The BHP Group Ltd (ASX: BHP) share price didn’t perform particularly well during July 2022. In fact, it fell by more than 6%. That’s in contrast to the S&P/ASX 200 Index (ASX: XJO) which rose by 5.7%.

The combination of those two numbers means that the underperformance was more than 10%.

But there are two different questions to answer here.

Why did the BHP share price fall and why did the ASX 200 rise?

The rise of the ASX 200

I’m not going to look at every single business in the ASX 200, but there was one particular group of businesses that had a pretty strong month – the big ASX bank shares.

By that, we’re talking about Commonwealth Bank of Australia (ASX: CBA), National Australia Bank Ltd (ASX: NAB), Westpac Banking Corp (ASX: WBC), Australia and New Zealand Banking Group Ltd (ASX: ANZ), and Macquarie Group Ltd (ASX: MQG).

June was a bit rough for those businesses as investors weighed up interest rate rises from the Reserve Bank of Australia (RBA) and what this might mean for their bank loan books and bad debt levels.

But, July was a month of recovery for the big banks.

Over the month:

The CBA share price went up by 11.5%.

The NAB share price rose by 11.7%.

The Westpac share price increased by 10.3%.

The ANZ share price went up by 4.75%.

The Macquarie share price went up by 10.1%.

So, while these five businesses aren’t the entire ASX 200, they had an important impact on the overall return of the ASX 200.

Why did the BHP share price fall?

Commodity businesses typically follow the performance of their respective resources in the shorter term.

Iron ore is the biggest profit generator for BHP, but other commodities can also have an impact as well. BHP also generates revenue from copper, nickel, and so on.

Commodity prices have been weakening amid growing concerns about a global economic slowdown due to rising interest rates and inflation.

There has also been concern about China Mineral Resources Group.

As reported by the ABC in July, China has formed an entity that “aims to give Chinese steel producers more bargaining power” over prices for Australia’s most important export, iron ore.

BHP chief financial officer David Lamont spoke about whether this new group could lead to lower iron ore prices (as reported by the ABC):

History would say no. We’re not worried about that, it’s something that’s been talked about for a period of time. At the end of the day, we believe markets will sort out where the prices need to be, based on supply and demand.

Time will tell how much effect this new entity has on BHP and the iron ore price.

The post Why did the BHP share price slump 6% in July when the ASX 200 leapt higher? appeared first on The Motley Fool Australia.

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More reading

• Why is the Fortescue share price sliding on Tuesday?
• Experts name 2 ASX 200 dividend giants to buy
• Why is the BHP share price gaining ground today?
• Top broker issues new warning on outlook for iron ore price
• Why did the BHP share price have such a cracking session 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 recommended Macquarie Group Limited and Westpac Banking Corporation. 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 an ASX share on the All Ordinaries Index (ASX: XAO) rockets 40% over just two trading sessions, it is bound to attract some attention. Well, let’s talk about the Qualitas Ltd (ASX: QAL) share price.

Qualitas shares are on fire today. This alternative real estate investment manager is up a pleasing 13.86% at $2.30 a share at the time of writing this Tuesday. Earlier today, the company’s share price hit $2.40.

It was only last Friday that Qualitas shares closed at $1.68 each. That means that this All Ords share has now risen by more than 40% in just two days of trading.

So what’s going on here?

Why has this All Ords share rocketed 40% in 2 days?

Well, we can trace these gains back to the announcement Qualitas made to investors yesterday morning before market open. As we covered at the time, the company announced that it had secured a mandate from the Abu Dhabi Investment Authority to invest $700 million in funds.

Qualitas will invest this $700 million in “Australian commercial real estate private credit opportunities” and “senior credit strategies”.

The arrangement will also see the Abu Dhabi Investment Authority “subscribe for options to acquire new ordinary shares equating to 9.99% of Qualitas’ shares”.

However, this is conditional on the Investment Authority committing a further $1 billion in incremental investment mandates.

Here’s some of what Qualitas co-founder Andrew Schwartz said on this announcement yesterday:

This mandate highlights the benefits of Qualitas’ scalable platform and solidifies our position as a trusted Australian alternative real estate investment manager benefitting from robust relationships with global institutional investors, strong balance sheet capacity, and a market leading, best–in–class investment and operational team.

Qualitas share price snapshot

Although the past few days have been exceptionally kind to the Qualitas share price, the company has still been struggling in recent months.

Even after today’s gains, Qualitas shares remain down by 6% in 2022 thus far, and down by 6.05% since the company joined the ASX boards back on 29 December 2021.

At the current Qualitas share price, this All Ordinaries share has a market capitalisation of around $685 million.

The post Guess which ASX All Ordinaries share has rocketed 40% in 2 days? appeared first on The Motley Fool Australia.

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More reading

• These 3 ASX All Ordinaries shares hit new 52-week highs on Monday
• Why Core Lithium, Deterra, Panoramic, and Qualitas shares are racing higher
• Why is the Qualitas share price rocketing 23% on Monday?
• Why is the Bubs share price smashing the All Ordinaries today?
• 3 ASX All Ordinaries shares hitting new 52-week highs on Wednesday

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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The Regional Express Holdings Ltd (ASX: REX) share price is flying higher today following the company’s latest trading update.

At the time of writing, the regional airline operator’s shares are soaring 6.02% to $1.41.

This trump shares in rival Qantas Airways Limited (ASX: QAN) which is heading the other way, down 1.51% to $4.57.

Let’s take a look at how Regional Express is performing lately.

Regional Express kicks off FY23 with record results

A robust start to the new financial year is steering investors to bid up the Regional Express share price this afternoon.

In its release, Regional Express advised it has achieved record passenger numbers and revenue across its entire network for the first month of FY23.

On the domestic front, the company’s July pre-audited base passenger revenue came to $13.6 million. This is almost double the monthly average of $6.87 million from the prior three months. The load factor stood at 86% across the domestic network.

Looking at the regional division, Regional Express stated that July’s revenue and passenger numbers were almost identical to July 2019. Between the two comparative periods, there was around a 4% reduction from last month.

Despite the small cut, revenue per flight and the passenger load factor both increased by 8% and 7%, respectively.

What did Regional Express comment with?

Regional Express executive chair, Lim Kim Hai upped the ante with its war against Qantas, saying:

Our great performance in the regional markets also validates our decision to stand our ground against Qantas, which flooded the market on marginal regional routes in an attempt to destabilise us. Not only did their plan not succeed, but we are now having record passengers and revenues on our regional network by concentrating on the larger regional routes in direct competition with them.

Later this month we will commence servicing Melbourne-Devonport, breaking QantasLink’s monopoly on the route for the last 17 years and we intend to fly to other regional cities that are currently monopolised by QantasLink.

Hai went on to further add:

Our unparalleled reliability has resulted in many new passengers on top of the corporate and travel agency ones, and, barring further external shocks, has led us to believe that both our domestic and regional operations will be profitable this FY. This is quite a feat, considering that we only properly restarted domestic operations in February this year.

…Rex is the only airline in Australia, and perhaps only one of five in the world that has not made an operational loss since 2003 up to COVID. Our best-of-class operations are without dispute. With such financial and operational prowess, we look confidently ahead in this FY as we turn the corner on these devastating COVID years.

Regional Express share price snapshot

Since the beginning of 2022, the Regional Express share price has moved in circles to post a loss of 2%.

Its shares hit a 52-week low of $1.005 on 20 June after investors headed for the exits after global markets tanked.

Nonetheless, Regional Express shares are making a stunning recovery – up more than 40% for the past 6 weeks.

Based on today’s price, the company commands a market capitalisation of approximately $135.49 million.

The post Why is Rex smashing the Qantas share price on Tuesday? appeared first on The Motley Fool Australia.

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• ‘Simply unparalleled’: Rex share price defies downturn on FIFO acquisition
• Why is the Regional Express share price in a trading halt today?
• Regional Express shares hold steady amid response to fly-in fly-out takeover speculation

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 no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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The S&P/ASX 200 Materials Index (ASX: XMJ) is sliding 1.56% today, but three ASX mining shares are bucking the trend.

The Indiana Resources Ltd (ASX: IDA), Austral Resources Australia Ltd (ASX: AR1) and Musgrave Minerals Ltd (ASX: MGV) are all surging today.

Let’s take a look at what these ASX mining shares reported to the market.

Indiana Resources

The Indiana Resources share price is exploding 24% today. Assay results confirmed Rare Earth Elements (REE) mineralisation at the company’s Central Gawler Project in South Australia.

The results show Total Rare Earth Oxides (TREO) of up to 15,486 parts per million (ppm).

Commenting on the results, technical director Felicity Trafigura said:

The confirmation of the high TREO values including the high value magnet metals is a promising
result and shows there has been enrichment of these elements within the weathered clay profile.

We will now re-assay the balance of our extensive sample pulp inventory and work to enhance the
rare earth potential in our large project area.

Austral Resources

Austral shares are rocketing 14% today. The copper producer reported results from drilling at Flying Horse at Mt Kelly in Queensland.

Results included 14 metres at 2.23% copper, 11 metres at 2.3% copper and 19 metres at 1.69% copper.

Austral will continue to evaluate the potential of Mt Kelly copper sulphide ore for sulphide heap leach SX-EW technology. The company will also ramp up assessing the potential for commercial extraction of copper sulphide from the site.

Musgrave Minerals

Musgrave Minerals shares are lifting 8% today. The company reported results from drilling at the White Heat-Mosaic deposit in Western Australia.

Reverse circulation and diamond drilling delivered “high-grade gold assay results” at the site. The company says these results show the potential to grow the resource.

Commenting on the results, managing director Rob Waugh said:

These are another set of very strong results from White Heat-Mosaic, part of the high-grade Break of Day Trend.

It would be hard to find better results from a recent Australian exploration program and the Cue Gold Project is fast becoming one of the richest undeveloped high-grade gold deposits in Australia

The post 3 ASX mining shares soaring higher on new discoveries today appeared first on The Motley Fool Australia.

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More reading

• Another ASX mining share is soaring 40% on a new copper find today, here’s the lowdown
• ASX copper shares in the red as copper price sinks to 19 month low

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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The Austral Resources Australia Ltd (ASX: AR1) share price screamed 43% higher in early trading today. The shares hit an intraday high of 60 cents, up 42.85% on yesterday’s close.

This follows the ASX micro-cap announcing a significant copper find this morning.

The Austral Resources share price has since retraced to be up 12% at 47 cents at the time of writing.

Austral Resources is a copper producer in Queensland’s Gulf Country. It’s a relatively new ASX mining share having only commenced trading in November 2021.

What did Austral Resources say to boost its share price?

In its statement, the company announced assay results from a diamond drilling program at Flying Horse, which is a copper sulphide mine at Mt Kelly.

Flying Horse is situated on an existing mining lease. It contains a JORC Mineral Resource
Estimate of 14.2MT at 0.77% Cu (calculated in 2013 by the previous mine owner).

The new assay results confirmed 14 metres at 2.23% Cu, 11 metres at 2.30% Cu, and 19 metres at 1.69% Cu.

The company said it would now “accelerate determining the potential for economic extraction of copper
sulphide resource at Mt Kelly”.

The company explained:

This program evaluates the suitability of Mt Kelly sulphide (chalcopyrite) mineralisation for an emerging sulphide heap leach SX-EW technology.

If the evaluation is positive, there is exciting potential for Austral to have an additional processing solution relative to conventional flotation for its sulphide resource base of 26.5Mt@ 0.8% Cu.

There was further work to do, as the company outlined:

This ongoing evaluation of Flying Horse is a further step in assessing the potential to begin commercialising Austral’s 210,000t of contained copper in sulphides (26.5Mt @ 0.8% Cu) to augment the Company’s current 40,000t Anthill Mine copper production from the Anthill copper oxide mine.

What else is happening with this ASX mining share?

Last week Austral Resources released its June 2022 quarterly report.

The company reported a 9.3% increase in revenue over the previous quarter to $5.16 million. It said “both revenue and production [are] on track for significant increase in the September quarter”.

Austral Resources had a cash balance of $7.2 million at the end of the June quarter.

In its report, the company said: “[The] copper metal in circuit at end of July is building daily, positioning the Company for significant production and revenue increases in the second half of 2022”.

The ASX mining share dipped by 4.65% on the day the report was released.

Last month we reported that Austral Resources executive director Daniel Jauncey invested almost $1 million of his own money buying more than 1.6 million extra shares. He already owned 10 million shares prior to the purchase.

Austral Resources is not the only small miner announcing big news in the copper space.

My colleague Monica reported on another ASX mining share shooting the lights out after another copper discovery yesterday.

The Cobre Ltd (ASX: CBE) share price rose 144% on the news yesterday after coming out of a trading halt.

The post Another ASX mining share is soaring 40% on a new copper find today, here’s the lowdown appeared first on The Motley Fool Australia.

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More reading

• 3 ASX mining shares soaring higher on new discoveries today
• ASX copper shares in the red as copper price sinks to 19 month low

Motley Fool contributor Bronwyn Allen 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 Mesoblast Limited (ASX: MSB) share price skyrocketed in July.

Shares in the clinical-stage biotechnology company closed 30 June trading at 61 cents per share. On 29 July, the last trading day of the month, Mesoblast closed at 94 cents per share, up a whopping 54.1% for the month.

For some context, the All Ordinaries Index (ASX: XAO) gained 6.3% in July.

At its closing price in July, the company had market cap of $611 million.

Shares have slipped 4.8% so far in August to 89 cents per share.

What lifted the ASX biotech share in July?

The Mesoblast share price looks to have enjoyed some bargain hunting early in July after shares fell 38% in June, far outpacing the 10% loss posted by the All Ordinaries.

Aside from the company’s quarterly activities report released on 29 July, which saw shares close the day down 2.1%, the only price-sensitive news out from Mesoblast was released on 19 July.

The update on its rexlemestrocel-L product candidate saw the Mesoblast share price close the day up 8.2%.

As The Motley Fool reported on the day:

Rexlemestrocel-L delivered an improvement in left ventricular ejection fraction (LVEF) at 12 months after a single intervention in the 565-patient randomised controlled trial in New York Heart Association (NYHA) class II/III chronic heart failure (CHF) with reduced ejection fraction (HFrEF).

Among the highlights of the clinical trial was a 68% decrease in the rate of recurrent hospitalisations from non-fatal heart attacks or strokes compared with patients in control groups.

Mesoblast shares likely received some sustained tailwinds from the positive trial outcome.

The company reported it will meet with the US Food and Drug Administration (FDA) under the regenerative medicine advanced therapy framework to work on regulatory approval in the world’s top economy.

Mesoblast share price snapshot

Despite the strong run higher in July, the Mesoblast share price remains down 55% over the past 12 months. That compares to a full year loss of 8% posted by the All Ordinaries.

The post Why did the Mesoblast share price rocket 54% in July? appeared first on The Motley Fool Australia.

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More reading

• 3 ASX All Ordinaries shares leaping 10% or more today
• Why JB Hi-Fi, Mesoblast, Pendal, and Woodside shares are pushing higher
• Why is the Mesoblast share price jumping 14%?
• How did ASX biotech shares perform in FY22?
• These are the 10 most shorted ASX shares

Motley Fool contributor Bernd Struben 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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It’s been a day of red ink for ASX shares so far this Tuesday. Breaking with a five-day winning streak so far today, the All Ords is currently down by 0.41%. But it’s been dramatically worse for the Livetiles Ltd (ASX: LVT) share price.

Livetiles shares have plunged in value today. The ASX tech share is presently down by a painful 52.54% at just 2.8 cents per share at the time of writing. We do not have to look too far to see why ASX investors are abandoning this company.

Before today, Livetiles shares had actually been in a trading halt since Thursday last week. Before that, the company’s shares had been under increasing pressure following a disappointing quarterly update delivered on 25 July.

Livetiles did report a 17% increase in operating revenues against FY2021. However, its cash receipts for the three months ending 30 June came to $12.9 million, a year-on-year decline of 11%.

Upon the release of this update, Livetiles shares fell by more than 30%. As of today, the company is now down by close to 70% since 22 July. It’s also down by 72% over 2022 thus far.

Following the release of this update, on Thursday 28 July the company requested a trading halt “pending it releasing an announcement”. Well, we now know what this announcement is.

Livetiles shares are leaving the ASX

This morning, the company revealed it is “voluntarily delisting” from the ASX boards.

Here’s why Livetiles stated it is abandoning its public listing:

The Delisting is considered by the Company’s Board (Board) to be in the best interests of the Company for a number of reasons, including underperformance of the trading price of the Company’s shares, relatively low levels of trading liquidity and a number of flow on consequences…

These factors, as well as the costs and administrative burden of remaining listed on ASX, outweigh the benefits associated with remaining listed.

The company also declared that “the trading price of the Company’s shares in recent years implies a valuation that has been (and remains) consistently and materially lower than the valuations of unlisted companies of a comparable nature and stage to LiveTiles”.

It also notes that “LiveTiles is well funded and has no intention to raise equity capital in the near term”. But any future capital raising will be easier as a private company.

Livetiles will hold a general meeting on 5 September. This will allow shareholders to vote to approve this delisting. If that goes ahead as planned, Livetiles shares will be suspended from the ASX on 6 October and delisted the following day.

The post Down 72% in 2022, Livetiles shares are now delisting from the ASX, here’s why appeared first on The Motley Fool Australia.

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• LiveTiles share price slumps 31% as quarterly cash bleed worsens

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 positions in and has recommended LIVETILES FPO. The Motley Fool Australia has recommended LIVETILES 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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The Chalice Mining Ltd (ASX: CHN) share price is slipping in lunchtime trade on Tuesday amid news of the company’s 51%-owned South West Project.

The company has agreed to get started on activities that could see it snapping up another 19% stake in the nickel, copper, and platinum group elements project.

At the time of writing, the Chalice Mining share price is $4.63, 1.07% lower than its previous close.

Meanwhile, the S&P/ASX 200 Index (ASX: XJO) is down 0.58% and the S&P/ASX 200 Materials Index (ASX: XMJ) has fallen 1.72%.

Let’s take a closer look at the company’s latest news.

Chalice Mining doubles down on South West Project

The Chalice Mining share price is edging lower amid Venture Minerals Limited (ASX: VMS) announcing the ASX 200 mineral explorer has agreed to kick off the second stage of its joint venture.

The second stage could see Chalice Mining earning an additional 19% hold in the South West Project in return for $2.5 million of expenditure over two years.

That would see it with 70% ownership of the project.

Today’s news comes just weeks after the company identified two new targets at the project.

In the second stage, Chalice Mining will follow up on the new targets to prepare for potential drill testing.

The project also hosts the Thor and Odin prospects. Both have been found to house copper and nickel.

Venture Minerals managing director Andrew Radonjic said Chalice Mining’s commitment to the second stage is “a strong endorsement of the project”.

Radonjic also noted recent nickel findings suggest $2.5 million of additional exploration “should go a long way” to exposing the project’s potential.

If Chalice Mining earns the extra 19% stake, Venture Minerals can choose between contributing 30% or diluting its interest in the joint venture to 10%, reverting its interest to a 1.25% net smelter return royalty.

Chalice Mining share price

Sadly, the Chalice Mining share price is well and truly in the long-term red.

The stock is currently 51% lower than it was at the start of 2022. It has also fallen 31% over the last 12 months.

For comparison, the ASX 200 has dumped 8% year-to-date and 7% since this time last year.

The post What’s driving the Chalice Mining share price on Tuesday? appeared first on The Motley Fool Australia.

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More reading

• Here are the top 10 ASX 200 shares today
• Here are the top 10 ASX shares today
• These ASX 200 mining shares are getting buried. What’s happening?
• Here are the top 10 ASX shares today
• What’s behind the Chalice Mining share price jumping 7% today?

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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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.

Let’s face it — some investors just do better than others. It might take some of them more time or require an unpopular track to achieve those superior results. But, in that the best possible net returns relative to a given amount of risk is the ultimate end goal, it only makes sense to do what works best.

With that as the backdrop, here are three not-so-secret secrets that the world’s best investors know, and act upon even when it’s tempting not to. In no particular order…

1. Less is more

It’s a tired (and somewhat overused) cliche. It’s a cliche, however, for all the right reasons including the most important one… it’s absolutely true, particularly as it pertains to investing.

It’s also a vague view without a deeper explanation. So, for less experienced investors, here’s the overarching basis for the “less is more” lesson: Buy and sell less frequently, and hold more of your stocks for longer periods. Not that you shouldn’t adjust as needed should things change in the meantime, but as a rule of thumb you should be thinking about holding periods of at least five years before stepping into a stock.

It’s a toughie to be sure, and the financial media generally doesn’t help. Much of cable TV’s market coverage as well as the web’s constant updates make it sound as if constantly swapping stocks is the best path to wealth. It isn’t. That commentary is largely meant to draw a crowd to deliver advertisements to. Sound investment advice, however, generally doesn’t draw and excite a crowd. It’s a problem simply because investors often make short-term buying and selling decisions at the worst possible time for the worst possible reason, trading away profits right before or right after they’re reaped.

2. Simpler is better

The longer you’re an investor, the more investment prospects other than stocks you’ll come across. Cryptocurrencies have been one of the hotter alternatives of late, while equity and index options seem to be perennial favorites for folks looking to squeeze a little more out of the market. Commodities like gold and even physical real estate also seem to cyclically catch people’s eyes when the stock market feels like it’s running out of steam.

However, many of these manias are gimmicks mostly meant to enrich the people pushing them rather than grow wealth for the investors risking their own capital on them. Like most fads, these manias tend to fizzle out right around the time the masses are just starting to file in.

Your best bet is keeping things simple by sticking with stocks… instruments that have withstood the test of time. They’re not always the best performers in the near term. They tend to be the best performers for the long haul, however, because they’re stakes in companies you can see, understand, and evaluate their earnings. The same can’t be said for cryptos, or even many commodities.

3. Time is your best ally

Finally, the world’s most successful investors understand that the biggest returns are reaped by leaving stock holdings alone for years on end. That’s true even in the years when stocks — or one particular stock — are struggling. The biggest paybacks materialize during the last portions of a holding period in which gains are reinvested in the market.

Some number-crunching puts this reality in perspective. Say you’re contributing $10,000 per year into a fund based on the S&P 500 index (SNPINDEX: ^GSPC), earning an average return of 10% per year, and reinvesting any given year’s earnings. At the end of 30 years, you’d be sitting on a nest egg of just over $1.8 million. The thing is, around $1 million of that total nest egg didn’t take shape until the last eight years of that 30-year stretch. It took 22 years to build up an asset base to take meaningful advantage of the S&P 500’s long-term average return.

Here’s another example of the power of sheer time: Even if you only contributed $10,000 per year to an S&P 500 index fund for 20 years and then just let it ride without any fresh capital being added for the next 10, you’d still end the 30-year stretch with a little over $1.6 million. If you cashed just after the 20 years of annual contributions of $10,000 though, you’d only walk away with about $630,000.

The moral of the story is, get in and stay in for a long as you feasibly can, so you can earn money on as much of your previously earned returns as you can. 

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

The post 3 things only the most successful investors will understand appeared first on The Motley Fool Australia.

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James Brumley 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.

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

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The Centuria Office REIT (ASX: COF) share price is taking a tumble today.

The real estate investment trust (REIT) owns a portfolio of assets in core office markets across Australia’s major cities.

The S&P/ASX 300 Index (ASX: XKO) share closed yesterday trading for $1.86 and is currently trading for $1.69, down 9.1%.

This comes following the release of the company’s full year results for the financial year ending 30 June (FY22) and revised guidance for FY23.

What happened during FY22?

• Statutory net profit of $115 million, up 50% from FY21
• Funds from operations (FFO) up 2.7% year-on-year to $104.9 million
• Achieved 98.2% average rent collection throughout FY22
• $99 million of distributions paid, or 16.6 cents per share

What else happened during the year?

Centuria reported it refinanced $257.5 million in debt during the year. The ASX share’s debt maturity increased to 3.7 years, with no debt expiry until the 2025 financial year. It also increased its debt headroom by $130.5 million.

Gearing as at 30 June stood at 33.8%, with 55.9% of that debt hedged.

The REIT’s portfolio is comprised of 23 office assets valued at $2.3 billion.

Over the 12 months, the ASX share sold one asset for $20.9 million and acquired three new assets, worth $313.7 million.

The average building age in the portfolio dropped to 16 years, with 90% of the offices labelled A-Grade assets.

Occupancy levels increased to 94.7% year-on-year as more people returned to office work. The portfolio’s weighted average lease expiry remained unchanged at 4.2 years. The ASX share said 79% of its rental income comes from government, multinational corporations and listed entities.

What did management say?

Commenting on the results, Grant Nichols, COF fund manager said:

COF has generated solid results in FY22, delivering an increased net profit while providing FFO and distributions consistent with guidance despite the impacts of rising interest rates. The most pleasing aspect of the results was the significant amount of leasing that COF continued to execute, with over 40,000sqm leased during FY22…

Australia’s strong employment rate and rising return to office corporate policies, provide encouraging tailwinds for tenant demand in FY23.

What’s next?

The ASX 300 share looks to be facing some headwinds today from its outlook of a more challenging year ahead.

Nichols noted that “prevailing inflation, and subsequent rising interest rates, have impacted our FY23 FFO guidance”.

“We recognise that a rising interest rate environment creates some future uncertainty, but we remain optimistic for Australian office markets,” he added.

The company’s FY23 guidance for FFO is 15.8 cents per share with a distribution guidance of 14.1 cents per share, a yield of 7.7% based on recent trading prices.

How has this ASX 300 share been performing?

Over the past 12 months, the Centuria Office REIT is down 32%. This compares to a full year loss of 7% posted by the ASX 300.

The post Why did this $1.1 billion ASX 300 share just sink 9%? appeared first on The Motley Fool Australia.

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Motley Fool contributor Bernd Struben 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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