, including a compound interest one. I’m going to show how putting small amounts of money to work over long periods of time can lead to good results.

If someone starts investing when they’re 25 and invests $250 a month for 40 years, and the share market returned an average of 10% per year, that person would contribute $120,000 themselves but finish with a total of $1.33 million.

What if that person started 10 years later? What if they invested $250 a month in ASX shares for 30 years? They would contribute $90,000 — $30,000 less – and their portfolio would finish at $493,500. A reduction of more than $800,000 largely because those extra years of compounding were missed.

There’s a phrase used to describe this effect in action: “Time in the market beats timing the market”. In other words, the biggest boost comes from staying invested for a long period of time, rather than trying to choose the best time to invest.

How much money is needed to start investing in ASX shares?

Some types of investing, such as property, may need tens of thousands of dollars to get started as an investor. Think how long it could take to save up that initial deposit, and how many years of compounding someone is likely to miss out on.

Another advantage of share investing is that it doesn’t require a large amount of debt hanging over one’s head to invest either.

With ASX shares, once someone is 18, they can get started with a broker like Commsec, CMC Markets, NABTrade, and so on (there are plenty to choose from – do some comparisons).

The initial investment for an ASX share is usually a minimum of $500. However, once an investor owns shares of that investment, they can sometimes (depending on the broker) top up their holding with smaller investments.

Some brokers may have a very low brokerage fee rate for a trade worth up to $1,000, which is a solid investment size in my view.

Investors may want to ensure they are spending as little on brokerage as possible – both at the purchasing stage and the frequency of trades. It’s better for the dollars to be used for compounding the portfolio rather than boosting the broker’s profit and paying for their next boat.

What ASX shares can produce compound returns

Investing doesn’t have to be complicated. Just picking a quality exchange-traded fund (ETF) that invests in a number of businesses can work well.

ETFs don’t require much investment work and can do the compounding for investors, such as Vanguard MSCI Index International Shares ETF (ASX: VGS), VanEck Morningstar Wide Moat ETF (ASX: MOAT), VanEck MSCI International Quality ETF (ASX: QUAL), and iShares S&P 500 ETF (ASX: IVV).

But, there are plenty of individual companies that could deliver long-term growth as well.

The post How much is too little to start investing in ASX shares? appeared first on The Motley Fool Australia.

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• 3 quality ETFs for ASX investors to buy now
• What does Warren Buffett think about investing in ETFs?
• 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
• Don’t miss out on these high quality ASX ETFs

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 Vanguard MSCI Index International Shares ETF. The Motley Fool Australia has recommended VanEck Vectors Morningstar Wide Moat ETF, Vanguard MSCI Index International Shares ETF, and iShares Trust – iShares Core S&P 500 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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Cryptocurrencies were first developed as a way to circumvent traditional banking institutions and decentralise the perceived power they had over financial transactions.

As an anti-authority movement, it may not surprise you that crypto enthusiasts have a language all of their own.

“There undeniably exists a very real and powerful subculture bred from within the crypto community,” reported market research provider WARC.

“[It has] the potential to drive a shift in future urban lifestyles and consumption patterns – not unlike the emergence of streetwear and urban culture rooted in the countercultures of the 1980s and 1990s.”

Perhaps you have seen some of this crypto jargon and wondered what they’re talking about?

Fortunately, British financial services platform Uphold recently published a glossary of crypto slang, which it calls the ‘cryptionary’.

Here are some selected words and their definitions:

HODL

This is “one of the longest-serving” cryptocurrency jargon, which stands for ‘hold on for dear life’. It is also a misspelling of ‘hold’ and refers to the act of not selling cryptocurrency for a long time.

Diamond hands

Similar to HODL, diamond hands refers to an investor who will hold onto their crypto assets regardless of volatility. The opposite of this is “paper hands”, which describes a person who will sell at the first hint of trouble.

Soy boy

This is a pejorative term for an investor who can’t tolerate dips in the crypto market.

Ape In

This is a verb that describes buying into a digital asset hastily without doing much research.

The Flippening

A topic that has been persistent for many years now, the flippening refers to the potential point when Ethereum (CRYPTO: ETH) overtakes Bitcoin (CRYPTO: BTC) as the crypto with the largest market capitalisation.

Bitshaming

This is the act of mocking a Bitcoin investor for holding it for years but not becoming rich out of it yet.

Whale

These creatures are investors who hold massive proportions of a particular cryptocurrency on issue. Due to the size of their holdings, any buying or selling activity by whales can influence the market pricing.

Rekt

This is a misspelling of ‘wrecked’, which describes an investment that has absolutely collapsed and has lost the holder a significant amount of money.

Floor sweeping

This refers to a trading activity when one individual, or a small group, buys up a large number of a particular cryptocurrency.

Shill

This is a verb describing the act of publicly endorsing a specific crypto in order to drum up hype and demand. Some celebrities and social media influencers have been accused of such acts.

Bag holder

While this term describes a person who holds their digital asset for a long time, it has a decidedly negative slant compared to ‘diamond hands’. Bag holders hold onto their crypto for too long and are left with useless tokens.

The post Soy boy and bitshaming: Here’s your guide to crypto slang appeared first on The Motley Fool Australia.

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More reading

• How will the Ethereum merge impact the Bitcoin price?
• Why Bitcoin, Dogecoin, and Shiba Inu fell this morning
• Spinoff token EthereumPOW price crashes 86% post merge. Here’s why
• 3 cryptocurrencies to buy and hold forever
• Ethereum’s merge is done: now what?

Motley Fool contributor Tony Yoo has positions in Bitcoin and Ethereum. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Bitcoin and Ethereum. The Motley Fool Australia owns and has recommended Bitcoin and Ethereum. 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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