The Ramsay Health Care Limited (ASX: RHC) share price is continuing its momentum today, up by 3.46% at the time of writing after providing 2 positive updates to the ASX this morning.

Ramsay announced it will provide support for the UK healthcare system for a 14-week period during the COVID-19 pandemic. This continues support it has been providing the UK National Healthcare Service (NHS) since 23 March. 

This new deal continues Ramsay’s strategy of making its private hospital beds available for public health sectors across Australia. Today, the company also announced it has finalised a deal with the Western Australian Government where, in return for maintaining full workforce capacity at its facilities, Ramsay will receive net recoverable costs for its services. 

On Friday, Ramsay announced a similar binding heads of agreement with NSW. Both Queensland and Victoria have already reached similar deals with the company.

Shoring up finances

The Ramsay share price finished last week up 5.3% from Monday’s opening price. Given today’s news and the market’s response so far, I believe it will continue its upward share price momentum. These agreements replace revenue the company had lost due to pandemic restrictions, in particular the cancellation of all non-urgent elective surgeries. The company wisely withdrew its FY20 guidance on 18 March in response to rising uncertainty in Europe particularly at the time. 

The deals over the past 4 to 5 weeks will cover the company’s costs. Also, the capital raising will shore up its finances and place it in a good position as we all emerge from lock down. 

Is the share price momentum justified?

At the time of writing, the Ramsay share price remains down by 8.65%, year to date. At this price, it is trading at a price-to-earnings ratio of 24.7. This is ~2 points higher than its 10-year average and underscores investors belief in the company as a growth opportunity. I personally think it is a great opportunity.

Ramsay has achieved high 10-year compound annual growth rates (CAGR) across all major valuation indicators. This marks it as a very well managed company with a product that is in demand.

Its performance includes a 12.9% CAGR in sales, a 42.4% CAGR in free cashflow and a 13.7% CAGR in earnings per share (EPS). 

Foolish takeaway

Ramsay is set to continue its share price momentum after striking a number of revenue replacement deals across Australia and now in the UK. This underscores the very strong management as shown by its historic financial performance. The company has delivered strong growth over a decade. 

More reading

• How to invest $5,000 in ASX 200 healthcare shares today
• 5 ASX 200 winners and 5 losers of the week
• These small cap ASX shares could be stars of the future
• 3 ASX healthcare shares to buy for strong long-term growth
• The next ASX sector in a post COVID-19 earnings upgrade cycle

Motley Fool contributor Daryl Mather has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Ramsay Health Care Limited. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. 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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There are some industries that may never recover from the COVID-19 global pandemic. What are you supposed to think about the shares in those industries?

It’s clear that some shares are going to see a long-term boost to user numbers and growth, such as Pushpay Holdings Ltd (ASX: PPH) and Kogan.com Ltd (ASX: KGN).

But what about some of the industries that are seeing the opposite? A huge drop off of activity, perhaps a permanent shift in the mindset of their customers?

Travel is one industry that many never recover from COVID-19

Australia has virtually blocked international travel because of the ongoing coronavirus pandemic. I think the travel industry may never be able to fully recover from COVID-19. Particularly if there are permanent costs and screenings of passengers. I’m somewhat confident that domestic travel will be available sooner rather than later. But international travel and tourism could be limited for some time.

How long will it take Sydney Airport Holdings Pty Ltd (ASX: SYD) to see most of its international volume to come back? The physical retail network of Flight Centre Travel Group Ltd (ASX: FLT) may never be the same again. When will Air New Zealand Limited (ASX: AIZ) be able to report good passenger numbers again?

I do think that Webjet Limited (ASX: WEB) and Qantas Airways Limited (ASX: QAN) could be some of the strongest ASX travel performers due to Australia’s good infection position, the need for flights to travel to most parts of Australia and the desire of people to travel.

Physical retail stores

Forcing everyone to stay at home for a few weeks may have caused a fundamental shift in people’s mindsets about shopping. Online shopping can be very convenient. You don’t have to drive all that way, find a car park spot and so on. I think the physical retail store industry may never recover from COVID-19. We’re already hearing some shares like Adairs Ltd (ASX: ADH) and Premier Investments Ltd (ASX: PMV) report huge online growth, and those shoppers may stay online. Retailers reliant on their physical stores could struggle. 

There are some shares that have been doing eCommerce very well such as City Chic Collective Ltd (ASX: CCX).

Property trusts in general

The knock-on effects of COVID-19 will be very interesting for property. Some commercial property bulls are claiming that social distancing will require businesses to rent twice as much space so all employees can be appropriately separate. I’m not so sure that will happen.

I think this period is going to kickstart a longer-term shift to a lot of workers working at home. Imagine the costs that could be saved if businesses can downsize or completely leave their expensive CBD building.

It’s also an interesting question for shopping centres and hotels. Almost the entire real estate investment trust (REIT) industry may never recover from COVID-19.

There are some interesting questions for REITs like Scentre Group (ASX: SCG), Vicinity Centres (ASX: VCX), Hotel Property Investments Ltd (ASX: HPI) and DEXUS Property Group (ASX: DXS). They all still have significant value, I’m not not sure they’ll command the same premium as before. 

But I do believe that REITs like Goodman Group (ASX: GMG) and Rural Funds Group (ASX: RFF) still have promising futures.

Foolish takeaway

There are industries out there that will fully recover from COVID-19. Those shares could be cheap, but you have to consider each idea carefully.

More reading

• Why this overlooked ASX 200 stock just got upgraded by 3 leading brokers to “buy”
• 2 high yield ASX dividend shares to buy for 2021
• The smartest shares to buy if you have $2,000
• ASX 200 Weekly Wrap: Gold miners help edge ASX ever higher
• 5 ASX 200 winners and 5 losers of the week

Motley Fool contributor Tristan Harrison owns shares of RURALFUNDS STAPLED. The Motley Fool Australia owns shares of and has recommended Kogan.com ltd, Premier Investments Limited, PUSHPAY FPO NZX, RURALFUNDS STAPLED, and Webjet Ltd. The Motley Fool Australia has recommended Flight Centre Travel Group Limited and Scentre Group. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. 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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Investing is a tricky game and one that is impossible to perfect. Even great investors like Warren Buffett, Ray Dalio and Peter Lynch have all made mistakes during their successful careers. Even as recently as this year, Warren Buffett sold out of Berkshire Hathaway‘s airline companies, resulting in huge losses.

But even though no investor is perfect, there are still some mistakes we can all try to avoid making in order to increase the chances of long-term investing success.

One of the biggest mistakes any investor can make is to get emotional about their investments. Usually, when we talk about emotional investing, the pitfalls of buying as a result of euphoria and selling as a result of panic are the main topics of conversation.

But those are not the mistakes we’ll be discussing today (although you should still heed them!).

Today, I want to talk about getting sentimental about investing. See, we normally regard investors who show a real interest in their companies as pretty shrewd. Loving a company and its products is a great way to find hidden gems the markets might be overlooking or underappreciating. It’s how early investors in Afterpay Ltd (ASX: APT) might have discovered this gem ahead of the pack, for example.

But there’s a difference between having an emotional connection with a company and an emotional attachment. The latter is the one to avoid. See, if you get too emotionally attached to a company, you may be unwilling to sell your shares if things take a turn for the worse, even if it’s logically the sound to do so.

Attachment – a mistake to avoid

One investor I know held shares of the old Fairfax Media Ltd (now defunct) for many years because they loved reading the newspapers Fairfax produced. Because of this devotion and attachment, they missed the writing on the wall, which was that the old business model newspapers were following was fast becoming obsolete. In hindsight, this investor let an emotional attachment get in the way of good investing practice. Perhaps they should have continued to buy Fairfax’s newspapers, but sold out of their shares before they were acquired by Nine Entertainment Co Holdings Ltd (ASX: NEC) for a fraction of what they were purchased at.

Foolish Takeaway

Incidentally, I love reading newspapers too. But that doesn’t mean I’m willing to invest in their future. You can always support a struggling company by buying their products instead of buying their shares! Letting sentiment and emotional attachment get in the way of prudent investing is a common mistake among ASX investors. Don’t let it happen to you!

More reading

• This ASX fintech share is soaring again as the economy reopens
• Will the Afterpay share price stop at $40 or keep on running?
• These ASX 200 shares are up over 40% in 2020
• 3 fantastic ASX shares to buy when you’re young
• Why a buy and hold strategy for ASX shares is best

Motley Fool contributor Sebastian Bowen has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of AFTERPAY T FPO. The Motley Fool Australia has recommended Nine Entertainment Co. Holdings Limited. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The post Why all ASX investors should avoid this easy mistake in 2020 appeared first on Motley Fool Australia.

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