Warren Buffett has a long track record of taking advantage of once-in-a-lifetime buying opportunities. He has frequently been a buyer of stocks when other investors are selling. This has allowed him to purchase high-quality businesses when they are trading at discounted prices.

By following his strategy, you could generate relatively high returns in the long run. With investor fears still high after the stock market crash, now could be the right time to build a portfolio of stocks while they trade at attractive prices.

Rare buying opportunities

Warren Buffett’s investing career may have spanned many decades, but he has had relatively few opportunities to buy stocks at extremely cheap prices. That situation usually only occurs when investor sentiment is exceptionally weak, which often coincides with periods of economic uncertainty.

Since those instances are relatively few and far between, investors are unlikely to have a plethora of chances to buy a range of high-quality companies at low prices during their lifetimes. Therefore, it is important to use them to your advantage when they occur. Doing so may enable you to obtain a market-beating return in the long run that makes a positive impact on your financial situation.

Warren Buffett’s long-term focus

Of course, Warren Buffett does not expect to make short-term gains when buying any stock. History shows that it can take many months, or even years, for the stock market to recover from its declines. For example, the most recent global recession (excluding this year) occurred during the global financial crisis. While stock indexes such as the FTSE 100 Index (FTSE: UKX) declined by over 50%, they recovered in the following years to trade at new record highs.

With the stock market having always recovered from its lows, buying during a period of economic weakness has been a sound plan for those investors with long time horizons. As the economic outlook improves, the financial performances of companies does likewise. This encourages investors to take more risks, which supports the recovery and subsequent bull market.

Today’s buying opportunities

The recent stock market crash could mean there are buying opportunities for investors who wish to follow a strategy similar to that used by Warren Buffett. Risks such as the ongoing coronavirus pandemic and political uncertainty in North America and Europe mean that investor sentiment towards a wide range of sectors is weak. This could mean there are a number of high-quality companies trading at low prices that offer long-term growth potential.

Of course, diversifying across sectors and geographies is important in an uncertain economic period. This reduces overall risks, and could improve your long-term return prospects as a result of having exposure to a wider range of growth opportunities. The end result could be a growing portfolio that benefits from having taken advantage of low prices during a weak period for the stock market.

More reading

• How to make $50,000 of passive income with ASX dividends
• Where I’d invest $10,000 in ASX shares for growth
• These were the worst performing shares on the ASX 200 last week
• These were the best performing shares on the ASX 200 last week
• 2 ASX shares I plan to hold til I’m 100

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. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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Earning a passive income of $50,000 a year from the share market is entirely possible for regular investors.

You’ll just need a combination of time and patience.

How can you achieve this?

I think the best way to achieve this is by investing in quality companies that share their profits with shareholders and have strong long term growth potential.

My favourite example of this is CSL Limited (ASX: CSL). Very few people would consider the biotherapeutics giant as a dividend share in the same vein as Telstra Corporation Ltd (ASX: TLS) or Westpac Banking Corp (ASX: WBC). However, if you invested in its IPO back in 1994 you would feel very differently.

As I mentioned here last week, adjusting for a 3-1 stock split in 2007, CSL shares hit the ASX boards 26 years ago for just 76 cents per share.

In FY 2021, the company is forecast to pay shareholders a dividend of $3.04 per share. Based on this forecast dividend payment, if you wanted to earn an income of $50,000 from CSL shares, you need to own approximately 16,450 shares.

If you had invested in its IPO in 1994, it would have cost you just $12,500 to acquire those 16,450 shares.

So there you go, a $12,500 investment is now generating $50,000 of dividends each (and growing).

While CSL’s success is certainly not common, it does happen. Northern Star Resources Ltd (ASX: NST) is another example.

It listed on the ASX for 20 cents in 2004. In FY 2020 it paid shareholders a 27 cents per share dividend. This means a $37,000 investment in 2004 would be yielding $50,000 in dividends this year.

What about the future?

I think that companies like Altium Limited (ASX: ALU), Appen Ltd (ASX: APX), and Kogan.com Ltd (ASX: KGN) could be dividend stars of the future.

Their yields may be minimal at present, but due to their very strong long growth potential, I believe their dividends could grow materially over the 2020s and beyond.

More reading

• 3 shares with intelligent fanatics I would invest in today
• Aussie Broadband (ASX:ABB) share price rockets 122% following IPO
• 3 outstanding ASX shares to buy with $10,000 right now
• Should you stay invested in an ASX share after a strong run?
• 2 safe ASX shares for your retirement portfolio

James Mickleboro owns shares of Westpac Banking. 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 CSL Ltd. and Kogan.com ltd. The Motley Fool Australia owns shares of and has recommended Telstra Limited. The Motley Fool Australia owns shares of Appen Ltd. The Motley Fool Australia has recommended Kogan.com ltd. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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I think there are always ASX share ideas to buy for growth with $10,000.

It’s true that a number of some of the ASX’s most promising businesses have been going up recently. Two of the ASX shares I’ve covered a lot over the past couple of months – Redbubble Ltd (ASX: RBL) and Citadel Group Ltd (ASX: CGL) have both shot up since the start of September. Though I reckon Redbubble is still one to watch.

There are other ASX shares that I think still look like good long-term buys for growth today:

Pushpay Holdings Ltd (ASX: PPH) – $4,500

Pushpay is one of the ASX shares that I still have high conviction in at this level. The Pushpay share price has gone up 121% over the past six months, but I think the market still hasn’t completely the recognised the longer-term opportunity with Pushpay.

If you don’t know what it does, it facilitates digital giving to clients, namely large and medium US churches. Pushpay thinks the sector is a huge opportunity. Over the long-term it’s aiming for US$1 billion of annual revenue.

Not only does that goal represent a huge revenue growth opportunity, but it’s the scalability of the business that is very attractive to me. In FY20 alone it increased its gross profit margin by 5 percentage points from 60% to 65% and it also managed to increase its earnings before interest, tax, depreciation, amortisation and foreign currency (EBITDAF) margin from 17% to 22%. Pushpay expects to at least double its EBITDAF in FY21.

I think that Pushpay can become a much more profitable business. The Pushpay share price is trading at 41x FY21’s estimated earnings. I think the COVID-19 conditions will accelerate the adoption, causing profit in FY22 and beyond to be better than expected.

City Chic Collective Ltd (ASX: CCX) – $3,500

City Chic is a plus-size retailer of clothes, footwear and accessories for woman.

Compared to many other retailing ASX shares, City Chic managed to sell an impressive amount of product online in FY20. Of total sales, 65% were online in FY20. What’s also pleasing about City Chic’s sales is that it is becoming an increasingly global retailer.

In FY20, 42% of its global sales were from the northern hemisphere. This has come about from both organic sales to North America and Europe as well as a few targeted acquisitions by the retailer.

This COVID-19 period is difficult for retailers that don’t have a good online presence. I like City Chic’s tactic of trying to buy distressed competition globally for a discounted price, then turning them into online-only offerings.

At the current City Chic share price it’s trading at 19x FY23’s estimated earnings.

BWX Ltd (ASX: BWX) – $2,000

BWX is a fairly unique ASX share. It manufactures and sells natural beauty products under a number of a brands including Sukin, Mineral Fusion and Andalou Naturals.

In FY20 BWX revealed net revenue growth of 26% to $187.7 million, earnings before interest, tax, depreciation (EBITDA) went up 30% to $27.5 million and statutory net profit grew 59% to $15.2 million.

That was a really good turnaround from a couple of years ago. One of the most pleasing factors from the report was that BWX said it is continuing to gain market share.

The beauty industry is a huge market. As long as BWX remains agile and innovative, I think it has a long growth runway. I like the plan to build a new manufacturing hub in Melbourne which will help it deliver growth for years to come.

In FY21, management are expecting to grow revenue and EBITDA by at least 10%.

Its valuation still looks reasonable when you look at the longer-term. At the current BWX share price, it’s priced at 22x FY23’s estimated earnings.

There are also other ASX shares if you’re looking for growth besides BWX, City Chic and Pushpay.

More reading

• My top 5 ASX growth shares to buy right now
• Top ASX tech shares to buy in October 2020
• 3 hot ASX shares to buy when you’re young
• Where I’d invest $20,000 into ASX shares right now
• 2 exciting ASX payments shares to buy

Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of PUSHPAY FPO NZX. The Motley Fool Australia owns shares of and has recommended BWX Limited. The Motley Fool Australia has recommended PUSHPAY FPO NZX. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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Despite a subdued end to the week, the S&P/ASX 200 Index (ASX: XJO) managed to record another solid weekly gain. The benchmark index climbed 1.2% over the five days to end it at 6,176.8 points.

Unfortunately, not all shares on the index pushed higher with the market. Here’s why these were the worst performers on the ASX 200 last week:

Flight Centre Travel Group Ltd (ASX: FLT)

The Flight Centre share price was the worst performer on the index last week with a 9.1% decline. This appears to have been driven by a broker note out of Credit Suisse. According to the note, the broker has downgraded the travel agency’s shares to a neutral rating with a $15.31 price target. It made the move after pushing back its travel bookings recovery forecast by six months to reflect a recent surge in COVID-19 cases in the northern hemisphere.

Mesoblast limited (ASX: MSB)

The Mesoblast share price was out of form and dropped 7.7% lower over the five days. That was despite there being no news out of the biotech company. However, it is worth noting that short interest has been building. Short sellers have been targeting the company after the US FDA didn’t approve its remestemcel-L application for steroid-refractory acute graft versus host disease (SR-aGVHD). At the last count, 8.9% of its shares were held short.

Webjet Limited (ASX: WEB)

The Webjet share price was a poor performer and dropped 7.2% last week. I suspect that this was driven by a combination of increasing COVID-19 cases in New South Wales and Victoria and a surge in cases in Europe and North America. This, as Credit Suisse suggested above, appears to have pushed back the tourism recovery.

Zip Co Ltd (ASX: Z1P)

The Zip Co share price wasn’t far behind with a 7.1% decline over the period. This was despite the buy now pay later provider releasing a strong first quarter update. Big increases in customer numbers and transaction growth led to Zip reporting record quarterly transaction volume of $943.1 million. This was up 96% on the prior corresponding period. It also led to the company reporting an 88% increase in quarterly revenue to a record of $71.7 million. Judging by the share price decline, some investors may have been expecting even stronger growth.

More reading

• These were the best performing shares on the ASX 200 last week
• 3 shares with intelligent fanatics I would invest in today
• ASX 200 falls, Tyro (ASX:TYR) up on merchant deal
• Class action lawsuit a new challenge for Rio Tinto (ASX:RIO) share price
• Why Afterpay’s (ASX:APT) Nick Molnar is embracing the fashion world

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 ZIPCOLTD FPO. The Motley Fool Australia owns shares of and has recommended Webjet Ltd. The Motley Fool Australia has recommended Flight Centre Travel Group Limited. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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The S&P/ASX 200 Index (ASX: XJO) had a disappointing end to the week, but that couldn’t stop the benchmark index from recording another solid weekly gain. The index rose 1.2% over the five days to end it at 6,176.8 points.

While a good number of shares climbed higher, some stood out with particularly strong gains. Here’s why these were the best performers on the ASX 200 last week:

Unibail-Rodamco-Westfield (ASX: URW)

The Unibail-Rodamco-Westfield share price was the best performer on the ASX 200 last week with a 23.3% gain. Investors were buying the shopping centre operator’s shares after it announced a deal to sell its SHiFT office building in Paris for 620 million euros. In addition to this, a large group of shareholders put pressure on the company to scrap its $5.8 billion capital raising and sell its U.S. portfolio instead.

Link Administration Holdings Ltd (ASX: LNK)

The Link Administration share price wasn’t far behind with a massive 21.6% gain. The catalyst for this was the administration services provider receiving a takeover approach from a consortium comprising Pacific Equity Partners, Carlyle Group, and their affiliates. An offer of $5.20 cash per share was tabled. Major shareholder Perpetual Limited (ASX: PPT) intends to vote in favour of the proposal.

GUD Holdings Limited (ASX: GUD)

The GUD share price was on form and stormed 12.5% higher last week. The majority of this gain came after the release of its first quarter update. The products company has experienced strong sales growth across both its Automotive and Water divisions so far in FY 2021. This led to GUD reporting a 14% increase in first quarter group sales. Though, due to the uncertainty caused by COVID-19, management hasn’t been able to provide any guidance.

Super Retail Group Ltd (ASX: SUL)

The Super Retail share price was a positive performer and climbed 9.9% over the five days. This appears to have been driven by GUD’s strong update and an even stronger one by auto retailer Eagers Automotive Ltd (ASX: APE). The latter update revealed a significant rebound in car sales during the third quarter of FY 2020. This bodes well for the company’s Supercheap Auto business.

More reading

• These were the worst performing shares on the ASX 200 last week
• ASX 200 falls, Tyro (ASX:TYR) up on merchant deal
• Class action lawsuit a new challenge for Rio Tinto (ASX:RIO) share price
• Why Afterpay’s (ASX:APT) Nick Molnar is embracing the fashion world
• Meet the ASX stock that could pay its first dividend in 8 years

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 Link Administration Holdings Ltd. The Motley Fool Australia owns shares of and has recommended Super Retail Group Limited. The Motley Fool Australia has recommended Link Administration Holdings Ltd. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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I think it makes sense to invest for the long-term, if you can find the right ASX shares. There are at least 2 ASX shares in my portfolio that I plan to hold until I’m 100.

Here they are:

Rural Funds Group (ASX: RFF)

Rural Funds is a farmland real estate investment trust (REIT) that owns a portfolio of agricultural properties. Farms have been useful assets for many centuries – I think that will continue for the rest of my life.

The REIT has a diverse group of properties: cattle, almonds, vineyards, macadamias and cropping (sugar and cotton). Diversification is very useful because it’s hard to say exactly which farm type will see the strongest growth over the coming years and decades.

Not only is Rural Funds’ portfolio diversified by farm type, but it’s also spread across different Australian states and climatic conditions. Rural Funds doesn’t take on the operational risks, that’s on the tenants. Even so, Rural Funds owns water entitlements for tenants to make use of.

Rural Funds leases to high-quality tenants. Many of them are listed in Australia or abroad such as Olam and JBS as well as ASX shares like Treasury Wine Estates Ltd (ASX: TWE), Select Harvests Limited (ASX: SHV) and Australian Agricultural Company Ltd (ASX: AAC).

High-quality tenants should mean a strong ability to keep paying rent. Rural Funds actually has rental indexation built into its contracts. Rental income is contracted to grow either by a fixed 2.5%, or it’s linked to CPI inflation, with some contracts having periodic market reviews.

I also really like that Rural Funds is investing in some of its newer farms to make them more productive and more valuable for tenants, which increases the long term rental potential.

Rural Funds is steadily growing its underlying net asset value (NAV). The quarterly distribution continues to grow as well – management aim to grow it by 4% per annum, which it has achieved each year since it listed several years ago.

At the current Rural Funds share price it offers a distribution yield of 4.7%.

Washington H. Soul Pattinson and Co. Ltd (ASX: SOL)

Soul Patts is one of the best long-term ASX shares around in my opinion.

It has already been listed since 1903, so it clearly has the ability to survive for the ultra-long-term.

Each year that goes by makes it more likely that Soul Patts will be able to survive and thrive for longer because of new investments. It’s increasing its diversification with investments like swimming schools, agriculture and reportedly regional data centres.

Everything about the business is long-term focused. Its management and employees stick around for a long time. According to Soul Patts, more than 40 employees have worked for the company for over 50 years. Five generations of the Pattinson family have served the company, as have three generations of the Dixson, Spence, Rowe and Letters families.

The investments that Soul Patts makes into businesses, including other ASX shares, are for the long-term. For example, it has held its holdings of Brickworks Limited (ASX: BKW), TPG Telecom Ltd (ASX: TPG), Australian Pharmaceutical Industries Ltd (ASX: API) and New Hope Corporation Limited (ASX: NHC) for many years.

Soul Patts has a good record of long-term outperformance. At 31 July 2020, Soul Patts had delivered total shareholder returns (TSR) of 12.7% per annum over the previous 20 years, outperforming the All Ordinaries Accumulation Index by an average of 5.2% per annum.

It’s also suitable for dividend investors because Soul Patts has grown its dividend every year for the past 20 in a row. That’s a wonderful record. It currently offers a grossed-up dividend yield of 3.3%.

More reading

• 2 of the best ASX dividend shares to buy today
• 2 ASX dividend shares raising their dividends like clockwork
• 2 robust ASX 200 blue chip shares to buy today
• 2 of the best ASX dividend shares you can buy today
• How to replace your entire wage with ASX dividend shares

Motley Fool contributor Tristan Harrison owns shares of RURALFUNDS STAPLED and Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia owns shares of and has recommended Brickworks, RURALFUNDS STAPLED, Treasury Wine Estates Limited, and Washington H. Soul Pattinson and Company Limited. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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The Nickel Mines Ltd (ASX: NIC) share price is gaining strongly again today, up 15.58% at 89 cents at the time of writing.

This comes after the company announced it had signed a memorandum of understanding (MoU) with Shanghai Decent Investment Co. The MoU indicates Nickel Mines will acquire a 70% interest in PT Angel Nickel Industry, a development project in Indonesia’s North Maluku province.

Today’s share price gains bring the company’s gains to more than 31% so far in October. Year-to-date, the Nickel Mines share price is up 41%.

By comparison the All Ordinaries Index (ASX: XAO) is down 6% so far in 2020.

What does Nickel Mines do?

Nickel Mines is involved in both the production and processing of nickel. The company has a financial, operational and strategic partnership with China’s Tsingshan Group, which is the largest stainless steel producer in the world.

Nickel Mines also owns an 80% interest in the Hengjaya Nickel and Ranger Nickel RKEF processing facilities in Indonesia, the world’s largest vertically integrated stainless steel facility. In addition, the company holds an 80% interest in the long life, high-grade Hengjaya nickel mine, also in Indonesia. Nickel Mines has a market cap of $1.8 billion.

What was in the announcement?

The company said the Angel Nickel Industry (ANI) project would be a joint collaboration with Shanghai Decent Investment (SDI). SDI is Nickel Mines’ largest shareholder.

The project comprises 4 “next-generation” 54 KVA1 rotary kiln electric furnace lines with an annual nameplate production capacity of 36,000 tonnes of nickel metal. There is also a 380MW coal-fired power plant, which the company says will reduce its nickel pig iron production operating costs with its secure and integrated power supply.

The MoU stipulates the Nickel Mines will acquire a 70% interest in ANI for US$490 million (AU$690 million). An initial 30% interest will be secured by the end of Q1 2021 for US$210 million. The remaining $280 million will be paid by the end of Q4 2021 for the additional 40% interest.

The company has already paid a US$10 million good faith deposit.

Nickel Mines managing director Justin Werner commented:

The acquisition of 70% of ANI will more than double Nickel Mines’ attributable annual nameplate nickel metal production capacity and further cement Nickel Mines as a globally significant, low cost nickel producer.

Once again, this transaction represents a compelling investment opportunity and comes at a valuation that we believe is unrivalled in the global nickel market. For little over 40% of our current market capitalisation, we have the opportunity to double our nameplate production profile…

We will now work expediently to progress this MoU to a Definitive Agreement over the coming weeks and look forward to keeping the market informed on this exciting next step in our journey.

With global demand for nickel forecast to remain strong, the Nickel Mines share price is one to watch.

More reading

• Why the MyFiziq (ASX:MYQ) share price is falling today
• Medusa (ASX:MML) share price edges higher on quarter update
• Why the Aspen (ASX:APZ) share price is charging higher?
• Here’s why the Clean TeQ (ASX:CLQ) share price has surged 10% today
• The Michael Hill (ASX:MHJ) share price has rocketed 11% today. Here’s why.

Motley Fool contributor Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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“Intelligent fanatics” is a term coined by Charlie Munger, the VP of Berkshire Hathaway Inc. Class A (NYSE: BRK.A). Specifically, they are high energy, smart leaders who can inspire incredible achievement. For instance, they include famous examples like Elon Musk, Steve Jobs, Bill Gates or Jack Welch.

Likewise, Australia is blessed with many leaders like this. That is to say, architects who can design and build an organisation to meet a burning need. Here are some of the ones I follow, and the companies they have built.

Intelligent fanatics in mining

I worked in the orbit of Andrew Forrest 20 years ago. This was before he went on to be the founder of iron ore miner Fortescue Metals Group Limited (ASX: FMG). At the time he was building a massive nickel mine with new technology in the desert. Like Fortescue more recently, Murrin-Murrin had a range of billion dollar problems that I watched this guy and his leadership team blast through.

In addition, the growth of Fortescue’s mining operations has been beyond anything I could have imagined when he started all this near the turn of the century. The man is a human dynamo, who is always on the side of new approaches and new technologies. As long as Forrest remains at the helm of Fortescue I intend to hold onto my shares.

Another intelligent fanatic in mining is Bill Beament, the Chairman of Northern Star Resources Ltd (ASX: NST). Bill joined the company in 2007 as managing director when the share price was 9 cents. As it moves to finalise the merger with Saracen Mineral Holdings Limited (ASX: SAR) each share is worth $16.06 . It is worth mentioning that Saracen is led by its own intelligent fanatic in CEO Raleigh Finlayson.

The company has become known for a few things. First, they are quick to offload cassets they aren’t happy with. Second, it almost always increases the gold reserves of companies it acquires. Third, operating productivity of its acquisitions also goes up.

The merger with Saracen means that the super pit in Kalgoorlie will be under one company for the first time since Alan Bond unified all the local gold mines. I am very excited by what Northern Star could go on to achieve with Beament as chairman and Finlayson as managing director.

Financial fanatics

There are many leaders in this space that I find intriguing. Tempted though I am to talk about the founders of Afterpay Ltd (ASX: APT), it’s the founders of Zip Co Ltd (ASX: Z1P) that currently hold my interest.

Larry Diamond and Peter Gray are the intelligent fanatics behind an alternative finance company, not just a buy now, pay later (BNPL) firm. The move to partner with eBay Inc (NASDAQ: EBAY) via the company’s Zip Business arm places them squarely in the realm of non-bank lenders such as Resimac Group Ltd (ASX: RMC). Moreover, the company already has additional credit offerings outside of BNPL and owns PocketBook, a personal budgeting tool. Lastly, Zip Co has a deal with Amazon.com on its site, this is a major coup.

Of all of the BNPL companies, I think Zip Co is best placed over the medium to longer term because of the diversity of its product line, and its ability to attract solid deals with global partners. It will be less impacted by pressure on margins as more companies enter this space. 

More reading

• Class action lawsuit a new challenge for Rio Tinto (ASX:RIO) share price
• Zip (ASX:Z1P) share price slumps 10% this week: is it a buying opportunity? 
• Top brokers name 3 ASX shares to sell today
• Why IDP Education, WiseTech, Zip, & Zoono shares are tumbling lower today
• ASX 200 finishes lower, Afterpay (ASX:APT) shares rise

Daryl Mather owns shares of Fortescue Metals Group Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of ZIPCOLTD FPO. The Motley Fool Australia owns shares of AFTERPAY T FPO. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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The S&P/ASX 200 Index (ASX: XJO) went down by 0.5% today to 6,177 points.

Here are some of the highlights from the ASX today:

Tyro Payments Ltd (ASX: TYR)

The Tyro share price went up by 5.4% today after the payments business announced a merchant deal.

Tyro announced that it’s partnering with Bendigo and Adelaide Bank Ltd (ASX: BEN) to create a long-term merchant acquiring alliance.

As a result of the deal, Tyro expects to deploy more than 26,000 Tyro terminals in 2021 for the alliance, increasing its terminal fleet to just over 89,000 terminals.

Tyro will exclusively provide merchant acquiring services to Bendigo Bank’s existing merchant acquiring customers and Bendigo Bank will exclusively refer new merchant opportunities from its business customer base to Tyro, under a joint brand.

Economic benefits of Bendigo Bank’s existing merchant service contracts will move to Tyro on completion, which is expected in the first half of the calendar year. Tyro is buying Bendigo Bank’s merchant service contracts and associated goodwill.

Tyro will pay Bendigo Bank $9 million upfront. Bendigo Bank there will also get an on-going gross profit share from existing and newly referring Bendigo Bank business customers who use Tyro’s merchant acquiring services.

This alliance between the two ASX 200 shares has an initial 10-year term with provisions for extensions by agreement for additional five-year terms. If the alliance expires, all Bendigo Bank transferred and referred customers will remain with Tyro, with Bendigo Bank’s gross profit share to continue while those customers are served by Tyro.

Tyro said there are a few costs relating to implementing this alliance. There will be a one-off project resourcing cost of $3.8 million. There will also be other one-off project costs, including terminals, of $16.1 million. Finally, there will be ongoing additional personnel costs to support the alliance, which is expected to be around $6.7 million per annum.

The ASX 200 payments business is expecting that Bendigo Bank’s business customers will generate around $5 billion in transaction value in FY22. Tyro’s gross profit share (after the gross profit share to Bendigo Bank and before operating costs) from the Bendigo Bank cohort will be approximately $19 million in FY22.

The Bendigo Bank share price went up by 2.8% today.

Rio Tinto Ltd (ASX: RIO)

The ASX 200 mining giant announced its FY20 third quarter production results today.

Compared to the second quarter, iron ore shipments were down 5% to 82.1Mt, though production was up 4% to 86.4Mt. Bauxite production was down 1%, aluminium production was up 2%, mined copper was down 2% and production of pellets and concentrate at Iron Ore Company of Canada (IOC) was 21% lower due to an annual maintenance shutdown as well as a weather related power failure and mechanical issues also impacting production.

Rio Tinto CEO J-S Jacques said: “Rio Tinto has shown great resilience through challenging conditions and will continue to prioritise the health and safety of our employees, contractors and communities. The quality of our assets, coupled with our strong focus on capital discipline and value over volume approach, mean we can continue to invest in our business, support our communities, pay taxes and royalties to host governments and continue to generate superior returns to shareholders in the short, medium and long term.”

Aussie Broadband Pty Ltd (ASX: ABB)

Telecommunications business Aussie Broadband listed onto the ASX today. It had an amazing debut.

The Aussie Broadband share price almost doubled from its $1 listing price, finishing with a share price of $1.91.

Next Monday could be another very volatile day for the telco ASX share.

More reading

• Class action lawsuit a new challenge for Rio Tinto (ASX:RIO) share price
• Why Afterpay’s (ASX:APT) Nick Molnar is embracing the fashion world
• Meet the ASX stock that could pay its first dividend in 8 years
• Why Dubber, New Hope, Pro Medicus, & Rio Tinto shares are dropping lower
• The Medibank (ASX:MPL) share price rockets on broker upgrade

Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Tyro Payments. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The post ASX 200 falls, Tyro (ASX:TYR) up on merchant deal appeared first on Motley Fool Australia.

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When it comes to investing, I believe it can pay to keep things simple. 

While trying to buy low and sell high may generate strong returns if you’re able to successfully time the market, it certainly isn’t easy to do.

Instead, I would suggest investors use one of the simplest and most effective investment strategies – buy and hold investing.

This strategy sees investors buy high quality shares that have solid long term growth prospects and hold onto them for long periods of time. They will only sell them if the investment thesis is broken.

It is a strategy used to great effect by legendary investor Warren Buffett. If you look at his returns, it’s a pretty good testament to the strategy’s success.

But which shares should you buy and hold on the ASX? Three that I think would be great candidates are listed below. Here’s why I rate them:

BetaShares NASDAQ 100 ETF (ASX: NDQ)

I think the BetaShares NASDAQ 100 ETF is a great option for buy and hold investors. This is because it gives investors access to 100 of the highest quality businesses in the world through a single investment. Among its holdings are the likes of Amazon, Apple, Facebook, Microsoft, Netflix, and Tesla. One fund manager just tipped the latter to be worth US$2 trillion one day. This ETF would be a great way to take part in Tesla’s potential rise.

Domino’s Pizza Enterprises Ltd (ASX: DMP)

Another ASX share that I think would be a great buy and hold candidate for investors is Domino’s. I think it is a top option due to its strong brand and ambitious growth plans. At the end of FY 2020, Domino’s had a total of 2,668 stores. However, management doesn’t believe its expansion is anywhere near complete. It has set itself a target of more than doubling its network to 5,500 stores by 2033. 

NEXTDC Ltd (ASX: NXT)

A final buy and hold option is NEXTDC. As the region’s most innovative Data Centre-as-a-Service provider, I believe it is well-positioned to benefit from the accelerating shift to the cloud. This shift has led to significant demand for capacity in its data centres. So much so, it was forced to pull forward expansion plans. I expect this strong demand to persist for the foreseeable future and underpin strong sales and earnings growth.

More reading

• Should you stay invested in an ASX share after a strong run?
• 3 exciting ASX growth shares to buy for stellar long term returns
• 3 ETFs every ASX investor should consider today
• 3 ASX growth shares that I would buy in 2020
• Which ETFs attracted the most money this year?

James Mickleboro owns shares of NEXTDC Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of BETANASDAQ ETF UNITS. The Motley Fool Australia has recommended BETANASDAQ ETF UNITS and Domino’s Pizza Enterprises Limited. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The post Invest like Warren Buffett and buy and hold these fantastic ASX shares appeared first on Motley Fool Australia.

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