It isn’t hard to see why exchange traded funds (ETFs) are becoming increasingly popular with Australian investors.

These funds give investors the opportunity to invest in a large number of shares through just a single investment.

Not only does this make diversification so much easier, it also means investors can gain exposure to markets or themes that would have been near impossible to do so 10 years ago.

Two popular ETFs that ASX investors might want to get better acquainted with are listed below:

BetaShares Asia Technology Tigers ETF (ASX: ASIA)

The first ETF to look at is the BetaShares Asia Technology Tigers ETF. It gives investors exposure to a portfolio of technology shares in the Asia market that are revolutionising the lives of billions of people in the region. Among the fund’s largest holdings you will find giants such as Alibaba, Baidu, JD.com, Samsung, and Tencent.

Today I am going to focus on Baidu and Tencent. Baidu is often referred to as the Chinese version of Google due to its dominant search engine business. But like Google, there is far more to Baidu than just a search engine.

The company has a focus on artificial intelligence (AI) and is aiming to become an autonomous vehicle powerhouse in the future. In respect to AI, in 2019 the company ranked number one in the amount of AI-related patent applications in China for the second consecutive year.

Tencent is another key holding in the portfolio. It is one of the world’s largest tech companies and has a focus on video games and social media. The company is best known for its WeChat app, which is used by over 1.2 billion people for messaging, e-commerce, digital payments, and entertainment.

VanEck Vectors Morningstar Wide Moat ETF (ASX: MOAT)

Another ETF that is proving popular with investors is the VanEck Vectors Morningstar Wide Moat ETF. It gives investors a piece of 48 US-based stocks which have sustainable competitive advantages or “moats”.

Moat is a term that Warren Buffett often talks about. The legendary investor likes to invest in companies with moats, as these sustainable competitive advantages support strong pricing power, which in turn underpins solid long-term earnings growth and returns for investors.

Among the VanEck Vectors Morningstar Wide Moat ETF’s holdings are the likes of Amazon, American Express, Boeing, Coca-Cola, Microsoft, Pfizer, and Yum! Brands. Over the last five years the ETF has outperformed the ASX 200 index with a net return of ~16% per annum for investors.

More reading

• Got cash to invest? Here are 3 ASX shares to buy
• 3 ETFs for ASX investors to buy in 2021
• Is this the perfect ETF to buy for 2021?
• 4 leading ASX growth shares to buy for 2021
• 2 ETFs offering strong international diversification

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended BetaShares Asia Technology Tigers ETF. The Motley Fool Australia has recommended VanEck Vectors Morningstar Wide Moat ETF. 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 a new year on the horizon, now could be an opportune time to consider making some new additions to your portfolio.

To help you on your way, I’ve picked out five ASX shares which have been tipped as buys. They are as follows:

Altium Limited (ASX: ALU)

The first share to look at is Altium. It is an award-winning printed circuit board (PCB) design software provider. Over the last few years, Altium has earned itself a leading position in a growing electronic design market. But the company isn’t settling for that. It is now aiming to dominate this market with its cloud-based Altium 365 product. Analysts at Credit Suisse are positive on its future and recently initiated coverage on Altium with an outperform rating and $42.00 price target.

Appen Ltd (ASX: APX)

Another share to look at is Appen. It is a leading developer of high-quality, human annotated datasets for machine learning and artificial intelligence (AI). It does this for some of the biggest tech companies in the world such as Facebook and Microsoft. It also helped Apple with the development of its virtual assistant, Siri. Macquarie is positive on the company’s growth prospects and has an outperform rating and $43.00 price target on its shares.

CSL Limited (ASX: CSL)

CSL is one of the world’s leading biotechnology companies. It is made up of two businesses, CSL Behring and Seqirus. CSL Behring is the number one player in a global plasma therapies industry worth a massive US$30 billion per year. Whereas Seqirus is now the number two player in the US$6 billion global influenza vaccines industry. UBS is a fan of CSL and has a buy rating and $346.00 price target on its shares. It notes that product development has been a key driver of growth and appears confident this will continue in the future.

NEXTDC Ltd (ASX: NXT)

Another share to look at is NEXTDC. It is a leading data centre operator with operations across Australia. It has also recently opened up offices in Singapore and Tokyo, with a view to expanding into these markets. This could give its already impressive growth a lift, especially thanks to the increasing demand for its services due to the structural shift to the cloud. Goldman Sachs is very positive on its future and has a buy rating and $13.20 price target on its shares. The broker even suggested the NEXTDC share price could go to $20.00 based on high but not unrealistic assumptions.

Pushpay Holdings Group Ltd (ASX: PPH)

A final ASX share to look at is Pushpay. It is a donor management and community engagement platform provider with a focus on the faith sector. Pushpay has been a very strong performer this year and recently reported a 53% increase in half year operating revenue to US$85.6 million. This is still only scratching at the surface of management’s medium to long term revenue target of US$1 billion. Analysts at Goldman Sachs are fans of the company. They have a conviction buy rating and ~$2.59 price target on its shares.

More reading

• 2 ASX growth shares to buy
• 3 ASX shares for growth, income, and value investors
• 2 of the best ASX healthcare shares to buy in 2021
• 7 top ASX biomedical shares in 2020
• In a record-breaking year, here are some of the world’s most popular shares

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 recommends Altium. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Appen Ltd, CSL Ltd., and PUSHPAY FPO NZX. The Motley Fool Australia has recommended PUSHPAY FPO NZX. 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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Real estate invest trust (REIT) stocks experienced a mixed 2020. Many of them delivered falls in their valuations as a result of changing demand among consumers and businesses. For example, offices and retail units are in lower demand as working from home becomes more popular.

However, the wider property sector could experience an improving performance as the economic recovery takes hold. With many trusts trading at low prices, now could be the right time to buy them to make a generous passive income.

The prospects for REIT stocks

As with many companies, the prospects for REIT stocks continue to be relatively uncertain in the short run. The coronavirus pandemic is putting pressure on retailers and a variety of other businesses. This may mean that some landlords face rent collection challenges that put their financial outlook under a degree of pressure.

However, on a long-term view, investing in the property sector could be a shrewd move. The industry could benefit from a likely economic recovery over the coming years that provides improving confidence among businesses and consumers. The end result could be stronger financial performances from property companies.

Many REIT stocks may also have the financial strength to adjust their asset portfolios to adapt to changing demands within the commercial property sector. For example, they may be able to invest in flexible office space or warehousing, or shift their focus towards new market segments that provide stronger growth prospects over the coming years.

Investing in listed property stocks today

When investing in REIT stocks, it is crucial to ensure there is sufficient diversity. Some companies are focused on one specific area, such as retail units. Therefore, it could be worth buying multiple stocks so that an investor has exposure to a broad range of assets in different market segments and locations. This may produce a more resilient passive income that is likely to grow at a faster pace over the long run.

Meanwhile, buying property stocks at a discount to their intrinsic values could be a shrewd move. Even though the sector has recovered to some extent from the 2020 stock market crash, it is still possible to purchase REIT stocks at low prices. In some cases, they may even trade at a wide discount to their net asset value. Cheaper stocks can provide greater scope for high returns in the long run.

Of course, in the short run a number of companies could experience further challenges. Risks such as the coronavirus pandemic are known unknowns that may yet have a negative influence on the economy’s outlook in the early part of 2021. As such, it is crucial to adopt a long-term outlook on REIT stocks. Over the coming years, their low valuations, diverse portfolios and recovery potential could produce a growing passive income.

More reading

• 2 ASX growth shares to buy when the market reopens
• These ASX dividend shares could be top Christmas gifts for income investors
• Why the BrainChip (ASX:BRN) share price rocketed 57% higher
• ASX 200 rises on Christmas Eve
• 2 ASX growth shares to buy

Motley Fool contributor Peter Stephens 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 market may be closed for Christmas but that doesn’t mean you can’t plan the investments you want to make when it reopens.

Two top ASX shares you might want to take a closer look at are listed below. Here’s what you need to know about them:

a2 Milk Company Ltd (ASX: A2M)

The first share to look at is A2 Milk Company. It is a leading infant formula and fresh milk company which focuses on A2-only products. This reportedly makes its milk easier to digest than regular milk which has both A1 and A2 proteins. This point of difference has helped the company stand out in a crowded market and underpinned strong sales and profit growth over the last few years.

While COVID headwinds are going to weigh on its performance in FY 2021, management remains very positive that demand will rebound once the pandemic passes. Analysts at Morgans appear to agree and have recently put an add rating and $12.20 price target on its shares.

Kogan.com Ltd (ASX: KGN)

Unlike a2 Milk, Kogan has been a big winner from the pandemic. The closure of bricks and mortar retail stores shifted consumers online in large numbers, with some shopping online for the first time. This led to Kogan reporting a significant jump in active customers, which has underpinned extraordinarily strong sales and earnings growth.

Pleasingly, despite retail stores opening as normal again, this hasn’t stifled Kogan’s growth. Its strong growth has continued in FY 2021 and the company is currently on course to deliver a bumper profit result in the first half. In addition to this, a couple of value accretive acquisitions look set to give its second half performance a boost. One broker that is positive on the company is Credit Suisse. It recently put an outperform rating and $20.60 price target on its shares.

More reading

• ASX 200 rises on Christmas Eve
• ASX 200 up 0.5%: BHP Samarco update, A2 Milk’s acquisition, Credit Corp rockets
• Got cash to invest? Here are 3 ASX shares to buy
• Why the a2 Milk (ASX:A2M) share price will be on watch today
• 2 dirt cheap ASX shares to buy in 2021

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 Kogan.com ltd. The Motley Fool Australia owns shares of and has recommended A2 Milk. The Motley Fool Australia has recommended Kogan.com 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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Unfortunately, as much as income investors may wish for it, Santa will not be bringing interest rate increases this Christmas.

In fact, if many economists are to be believed, it could be over two years until rates start to head higher from their record lows.

In light of this, dividend shares look likely to remain the best way to earn a passive income in 2021.

But which dividend shares should you buy? Here are two to consider:

BHP Group Ltd (ASX: BHP)

Investors that are not opposed to investing in the resources sector, might want to take a closer look at the Big Australian. It is one of the world’s largest miners and the owner of some of the highest quality operations across the globe.

With iron ore and copper prices surging higher this year and oil prices rebounding strongly from their lows, BHP has been tipped to deliver a bumper profit result in FY 2021. And with its balance sheet in such good health, the company looks set to reward shareholders handsomely with dividends.

Macquarie is expecting this to be the case and has forecast a fully franked ~$3.85 per share dividend in FY 2021. Based on the current BHP share price, this represents a massive 9% dividend yield.

Telstra Corporation Ltd (ASX: TLS)

Another dividend share to look at is Telstra. With the end of the NBN rollout in sight and the company’s T22 strategy progressing very well, the hard days certainly appear to be behind this telco giant. In addition to this, the arrival of 5G internet looks set to give its hugely important mobile business a big boost in the coming years.

Another potential positive on the horizon is its plan to split into three separate businesses. This will allow Telstra to take advantage of potential monetisation opportunities and unlock value for shareholders.

Goldman Sachs is pleased with its plan and is positive on its outlook. It has a buy rating and $3.60 price target on Telstra’s shares and is forecasting a 16 cents per share fully franked dividend in FY 2021 and beyond. Based on the current Telstra share price, this would provide investors with a 5.3% dividend yield.

More reading

• ASX 200 rises on Christmas Eve
• 3 top ASX dividend shares for a better retirement
• ASX 200 up 0.5%: BHP Samarco update, A2 Milk’s acquisition, Credit Corp rockets
• Why the Woodside (ASX:WPL) share price is edging higher today
• Iron ore prices poised to hit US$180 next month: Westpac

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Telstra 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 BrainChip Holdings Ltd (ASX: BRN) share price was an exceptionally strong performer on Thursday.

The artificial intelligence company’s shares were up as much as 57% to 51 cents at one stage.

While the BrainChip share price ultimately gave back a good portion of these gains, it still ended the day a very impressive 29% higher at 42 cents.

Why did the BrainChip share price rocket higher?

Investors were fighting to get hold of the company’s shares following the release of two positive announcements.

The first announcement revealed that BrainChip has received an order for its Akida Early Access Evaluation Kit from NASA.

According to the release, NASA will use the Akida Early Access Evaluation Kit within its shared service centre at the NASA/Ames research centre (ARC) in California.

Management notes that the kit will allow the space agency to evaluate the Akida technology for use in programs with a neuromorphic processor that meets spaceflight requirements.

It feels the processor is well suited for spaceflight and aerospace applications. This is because the device is a complete neural processor and does not require an external CPU, memory, or Deep Learning Accelerator.

This is a big positive as reducing component count, size, and power consumption is a paramount concern in spaceflight and aerospace applications.

Though, it is worth noting that there’s no guarantee that NASA will take things further once it has evaluated the technology.

What else did BrainChip announce?

In a separate announcement BrainChip revealed that it has signed an intellectual property license agreement with Renesas Electronics America.

Renesas Electronics America is a subsidiary of Renesas Electronics Corp, which is a global semiconductor manufacturer that specialises in microcontroller and automotive system-on-chip (SoC) products.

The agreement will see BrainChip deliver its Akida technology for use as a SoC licensed product and includes a single-use design license, implementation support services, royalty payments per unit, and software maintenance services for two years.

As with space travel, management believes the technology is well suited for advanced driver assistance systems (ADAS), autonomous vehicles, drones, vision-guided robotics, surveillance, and machine vision systems.

Overall, two promising developments, but time will tell whether they lead to material revenue generation in the future.

More reading

• Why AVZ Minerals, BrainChip, BSA, & Credit Corp shares are storming higher
• BrainChip (ASX:BRN) share price on watch following major announcements
• Why Brainchip Holdings (ASX:BRN) shares are in a trading halt
• Why the BrainChip (ASX:BRN) share price is charging higher
• ASX small caps could get a boost with the Aussie dollar hitting 28-month highs

Motley Fool contributor James Mickleboro 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) went up by around 0.3% to 6,665 points.

Here are some of the highlights from the shortened trading day on the ASX:

A2 Milk Company Ltd (ASX: A2M)

A2 Milk confirmed that, as previously contemplated, it has decided to enter into binding agreements relating to the acquisition of a 75% interest in Mataura Valley Milk (MVM), which is a dairy nutrition business in New Zealand.

The company said that the proposed acquisition will provide the opportunity for A2 Milk to participate in nutritional products manufacturing, provides supplier and geographic diversification and strengthens its relationship with key Chinese partners.

A2 Milk will spend NZ$268.5 million to buy 75% of MVM, based on an enterprise value of NZ$385 million. It will be funded from A2 Milk’s existing cash.

One of the main reasons for the acquisition is that it will establish dual supply arrangements alongside existing relationships with Synlait Milk Ltd (ASX: SM1) and Fonterra Shareholders’ Fund (ASX: FSF).

The manufacturing facility that MVM owns has been recently constructed and it’s operational. A2 Milk described it as world class.

A2 Milk also said that MVM is well located for access to a growing productive milk pool supported by favourable climactic conditions and water availability. A2 Milk thinks the deal would give the opportunity to produce additional infant nutrition products for China and other markets. Finally, A2 Milk is excited by the ability to capture manufacturing margin.

Geoff Babidge, the CEO of A2 Milk, said: “MVM provides a unique opportunity to acquire a new world-class nutritional products manufacturing capability in New Zealand, alongside a highly respected China state owned enterprise in China Animal Husbandry Group. We have worked closely with CAHG and MVM over recent months and have developed relationships with both teams that we are confident will provide a strong foundation for the business going forward. We continue to be impressed by the MVM facility and the management team.”

A2 Milk expects that during a transitional period, between FY22 and FY24, it will be approximately break even at the earnings before interest, tax, depreciation and amortisation (EBITDA) level, with positive EBITDA generation from FY25 when significant nutritional volumes will be manufactured at the site.

There will be transaction costs of approximately NZ$10 million which will be treated as a one-off expense.

The A2 Milk share price went up more than 1% today in response to this news.

BHP Group Ltd (ASX: BHP)

BHP gave a Samarco update today. Samarco is the Brazilian business that BHP owns half of. Samarco had a dam failure a few years ago.

The miner said that Samarco has met the licensing requirements to restart operations at its Germano complex and Ubu complex. It has commenced iron ore pellet production.

Samarco’s operations were suspended following the failure of the dam on 5 November 2015.

BHP said that Samarco’s gradual restart of operations incorporates concentrator 3 at the Germano complex and pelletising plant 4 at Ubu, as well as a new system of tailings disposal combining a confined put and tailings filtering system for dry stacking.

Independent tests have been carried out on Samarco’s preparations for a safe restart of operations. Samarco expects initially to produce approximately eight million tonnes of iron ore pellets each year.

The work by the Renova Foundation to remediate and compensate for the damages of the failure of the dam continues. BHP’s Brazilian subsidiary continues to support Renova in its work. By November, Renova had spent US$2.1 billion on its remediation and compensation programs, with US$620 million spent on indemnities and emergency financial aid to approximately 325,000 people.

The BHP share price went up more than 1% in reaction to this news.

More reading

• ASX 200 up 0.5%: BHP Samarco update, A2 Milk’s acquisition, Credit Corp rockets
• 10 incredible quotes that sum up investing in 2020
• Why the Woodside (ASX:WPL) share price is edging higher today
• Iron ore prices poised to hit US$180 next month: Westpac
• BHP (ASX:BHP) share price on watch after Samarco update

Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended A2 Milk. 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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Are you looking for a growth share or two to buy in 2021? Listed below are two top growth shares to look at.

Both have been growing strongly in recent years and have been tipped to continue this positive form in the 2020s. Here’s why they are highly rated:

Altium Limited (ASX: ALU)

Altium is a leading printed circuit board (PCB) design software provider. Its software is used by countless companies around the world to design the complex circuit boards that you’ll find inside almost all electronic devices.

The good news for Altium is that due to the artificial intelligence and internet of things booms, there has been a proliferation of electronic devices over the last decade. This rapid growth is expected to continue over the next decade, which should underpin growing demand for its award-winning software.

Management is confident in its growth trajectory and is targeting revenue of US$500 million by 2025-26. This will be a 150% increase on FY 2020’s revenue.

Analysts at Morgan Stanley are confident on its future. They have an overweight rating and $40.00 price target on the company’s shares.

ELMO Software Ltd (ASX: ELO)

ELMO is a cloud-based human resources and payroll software company. Its software streamlines processes such as employee administration, recruitment, remuneration, and payroll through a single a unified platform.

At present the company is operating in both the ANZ and UK markets. In respect to the latter, the company has just bolstered its position in this $6.8 billion market with the acquisitions UK-based Breathe and Webexpenses. Importantly, this also provides it with plenty of cross sell opportunities for its existing services.

A recent note out of Morgan Stanley reveals that its analysts have retained their overweight rating and lifted the price target on the company’s shares to $9.70.

More reading

• Leading brokers name 3 ASX shares to buy today
• 3 fantastic ASX growth shares to buy in 2021
• Top brokers name 3 ASX shares to buy next week
• Why the ELMO Software (ASX:ELO) share price surged 11% higher today
• 3 exciting ASX tech shares to buy

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 recommends Altium and Elmo Software. The Motley Fool Australia has recommended Elmo Software. 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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It’s become something of a tradition for me to share a ‘Foolish Christmas Carol’ in this space around this time each year.

Yes, it’s corny. But also heartfelt and hopefully a little fun. And frankly, I’ve never been cool, so there’s little credibility left to lose, on that score!

I generally take the words of a well-known Christmas song, add a little investing wisdom, and use it as an opportunity to say thank you to our readers and members. We know there are a plethora of investing resources out there, and we appreciate your interest and trust. It’s a trust we hold with no little weight.

So, in keeping with that tradition, I will do the same this year.

But also, this year, something a little extra.

2020 has been a helluva year. Some people will finish it in better shape than they started, having kept their jobs and their health, and having perhaps saved and made a few bob along the way.

But many of us will be glad to see the end of 2020. It’s been challenging on a lot of fronts: health, finances and emotional wellbeing. Fires, droughts, floods, and yes, bloody coronavirus. If you’re worn out, and have had enough, I hope the New Year lets you turn a new page.

A reminder, too, that things tend to get better, over time. No, not in a straight line. And not for everyone, all the time. But we make progress. The future will, I believe, be better than the past (and in no small part because of people like you and me who continually strive for ‘better’ in all walks of life).

So, this year, before my ‘carol’, I want to share something, unadulterated. It’s something I hope you’ve read before. It’s something I try to read, slowly and deliberately, every year. But this year, I think we all need the pick-me-up. 

For me, it’s an antidote to frustration. To exhaustion. To pessimism. For the times when life just gets too heavy.

It’s an answer to a letter, written by an 8 year old girl in 1897, to the editor of The Sun, a prominent New York newspaper.

Her name was Virginia O’Hanlon.

She wrote:

——-

“Dear Editor,

I am 8 years old. Some of my little friends say there is no Santa Claus. Papa says, ‘If you see it in The Sun, it’s so.’ Please tell me the truth, is there a Santa Claus?”

Virginia O’Hanlon
115 West Ninety Fifth Street

——-

The reply, written by Francis P Church, became the most reprinted editorial in history. Enjoy:

——-

VIRGINIA, your little friends are wrong. They have been affected by the skepticism of a skeptical age. They do not believe except they see. They think that nothing can be which is not comprehensible by their little minds. All minds, Virginia, whether they be men’s or children’s, are little. In this great universe of ours man is a mere insect, an ant, in his intellect, as compared with the boundless world about him, as measured by the intelligence capable of grasping the whole of truth and knowledge.

Yes, VIRGINIA, there is a Santa Claus. He exists as certainly as love and generosity and devotion exist, and you know that they abound and give to your life its highest beauty and joy. Alas! how dreary would be the world if there were no Santa Claus. It would be as dreary as if there were no VIRGINIAS. There would be no childlike faith then, no poetry, no romance to make tolerable this existence. We should have no enjoyment, except in sense and sight. The eternal light with which childhood fills the world would be extinguished.

Not believe in Santa Claus! You might as well not believe in fairies! You might get your papa to hire men to watch in all the chimneys on Christmas Eve to catch Santa Claus, but even if they did not see Santa Claus coming down, what would that prove? Nobody sees Santa Claus, but that is no sign that there is no Santa Claus. The most real things in the world are those that neither children nor men can see. Did you ever see fairies dancing on the lawn? Of course not, but that’s no proof that they are not there. Nobody can conceive or imagine all the wonders there are unseen and unseeable in the world.

You may tear apart the baby’s rattle and see what makes the noise inside, but there is a veil covering the unseen world which not the strongest man, nor even the united strength of all the strongest men that ever lived, could tear apart. Only faith, fancy, poetry, love, romance, can push aside that curtain and view and picture the supernal beauty and glory beyond. Is it all real? Ah, VIRGINIA, in all this world there is nothing else real and abiding.

No Santa Claus! Thank God! he lives, and he lives forever. A thousand years from now, Virginia, nay, ten times ten thousand years from now, he will continue to make glad the heart of childhood.

——–

I’m not ashamed to admit to getting a little misty-eyed re-reading that, even if I’ve read it scores of times before.

Now, to our Christmas carol!

——–

Rudolph The Foolish Reindeer

You know Buffett and Fisher and Lynch and Graham
Soros and Templeton and Dalio and Ackman
But do you recall
The most Foolish reindeer of all?

Rudolph the Foolish Reindeer
Had a very long-term bent
He didn’t fear price movements
He knew how almost naught they meant

All of the other ‘vestors
Used to laugh and place their trades
They could never tempt old Rudolph
To join in on their silly games

Then one foggy COVID year
Share prices did crash and sway
But Rudolph, with his view held tight
Didn’t sell or run in fright

Then how the market rewarded him
As share prices recovered with glee
Said Rudolph the Foolish Reindeer
“Patience is the price of victory”

Rudolph the Foolish Reindeer
Learnt the lessons of this year
You gotta take the slings and arrows
And never, ever cede to fear

The future always has its worries
The headlines they’ll be full of doubt
They’ll never give poor Rudolph
Respite from all the fear they shout

But whatever worries rear their heads
They’ll not hang ‘round too long
Rudolph he’ll remember well
Hist’ry’s got some tales to tell

Then the market will reward him
Compounding, it works you see
Rudolph the Foolish Reindeer
Learned optimism from history

——-

On behalf of the entire team here at Motley Fool Australia, I want to wish you a very Merry Christmas (and a wonderful holiday season, if you observe a different tradition), and all the very best for a safe, prosperous and joyful 2021.

Our thoughts go out to those who are separated from family and friends. Those who’ve lost loved ones this year, and who will have an empty chair at their Christmas table. We hope your pain will abate, in time, and that your memories of better times will see you through.

And a big shout out to those of you who will be working over Christmas, sacrificing time with family and friends to look after our community. To our Diggers, particularly those posted overseas. To the coppers, firies and ambos. To the doctors and nurses. The retail workers, shift workers and members of the SES, Bush Fire Brigades and service crews who stand ready to drop the ham and prawns, if the call goes out.

Thank you, all, for what you do for the rest of us.

Merry Christmas, Fools!

More reading

• 2 ASX growth shares to buy
• 2 high quality ASX shares to buy for your retirement portfolio
• Brokers name 3 ASX shares to buy right now
• 8 issues that will impact investors in 2021: experts
• 3 top ASX dividend shares for a better retirement

Motley Fool contributor Scott Phillips 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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When you first start investing, you might look for high risk, high reward growth shares. Because if things don’t go quite to plan, you have plenty of time to recover.

However, when you’re approaching retirement, you have less time on your side to recover your losses, so it can be best to switch your focus to income and capital preservation.

With that in mind, here are two ASX shares which could be top options for retirees:

Ramsay Health Care Limited (ASX: RHC)

Ramsay Health Care is a leading private healthcare company with operations across several regions. Although its growth over the short term is likely to be challenging because of headwinds caused by the pandemic, its long term outlook remains as positive as ever.

This is due to its world class network of private hospitals and their exposure to the growing demand for healthcare services globally. Management also has a penchant for acquisitions and could boost its growth with further earnings accretive acquisitions in the future.

Analysts at Macquarie have an outperform rating and $73.65 price target on the company’s shares at present.

Woolworths Limited (ASX: WOW)

Woolworths could be a good option for retirees due to the conglomerate’s numerous quality brands. These include Woolworths supermarkets, Dan Murphy’s, BWS, and BIG W. As a whole, the company appears to be well-positioned for growth over the long term thanks to its defensive qualities and strong market position.

In addition to this, another potential driver of value in the future could be its supply chain improvement plans and the proposed spin-off of its $10 billion Endeavour segment. Although the latter is likely to be delayed until after the pandemic passes, it is expected to create value for shareholders.

Analysts at Citi are positive on the company’s future. They recently put a buy rating and $44.50 price target on Woolworths’ shares. Citi is forecasting a fully franked $1.16 per share dividend in FY 2021, which equates to a 2.9% yield.

More reading

• Ramsay Health Care (ASX:RHC) share price climbs after this announcement
• ASX 200 Weekly Wrap: ASX hits new post-March high
• Buy these ASX blue chip shares for your retirement portfolio
• How useful is the P/E ratio in assessing ASX shares?
• Citigroup picks the best ASX retail stocks to own for 2021

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of Woolworths Limited. The Motley Fool Australia has recommended Ramsay Health Care Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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