The Mineral Resources Ltd (ASX: MIN) share price is driving ahead today and now trades 2.63% higher at $49.97.

The gain marks an 11% increase in the company’s share price over the last month, as commodities extend a three-month rally that shows no sign of slowing down.

Mineral Resources shares bounced off a low of $43.72 in late February before retesting that level again in a double-bottom during March. They have since spiked to their current levels.

Why is the Mineral Resources share price rallying?

Mineral Resources has a portfolio of mining operations across lithium, manganese, and iron ore.

According to the company’s website, it has a large footprint providing mining services to clients throughout Western Australia and the Northern Territory, operating mine sites in the Pilbara and Goldfields regions.

Each of these markets have strengthened over the past few months to now trade well in the green as of 2022.

Iron ore, for instance, has snaked its way 73% higher since November whereas lithium carbonate continues to set new all-time highs at 497,500 Chinese yuan per tonne on last check.

Given Mineral Resources’ exposure to these resources on the mining level, it is considered a price taker which means its share price fluctuates with volatility in these commodities.

As markets for iron ore and lithium, in particular, have climbed since February so too has the Mineral Resources share price.

Mineral Resources also released an update on its Lockyer Deep-1 conventional gas exploration well today. The well is located in the northern Perth Basin in Western Australia.

The release wasn’t price-sensitive but covered news of testing results.

The company advised of findings from a recent well testing at the site, saying it had achieved “an instantaneous maximum gas flow rate of 117 mmscf/d; excellent conventional reservoir quality and well deliverability encountered in the Kingia Sandstone; Gas characterised by low impurities of CO2 less than 4% and H2S less than 3 ppm; [and] Condensate recovered to surface with a preliminary condensate gas ratio (CGR) of 5-6 bbl/mmscf”.

Speaking on the results, Mineral Resources Managing Director Chris Ellison said:

The Lockyer Deep-1 test results have confirmed our expectations regarding well deliverability, reservoir quality and gas composition. We will now undertake additional drilling as part of the ongoing evaluation of the resource. If developed, Lockyer Deep will provide low-cost energy security for Mineral Resources, our Joint Venture partners and our Tier 1 clients enabling the transition from diesel to cleaner natural gas as we work towards Net Zero Emissions by 2050

The Mineral Resources share price has jumped 34% in the past 12 months but has slipped 11% this year to date.

The post Why is the Mineral Resources (ASX:MIN) share price having such a top run this month? appeared first on The Motley Fool Australia.

More reading

• 2 ravaged ASX shares that will rise again: expert
• Why are ASX 200 mining shares having such a dire day?
• 3 under-the-radar commodity prices soaring since the Ukraine crisis
• Why Argosy Minerals, Block, Core Lithium, and Mineral Resources are storming higher
• What’s the difference between lithium hydroxide and spodumene and which ASX shares are involved with each one?

Motley Fool contributor Zach Bristow 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 Bruce Jackson.

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The Star Entertainment Group Ltd (ASX: SGR) share price is in the red on news that the company’s CEO is stepping down after damning evidence of the casino’s conduct was tabled as part of an ongoing inquiry.

The boss’ resignation follows last week’s hearings conducted by the Independent Liquor and Gaming Authority of New South Wales. The regulator is working to decide if Star is fit to hold its Sydney casino licence.

At the time of writing, the Star share price is $3.21, 0.62% lower than its previous close.

Let’s take a closer look at what’s weighing on the casino operator’s stock today.

Inquiry into Star’s Sydney licence sees CEO step down

The Star share price is slipping today after the company announced its long-term CEO and managing director Matt Bekier has handed in his resignation and stepped down from its board.

According to the company, Bekier said “the right thing to do” was for him to take responsibility for the company’s “processes, policies, people, and culture” amid the ongoing review.

Last week, the NSW gaming regulator’s inquiry heard Bekier express hostility when presented with a report by KPMG into weaknesses in the company’s anti-money laundering processes.

According to transcripts, the company’s former chief risk officer Paul McWilliams told the inquiry Bekier “was in … a sulk” when presented with the report.

McWilliams also said the CEO appeared to believe KPMG didn’t know what they were talking about.

Additionally, the Australian Financial Review (AFR) reported the inquiry heard Star allowed SunCity to continue gambling in a secret room despite Bekier publicly claiming it had ended its relationship with the junket.

The publication also stated the company was said to have deliberately misled regulators about the private room’s existence.

Those findings follow previously heard evidence claiming Star covered up $900 million of Chinese debit gambling transactions.

As The Motley Fool Australia’s Zach Bristow reported, the company alledgedly disguised the gambling spend as hotel expenses.  

Bekier will step down from the Star board immediately but will retain the top job for the time being.

For now, he will work with the board towards an orderly transition of the CEO and managing director role.

Star Entertainment share price snapshot

Perhaps unsurprisingly, the Star share price has been suffering through 2022 so far.

Right now, it is 15.3% lower than it was at the start of this year. Of that slip, 4.1% occurred over the last month.

The company’s stock has also fallen 15.9% since this time last year.

The post Star Entertainment (ASX:SGR) share price slips after CEO steps down appeared first on The Motley Fool Australia.

More reading

• Why is the Star Entertainment (ASX:SGR) share price slumping to fresh 52-week lows?

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 Bruce Jackson.

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The AGL Energy Ltd (ASX: AGL) share price has had a stellar week, so what is going on?

AGL shares have jumped more than 5% since 21 March. They are currently trading at $7.65, a 0.92% gain so far today.

In comparison, the S&P/ASX 200 Index (ASX: XJO) has climbed 2% over the past week and is up 0.45% at the time of writing.

AGL’s share price performance is mirrored by the S&P/ASX 200 Energy Index (ASX: XEJ) which has also leapt 5% since 21 March.

Let’s take a look at what has been happening at AGL.

New battery deal

AGL will build a large battery at Broken Hill in New South Wales. The project is worth $41 million and includes a $14.84 million grant from the federal government’s Australian Renewable Energy Agency (ARENA).

The battery will include advanced inverter technology to improve system strength in weak parts of the grid.

Fluence and consortium partner Valmec will supply the 50 megawatt (MW), 50 megawatt hour (MWh) battery for the project.

Commenting on the project, AGL chief operating officer Markus Brokhof said:

Broken Hill’s unique edge-of-grid environment provides an ideal location for this advanced inverter technology to demonstrate how it can facilitate further penetration of renewable energy generation and add to the stability of the wider electricity network.

As Australia moves forward with its energy transition, we know that firming technologies like batteries play an important role in energy storage and supporting renewable energy supply.

The battery will be located about 6 km northwest of the Broken Hill airport. Construction completion is earmarked for early 2023. The project will provide up to 50 jobs for engineers, tradies, and contractors.

Commenting on the Federal Government grant, Minister for Industry, Energy and Emissions Reduction Angus Taylor said:

This is the 35th ARENA project we’ve invested in across New South Wales since January 2020. This battery will help stabilise the system, which is particularly important for areas such as Broken Hill that are at the edge of the electricity grid.

In other news, my Foolish colleague Zach recently reported broker sentiment is mixed on the AGL share price. JP Morgan and Credit Suisse rate AGL as a buy, while Barrenjoey Markets has placed a neutral rating on the share. The consensus price target for the share is $8.22.

AGL has also recently announced a plan for 200 EV smart chargers, my Foolish colleague Bernd reported.

Meanwhile, AGL is forging ahead with plans to demerge the company into two separate entities in June this year.

On 30 March, AGL will pay a dividend of 16 cents per share. This is a 60% cut on the previous interim dividend.

AGL share price snapshot

The AGL share price is up almost 25% year to date but has slid 26% lower in the past year.

In the past month, AGL shares are up nearly 2% boosted by their performance over the past week

For perspective, the S&P/ASX 200 Index (ASX: XJO) has returned around 9% in the past year.

AGL has a market capitalisation of roughly $5 billion based on its current share price.

The post The AGL (ASX:AGL) share price has jumped 5% in a week. What’s been happening? appeared first on The Motley Fool Australia.

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• Down 8% since February, is the AGL (ASX:AGL) share price a buy?
• Own AGL shares? Here’s why the company has been making news this week
• Are AGL (ASX:AGL) shares worth buying prior to the planned demerger?
• 3 high-dividend ASX shares that are TRAPS: expert
• Why this broker says buy Origin (ASX:ORG) shares instead of AGL

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 Bruce Jackson.

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The St Barbara Ltd (ASX: SBM) share price is in negative territory today.

At the time of writing, the gold miner’s shares are trading for $1.49, down 1.97%.

What happened?

The St Barbara share price is being weighed down today as investors react to the company’s latest projections.

According to its release, St Barbara provided a FY22 guidance for its Simberi Operations in New Ireland Province, Papua New Guinea (PNG).

Simberi is forecasted to produce between 25-30koz at an all-in sustaining cost (ASIC) of $3,200-$3,600 per ounce in FY22.

As such, the group’s FY22 production guidance is expected to come to 275-290koz and AISC of $1,750-1,870 per ounce. The guidance for its operations at Leonora and Atlantic remains unchanged.

Last month, St Barbara withdrew its guidance at Simberi following a severe outbreak of COVID-19 across the Tabar Island group. This affected operations as personnel were forced into isolation.

At the peak, 270 people of the 600 strong workforce were at home recovering.

With limited operators and maintainers available, this impacted the amount of material mined and hauled. As a result, production for the third quarter is now expected to be roughly 11koz.

While the number of cases has fallen to 12 employees in isolation, the situation is deemed to be under control.

Nonetheless, the company has determined that ramp-up rates will be slower than previously anticipated. Securing expatriate maintenance specialists and operations management continues to be challenging.

This is expected to impact Q4 FY22, however the new guidance range reflects the latest assessment.

Quick take on Simberi operations

Acquired in 2012, Simberi operations is an open cut mining operation, situated on the northernmost island in the Tabar group of islands of PNG. The company has a 100% indirect interest in the Simberi Gold Project, through its wholly-owned subsidiary, Simberi Gold Company Ltd.

Recently the company announced its pre-feasibility study which highlighted that the project has potentially strong financial returns.

In addition, the mine life is expected to run for about 11 years.

About the St Barbara share price

Over the past 12 months, St Barbara shares have plummeted around 26%. Year to date, the shares are in the green, up 2%.

The company’s share price reached a 52-week low of $1.208 in January 2022 and has moved in circles since.

St Barbara has a price-to-earnings (P/E) ratio of 8.29 and commands a market capitalisation of roughly $1.06 billion.

The post Why the St Barbara (ASX:SBM) share price is slipping today? appeared first on The Motley Fool Australia.

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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 Bruce Jackson.

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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.

You don’t have to be an investing genius to make a lot of money with stocks. Don’t take my word for it. Just listen to what Warren Buffett, one of the greatest investors of all time, says.

Buffett wrote to Berkshire Hathaway (NYSE: BRK.A) (NYSE: BRK.B) shareholders last year about a way that any investor could amass significant gains. But the Oracle of Omaha didn’t stop there. Buffett thinks this investing strategy could even make a monkey rich. 

Monkey business

Buffett’s underlying premise is that “ownership of stocks is very much a ‘positive-sum’ game.” His reference was to a term used in game theory that describes a situation where the total of gains and losses will always be greater than zero. In other words, all players will be winners over the long run.

It’s important to remember that Buffett views buying stocks as buying a part of a business. That’s an accurate take. In fact, he wrote in his most recent letter to Berkshire shareholders that he and his longtime right-hand man Charlie Munger “are not stock-pickers; we are business-pickers.” 

So what is Buffett’s strategy that he thinks will make even a monkey rich? There are only three steps involved:

1. Throw 50 darts at a list of all of the stocks in the S&P 500 index. 
2. Buy the 50 stocks the darts land on.
3. Hold those stocks for the long term.

That’s it. Buffett did mention that the monkey should be “patient and level-headed.” In particular, he warned that the monkey shouldn’t be tempted to make changes along the way. The legendary investor stated, “All that’s required is the passage of time, an inner calm, ample diversification, and a minimization of transactions and fees.”

Testing Buffett’s strategy

Just out of curiosity, I decided to test Buffett’s “monkey strategy.” I’ll admit that I deviated a little from his prescribed approach, though. My wife wouldn’t be happy with me throwing 50 darts in our house. (She doesn’t trust my aim that much.)

Instead, I closed my eyes and randomly pointed to 50 different stocks that were members of the S&P 500 two decades ago. Why go back 20 years? I figured that was a sufficient period to meet Buffett’s long-term hold criterion. 

The average total return (including stock appreciation and dividends) of the 50 stocks in my “monkey portfolio” during this period was 741%. An initial investment of $10,000 spread across those stocks would be worth around $84,100. 

In case you’re wondering, the biggest winner was Altria (NYSE: MO). The tobacco giant delivered a total return of 3,050%. Some investors think that Altria is still a smart stock to buy now. 

Fourteen other stocks that I chose randomly were at least 10-baggers. No stock delivered a negative return during the period. However, Lumen Technologies (NYSE: LUMN) came close with a total return of only 7%. Considering inflation, I’d chalk Lumen up as a loser.

An even easier approach

Granted, my single test of Buffett’s strategy doesn’t prove that it works. I suspect that a large enough number of tests to be statistically valid would deliver a smaller total return than what I obtained.

In fact, I’m confident that would be the case. Why? There’s an even easier investing approach that Buffett also really likes: Buying an S&P 500 fund. Following this strategy would have generated a total return of around 485% over the last 20 years.

Also, I didn’t include the costs associated with buying 50 different stocks. That makes investing in an S&P 500 fund even more attractive than Buffett’s monkey-and-darts approach.

However, I truly believe that Buffett is onto something. And I wish that I had a patient and level-headed monkey following his approach to help me invest years ago. 

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

The post Warren Buffett thinks this investing strategy could even make a monkey rich appeared first on The Motley Fool Australia.

More reading

• Why the St Barbara (ASX:SBM) share price is slipping today?
• What is the current dividend yield on ANZ shares?
• Up 350% in a year, here’s why the Firefinch (ASX:FFX) share price is flying higher on Monday
• What’s the outlook for the Westpac share price in April?
• 5 questions to ask yourself in case the stock market keeps crashing

Keith Speights owns Berkshire Hathaway (B shares). The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended 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), short January 2023 $200 puts on Berkshire Hathaway (B shares), and short January 2023 $265 calls on Berkshire Hathaway (B shares). The Motley Fool Australia has recommended Berkshire Hathaway (B shares). The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson. 

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

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As a major ASX banking share, Australia and New Zeland Banking Group Ltd (ASX: ANZ) has long had a reputation as one of the top dividend-paying shares on the S&P/ASX 200 Index (ASX: XJO). That more or less comes with the territory of being a member of the big four ASX banks. But as many investors would be unfortunately aware, the ANZ share price hasn’t had the best time of it lately.

ANZ shares remain down by 0.7% year to date, despite today’s modest gain. Over the past 12 months, ANZ is also slightly in the red, having lost 1.14% on current pricing. By contrast, the Commonwealth Bank of Australia (ASX: CBA) share price has recorded a gain of close to 6% in 2022 so far, as well as a 12-month performance of almost 25%.

But ANZ’s laggardly share price performance has helped push the bank’s dividend yield rather high. ANZ is now the highest-yielding ASX big four bank on the ASX 200, beating out CBA as well as National Australia Bank Ltd (ASX: NAB) and Westpac Banking Corp (ASX: WBC).

Top of the ASX banking pile: ANZ dividend yielding north of 5%

So how much is the ANZ dividend worth right now? Let’s take a look.

Well, ANZ has paid out two dividends over the past 12 months, as is normal for most ASX blue-chip shares. Its last payment came in December last year – a final dividend worth 72 cents per share, fully franked. Before that, investors received ANZ’s interim dividend in July last year. That was worth 70 cents per share, also fully franked. That means ANZ has paid out a total of $1.42 in dividends per share over the past year.

At the time of writing, the ANZ share price is going for $27.82, up 0.76% for the day so far. At this share price, those two dividends give this ASX bank a trailing dividend yield of 5.12%. If we include the value of ANZ’s full franking, that grosses up to a healthy 7.31%.

At the current ANZ share price, this ASX 200 banking share has a market capitalisation of $78 billion.

The post What is the current dividend yield on ANZ shares? appeared first on The Motley Fool Australia.

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Motley Fool contributor Sebastian Bowen owns National Australia Bank 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 recommended Westpac Banking Corporation. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The Firefinch Ltd (ASX: FFX) share price is flying higher in morning trade, up 4.8% after posting earlier gains of 6.4%.

Firefinch shares closed on Friday at 95 cents and are currently trading for 99 cents.

Here’s why ASX investors are bidding up the Mali-focused gold miner and lithium developer’s shares.

What is the latest progress on the joint venture?

The Firefinch share price is marching higher after the company reported that the final conditions have been met regarding Jiangxi Ganfeng Lithium Co’s investment into its Goulamina Lithium Project.

After the transfer of the exploitation licence for the Goulamina to Lithium du Mali SA (LMSA) – a wholly-owned subsidiary of the joint venture (JV) company – Firefinch and Ganfeng now each hold a 50% interest in the JV company.

Firefinch said that all other conditions precedent had been satisfied. That includes a ‘letter of no objection’ from the Malian government.

The Firefinch share price could be getting a boost today from the report that under the JV agreement, Ganfeng will provide US$130 million of equity funding to the JV company. Ganfeng will also provide either US$40 million of Ganfeng direct debt or source US$64 million of third-party debt.

With the final conditions of the JV satisfied, Firefinch can now proceed with the demerger of Goulamina into Leo Lithium Limited. Firefinch expects to list Leo Lithium as a separate entity on the ASX later this year. Leo is the Firefinch group entity that holds its interest in the JV.

Firefinch managing director Michael Anderson commented on the progress:

This is a long-awaited and significant milestone. We have been working tirelessly to progress the joint venture and demerger process to deliver value for shareholders and are delighted to be on the brink of achieving the intended result.

Leo managing director Simon Hay added:

This is this a tremendous step along the path to listing Leo Lithium and developing Goulamina as one of the world’s largest lithium producers. The combined debt and equity funding package of at least US$170 million from Ganfeng means Leo can now accelerate work on the Goulamina Project.

Firefinch share price snapshot

The Firefinch share price has gained 52% over the past month and a whopping 350% since this time last year.

For some context, the All Ordinaries Index (ASX: XAO) is up 10% over the past 12 months.

The post Up 350% in a year, here’s why the Firefinch (ASX:FFX) share price is flying higher on Monday appeared first on The Motley Fool Australia.

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• Why Allkem, Firefinch, JB Hi-Fi, and Piedmont Lithium are charging higher
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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 Bruce Jackson.

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The Westpac Banking Corp (ASX: WBC) share price has been fairly volatile since the beginning of 2022, like most ASX shares. But, it has managed an increase of 10% from the start of the year.

It’s impossible to know what the Westpac share price is going to do in any given week, month, or even year. For example, no one could have genuinely seen that the COVID-19 pandemic was going to happen when it did.

How are things looking for the Westpac share price? 

The broker Citi is optimistic about the big four ASX bank. Westpac is Citi’s top choice compared to the other big four ASX banks of Commonwealth Bank of Australia (ASX: CBA), National Australia Bank Ltd. (ASX: NAB) and Australia and New Zealand Banking Group Ltd (ASX: ANZ).

Citi notes that Aussie banks have been doing better than other international banks since the start of the Russian invasion of Ukraine, though this outperformance may not continue. Australian banks may be doing well because of their strong balance sheets and the fact that Australia has a lot of commodity exposure.

Banks such as Westpac could benefit from rising interest rates.

The US Federal Reserve has commented that interest rates could increase by 50 basis points in one go to combat the very high level of inflation in the US. Federal Reserve officials have indicated that interest rates are likely to increase at each meeting between now and the end of 2022.

Australian interest rates are expected to rise too. According to reporting by the Sydney Morning Herald, ANZ expects the RBA to increase rates in the third quarter of 2022. There are other predictions, such as CBA’s, that the RBA could raise interest rates as early as June 2022.

Citi rates Westpac as a buy, with a price target of $27.

However, there are other brokers with much lower expectations.

For example, Morgan Stanley is ‘equal weight’ on Westpac, with a price target of just $22.40.

Recent profit performance

Last month, the bank released its update for the three months to 31 December 2021. It showed that the $1.82 billion quarterly profit was 80% higher than the quarterly average for the second half of FY21. The cash earnings of $1.58 billion were up 74%, though it was only an increase of 1% when excluding notable items.

Lending was up $5 billion, or 0.7%, over the quarter across institutional, mortgages and New Zealand.

The net interest margin was 1.91%, down 8 basis points due to competition and higher liquid assets.

Expenses were down 26% to $2.7 billion. Excluding notable items, expenses were down 7%.

There was an impairment charge of $118 million, mostly from increased ‘provision overlays’ reflecting continuing COVID-19 uncertainty.

Westpac said that asset quality metrics continued to improve and it had a “strong” common equity tier 1 (CET1) capital ratio of 12.2%.

The post What’s the outlook for the Westpac share price in April? appeared first on The Motley Fool Australia.

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• Analysts name 2 ASX dividend shares to buy right now

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 Westpac Banking Corporation. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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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.

The Nasdaq Composite exploded higher by 9% over just five recent trading days, pulling the index out of its brief stint in a bear market. The index remains in correction territory, but the rebound is a big reprieve. But we aren’t out of the woods yet.

No one knows if the market will retest its 2022 lows. What we do know is that volatility remains high, and the month of March has been chock-full of broad market gyrations with several big days to the upside and the downside.

Given all the uncertainty, it’s better to prepare for further downside now than be complacent and get caught off guard. Here are five questions you should ask yourself in case the stock market keeps crashing.

1. Why are you investing?

The stock market is but one playing field upon which several different games are simultaneously being played. Some folks are day trading and care nothing about fundamentals. Instead, their focus is on short-term price action and technical analysis. Others are trying to bet big on a moon shot. Some people are trying to beat the market over a multi-decade time horizon. And many folks are simply focused on capital preservation or passive income generation in retirement. There’s a big difference between a Wall Street hedge fund with billions of dollars under management and an 18-year-old kid with $500 in spare cash they made over the summer.

Once you begin to understand the different types of investors and their different motivations, it becomes easier to understand why stock prices can do crazy things. Put a different way, knee-jerk reactions and market volatility become less surprising.

Although it can be tempting to try to time the market, the best an investor can do is be roughly right, pick good companies, keep a level head, and let the power of patience and compounding returns do their work over time. These are tools that are free to use, yet many investors ignore them in favor of gambling.

2. What is your time horizon?

Your investment horizon is heavily influenced by age. But it can also depend on different financial obligations or upcoming expenses. Some investors are in the asset accumulation phase, while others are in the asset distribution phase.

Younger investors who still have their highest-earning years ahead of them and fewer financial obligations can afford to take risks and can use decades of portfolio growth to their advantage. Investors nearing retirement, or any period where spending may begin to outpace income, tend to be more focused on safeguarding their nest egg and protecting against downside risk. In this sense, an investor with a longer time horizon can afford to have a higher percentage of their assets in growth stocks while a retiree may be more interested in the income from stable dividend payers.

3. What is your risk tolerance?

Looking at a chart of stocks that beat the market over the last few decades is a simple enough exercise. But not all gains are created equal. In fact, some of the best stocks have been extremely volatile and required nerves of steel to hold during certain time periods. For example, Amazon (NASDAQ: AMZN) stock lost nearly 90% of its value in less than 18 months during the dot-com bubble burst in the early 2000s.

Between 23 October 2007 and 20 November 2008, Amazon again lost 65% of its value. And then between 4 September 2018 and Christmas Eve 2018, Amazon lost over a third of its value. However, even if you bought Amazon stock at its peak right before the dot-com bust on 3 January 2000 and suffered through those declines, you would be sitting on a 3,500% gain as of this writing. 

The lesson here is to understand your temperament and risk tolerance before buying a stock. Investors who bought Amazon and panic sold missed out on some major gains. But the decision is all too clear in hindsight and never easy in the moment.

4. How vulnerable are you to volatility?

Exposure to volatility combines your personal investment objectives, time horizon, and risk tolerance. For example, a young investor who hates risk but is investing for the next few decades may find themselves with a higher equities allocation than a risk-tolerant investor who has some major purchases coming up or is nearing retirement.

Understanding you and your family’s exposure to volatility is a good exercise that can help build a portfolio that is best for you. Often, being vulnerable to volatility means taking fewer risks and allocating a higher percentage of your savings toward cash and bonds instead of stocks, even though stocks tend to outperform cash and bonds over the long term.

5. What kind of investor do you want to be?

Most of us have our favorite investor role models. Some gravitate toward the characters in Michael Lewis’ The Big Short who correctly predicted the financial crisis and made money from it. Others appreciate Peter Lynch’s grassroots style or Warren Buffett’s patience and wry wisdom. Some folks want to be gunslingers and take bold bets. Others want to stick to what they know and invest in a way that helps them sleep well at night.

At The Motley Fool, we try to foster principles that will give you upside potential, encourage creativity, and provide you with an overall balanced approach. By doing your own research and keeping a diversified portfolio that blends long-term upside with proven winners, you can structure your investments in a way that suits your style.

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

The post 5 questions to ask yourself in case the stock market keeps crashing appeared first on The Motley Fool Australia.

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Daniel Foelber has no position in any of the stocks mentioned. John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended Amazon. The Motley Fool Australia has recommended Amazon. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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

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The Rio Tinto Ltd (ASX: RIO) share price is in the green today amid the company striking a deal on a huge iron deposit.

The mining giant’s shares are currently swapping hands at $119.32, a 2.1% gain. In contrast, the  S&P/ASX 200 Index (ASX: XJO) is up 0.21% today.

The S&P/ASX 200 Resources Index (ASX: XJR) is also up 1.47% at the time of writing. Meantime, the BHP Group Ltd (ASX: BHP) share price is 1.91% higher so far today. The gains coincide with the iron ore price jumping 2.82% in a day, Trading Economics data reveals.

Let’s take a look at what is happening at Rio Tinto.

Deal struck

Rio Tinto has struck a deal with Guinea’s ruling junta on the massive Simandou iron ore deposit in the West African nation.

The agreement also includes the Aluminium Corp of China and SMB-Winning consortium, Reuters reported.

The project had recently been halted by Guinea’s military rulers who took control of the country in September. The iron ore deposit is said to hold more than 2 billion tonnes of high-grade ore.

Mines Minister Moussa Magassouba said on television, the companies “put aside many egos, many other interests to return to what is a win-win partnership for all parties”.

Rio Tinto owns a 45.05% stake in the southern half of the Simandou deposit, known as blocks three and four.

Commenting on the project, Rio Tinto Guinea country head Geraud Moussarie described the deal as “a historic step in the co-development of the Simandou project”, Reuters reported.

The agreement involves developing a 670 km railway from the Simandou site to a deepwater port at a cost of $15 billion.

Rio share price snapshot

The Rio Tinto share price is up 19% this year to date, gaining nearly 8% in the past 12 months.

In the past month, Rio Tinto shares have climbed by more than 4% and are up 8% over the past week alone.

For perspective, the S&P/ASX 200 Index (ASX: XJO) is up nearly 9% in the past 12 months.

Rio has a market capitalisation of about $44 billion based on its current share price.

The post Why is the Rio Tinto (ASX:RIO) share price up today? appeared first on The Motley Fool Australia.

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• BHP share price higher on broker upgrade
• The Rio Tinto (ASX:RIO) share price is up 9% in a week. Here’s why
• Top brokers name 3 ASX shares to buy today
• How does Australia’s ban on alumina exports to Russia impact Rio Tinto (ASX:RIO)?
• Is it too late to jump on surging ASX 200 mining shares in 2022?

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 Bruce Jackson.

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