The S&P/ASX 200 Index (ASX: XJO) ended the day down 0.03% to 6,013 points. However, just before the Victorian press conference the ASX 200 was at 6,066 points.

Metro Melbourne has gone back to stage 3 restrictions. People will only be allowed for shopping for food and other essentials, medical purposes and caregiving, work and study if it can’t be done at home and exercise.

Here are some of the highlights from the ASX 200 today:

Afterpay Ltd’s (ASX: APT) big update

Afterpay was able to provide an update with the final quarter of FY20 finishing last week.

The buy now, pay later business said it has seen a strong performance across the business and delivered underlying sales of $11.1 billion in FY20, which was up 112% on the prior corresponding period.

Underlying sales in the fourth quarter of FY20 rose by 127% to $3.8 billion. This was the highest quarterly performance ever, which Afterpay said reflected the accelerating shift to e-commerce to spending since the impacts of COVID-19 emerged globally.

Afterpay said that margins were pleasing. Merchant revenue margins for FY20 are expected to be in line with or better than both the first half of FY20 and FY19.

The net transaction loss (NTL) for FY20 is expected to be up to 55 basis points. The Australia and New Zealand NTL has remained at historically low levels and the NTL within the US and UK regions has improved in the second half compared to the first half of FY20. There has been improving risk performance and historically high payment recovery rates.

The net transaction margin (NTM) for FY20 is expected to be approximately 2%, underpinning a pathway to longer term profitability for the overall business.

The ASX 200 share is expecting earnings before interest, tax, depreciation and amortisation (EBITDA), excluding significant items, for FY20 to be between $20 million to $25 million.

Active customers rose 116% to 9.9 million at the end of FY20. Active merchants rose by 72% to 55,400. Afterpay expects to expand into Canada in the first quarter of FY21. It’s also expecting to expand to in-store in the US this quarter as well.

Afterpay also announced a $800 million capital raising and a sell down by the co-founders where each of them will sell 2.05 million shares.

Magellan Financial Group Ltd (ASX: MFG) funds under management (FUM) announcement at June 2020

Magellan today announced its FUM for June 2020. The global fund manager said its FUM at the end of FY20 was $97.2 billion, down from $98.5 billion at 29 May 2020.

The ASX 200 fund manager experienced net inflows of $249 million, which included net retail inflows of $173 million and net institutional inflows of $76 million.

Average FUM for FY20 was $95.5 billion, an increase from $75.8 billion in FY19.

Magellan said it’s entitled to estimated performance fees of approximately $81 million for FY20.

Sezzle Inc (ASX: SZL) share price soars 24.6%

It was a big day for the buy now, pay later sector on the ASX today.

Sezzle announced that its underlying merchant sales (UMS) jumped 58% quarter on quarter to US$188 million. This was an increase of 349% year on year.

Active consumers rose 28% quarter on quarter to 1.48 million. Active merchants increased by 27% quarter on quarter to 16,112.

The BNPL businesses also said that its repeat usage improved by more than 10 percentage points to 87.5%, compared to 77.2% in June 2019. Older cohorts are using Sezzle more each year. The 2018 Sezzle cohort is now purchasing approximately 15 times a year.

More reading

• These ASX shares are swept up by the new Victorian COVID-19 lockdown
• Magellan share price rises on increased funds under management
• Why brokers have just downgraded BHP and these ASX stocks today
• These 2 ASX medical shares are on the rise after major announcements
• You’re probably a customer of these 3 ASX shares. Should you own them too?

Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of AFTERPAY T FPO. The Motley Fool Australia has recommended Sezzle Inc. 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 love investing. I enjoy the chase of the research and the cut and thrust of the markets. It really is a process like no other.

For years I have actively manged my own ASX portfolio. But after adding two young boys to the mix, most of the ‘active management’ I do now involves naps and nappies! Try as I do, I just don’t have the time to dig deep and scrutinise the 12-20 companies required to construct a diversified portfolio right now.

A great solution for me has been to set up a ‘core-satellite’ portfolio. This is an approach to stay diversified while still holding shares in my favourite companies like Pushpay Holdings Ltd (ASX: PPH) and Xero Limited (ASX: XRO).

What is a core-satellite portfolio?

In a core-satellite portfolio, the majority of your money is allocated to passive, low-cost funds, with smaller ‘satellite’ amounts of money allotted to specific investments that you keep a close eye on.

The ratio of core-to-satellite is up to you, but it might be something like an 80:20 mix of ETFs to satellite holdings. The mix will depend on how much energy you have to keep track of individual companies.

Building a solid ‘core’ portfolio

The ‘core’ of the core-satellite portfolio is often made up of very low-cost exchange-traded funds (ETFs) which track the returns of major indexes. 

For example, I could put half of my core allocation in the Vanguard Australian Shares Index ETF (ASX: VAS). This ASX listed index fund provides good local exposure and aims to track the return of the S&P/ASX 300 Index. Like all good Vanguard funds, the fees are low. At the time of writing, the fund had a tiny 0.10% per annum management fee.

The other half I could allocate to the iShares S&P 500 ETF (ASX: IVV). This fund tracks the United States S&P 500 Index and also has a ridiculously low management fee of just 0.04% per annum. A worthy addition in my view.

Juicing returns with market beating ‘satellites’

The ‘satellites’ that surround the core are investments in companies that you think have a good chance of outperforming the wider market. In my case, because I think Xero has strong long-term prospects, I would want to hold some of its shares as a ‘satellite’.

However, it’s worth being mindful of not doubling up. For example, CSL Limited (ASX: CSL) makes up almost 8% of the holdings in the Vanguard ASX ETF. Adding CSL shares as a satellite as well might create more exposure to this one company than you want.

One kind of solution to one kind of problem

Now, you may be thinking ‘why don’t I just own a portfolio full of market beating satellites and be done with it?’. Remember that the problem I was trying to solve was to free up time. For me, this has been a way to keep a close eye on what is happening in the investing world, while still juggling naps and nappies.

More reading

• Where to invest $1,000 in ASX tech shares today
• Why CSL and these ASX 200 shares could be fantastic buy and hold options
• 3 of the best ASX tech shares to buy in July
• 2 ASX shares I would buy for growth and income
• 3 ASX tech shares to buy and hold

Regan Pearson owns shares of PUSHPAY FPO NZX and Xero.

You can follow him on Twitter @Regan_Invests.

The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of CSL Ltd., PUSHPAY FPO NZX, and Xero. 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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The Mineral Commodities Limited (ASX: MRC) share price leapt by 13.64% on Tuesday following the release of positive drill results at the company’s Tormin Inland Strands Project. MRC is a global mining and development company predominantly focused on the mineral sands and battery minerals sectors but also with interests in other mining tenements.

The company’s three key projects in its mineral sands and battery minerals sector include the Skaland Graphite Operation, the Munglinup Graphite Project and the Torman Mineral Sands Operation:

The Skaland operation is the largest crystalline graphite producer in Europe and the fourth largest producer globally outside of China. Accordingly, it accounts for around 2% of global, annual, natural-flake graphite production.
The Munglinup project lies along the border of the shires of Esperance and Ravensthorpe in Western Australia. The most recent estimation of total mineral resource at the site was 7.99 million tonnes.
Tormin Mineral Sands, the project at the centre of today’s announcement, is ∼360kms north of Cape Town on the west coast of South Africa. The site hosts some of the richest grades of naturally occurring zircon, ilmenite, rutile, magnetite and garnet in the world.

What moved the MRC share price?

The company announced very high grade results from its newly granted S102 Mining Right. This includes total heavy mineral (THM) grades from three separate drill holes on the Western Strandline (shoreline) as defined below.

• 73.1% at 5 metres
• 68.6% at 5 metres and
• 65.2% at 7 metres

The strandline is a concentration of high-grade Valuable Heavy Minerals including zircon, rutile, anatase, ilmenite, garnet, and magnetite. Therefore, the Western Strandline deposit is now clearly defined to the point where the company will commence immediate mining.

Management commentary

MRC Executive Chairman, Mark Caruso said:

“The Company is now underpinning the known potential of one of the highest grade global mineral sands prospects … We will be stepping up our efforts to target additional resources that will further underpin the growth…at the Inland Strand at Tormin”.

MRC share price

By the close of Tuesday’s trade, the MRC share price was up by 13.64%. Accordingly, this values the company at $113.77 million with a price-to-earnings (P/E) ratio of 9.35. At the current price, the company has a trailing 12 month dividend yield of 5.2%.

Although MRC saw decreases in overall demand during the COVID-19 crisis, China’s demand for high-grade, non-magnetic, zircon rutile concentrates continued unabated. I believe this holds the MRC share price in good stead moving forward. 

More reading

• Mineral Commodities share price tumbles 15% on COVID-19 trading update

Motley Fool contributor Daryl Mather 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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ASX shares are the best way to grow your wealth over the long-term in my opinion.

Businesses can deliver good compound growth and pleasing dividends over many years. It’s also a lot easier switching an investment to another ASX share than it is to sell a property (and then buy another).

Here are three ASX shares that I’d buy with $6,000:

Share 1: Bubs Australia Ltd (ASX: BUB)

Bubs is one of my main growth ASX share ideas at the moment. I really like the trajectory that the business is on.

It specialises in goat milk products and it’s seeing enormous growth with its infant formula division. In the three months to 31 March 2020, Bubs saw a 137% increase of infant formula revenue which represented 58% of gross sales. If the company can continue to grow internationally at a strong rate then it could become a sizeable business.

I like that Bubs is in control of its own supply chain after the Deloraine acquisition. I also like that it isn’t too heavily dependent on China revenue. Its ‘other markets’ revenue grew by around 20 times in the quarter to 31 March 2020 – this division represented 12% of gross sales.

The fact that it’s now cashflow positive is very encouraging. Over the next five years I think the Bubs share price could be one of best performers on the ASX.

Share 2: MFF Capital Investments Ltd (ASX: MFF)

MFF Capital is one of the best listed investment companies (LICs) on the ASX in my opinion. It’s run by Magellan Financial Group Ltd (ASX: MFG) co-founder Chris Mackay. The job of a LIC is to invest in shares on behalf of shareholders. MFF Capital typically targets quality international shares.

Prior to COVID-19, it had been one of the best-performing LICs. The ASX share has since moved to a high cash position. At the end of June 2020 it had a net cash position of 44%. This can be used for protection against another market selloff and also to buy any beaten up opportunities that appear.

The LIC is looking for longer term opportunities rather than short term trading opportunities. The LIC is looking for businesses with sustainable advantages it can hold large positions in. However, it still owns significant positions in shares like Visa, MasterCard and Home Depot.

I have a lot of confidence in Mr Mackay’s ability to create market-beating returns. It’s trading at a 5% discount to the pre-tax net tangible assets (NTA) at 3 July 2020.

Share 3: Washington H. Soul Pattinson and Co. Ltd (ASX: SOL)

As long-term readers would know, Soul Patts is one of my preferred long-term ASX share ideas.

It is a very old investment conglomerate that invests in a broad range of businesses, both listed and unlisted. Two of its largest listed holdings are TPG Telecom Ltd (ASX: TPG) and Brickworks Limited (ASX: BKW). Some of its unlisted investments are swimming schools, agriculture and resources.

I’m quite excited by the new venture that Soul Patts may invest into. Regional data centres could be a very promising industry, particularly as more aspects of life move online.

The investment house invests in other businesses for the long-term, which makes it much easier to invest in Soul Patts itself for the long-term.

Soul Patts has survived through recessions, world wars and even the Spanish Flu. Whatever happens next, I think the company (and its diversified portfolio) is well placed to continue growing its in value.

As a bonus, the ASX share has grown its dividend every year since 2000 and it retains some of its cashflow profit each year to reinvest into more opportunities. At the current share price, Soul Patts is trading with a grossed-up dividend yield of 4.3%.

Foolish takeaway

I’d happily invest $2,000 into each of these ASX shares. I think Bubs has the best chance of creating excellent returns over the next five years. But I also believe MFF Capital and Soul Patts can comfortably outperform the broader ASX over the next few years as well.

More reading

• 3 quality ASX shares to buy right now with $3,000
• 3 ASX dividend shares to grow and diversify your income
• Have $10,000 to invest? I’d pick these ASX shares
• 3 of the best ASX growth shares to buy for the 2020s
• 3 very reliable dividend shares I plan to pay for my retirement

Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Brickworks, BUBS AUST FPO, 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.

The post 3 ASX shares I’d buy with $6,000 today appeared first on Motley Fool Australia.

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If you’re a fan of growth shares like I am, then you’re in luck because there’s a good number of quality companies trading on the Australian share market that I believe are capable of growing their earnings at a strong rate over the next decade.

Three that I would consider buying this month are listed below. Here’s why I like them:

Aristocrat Leisure Limited (ASX: ALL)

One of my favourite growth shares on the local market is Aristocrat Leisure. I’m a big fan of the gaming technology company due to the quality of its core business and the strong growth potential of its digital business. The latter business has millions of daily active users generating significant recurring revenues. Due to new releases and the growing popularity of social and mobile gaming, I expect it to generate strong recurring revenue growth in the 2020s. This should drive strong profit growth over the medium term and help propel the Aristocrat Leisure higher.

Domino’s Pizza Enterprises Ltd (ASX: DMP)

Although this pizza chain operator’s performance over the last few years has been a little mixed, I believe its long term outlook is increasingly positive. This is because management intends to grow its global store network by 7% to 9% per annum for the next 3 to 5 years. Combined with its same store sales growth target of 3% to 6% per annum over the same period, this should lead to strong profit growth. If it delivers on these targets, then I suspect that the Domino’s share price will be a market beater through to 2025.

Nanosonics Ltd (ASX: NAN)

A final growth share to buy is Nanosonics. It is the infection prevention specialist behind the popular trophon EPR disinfection system for ultrasound probes. I’m a big fan of the company due to the quality of the product and the recurring revenues it generates from consumables sales. Given its massive market opportunity and management’s plan to launch several new products targeting unmet needs in the near term, I believe Nanosonics is well-positioned to continue its strong growth for many years to come.

More reading

• Why Adbri, Domino’s, Event, & Viva Energy shares are dropping lower
• 3 innovative ASX shares to buy
• Should you buy the beaten down shares of Aristocrat Leisure and Flight Centre?
• Why Domino’s and these ASX 200 shares have just hit new highs
• Bring your portfolio to life with these stellar ASX healthcare 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 Nanosonics Limited. The Motley Fool Australia has recommended Domino’s Pizza Enterprises Limited and Nanosonics Limited. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The post Why I would buy Nanosonics and these ASX growth shares appeared first on Motley Fool Australia.

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