Brokers are always on the lookout for ASX shares that could be opportunities to buy. And, certainly, August could be the month to pounce on the ideas that have just been named as buys.

Share prices are always changing and updates are regularly flowing from businesses. This can change whether experts think they are a buy, hold, or sell.

No one can truly know what a share price is going to do next week or next month. But, investors can make a judgement of whether they believe a share price is undervalued or not.

Brokers like to put a ‘price target’ on a business. That’s where the broker thinks the share price will be in 12 months’ time.

Audinate Group Ltd (ASX: AD8)

Audinate is a business that offers the Dante IP networking solution. It’s described as the worldwide leader and is “used extensively in the professional live sound, commercial installation, broadcast, public address and recording industries”. Dante replaces traditional analogue cables by transmitting synchronised AV signals across large distances to multiple locations at once, using just an ethernet cable.

The broker Morgan Stanley currently rates Audinate as a buy, with a price target of $9. It also wants to see the company’s full FY22 result.

But it noted the preliminary numbers for FY22 from the ASX share and believes this bodes well for FY23.

Audinate reported that revenue was up 33.4% to US$33.4 million. The gross profit margin was 74.7%. FY22 earnings before interest, tax, depreciation and amortisation (EBITDA) is expected to be between A$3.8 million to $4.3 million (up from $3 million in FY21).

Improved chip supplies allowed unmet demand from the FY22 third quarter to be delivered in the FY22 fourth quarter, the company said.

Corporate Travel Management Ltd (ASX: CTD)

Corporate Travel is one of the world’s largest businesses specialising in corporate travel.

The broker Macquarie recently rated the ASX share as ‘outperform’ with a price target of $20.80. That’s a potential upside of around 10%.

Macquarie recognises the sector is recovering from COVID-19 impacts. However, there are also some issues such as more expensive plane tickets and airlines reducing their number of flights.

The broker thinks that the ASX share has a significant number of clients, such as in healthcare and government, that should continue to need the company’s services.

Macquarie thinks that Corporate Travel Management’s earnings are going to jump in FY23.

Based on the profit estimate for the 2023 financial year, the Corporate Travel share price is valued at 25 times FY23’s estimated earnings, according to Macquarie.

The post Brokers just rated these 2 ASX shares as buys for August appeared first on The Motley Fool Australia.

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More reading

• Audinate share price soars 5% as revenue thrives
• Top brokers name 3 ASX shares to buy today
• Here are the top 10 ASX 200 shares today
• Why are Flight Centre, Webjet, and other ASX travel shares sinking today?
• ASX 200 midday update: Brickworks higher, IAG drops on prelim results, Zip rockets

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 AUDINATEGL FPO. The Motley Fool Australia has positions in and has recommended AUDINATEGL FPO. The Motley Fool Australia has recommended Corporate Travel Management Limited and Macquarie 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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With the August earnings season about to kick off, ASX companies big and small will soon turn in their report cards for mums, dads (and every other type of investor!) to judge their progress.

But before the bell rings on the duxes and drop-outs, we asked our Foolish contributors to let us know which ASX shares they reckon will top the class in the long run. Here is what the team came up with:

7 best ASX shares for August 2022 (smallest to largest)

• Lindsay Australia Limited (ASX: LAU), $144.95 million
• Electro Optic Systems Holdings Ltd (ASX: EOS), $148.86 million
• Ansarada Group Ltd (ASX: AND), $164.82 million
• Temple & Webster Group Ltd (ASX: TPW), $637.52 million
• Charter Hall Long WALE REIT (ASX: CLW), $3.29 billion
• Treasury Wine Estates Ltd (ASX: TWE), $8.84 billion
• South32 Ltd (ASX: S32), $17.63 billion

(Market capitalisations as of 31 July 2022)

Why our Foolish writers love these ASX shares

Lindsay Australia Limited

What it does: Lindsay Australia is an integrated transport, logistics, and rural supply company. It has a large and growing fleet of road and rail transport, along with more than 40 rural supply stores and transport depots.

By Bernd Struben: The Lindsay share price has gained around 17% so far in 2022, despite skyrocketing fuel costs. Even following that gain, the stock trades at a reasonable price-to-earnings (P/E) ratio of 20 times. And, I believe it has strong growth potential with the end-to-end solutions the company provides to Australia’s farmers by simplifying transport and logistics issues across the agricultural sector. That’s particularly relevant in light of a growing global food crunch.

In its FY22 first-half (H1) results, Lindsay reported a 20.2% year-on-year increase in underlying earnings before interest, tax, depreciation, and amortisation (EBITDA), which reached $31.4 million. The company also continues to expand its rail fleet, adding 50 refrigerated containers in H1, bringing the total to 350.

Lindsay is also a reliable dividend payer, with a current trailing dividend yield of 3.96%, unfranked.

Motley Fool contributor Bernd Struben does not own shares of Lindsay Australia Limited.

Electro Optic Systems Holdings Ltd

What it does: Electro Optic Systems (EOS) is an Australian-owned and operated defence, space and communications company.

By Aaron Teboneras: EOS designs, manufactures and exports advanced technology systems. Key applications include sensors and systems for space domain awareness, optical, microwave and on-the-move satellite products, and remote weapons systems.

With the EOS share price currently trading not far off multi-year lows at 91 cents, I believe this has created an attractive buying opportunity for long-term investors.

Defence capabilities among Australia and its allies have been growing in importance since Russia’s invasion of Ukraine and China’s assertiveness in the Indo-Pacific region. This has highlighted a need among many EOS customers, including NATO, to increase their defence expenditure.

In FY2021, EOS reported record revenue of $211.8 million. That was 17.5% higher than what it achieved in FY2020 ($180.2 million). The company expects FY22 revenue to be equal to or higher than FY21.

Furthermore, the defence contractor continues to heavily invest in the future, particularly in its SpaceLink division. The total addressable market for this is estimated to be around US$2 billion per annum from 2024.

Motley Fool contributor Aaron Teboneras owns shares of Electro Optic Systems Holdings Ltd.

Ansarada Group Ltd

What it does: Ansarada is a provider of specialised cloud-based software addressing the needs of companies and organisations requiring data management solutions for managing mergers and acquisitions, tender processes, and board meetings.

By Mitchell Lawler: The tech sector has been punished so far in 2022. However, while it is not uncommon to find small-cap ASX tech shares showing falls of more than 40% on a year-to-date basis, the Ansarada share price has been somewhat resilient, retracing 19% since the start of the year.

Notably, the reduction in the company’s share price has coincided with sustained growth across key metrics. Last week, Ansarada released its fourth-quarter results for FY22. Positively, revenue increased 43% year-on-year (YoY) to $12.9 million, accompanied by customer growth of 52% YoY.

With an impressive staple of clients, zero debt, and $22 million in cash, I believe Ansarada is currently a relatively well-positioned company.

Motley Fool contributor Mitchell Lawler owns shares of Ansarada Group Ltd.

Temple & Webster Group Ltd

What it does: Temple & Webster is the largest, online-only retailer of furniture and homewares in Australia. A majority of the 200,000 products for sale on the company’s website are held and directly despatched to customers by external suppliers. Temple & Webster also has a growing private-label range.

By Tristan Harrison: The Temple & Webster share price has fallen heavily in 2022, which I think has created an opportunistic time to buy.

The company continues to grow strongly, with its latest trading update showing 23% revenue growth year-on-year.

The ASX retailer is adding new growth avenues, such as its ‘The Build’ website for home improvement. It’s also aiming to boost its productivity and customer experience by investing in areas such as data, personalisation, AI, augmented reality and logistics.  

I believe greater scale can benefit Temple & Webster’s unit economics and enable further re-investment. Plus, it’s considering “opportunistic inorganic activity”, meaning potential acquisitions.

Motley Fool contributor Tristan Harrison does not own shares of Temple & Webster Group Ltd.

Charter Hall Long WALE REIT

What it does: Charter Hall Long WALE REIT is a real estate investment trust (REIT). It owns a portfolio of properties with long weighted average lease expiries (WALE).

By Sebastian Bowen: I believe Charter Hall Long WALE REIT is an investment worth considering as we head into the last month of winter. This property trust specialises in holding real estate assets with long WALEs, as its name implies. These include distribution centres, offices, and pubs, among others.

Many of these properties are held with lease agreements spanning more than a decade, with inflation-linked rental increases built into many. This arguably provides investors today with much-needed certainty in an uncertain investing environment.

Even better, on recent pricing, this REIT offers a trailing distribution yield of close to 7%. As such, it could well be worth a look this August.

Motley Fool contributor Sebastian Bowen owns units of Charter Hall Long WALE REIT.

Treasury Wine Estates Ltd

What it does: Treasury Wine is the maker, marketer, and supplier of iconic Australian wine brands including Penfolds, Wolf Blass, and 19 Crimes.

By Brooke Cooper: The Treasury Wine share price has had a rough trot over the last few years.

It’s been impacted by the pandemic, Chinese tariffs on Australian wine, and general market weakness.

In fact, the stock is around 24% lower than it was at the start of 2020, trading at $12.25. However, brokers are tipping a turnaround.

Morgans has slapped Treasury Wines shares with an ‘add’ rating and a $13.93 price target.

The broker believes the company is gearing up to post a few years of strong earnings growth, starting with the six months ended 30 June.

Motley Fool contributor Brooke Cooper does not own shares of Treasury Wine Estates Ltd.

South32 Ltd

What it does: South32 is one of Australia’s largest miners. It has a portfolio of world-class assets across a range of locations and commodities, including aluminium, copper, and nickel.

By James Mickleboro: I think South32 shares could be a top option for investors in August. Last month, the miner released its fourth quarter and FY2022 production update and revealed it had another solid year despite battling weather, COVID, and labour headwinds.

In light of this, and the strong prices South32 is commanding for a number of the commodities it produces, the company appears well-placed to deliver bumper free cash flow when it releases its full-year results later this month. And thanks to its strong balance sheet, this could potentially mean big dividends for shareholders.

Looking ahead, I believe the future is bright for South32 due to its exposure to commodities that are integral to the decarbonisation megatrend. So with its shares changing hands for just 0.75x net asset value, compared to Fortescue Metals Group Limited (ASX: FMG) at ~1.4x, this could make South32 great value today.

Motley Fool contributor James Mickleboro does not own shares of South32 Ltd.

The post Top ASX shares to buy in August 2022 appeared first on The Motley Fool Australia.

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More reading

• 3 ASX All Ords shares having a stellar end to the week
• Here’s why experts say these are the ASX mining shares to buy now
• Could ASX online retail shares be getting a boost out of inflation?
• 3 ASX 300 retail shares majorly cashing in on Thursday
• Why is the Temple & Webster share price flaming 16% higher?

The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Ansarada Group Limited, Electro Optic Systems Holdings Limited, Lindsay Australia Limited, and Temple & Webster Group Ltd. The Motley Fool Australia has positions in and has recommended Ansarada Group Limited. The Motley Fool Australia has recommended Electro Optic Systems Holdings Limited, Lindsay Australia Limited, Temple & Webster Group Ltd, and Treasury Wine Estates 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 Friday, the S&P/ASX 200 Index (ASX: XJO) finished the week with another solid gain. The benchmark index rose 0.8% to 6,945.2 points.

Will the market be able to build on this on Monday? Here are five things to watch:

ASX 200 expected to rise again

The Australian share market looks set to start the week in a positive fashion after another strong night on Wall Street on Friday. According to the latest SPI futures, the ASX 200 is expected to open the day 46 points or 0.7% higher this morning. On Wall Street, the Dow Jones was up 1%, the S&P 500 climbed 1.4%, and the NASDAQ stormed 1.9%.

Oil prices rise again

Energy producers Santos Ltd (ASX: STO) and Woodside Energy Group Ltd (ASX: WDS) could have a positive start to the week after oil prices pushed higher on Friday. According to Bloomberg, the WTI crude oil price rose 2.3% to US$98.62 a barrel and the Brent crude oil price climbed 2.1% to US$103.97 a barrel. This was driven by speculation that OPEC won’t boost its supply as some hoped.

Westpac shares upgraded

The Westpac Banking Corp (ASX: WBC) share price could be heading a lot higher from current levels according to analysts at Goldman Sachs. This morning the broker upgraded the banking giant’s shares to a buy rating and put them on its coveted conviction list. Goldman has a $26.12 price target on Westpac’s shares. Its analysts highlight “WBC’s NIM leverage to higher rates.”

Gold price pushes higher

Gold miners Newcrest Mining Limited (ASX: NCM) and Northern Star Resources Ltd (ASX: NST) could have a good start to the week after the gold price pushed higher on Friday night. According to CNBC, the spot gold price was up 0.8% to US$1,772.50 an ounce. This was driven partly by the softening of the US dollar and meant a second successive week of gains for the precious metal.

Ramsay takeover progressing?

The Ramsay Health Care Limited (ASX: RHC) share price will be on watch amid reports that KKR’s takeover approach is progressing. In April, the private hospital operator received a non-binding $88 per share offer from the private equity giant. According to the AFR, Ramsay is believed to have received a new request for due diligence on its French business, Ramsay Sante. This is thought to be the only thing holding up a binding offer being tabled.

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

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More reading

• ASX shares are back, baby!
• Have Woolworths shares been a market-beating investment over the past 5 years?
• Why this ASX 200 giant ‘looks attractive’ right now: expert
• These were the best performing ASX 200 shares in July
• ‘Raises a whole lot of issues’: Which ASX 200 banks are still funding new fossil fuel projects?

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 Block, Inc. and Xero. The Motley Fool Australia has positions in and has recommended Block, Inc. and Xero. The Motley Fool Australia has recommended Ramsay Health Care 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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A war in Europe, supply constraints, inflation, rising interest rates and a possible recession have completely preoccupied the markets this year.

So it’s no wonder that the S&P/ASX 200 Index (ASX: XJO) sank almost 12% for the first half of 2022.

But oddly, while all those problems still persist, the index has rallied 5.8% this month.

So are ASX shares back in vogue?

One expert certainly thinks so.

Share markets didn’t even blink after a monster rate hike 

According to DeVere Group chief executive Nigel Green, investor appetite for risk assets — such as shares — has returned.

He made the observation after seeing stocks head upward following the US Federal Reserve’s whopping 75-basis-point rate hike on Thursday morning.

“Typically, markets get into a tailspin over interest rate hikes, especially the size of the Fed’s latest 75 bps,” said Green.

“But investors have seemingly shrugged this off, maybe because it was largely priced-in, maybe because the Fed chair suggested rate rises may now slow.”

That reaction from the markets suggests a shift in the bigger picture, he added.

“Investors appear to have rediscovered their appetite for risk, with global stock markets and high yield corporate bonds both making steady gains over the month so far.”

The Reserve Bank of Australia on Tuesday is expected to follow the US’ lead, and raise its cash rate by a likely 50 basis points.

Green also noted the types of shares that were severely punished in the first half of the year for being riskier have actually outperformed in the July rally.

“Global small-cap stocks have outperformed global large-cap stocks, while in the US, the tech-heavy Nasdaq Composite (NASDAQ: .IXIC) index has outperformed the broader-based S&P 500 Index (SP: .INX).”

Why is everyone so bullish all of a sudden?

So what’s going on?

Green identified four drivers as to why investors are bullish again.

“First, investors believe that central banks will squeeze inflation out of the system,” he said.

“The higher interest rates go in the near term, the sooner they can come down and help facilitate a new economic cycle.”

The second factor was the sell-off in the first half meant that valuations no longer looked expensive, as they did for much of 2021.

“Third, the ‘there is no alternative’ (TINA) argument persists,” said Green.

“Although central banks are raising interest rates aggressively, they remain negative in real terms. Equities have the advantage of being linked to the real economy, with many companies able to raise their selling prices with inflation and so offer investors a level of protection from inflation that cash and bonds can’t.”

Lastly, the larger companies around the world are generally in a “sound financial position”. 

“Big tech in the US is cash rich. Global energy and mining companies are enjoying windfall earnings. Rising interest rates help financials’ boost profits,” said Green.

“Meanwhile, many companies have used the rock-bottom borrowing rates of recent years to refinance their debt at much cheaper rates.”

While Green is a believer that sentiment has turned, he warned investors that none of the problems the market feared have actually gone away.

“Economic data continues to weaken. Continental Europe appears particularly vulnerable to recession later this year, given its reliance on Russian gas,” he said.

“Investors’ response should be to avoid panicking and stick to basic investment truisms.”

The post ASX shares are back, baby! appeared first on The Motley Fool Australia.

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More reading

• Have Woolworths shares been a market-beating investment over the past 5 years?
• Why this ASX 200 giant ‘looks attractive’ right now: expert
• These were the best performing ASX 200 shares in July
• These were the worst performing ASX 200 shares in July
• Here are the top 10 ASX 200 shares today

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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Last week saw a number of broker notes hitting the wires once again. Three buy ratings that investors might want to be aware of are summarised below.

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

Coronado Global Resources Inc (ASX: CRN)

According to a note out of Goldman Sachs, its analysts have retained their buy rating but trimmed their price target on this coal miner’s shares to $2.15. Although Coronado delivered a second-quarter update that was short of Goldman’s expectations, it remains bullish. This is due to its “compelling” valuation and strong free cash flow generation. The latter is expected to underpin huge dividend payments in the next couple of years. The Coronado Global share price ended the week at $1.41.

Mineral Resources Limited (ASX: MIN)

Analysts at Citi have retained their buy rating and $73.00 price target on this mining and mining services company. Citi is positive on Mineral Resources due to its exposure to iron ore and lithium. Its analysts expect the price of the latter to stay higher for longer thanks to strong demand and tight supply. The Mineral Resources share price was fetching $53.74 at Friday’s close.

Telstra Corporation Ltd (ASX: TLS)

Analysts at Credit Suisse have retained their outperform rating and $4.50 price target on this telco giant’s shares. The broker has been running the rule over the company’s impending Multi Operator Core Network agreement with TPG Telecom Ltd (ASX: TPG). It is expecting the agreement to be accretive to Telstra’s earnings if the ACCC gives the deal its approval. Outside this, the broker is positive on the telco partly due to favourable trends in the key mobile business. The Telstra share price ended the week at $3.89.

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

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More reading

• Why this ASX 200 giant ‘looks attractive’ right now: expert
• Brokers name 3 ASX shares to buy today
• Here are the top 10 ASX 200 shares today
• Why is the Telstra share price lagging the ASX 200 on Thursday?
• Here are 2 ASX dividend shares to buy right now according to experts

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 Telstra Corporation 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 in Wesfarmers Ltd (ASX: WES) edged higher on Friday.

This follows the company’s latest release regarding the appointment of a new managing director for its Catch.com.au business.

At market close on Friday, the conglomerates’ shares finished trading at $46.63, up 0.71%.

Wesfarmers draws in Cotton On talent

Investors are bidding up Wesfarmers shares after the company announced it has bolstered its leadership team.

In its release, Wesfarmers advised that experienced retail and e-Commerce executive Brendan Sweeney will become the new managing director for Catch.

Since 2015, Sweeney has headed up the global eCommerce and loyalty division for Australia’s largest global retailer, Cotton On Group.

Serving as group general manager of e-commerce, Sweeney leads the international online strategy across the Cotton On brand portfolio.

Prior to his current role, Sweeney led the strategy function at Coles Group Ltd (ASX: COL), where he led the supermarket’s multichannel offering.

Sweeney has significant e-commerce experience in both Australia and overseas in leading retail e-commerce businesses.

Wesfarmers OneDigital managing director and frequent commentator, Nicole Sheffield said:

Under OneDigital, Catch is transitioning to a broad-based Australian marketplace offering, focused on brands customers know and love.

Brendan has significant experience leading large-scale ecommerce and retail investment programs and will spearhead this transformation. He will also lead the Fulfilled by Catch program, a multimillion-dollar investment in cutting-edge fulfilment centres and delivery technology to drive faster delivery for Catch and other Wesfarmers retail business.

Acquired by Wesfarmers in 2019 for $230 million, Catch has recently moved into the Wesfarmers OneDigital division under Nicole Sheffield.

Sweeney is expected to begin the role in late October.

Wesfarmers share price snapshot

Since the start of 2022, the Wesfarmers share price has continued to tread lower to post a loss of 21%.

The company appears to have been impacted by inflationary pressures as well as the weakened economic environment.

Its shares hit a 52-week low of $40.03 on 17 June before regaining some lost ground in the weeks after.

Wesfarmers commands a market capitalisation of around $52.87 billion.

The post From Cotton On to Catch: Wesfarmers’ plans to put its acquisition back on track appeared first on The Motley Fool Australia.

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• Own Wesfarmers shares? Here’s why Bunnings and Kmart are under investigation by the information watchdog
• Broker names 2 blue chip ASX shares to buy now
• Should investors buy Wesfarmers shares for dividends?
• Can ASX dividend shares deliver during earnings season?
• Could ASX earnings season be ‘a lot better than what the market is positioned for’?

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 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 Woolworths Group Ltd (ASX: WOW) share price is one of the most well-known ASX 200 blue chips on the share market.

In addition to its presence in the top 10 largest ASX 200 shares by market capitalisation, Woolworths is also one of the most active companies in Australians’ everyday lives, thanks largely to its dominance of the Australian grocery market.

But being an everyday presence doesn’t guarantee a successful investment. So let’s take a look at how the Woolworths share price has performed in recent years compared to the S&P/ASX 200 Index (ASX: XJO).

To more accurately gauge the absolute returns of the ASX 200 (including dividend returns), let’s use an ASX 200 index fund, the iShares Core S&P/ASX 200 ETF (ASX: IOZ).

Over the five years to 30 June 2022, this ASX 200 exchange-traded fund (ETF) has returned a total of 38.24%, which works out to be an average of 9.04% per annum.

How have Woolworths shares compared to the ASX 200?

Over the same time frame, the Woolworths share price has risen from $25.54 to $35.60. That’s a cumulative return of 39.39%, or 6.86% per annum on average. But this doesn’t factor in dividend returns, of course. So Woolies has consistently commanded a dividend yield of between 2% and 3% over the past five years.

So if we throw that, plus the full franking that came with it, into Woolies’ average annual return, we would get something just ahead of the index’s return. Perhaps even more so if we account for the spin-off of Endeavour Group Ltd (ASX: EDV) that the company executed last year.

All in all, it seems Woolworths shares have been a slight market-beater over the past few years, even if not dramatically so. But still, no doubt this will come as good news for shareholders.

At the current Woolworths share price, this ASX 200 blue chip has a market capitalisation of $45.61 billion, with a dividend yield of 2.5%.

The post Have Woolworths shares been a market-beating investment over the past 5 years? appeared first on The Motley Fool Australia.

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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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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.

There’s a reason Warren Buffett is often regarded as one of — if not the — greatest investors to ever live: He’s very good at it. Tens of billions of dollars good. Due to his success, people often look to his portfolio (via his company Berkshire Hathaway) to influence many of their investing decisions.

Berkshire Hathaway’s portfolio is loaded with blue chip stocks, including its top three holdings: Apple, Bank of America, and Coca-Cola. They each represent 41.3%, 10.2%, and 7.2% of Berkshire Hathaway’s portfolio, respectively (as of March 31, 2022).

If you’re wondering why a company with 50+ holdings has 58.7% of its portfolio in three stocks, it’s because blue chip stocks have stood the test of time and proven to be great long-term investments, regardless of broader economic conditions.

Blue chip companies find a way to survive

For a company to be considered blue chip, it must be worth billions and be one of the top leaders in its sector, and you don’t usually get to that point unless you have lots of resources. Resources that come in handy during bear markets, recessions, and everything in between. Warren Buffett has always preached long-term investing, and part of that is understanding that rough economic times are inevitable, and if companies can’t survive those, they’re likely not very good long-term investments.

Since the 1980s, Apple, Bank of America, and Coca-Cola have made it through Black Monday (1987), the dot-com bubble crash (late ’90s/Early ’00s), the Great Recession (2008), and the early stages of the COVID-19 pandemic (2020). Not only have they made it through, but they’ve also been valuable investments since then.

During the dot-com bubble in 2000, Apple traded at around $150 (the price at the time, not today’s price after stock splits through the years) and dropped as low as $13 in 2002. It’s since provided some of the greatest returns we’ve ever seen in stock market history.

From November 2006 to March 2009, Bank of America’s stock dropped over 94%. Over the next decade, the stock increased by more than 750%. In early 2020, Coca-Cola saw its stock price plunge by more than 36%. In the little over two years since then, the stock has increased by more than 60%.

Keep your eyes on the long-term prize

It can be hard to convince yourself to focus on the long term when you’re seeing your portfolio drop right before your eyes during bear markets and rough periods in the stock market, but it’s necessary. If you’re investing for the long term — and you should be — you have to believe the companies you’re investing in will find ways to adjust to the times and produce great results in the long run.

One thing that Apple, Bank of America, Coca-Cola, and lots of other blue-chip companies have in common is they find a way to adapt to broader economic problems they didn’t themselves create. Apple didn’t cause the dot-com bubble, Bank of America wasn’t the main culprit in the Great Recession, and Coca-Cola didn’t cause a global pandemic. Yet each time, they had the resources available to adapt and weather the storm.

That’s why, like Warren Buffett, you should rely on blue chip companies to represent the bulk of your portfolio. There’s no such thing as a foolproof investment, but blue chip stocks are as good as it gets.

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

The post What Warren Buffett can teach you from his top 3 holdings appeared first on The Motley Fool Australia.

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Bank of America is an advertising partner of The Ascent, a Motley Fool company. Stefon Walters has positions in Apple. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Apple and Berkshire Hathaway (B shares). The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended the following options: long January 2023 $200 calls on Berkshire Hathaway (B shares), long January 2024 $47.50 calls on Coca-Cola, long March 2023 $120 calls on Apple, short January 2023 $200 puts on Berkshire Hathaway (B shares), short January 2023 $265 calls on Berkshire Hathaway (B shares), and short March 2023 $130 calls on Apple. The Motley Fool Australia has recommended Apple and Berkshire Hathaway (B shares). 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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Are you looking for dividend shares to buy next week? If you are, then you might want to look at the shares listed below that have been named as buys.

Here’s why these ASX dividend shares are rated as buys:

Lovisa Holdings Limited (ASX: LOV)

The first ASX dividend share that could be worth considering is fast-fashion jewellery retailer Lovisa.

While its shares may not provide investors with the biggest yield you’ll find on the market, its dividend has the potential to grow materially in the future. This is due to its bold global expansion plans.

It is because of these plans that Morgans believes “LOV may just prove to be one of the biggest success stories in Australian retail.”

For now, the broker is expecting a 50 cents per share dividend in FY 2022 and a 51 cents per share dividend in FY 2023. Based on the current Lovisa share price of $17.80, this will mean yields of 2.8% and 2.9%, respectively.

Morgans also sees plenty of upside for Lovisa’s shares with its add rating and $21.50 price target.

National Australia Bank Ltd (ASX: NAB)

Another ASX dividend share that could be a top option for income investors is banking giant NAB.

It has been rated as a buy by analysts at Goldman Sachs. They believe the bank has a balance sheet mix that provides investors with the best exposure to the expected domestic system growth over the next 12 to 18 months.

The broker is also expecting some very attractive dividend yields in the near term. Its analysts are currently forecasting a $1.51 per share dividend in FY 2022 and then a $1.68 per share dividend in FY 2023. Based on the current NAB share price of $30.60, this will mean fully franked yields of 4.9% and 5.5%, respectively.

Goldman currently has a conviction buy rating and $34.26 price target on the bank’s shares.

The post Experts say these ASX dividend shares are buys right now appeared first on The Motley Fool Australia.

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• ‘Raises a whole lot of issues’: Which ASX 200 banks are still funding new fossil fuel projects?
• Experts name 2 ASX growth shares to buy with double-digit upside potential
• The NAB share price is up 20% from its YTD low. Is now the time to buy?
• Why this ASX investment company dumped NAB for Westpac shares
• Should investors buy NAB shares for the dividends? Here’s what I think

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 recommended Lovisa Holdings 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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If you’re looking to bolster your portfolio with some blue chip shares in August, you may want to look at the two listed below.

Here’s why these blue chip ASX shares are highly rated right now:

Healius Ltd (ASX: HLS)

The first blue chip ASX 200 share to look at is Healius. It is one of Australia’s largest pathology and diagnostic imaging providers and the name behind a number of brands including Dorevitch Pathology, QML Pathology, Laverty Pathology, and Healthcare Imaging Services.

Healius has been growing at a very strong rate over the last couple of years thanks to huge demand for COVID testing. And while testing volumes are falling, the team at Morgans remain positive on the company. This is due to its belief that Healius’ base business will rebound as COVID headwinds ease.

Morgans has an add rating and $4.30 price target on Healius’ shares.

REA Group Limited (ASX: REA)

Another ASX blue chip ASX 200 share that could be in the buy zone is REA Group. It is a leading online provider of property and property-related services across Australia and Asia.

The company’s realestate.com.au website has been dominating the ANZ market for years and shows no signs of stopping. For example, during the first half of FY 2022, REA reported an average of 12.6 million unique visitors to its website each month. Furthermore, on average, there were 3.3x more visits than the nearest competitor each month.

And combined with its strong pricing power and new acquisitions and revenue streams, the company has been tipped to continue growing at a solid rate for many years to come by the team at Goldman Sachs.

In light of this, the broker currently has a buy rating and $164.00 price target on REA’s shares.

The post 2 blue chip ASX 200 shares analysts rate as buys appeared first on The Motley Fool Australia.

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More reading

• Why I think the REA share price is a bargain buy right now
• Here are the top 10 ASX shares today
• 3 blue chip ASX 200 shares experts say are buys
• Why cheap hamburgers could give beginner ASX share investors food for thought
• How much have REA shares paid in dividends in the last 5 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 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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