The Oil Search Ltd (ASX: OSH) share price is heading south today following the immediate departure of the company’s managing director.

At the time of writing, the energy producer’s shares are down 4.39% to $3.70.

What happened?

Investors are heading for the hills, selling Oil Search shares after the company released its latest statement to the ASX.

According to the announcement, Oil Search advised that its managing director, Dr Keiran Wulff has resigned with immediate effect. The sudden departure comes as Dr Wulff has reportedly been suffering from a long-term health condition, which has recently deteriorated.

However, the most concerning aspect of the release appeared to be that there were concerns about Dr Wulff’s behaviour. Apparently, the company’s managing director behaved in a manner that was not consistent with the standards expected by the board. In particular, this is in relation to Dr Wulff’s management style as reported by management.

Having served as managing director since February 2020, Dr Wulff will be replaced by chief financial officer Peter Fredricson. A veteran energy sector resource executive, Mr Fredricson will assume the acting CEO role effective immediately.

The company will begin a search for a permanent managing director/CEO in the near future, considering both internal and external candidates.

Oil Search chair, Rick Lee said that he “looked forward to working with Mr Fredricson to ensure that production projects in Papua New Guinea and development initiatives in both PNG and Alaska remained on track and on budget.”

The company is currently planning to expand liquefied natural gas (LNG) operations in Papua New Guinea. In addition, Oil Search is hoping to sell a slice of its US$3 billion oil project in Alaska.

Mr Lee also commented on the company’s headwinds, and recovery efforts, adding:

This period has been marked by extreme challenges including global lockdowns associated with the COVID-19 pandemic, a plunge in oil prices, crisis measures to protect the Company’s financial position and developing a clear strategy to steer a path to a sustainable future through the energy transition.

It is a tribute to all staff that Oil Search is now in a solid position with record levels of production in PNG, a strengthened balance sheet and our Alaskan development plans meeting milestone targets.

About the Oil Search share price

Over the past year, Oil Search shares have gained more than 20%, reflecting overall positive investor sentiment within the industry. The energy sector is up around 8% since this time last year.

Oil Search shares command a market capitalisation of roughly $7.7 billion, with approximately 2 billion shares on its books.

The post Oil Search (ASX:OSH) share price slides on shock leadership change appeared first on The Motley Fool Australia.

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• 5 things to watch on the ASX 200 on Thursday

Motley Fool contributor Aaron Teboneras 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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With so many shares to choose from on the ASX, it can be hard to decide which ones to buy. The good news is that brokers across the country are doing a lot of the hard work for you.

Three top ASX shares leading brokers have named as buys this week are listed below. Here’s why they are bullish on them:

BlueBet Holdings Ltd (ASX: BBT)

According to a note out of Ord Minnett, its analysts have initiated coverage on this sports betting company’s shares with a buy rating and $2.08 price target. The broker believes that BlueBet is well-positioned for growth thanks to the shift online for sports betting and its expansion into the massive United States market. The BlueBet share price is trading at $1.90 on Monday afternoon.

Link Administration Holdings Ltd (ASX: LNK)

A note out of Morgans reveals that its analysts have upgraded this administration services company’s shares to an add rating with a $5.53 price target. This follows a review of its ratings in the financials sector. The broker upgraded Link’s shares on the belief that it is well-placed for earnings growth thanks to the global economic recovery. So much so, it believes FY 2021 is the bottom of the cycle for its earnings. In addition to this, it notes that its balance sheet is stronger following the PEXA IPO. The Link share price is fetching $4.79 today.

National Australia Bank Ltd (ASX: NAB)

Analysts at Credit Suisse have retained their outperform rating and $27.50 price target on this banking giant’s shares. According to the note, the broker suspects that recent lockdowns may mean the big four banks postpone capital management plans. Nevertheless, the broker believes NAB and its peers are well-placed to accommodate a deterioration in asset quality. In light of this, it is sticking with its outperform rating. It is also forecasting dividends per share of $1.26 in FY 2021 and then $1.33 in FY 2022. The NAB share price is trading at $25.63 on Monday.

The post Leading brokers name 3 ASX shares to buy today appeared first on The Motley Fool Australia.

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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. owns shares of and has recommended Link Administration Holdings Ltd. The Motley Fool Australia has recommended Link Administration Holdings Ltd. 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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Shares in Chalice Mining Ltd (ASX: CHN) are falling today, despite the company releasing no news. The Chalice Mining share price is currently 8.18% lower than its previous close. Shares in the company are swapping hands for $6.85.

Today’s fall comes one week after the former gold miner turned nickel, copper, and platinum group minerals producer announced it was demerging its gold assets.

Let’s take a look at Chalice Mining’s most recent announcement.

The latest from Chalice Mining

Last Monday, Chalice Mining announced it will be demerging its gold assets into a new ASX-listed company.

The soon-to-be company will own Chalice Mining’s Pyramid Hill Gold Project and its 70% interest in the Viking Project.

Chalice Mining also announced assay results from Pyramid Hill, potentially exciting market watchers who were already planning to get in on Chalice’s spin off’s Initial Public Offering (IPO).

While the Chalice Mining share price flopped during intraday trade last Monday, it recovered to end the session 1.09% higher than the previous session.

However, for no obvious reason, it fell 2.49% on Friday and has plummeted again today.

The demerger is conditional upon shareholder and regulatory approval.

Chalice Mining share price snapshot

Despite slipping the last few days, the Chalice Mining share price is well and truly in the green.

Right now, it has gained 75% since the start of 2021. It has also gained a mammoth 549% since this time last year.

The company has a market capitalisation of around $2.3 billion, with approximately 346 million shares outstanding.

The post The Chalice Mining (ASX:CHN) share price is falling 8% today appeared first on The Motley Fool Australia.

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• Chalice (ASX:CHN) share price gaining on high-grade assay results

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 Altium Limited (ASX: ALU) share price has certainly had an eventful day on Monday.

After being down as much as 14% to $31.47 at one stage this morning, the electronic design software provider’s shares have recovered almost completely.

In afternoon trade, the Altium share price is down just 1.5% to $35.96.

Why is the Altium share price so volatile today?

Investors were selling down the Altium share price this morning amid media reports claiming that the company had rejected a second takeover approach from Autodesk.

The reports claimed that the US software giant returned with an improved offer of $40.00 per share, which was promptly rejected. This compares to Autodesk’s June offer of $38.50 per share, which was rejected by the Altium board on the belief that it significantly undervalued the company’s prospects.

One of the reports suggested that the second rejection could be the final straw for the US based software and that it would be withdrawing its interest. This is what sparked the sizeable decline in the Altium share price this morning.

The rebound

However, these reports turned out to be incorrect, leading to a sharp rebound in the Altium share price after it returned from a paused in trading late this morning.

Altium responded to the speculation, stating that Autodesk had not returned with a better offer.

The company released a statement saying: “In response to media speculation today, Altium Limited advises that it has not received any further offer from Autodesk. All details relating to the Autodesk offer have been disclosed by the Company in its ASX announcement released to the market on 7 June 2021.”

Judging by the rebound in Altium’s shares, some investors appear to believe this means there is still a chance that Autodesk could return with a greater offer in the future.

Though, given that the Altium board previously said that Autodesk’s $38.50 per share offer “significantly” undervalued its prospects, it may need to be higher than the one speculated today.

The post Altium (ASX:ALU) share price bounces back after responding to media speculation appeared first on The Motley Fool Australia.

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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. owns shares of and has recommended Altium. The Motley Fool Australia owns shares of and has recommended Altium. 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 Valmec Ltd (ASX: VMX) share price is soaring today after the company received an acquisition offer valuing it 29% higher than its market capitalisation at previous close.

Right now, shares in Valmec are swapping hands for 40 cents apiece – 25% higher than its previous closing price.

The energy service group has recommended its shareholders vote in favour of the offer, which would see Valmec acquired by Altrad Australia Pty Ltd.

Let’s take a closer look at the news driving the Valmec share price higher this morning.

Valmec’s acquisition offer

Valmec has entered into a scheme of implementation for Altrad Australia to buy around 98% of all outstanding Valmec shares for 41.3 cents apiece in cash.

That represents a 29.1% premium on the Valmec share price’s previous close and a 29.4% premium on its 1-month volume-weighted average price.

The offer values Valmec at around $52 million.

Altrad is an industrial services provider with operations in more than 50 countries. Valmec specialises in providing equipment, construction, and maintenance services to the oil, gas, energy, and infrastructure sectors.

According to Valmec, 2 Valmec shareholders who together hold 18.8% of Valmec’s shares intend to vote in favour of the scheme.

Additionally, all Valmec’s board members who have holdings in the company also intend to vote in favour.

As part of the scheme, Valmec’s managing director Steve Dropulich will retain around 2% of Valmec’s shares. He will also continue in his role after the acquisition.

The scheme of implementation is dependent on: an independent expert’s declaration the acquisition is in Valmec shareholders’ best interests, the absence of a superior offer, and shareholder and court approval.

The company expects its shareholders will be given a chance to vote on the acquisition in mid-October.

Commentary from management

Dropulich commented on the news, saying:

To be recognised and attract the interest of a global leader such as Altrad is a clear recognition of the hard work, dedication and professionalism of our staff and the strong support we have received from our shareholders throughout our journey.

Altrad’s CEO Ran Oren also commented:

Australia and the broader Asia-Pacific region are a key pillar in Altrad’s global growth strategy, which is why I am delighted we have been able to agree terms with the Board of Valmec to merge this strong business into our existing operations. Our committed investment reflects Altrad’s confidence in our Australian team and the growth prospects for our business here.

Valmec share price snapshot

Today’s gains have added to a good year on the ASX for Valmec.

Right now, the Valmec share price has gained 67.5% since the beginning of 2021. It has also gained 168% since this time last year.

The company has a market capitalisation of around $50 million, with approximately 125 million shares outstanding.

The post Here’s why the Valmec (ASX:VWX) share price is gaining 25% today appeared first on The Motley Fool Australia.

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• Why is the Temple & Webster (ASX:TPW) share price up over 3% today?
• 2 defensive ASX 200 shares that brokers rate as ‘buys’ this Monday
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The Dreadnought Resources Ltd (ASX: DRE) share price is charging higher, up 8% in early afternoon trade.

Below, we take a look at the ASX resources explorer’s latest results.

What did Dreadnought report?

The Dreadnought Resources share price is surging after the company reported it had uncovered high grade rare earth elements (REE) ironstones at its 100% owned Yin Prospect in Western Australia over a roughly 2.5-kilometre strike.

The Yin Prospect is located 15 kilometres from the Hastings Technology Metals Ltd‘s (ASX: HAS) Yangibana REE Project, which is currently under construction.

For readers with some geological acumen, according to the release, significant rock chips results include:

• 50% total rare earth oxides (TREO), including 2.73% Nd2O3+Pr6O11
• 77% TREO, including 1.84% Nd2O3+Pr6O11
• 76% TREO, including 1.73% Nd2O3+Pr6O11

These results are reported to be similar to those seen in the ironstones at Yangibana.

Dreadnought has identified a total of 12 REE prospects based on “wide spaced radiometric anomalies coincident with apparent ironstone outcrops”. 11 of those 12 prospects have yet to be inspected.

Commenting on the results, Dreadnought’s managing director, Dean Tuck said:

It is encouraging to confirm high-grade REE mineralisation over 2.5 kilometres at the first of twelve prospects. Having confirmed similar mineralogical characteristics to Yangibana, we are now in the process of confirming another key economic driver being similar metallurgical characteristics.

Tuck said the company will conduct a detailed airborne magnetic-radiometric survey before the drill program commences. “The metallurgical assessment will focus on the potential for the TREO to be upgraded into a saleable intermediate product in the form of a concentrate,” he added.

Dreadnought Resources share price snapshot

Longer-term shareholders will have little to complain about these past 12 months as the Dreadnought Resources share price gained 320%. By comparison the All Ordinaries Index (ASX: XAO) is up 24% in that same time.

Year-to-date the Dreadnought Resources share price is up 110%.

The post Why the Dreadnought Resources (ASX:DRE) share price is charging 8% higher appeared first on The Motley Fool Australia.

More reading

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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 S&P/ASX 200 Index (ASX: XJO) is having a very depressing start to the week today. The ASX 200 is currently down 0.84% to 7,287 points. One ASX share that isn’t joining the pity party today is Temple & Webster Group Ltd (ASX: TPW). The Temple & Webster share price is currently up a very healthy 3.13% to $10.89 at the time of writing.

That’s an outperformance of the broader market by around 4% – not an insignificant number. So why are Temple & Webster shares performing so well today?

Well, unfortunately, there are no easy answers to this one. Temple & Webster has not released any official news announcements today, so we can rule that out.

However, we can speculate on another possible reason why Temple & Webster shares are having time in the sun today.

Look at the ASX 200 today and you will see a bevvy of winners and losers. Shares that seem to be correlated to economic growth, such as the ASX banks, are getting hammered today. Commonwealth Bank of Australia (ASX: CBA), for example, is currently down 1% to $97.17 a share.

But other ASX shares are doing far better. Afterpay Ltd (ASX: APT) is currently up almost 1.8%. Zip Co Ltd (ASX: Z1P ) is also in the green. As is the Wesfarmers Ltd (ASX: WES) share price. Domino’s Pizza Enterprises Ltd. (ASX: DMP) shares are also in the green today, and CSL Limited (ASX: CSL) isn’t too far behind.

Are Temple & Webster shares benefitting from lockdowns?

All of these shares have something in common. They have all been classed (to varying degrees) as ‘pandemic winners’. Last year these companies proved (once again, to varying degrees) that they could not only survive, but thrive, in a COVID world.

The Temple & Webster share price fell more than 30% in the initial market crash last year that was sparked by the onset of the coronavirus pandemic. But this drop did not last long, as the online furniture and homewares retailer started proving that its business was holding up, and even growing, during the worst of the lockdowns last year.

You only have to look at the company’s FY2021 half-year earnings to see this in action. Back in February, Temple & Webster reported revenue growth of 118% to $161.6 million and earnings before interest, tax, depreciation, and amortisation (EBITDA) growth of an astonishing 556% to $14.8 million. Active customers were also up a pleasing 102% to 678,000.

Why is this relevant? Well, New South Wales and now Victoria are back in lockdown as we speak. This is obviously very bad news for the national economy, which might explain why the ASX banks and the broader market are having a rough start to the week. But investors seem to be remembering last year’s lockdown winners today. And Temple & Webster is evidently one of them.

This may be why we are seeing a healthy bump in the Temple & Webster share price today. At the current pricing, Temple & Webster has a market capitalisation of $1.31 billion.

The post Why is the Temple & Webster (ASX:TPW) share price up over 3% today? 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. owns shares of and has recommended AFTERPAY T FPO, CSL Ltd., Temple & Webster Group Ltd, and ZIPCOLTD FPO. The Motley Fool Australia owns shares of and has recommended AFTERPAY T FPO and Wesfarmers Limited. The Motley Fool Australia has recommended Dominos Pizza Enterprises Limited and Temple & Webster Group Ltd. 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 S&P/ASX 200 Index (ASX: XJO) is having a rather dreadful start to the week this Monday. At the time of writing, the ASX 200 is down 0.87% to 7,284 points.

But many investors love to buy ASX shares on days like today, simply because they can pick up their favourite shares for a relatively cheaper price. With uncertainty seemingly returning to the share market, many investors might also be looking to shares that can be labelled as ‘defensive shares’, companies that are capable of generating cash flows regardless of the economic weather.

So with that in mind, here are 2 defensive ASX 200 shares that brokers rate as ‘buys’ today:

2 defensive ASX 200 shares rated as ‘buys’ this Monday

Coles Group Ltd (ASX: COL)

Coles is one of the largest defensive ASX 200 shares on the share market today. And it doesn’t get too much more defensive than the groceries and other household essentials that Coles sells through its huge network of stores nationwide. We all by now would be familiar with the heightened levels of grocery consumption that COVID outbreaks seem to induce.

Coles has actually not been a great performer of late. This company is still down more than 7.5% year to date in 2021 so far, and is also down 4.5% over the past 12 months. However, one broker who thinks the Coles share price might be an ASX 200 buy today is investment bank, Goldman Sachs. Goldman currently has Coles rated as a ‘buy’, with a 12-month share price target of $19.40 a share.

This implies a potential future upside of more than 13% over the next 12 months (not including any dividend returns either). Goldman likes Coles shares right now due to the company’s Smarter Selling cost-cutting program, as well as its efficiency-driving investments in its supply chains.

Telstra Corporation Ltd (ASX: TLS)

Telstra is our second ASX 200 share to look at today. This telco is also arguably a highly defensive share. It’s difficult to imagine most Australians giving up their phones, internet plans or broadband connections these days, no matter the economic weather. And Telstra is the country’s leading purveyor of all three.

Unlike Coles, the Telstra share price has actually been a very rewarding asset to own in recent months. Telstra shares are currently up almost 25% year to date so far, as well as being up nearly 11% over the past 12 months.

Goldman is also bullish on Telstra, rating the telco as a ‘buy’ with a 12-month share price target of $4.20 a share. This implies a potential future upside of 11.7% for this ASX 200 share, also not including any dividend returns. Goldman reckons Telstra’s recent sale of half of its mobile towers is conducive to future shareholder value. Additionally, Goldman likes Telstra’s “strong earnings outlook, particularly in mobile”.

The post 2 defensive ASX 200 shares that brokers rate as ‘buys’ this Monday appeared first on The Motley Fool Australia.

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Motley Fool contributor Sebastian Bowen owns shares of Telstra Corporation 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 owns shares of and has recommended COLESGROUP DEF SET and Telstra Corporation Limited. 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 Nick Scali Limited (ASX: NCK) share price is the spot of green amongst the sea of red today.

At the time of writing, shares in the household furniture retailer are selling for $11.52 – up 4.39%. The All Ordinaries Index (ASX: XAO), meanwhile, is down 0.95%.

The company comes into focus after it confirmed it was in discussions to buy Plush Sofas. Nick Scali entered a trading pause prior to the announcement.

Let’s take a closer look at today’s news.

Nick Scali wants a new Plush Sofa

In a statement to the ASX, Nick Scali confirmed it was in “non-exclusive discussions” with Greenlit Brands to acquire the Plush Sofas brand.

The Australian newspaper reported before the trading pause that the furniture company would spend up to $100 million on the purchase. Plush generates around $20 million in annual turnover, according to the report.

In its statement, Nick Scali Limited stressed the lack of certainty around the ongoing discussions and said no binding agreement has yet been reached.

It also said if any transaction should proceed, the company would pay for it “with a combination of cash on hand and debt”.

Investors clearly believe the deal would be of value to the company, judging by the Nick Scali share price.

Nick Scali share price snapshot

Over the past 12 months, the Nick Scali share price has increased 75%.

In its half-year financial report, the company declared revenue of $171 million – a record for the company and an increase of 24.4% on the prior corresponding period (pcp).

Earnings before interest, tax, depreciation and amortisation (EBITDA) rocketed 94.2% on the pcp to $60.2 million and underlying net profit after tax (NPAT) was up almost 90% to $40.5 million.

The company paid an interim dividend of 40 cents per share on the results.  Nick Scali management said a surge in demand during the pandemic drove the strong results.

The company paid back half the amount of JobKeeper payments it received on the back of sustained public pressure. The federal government’s wage subsidy program was intended to help businesses that would suffer financially because of the novel coronavirus.

Nick Scali Limited has a market capitalisation of $933 million.

The post Why the Nick Scali (ASX:NCK) share price is going gangbusters appeared first on The Motley Fool Australia.

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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.

They say that imitation is the sincerest form of flattery . When it comes to investing, imitating the way that billionaires invest might seem like a great way to amass a fortune of your own. In reality, though, that’s a bit more problematic than it might seem at first glance.

Billionaires tend to have both different money needs and access to different money tools than we ordinary folks do. They also tend to have the ability to lose millions of dollars and not even feel it, whereas if you or I lost that much, it would likely be devastating. With that background in mind, here are four reasons you shouldn’t invest like billionaires do.

No. 1: They need less of their money than you do of yours

One of the ironies of the world is that the rich can live more cheaply than ordinary folks can. If the rich live with no debt, they don’t pay debt service costs. If they do have debt, they likely get the best terms and use it as a financial tool, rather than out of necessity. In addition, it’s easier for the rich to afford more efficient & environmentally friendly things like solar panels, electric cars, and high efficiency insulation, windows, and other building materials.

All that adds up to a situation where billionaires not only have more money than the rest of us do, but also one where they need less of what they have in order to cover their absolutely necessary costs. As a result, they can be aggressive with a larger part of their investments than most ordinary folks can, and still wind up OK when things go wrong. We ordinary folk, on the other hand, need a larger portion of our assets socked away in a safer location for the inevitable “life happens” events.

No. 2: They tend to own too much of their employer’s stock

Many billionaires became billionaires because they were the founders of an ultimately successful company or the turnaround expert who saved a struggling business. Much of their wealth is tied up in the stock of the company they founded or run, which basically means their wealth is dependent on the continued success of that business.

As a controlling shareholder or influential leader of the business, their financial fate is largely in their own hands with that setup. If you’re not in such a position, then having too much of your net worth tied up in your employer’s stock can actually end up as one of the biggest financial mistakes you can make. After all, if the company gets into trouble, you can lose both your job and your life savings at the same time.

No. 3: You can diversify in ways they can’t

Having billions of dollars might seem wonderful, but having it largely tied up in a single investment like so many billionaires do can be quite terrifying. That raises a key question of why they don’t just diversify their portfolios. Unfortunately, even if they want to, it’s tough for them to do so, for two key reasons.

First, it causes an image problem. Executives of publicly traded companies need to disclose when they buy or sell shares. When an executive sells a large chunk of shares, it tends to raise very public questions on whether that executive really believes in the future of the company. That tends to keep billionaire CEOs and other executives invested even if they know they really should diversify their holdings.

Second, the taxes they face can be staggering. Assuming most of those billionaires’ riches come from highly appreciated stock, even a small act of diversification can be costly. 1% of a $1 billion nest egg works out to $10 million. If that has a near $0 basis, the billionaire can easily face over $2.3 million in federal taxes. In addition, state and local taxes on top of that could drive the total tax bill above $3 million. Even for a billionaire, paying millions in otherwise avoidable taxes can be a tough pill to swallow.

No. 4: You can invest in faster growing places than they can

Warren Buffett has mentioned that it’s hard to invest in the fastest growing companies once your own portfolio gets large enough. This is because the fastest growing companies tend to be smaller ones. With a huge asset base, you simply can’t buy enough of a small, fast growing company to make a difference to your overall portfolio.

That gives you one major advantage over the billionaires of the world: You can position the growth portion of your portfolio for the potential for higher returns than those biggest investors can. It may not be enough on its own to get you to billionaire status yourself, but compounded growth over decades is a great path to give yourself a strong chance to reach millionaire status.

Invest for your own success

The beauty of investing is that both you and the billionaires of the world have access to the stock market and its ability to create long-term wealth over time. The portfolio balance you’ll have will be different than what they have. They may have more money than the rest of us, but the access we have to faster growth investments and easier diversification gives us the opportunity to do just fine for ourselves.

So even if you shouldn’t invest just like billionaires do, you should still be inspired by their successes to invest for yourself. Over time, the wealth the market can help you build can help you reach for a financially comfortable future.

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

The post 4 reasons you shouldn’t invest like billionaires do appeared first on The Motley Fool Australia.

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Chuck Saletta 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.

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

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