The Mesoblast limited (ASX: MSB) share price has had an incredibly eventful year.

The stem cell-focused biotech company’s shares have been as high as $5.70 and as low as $1.02.

Today, the Mesoblast share price sits at $2.40 after crashing over 40% lower last week.

What is happening with the Mesoblast share price?

Mesoblast has been extremely busy this year with a number of key trials and applications.

This includes running a trial for remestemcel-L in the treatment of COVID-19 Acute Respiratory Distress Syndrome (ARDS), an application for remestemcel-L to treat paediatric patients with steroid-refractory acute graft versus host disease (SR-aGvHD), and a trial of rexlemestrocel-L in patients with advanced chronic heart failure.

Unfortunately, after so much promise, the company has fallen short on each occasion.

Advanced chronic heart failure.

Last week Mesoblast released the top-line results from the landmark DREAM-HF Phase 3 randomised controlled trial. This was a trial of its allogeneic cell therapy rexlemestrocel-L (REVASCOR) in 537 patients with advanced chronic heart failure.

Rexlemestrocel-L is a therapy that was being developed with Teva Pharmaceutical Industries until 2016, when the pharma giant walked away from the project due to weak data.

While the DREAM-HF trial showed a reduction in the incidence of heart attacks or strokes, there was no reduction in recurrent non-fatal decompensated heart failure events. This was the trial’s primary endpoint.

Remestemcel-L for paediatric SR-aGvHD.

In October the Mesoblast share price crashed lower after the US Food and Drug Administration (FDA) decided not to approve its remestemcel-L therapy for the treatment of paediatric patients with SR-aGvHD.

Instead, the FDA has requested that Mesoblast undertake at least one additional randomised, controlled study in adults and/or children. This is to provide further evidence of the effectiveness of remestemcel-L for SR-aGVHD.

Remestemcel-L for COVID-19 ARDS.

The icing on the cake for Mesoblast was last week’s announcement that its randomised controlled trial of remestemcel-L in ventilator-dependent patients with moderate to severe ARDS due to COVID-19 infection was a failure.

That announcement revealed that the Data Safety Monitoring Board (DSMB) has performed a third interim analysis on the trial’s first 180 patients.

And while the DSMB has reported that there were no safety concerns, importantly, it noted that the trial is unlikely to meet its 30-day mortality reduction endpoint at the planned 300 patient enrolment. In light of this, the DSMB effectively ended the trial early by instructing Mesoblast to recruit no further patients.

The company has suggested that changes in the treatment regimens for COVID-19 patients are to blame for the trial’s failure.

It explained: “During the course of the trial, as the pandemic has evolved, numerous changes in the treatment regimens for COVID-19 patients occurred, including both prior to and while on mechanical ventilation that may have an effect on the mortality endpoint in the trial.”

This trial data has now called into question the company’s deal with pharma giant Novartis that was potentially worth ~US$1.2 billion.

That agreement had an initial focus on the development of a treatment for ARDS, including that associated with COVID-19. Whether this focus still has a future, the two companies will no doubt have to work out in the coming weeks and months.

More reading

• These were the worst performing ASX 200 shares last week
• ASX 200 falls 1.2% on Friday
• ASX 200 down 0.6%: Mesoblast crashes lower, Qantas & Flight Centre tumble, NAB AGM
• Why Mesoblast, Paradigm, Qantas, & QBE shares are tumbling lower
• Why the Mesoblast (ASX:MSB) share price crashed 45% lower today

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.

The post What’s going on with the Mesoblast (ASX:MSB) share price in 2020? appeared first on The Motley Fool Australia.

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Deciding which companies can be classed as the best shares to buy today is very subjective. However, they are likely to have solid financial positions and competitive advantages over their peers. This may allow them to deliver excellent financial performances over the long run.

Buying such companies when they trade at cheap prices can lead to impressive returns over the long run. They may be able to deliver market-beating returns that catalyse an investor’s portfolio. They could even help an investor to retire earlier than they had previously planned.

Buying today’s best shares

The stock market crash and uncertain weak economic outlook means that buying the best shares available could be even more important than usual. Indeed, some sectors face challenging operating conditions that could lead to disappointing financial performances over the coming months. Companies with solid balance sheets and competitive advantages over their peers may be better able to survive.

Such companies may also benefit to a greater extent from a likely economic recovery. For example, they may be able to invest in undervalued assets to strengthen their market positions. Or, they may be able to invest in adapting their business models to new customer tastes and trends. This may lead them to generate higher profit growth than their peers, which could produce higher valuations over the coming years.

Investing money at cheap prices

Investing money in the best shares at cheap prices can provide greater scope for capital appreciation. Many of today’s undervalued shares may face an extended period of time before they return to 2019 price levels.

However, the past performance of the stock market suggests that a sustained bull market is likely to take place in the coming years. This could lift investor sentiment towards a wide range of companies, and allow them to command higher valuations.

Buying stocks at cheap prices may also limit risks to some extent. Buying an asset for less than it is worth provides an investor with a margin of safety that can prove useful should the future turn out to be different than expectations. With a challenging current economic outlook, wide margins of safety could prove to be highly appealing to long-term investors.

Long-term return prospects

Of course, today’s best shares may not produce positive capital returns in the short run. There continues to be potential for a second stock market crash following the downturn in the first quarter of 2020, since risks such as Brexit and coronavirus are likely to remain in place.

However, an investor buying shares for their retirement portfolio may have sufficient time for cheap shares to recover. This may mean that now is a buying opportunity, since many of today’s best shares may gradually increase in value over the coming years as the world economy’s outlook improves.

More reading

• Buy Telstra (ASX:TLS) shares instead of term deposits
• How I’ll find the best dividend stocks for 2021
• 4 leading ASX growth shares to buy for 2021
• How to turn $20,000 into over $250,000 in 10 years with ASX shares
• These were the best performing ASX 200 shares last week

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.

The post Why I’d invest money in the best shares at cheap prices to retire early appeared first on The Motley Fool Australia.

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At present, a 24-month term deposit from Australia and New Zealand Banking GrpLtd (ASX: ANZ) will provide investors with an interest rate of just 0.3%. This is broadly in line with what the rest of the banks are offering.

This means that a $100,000 investment would yield just $300 of interest each year.

Luckily, income investors don’t have to settle for that and there are a good number of shares offering vastly superior yields.

One of those is telco giant Telstra Corporation Ltd (ASX: TLS).

Why Telstra?

Telstra has been a big disappointment for income investors in recent years.

The NBN rollout created a significant gap in its earnings and led to a series of dividend cuts by the Telstra board.

The good news is that these cuts now appear to be over and a return to growth could be on the horizon soon.

This follows comments by the Telstra board at its annual general meeting which revealed that it would consider adjusting its dividend policy to maintain its 16 cents per share payout.

In addition to this, the company has recently announced plans to split its business into three separate entities. Management believes the restructure will allow Telstra to take advantage of potential monetisation opportunities for its infrastructure assets, which could create additional value for shareholders.

He commented: “The proposed restructure is one of the most significant in Telstra’s history and the largest corporate change since privatisation. It will unlock value in the company, improve the returns from the company’s assets and create further optionality for the future.”

Combined with the arrival of 5G, rational competition in the telco market, and its rampant cost cutting, things are looking a whole lot rosier for Telstra now.

Buy rating.

One broker that is a fan is Goldman Sachs. In response to its big shakeup, the broker reiterated its buy rating and $3.60 price target on the company’s shares.

It has also reaffirmed its forecast for a 16 cents per share fully franked dividend in FY 2021 and beyond. Based on the current Telstra share price, this represents a fully franked 5.3% dividend yield.

More reading

• Why the Uniti (ASX:UWL) share price is zooming 13% higher today
• 2 blue chip ASX dividend shares to buy today
• Why the Uniti (ASX:UWL) share price is on watch today
• ASX 200 Weekly Wrap: ASX 200 hits a 6! Thank iron ore
• Beat negative interest rates with these ASX dividend shares

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 best dividend stocks for 2021 may not necessarily be those companies with the highest yields. Certainly, a generous passive income is likely to be attractive in 2021, but affordable dividends and the prospect of growth may be equally important.

As such, searching for strong businesses in sectors that are currently unfavoured by investors, but that have long-term growth opportunities, could be a sound strategy to find the best income shares for 2021.

Dividend stocks with high yields

Dividend stocks with high yields may be more common in sectors that are currently unpopular among investors. They may have experienced share price falls since the start of the year. If they have maintained, or even increased, dividends then this may have resulted in them offering high income returns at the present time.

High-yielding dividend shares could become increasingly popular among investors in the coming months. Low interest rates look set to remain in place for an extended period of time. This could mean that income stocks with high yields are a relatively rare opportunity to generate inflation-beating income returns over the medium term. As such, dividend stocks with high yields could experience high demand that means they offer impressive capital gains to complement their passive income prospects.

Dividend affordability in 2021

The outlook for dividend stocks is very uncertain. Risks such as the coronavirus pandemic look set to remain in place for at least part of 2021. As such, the economic outlook could continue to be very challenging across a number of different sectors.

This means that dividend affordability may be crucial for any investor seeking to make a passive income. Therefore, checking a company’s financial position may be more important than ever. It can provide guidance as to the affordability of dividends should operating conditions worsen.

Information on the debt levels and interest cover of dividend stocks can act as a guide in assessing their financial strength. Meanwhile, dividend cover provides guidance on whether a company could withstand a drop in profitability when it comes to paying dividends. Ensuring a business has headroom when making dividend payments could be a prudent approach ahead of what may prove to be an uncertain 2021.

Dividend growth potential

As well as high yields and affordable payouts, dividend stocks with growth potential could be worth buying for 2021 and beyond. Companies that can grow dividends at a pace that exceeds inflation may become more popular in the coming years. This could mean they produce strong capital growth.

Clearly, assessing a company’s dividend growth prospects is tough at the present time. Shareholder payouts are closely linked to the outlook for profitability. However, by investing money in sectors with sound track records and clear opportunities for growth, it may be possible to find the most attractive income shares that deliver the highest returns in 2021 and in the coming years.

More reading

• 4 leading ASX growth shares to buy for 2021
• How to turn $20,000 into over $250,000 in 10 years with ASX shares
• These were the best performing ASX 200 shares last week
• These were the worst performing ASX 200 shares last week
• How to invest in US shares in 2021

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.

The post How I’ll find the best dividend stocks for 2021 appeared first on The Motley Fool Australia.

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The four leading ASX growth shares in this article could be worth watching for the long-term.

Here are those interesting stocks:

Pushpay Holdings Ltd (ASX: PPH)

Pushpay is a payments business which facilitates electronic donations, mostly to large and medium US churches.

Ben Griffiths from fund manager Eley Griffiths said: “Over the last 12 months it has become clear Pushpay is at an inflection point for both cashflow and earnings. Under the stewardship of CEO Bruce Gordon, Pushpay has transitioned from a founder-led investment phase into an optimize/monetization phase. What is more surprising is the very conservative nature of the accounts (a rarity in small cap tech, outside Iress Ltd (ASX: IRE). We believe the next few years for Pushpay will be rewarding and that COVID-19 will accelerate the already entrenched trend to digital giving/engagement from cash.”

Pushpay recently reported in its FY21 half year result that its earnings before interest, tax, depreciation, amortisation and foreign currency (EBITDAF) margin increased from 17% to 31%. Pushpay expects “significant operating leverage to accrue as operating revenue continues to increase, while growth in total operating expenses remains low.”

In FY21 the ASX growth share is guiding that it can deliver EBITDAF in the range of US$54 million to US$58 million, which would represent growth of more than 100%. Over the long-term it’s aiming for annual revenue of US$1 billion as it gains market share.

At the current Pushpay share price it’s valued at 25x FY23’s estimated earnings.

Redbubble Ltd (ASX: RBL)

Redbubble is an online marketplace for products created by artists. It sells a wide array of items like wall art, phone cases, clothes and masks.

In FY20 Redbubble grew its marketplace revenue by 36% to $349 million and operating EBITDA surged 141% to $15.3 million. It generated $38 million of total free cashflow in FY20. During the locked-down fourth quarter of FY20, the ASX tech share’s marketplace revenue grew 73%, gross profit rose 88% and it made $8.4 million of operating EBITDA.

The ASX share said growth in the first quarter of FY21 has continued strongly – marketplace revenue was up 116% to $147.5 million, gross profit grew 149% to $64.5 million, it made $22.1 million of earnings before interest and tax (EBIT) and Redbubble generated $27.1 million of operating cashflow.

VanEck Vectors Morningstar Wide Moat ETF (ASX: MOAT)

This is an exchange-traded fund (ETF) that invests in a diversified portfolio of attractively priced US companies with sustainable competitive advantages according to Morningstar’s equity research team.

The ASX share has produced growth over the last five years with a total return of an average of 16% per annum. It has an annual management fee per annum of 0.49%.

At the moment the largest 10 holdings are: Applied Materials, Corteva, Charles Schwab, Microchip Technology, Boeing, Compass Minerals International, Aspen Technology, Yum! Brands, Cheniere Energy and American Express.

EML Payments Ltd (ASX: EML)

This ASX growth share has a number of different payment services for clients to use. EML Payments has general purpose reloadable offerings such as gaming payouts with white label gaming cards, salary packaging cards, commission payouts and rewards programs. EML Payments also offers physical gift cards, shopping centre gift cards and digital gift cards. Finally, it offers virtual account numbers.

EML Payments shares have gone up 51% since the start of November 2020, which is since the COVID-19 vaccine development news came out. Physical gift cards and shopping centre gift cards generated higher earnings before COVID-19 came along.

In the first quarter of FY21, EML revenue grew 75% to $40.6 million compared to the prior corresponding period and that was 20% higher than the fourth quarter of FY20. It generated $10 million of EBITDA in the first quarter, which was up 215% compared to the prior corresponding period and up 69% compared to the FY20 fourth quarter.

More reading

• These were the best performing ASX 200 shares last week
• 2 ETFs offering strong international diversification
• These are the 7 best ASX retail shares in 2020
• 2 high quality ETFs for ASX investors to buy
• 3 exciting ASX tech 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 and recommends EML Payments. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of PUSHPAY FPO NZX. The Motley Fool Australia has recommended EML Payments, PUSHPAY FPO NZX, and 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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I’m a big fan of buy and hold investing and believe it is the best way for investors to grow their wealth.

To demonstrate how successful it can be, I like to pick out a number of popular ASX shares to see how much a single $20,000 investment 10 years ago would be worth today.

This time around I have picked out the three ASX shares that are listed below:

Corporate Travel Management Ltd (ASX: CTD)

Although this corporate travel booking company’s shares are down 43% from their all-time high, that hasn’t stopped them from smashing the market since 2010. The catalyst for this has been the success of its growth through acquisition strategy and focus on technology. This has underpinned strong sales and earnings growth over the last decade. For example, in FY 2011, its first full year since listing, Corporate Travel Management generated revenue of $46.8 million. Whereas in FY 2020, the company’s revenue had grown more than seven times to $350 million. This led to the Corporate Travel Management share price providing investors with a total return of 29.3% per annum over the period, which would have turned a $20,000 investment into just over $261,000.

Reece Ltd (ASX: REH)

Investing in a plumbing parts company may not be the most exciting place to put your money, but it has reaped rewards for investors. Its positive performance and successful expansion internationally has led to its shares beating the market over the last 10 years. Over the period, the Reece share price has generated an average total return of 15.1% per annum. This means a $20,000 investment in its shares in 2010 would now be worth $81,600 today.

ResMed Inc. (ASX: RMD)

The ResMed share price has been a consistently strong performer over the last decade. This has been driven by increasing demand for the medical device company’s market-leading sleep treatment products and the growing awareness of sleep disorders like sleep apnoea. This has led to ResMed’s shares generating an average total return of 23.6% per annum since 2010. This would have turned a $20,000 investment into ~$166,500 today.

More reading

• ASX 200 up 1.1%: ANZ AGM, Resolute jumps, travel shares soar
• The ResMed (ASX:RMD) share price is up 25% in 2020
• Wesfarmers and these ASX shares just hit 52-week highs or better
• ASX healthcare shares could outperform in 2021: Fundie
• These are 8 of the best performing ASX healthcare shares of 2020 so far

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

The post How to turn $20,000 into over $250,000 in 10 years with ASX shares appeared first on The Motley Fool Australia.

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Despite a disappointing end to the week, the S&P/ASX 200 Index (ASX: XJO) managed to record its seventh successive weekly gain last week. The benchmark index rose 0.5% to 6,675.5 points.

While a good number of shares climbed higher last week, some rose more than most.

Here’s why these were the best performers on the ASX 200 over the period:

EML Payments Ltd (ASX: EML)

The EML Payments share price was the best performer on the ASX 200 last week with a 13% gain. This was despite there being no news out of the payments company. However, a change of interests of substantial holder notice last week revealed that First Sentier Investors has been increasing its stake in the company. According to the notice, the fund manager has lifted its holding by almost 4 million shares to the equivalent of a 6.07% stake.

Perseus Mining Limited (ASX: PRU)

The Perseus share price wasn’t far behind with a 12.5% gain over the five days. Investors were buying Perseus and other gold miners after the spot gold price rebounded. This was driven by a weaker US dollar and optimism that major COVID stimulus is coming in the United States. For the same reason, the Resolute Mining Limited (ASX: RSG) share price rose 12.2% last week.

Megaport Ltd (ASX: MP1)

The Megaport share price was on form and jumped 11.5% last week. Once again, this was despite there being no news out of the software-based elastic connectivity provider. However, as of the end of the previous week, the Megaport share price was down 24% from its 52-week high. This may have led to bargain hunters swooping in on the belief they had been oversold.

Afterpay Ltd (ASX: APT)

The Afterpay share price was a strong performer and rose 10.2% over the five days. The catalyst for this was news that the buy now pay later provider will be added to both the ASX 20 and ASX 50 indices at the December rebalance. This meant that fund managers with strict investment mandates could now invest and index-tracking funds had to buy shares. Afterpay is replacing insurance giant Insurance Australia Group Ltd (ASX: IAG) in the exclusive ASX 20 index.

More reading

• Why the Perseus Mining (ASX:PRU) share price is gaining today
• Here’s how ASX buy now, pay later (BNPL) shares have performed in 2020
• Why Afterpay (ASX:APT) and these ASX shares just hit 52-week highs or better
• Why the Afterpay (ASX:APT) share price just smashed its record high
• Why 2021 may be an even better year for ASX investors

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 EML Payments and MEGAPORT FPO. The Motley Fool Australia owns shares of AFTERPAY T FPO. The Motley Fool Australia has recommended EML Payments and MEGAPORT FPO. 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) may have ended the week with a decline on Friday, but that didn’t stop it from recording its seventh consecutive weekly gain. The benchmark index climbed 0.5% to 6,675.5 points.

Although a good number of shares climbed higher, not all were on form.  Here’s why these were the worst performers on the ASX 200 last week:

Mesoblast limited (ASX: MSB)

The Mesoblast share price was far and away the worst performer on the ASX 200 last week with a massive 47.6% decline. The majority of this decline came on Friday after investors sold off the biotech company’s shares following the release of an update from its COVID-19 trial. That update revealed that its remestemcel-L product was unlikely to meet its 30-day mortality reduction endpoint. This prompted the US Data Safety Monitoring Board to essentially advise Mesoblast to end the trial early and recruit no further patients. This news has sparked concerns that its ~US$1.2 billion deal with Novartis for remestemcel-L could hit the rocks.

A2 Milk Company Ltd (ASX: A2M)

The a2 Milk share price was a poor performer and sank 22.4% lower over the five days. Once again, this decline came on the final day of the week when the infant formula and fresh milk company’s shares crashed lower following a guidance downgrade. Due to weakness in the daigou channel, a2 Milk has downgraded its revenue guidance to be in the range of NZ$1.4 billion to NZ$1.55 billion. This is down from its previous guidance of NZ$1.8 billion to NZ$1.9 billion. Management also reduced its EBITDA margin guidance to between 26% and 29% from ~31%.

Service Stream Limited (ASX: SSM)

The Service Stream share price wasn’t far behind with a 20.4% decline last week. Investors were selling the essential network services company’s shares after it announced that it has been awarded a multi-year contract with the NBN. While this would ordinarily be a positive, the company revealed that it would be sharing the work with three other providers. This means it will be generating notably less revenue that the market was previously expecting.

AVITA Therapeutics Inc (ASX: AVH)

The AVITA share price was out of form and dropped 13.8% lower over the five days. Investors were selling the regenerative medicine company’s shares after S&P Dow Jones Indices announced its quarterly rebalance of the S&P/ASX Indices. This rebalance will see AVITA’s shares dumped out of the ASX 200 index on 21 December.

More reading

• How to invest in US shares in 2021
• Why did the Synlait (ASX:SM1) share price drop 2% then enter a trading halt today?
• ASX 200 falls 1.2% on Friday
• Boral (ASX:BLD) share price falls on sale of its US bricks business
• UBS unveils its latest ASX “buy” idea for 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 Avita Medical Limited. The Motley Fool Australia owns shares of and has recommended A2 Milk. The Motley Fool Australia has recommended Avita Medical Limited and Service Stream 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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Investing in the United States and its markets has become increasingly popular in recent years. It’s easy to understand why. As technology and globalisation become ever more prevalent, we can’t help noticing brands like Apple Inc (NASDAQ: AAPL) and Alphabet Inc‘s (NASDAQ: GOOG)(NASDAQ: GOOGL) Google pop up in the everyday household. Or cars made by Tesla Inc (NASDAQ: TSLA) or even Ford Motor Company (NYSE: F) appear on our roads, perhaps driven by an Uber Technologies Inc (NYSE: UBER) driver. Or apps that Netflix Inc (NASDAQ: NFLX), Walt Disney Co (NYSE: DIS), or Amazon.com Inc (NASDAQ: AMZN) supply on our TVs.

If you dig a little deeper in your own cupboard, you might find Kellogg Company (NYSE: K) cereal or razors made by Procter & Gamble Co‘s (NYSE: PG) Gillette.

American companies are everywhere in Australian life, often hiding under familiar brands. Take the popular ice creams Paddle Pop and Golden Gaytime. They are actually owned by the British-Dutch company Unilever UN (NYSE: UL), listed in the US.

So it’s understandable that Aussie investors might want a slice of the pie. And they do. You can take a look at our coverage of some of the most popular US shares that Aussie are buying.

Recently, we covered how the rising Australian dollar was making investing in US shares more attractive. So if you’ve never taken the plunge across the Pacific, it might be a good time to have a think about it. There’s nothing wrong with our own S&P/ASX 200 Index (ASX: XJO) of course. But the reality is that our market is a minnow in the ocean of global markets. The US markets are, by comparison, a pod of whales. I say a pod because the US has a few different markets you can invest in. Rather than just one major index, like our ASX 200, American investors have a few choices. There’s the old-school Dow Jones Industrial Average (INDEXDJX: .DJI), the uber-popular S&P 500 Index (INDEXSP: .INX), and the tech-heavy NASDAQ-100 (INDEXNASDAQ: NDX).

Buying US shares on the ASX

You can always buy US shares directly through your ordinary broker. Many of the most popular Aussie share brokers, like Commonwealth Bank of Australia‘s (ASX: CBA) CommSec, or National Australia Bank Ltd‘s (ASX: NAB) NABtrade offer the opportunity to buy US shares like Apple or Netflix directly. There are also newer dedicated US brokers, like the popular Stake, which do the same.

However, if you don’t want to buy these shares directly, there are other options. Various managed funds and Listed Investment Companies (LICs) that are listed on the ASX invest in US shares. Some popular examples include the Magellan Global Fund (ASX: MGF) and MFF Captial Investments Ltd (ASX: MFF).

Otherwise, there are always US market-tracking index funds available on the ASX as well. Some examples include the iShares S&P 500 ETF (ASX: IVV), the Vanguard US Total Market Shares Index ETF (ASX: VTS), and the BetaShares Nasdaq 100 ETF (ASX: NDQ). There’s also a couple of currency-hedged options for the investor who wants to take currency fluctuations out of the equation. These include the iShares S&P 500 AUD Hedged ETF (ASX: IHVV) and the BetaShares NASDAQ 100 ETF – Currency Hedged (ASX: HNDQ).

Foolish takeaway

For the investor who wants to branch out and invest in US shares, there are more options available than ever. In the end, it just depends on your individual preferences as to which route you wish to take.

More reading

• These were the worst performing ASX 200 shares last week
• ASX 200 falls 1.2% on Friday
• Boral (ASX:BLD) share price falls on sale of its US bricks business
• UBS unveils its latest ASX “buy” idea for 2021
• US fundie predicts 25% share market gain in 2021

John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. Sebastian Bowen owns shares of Alphabet (A shares), Ford, Magellan Flagship Fund Ltd, National Australia Bank Limited, Procter & Gamble, Tesla, Uber Technologies, and Walt Disney. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and recommends Alphabet (A shares), Amazon, Apple, Netflix, Tesla, and Walt Disney. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of BETANASDAQ ETF UNITS. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. recommends Uber Technologies and recommends the following options: short January 2021 $135 calls on Walt Disney, long January 2022 $1920 calls on Amazon, long January 2021 $60 calls on Walt Disney, and short January 2022 $1940 calls on Amazon. The Motley Fool Australia has recommended Alphabet (A shares), Amazon, Apple, BETANASDAQ ETF UNITS, Netflix, and Walt Disney. 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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There are at least three reasons why Brickworks Limited (ASX: BKW) shares are a compelling investment option.

Reason one: A construction recovery in Australia

Whilst the building products divisions may not make up a majority of the underlying value of Brickworks shares, the performance of its construction divisions are important for the Brickworks share price.

In recent months Brickworks has seen a recovery in the Australian construction industry after the initial impacts of COVID-19.

According to Brickworks’ most recent trading update, in Australia the company has made a strong start to FY21 with first quarter earnings well ahead of the prior corresponding period. Its home builder customers have a solid pipeline of work for the remainder of the financial year, underpinned by various government stimulus measures. Brickworks is making progress on its $75 million Austral Masonry plant as well as its $125 million face brick plant at Horsley Park.

However, there isn’t the same sort of recovery going on in the US. COVID-19 daily infections are above 200,000 in the US and the construction industry is being impacted. Sales have been below expectations in recent months with a number projects being deferred by state authorities due to financing concerns, as well as disruptions to manufacturing operations.

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

Soul Patts is an investment conglomerate that has been listed since 1903. Brickworks has owned shares of Soul Patts for decades at this point.

Soul Patts has a diversified portfolio of assets. Some of its positions include TPG Telecom Ltd (ASX: TPG), Brickworks, New Hope Corporation Limited (ASX: NHC), Australian Pharmaceutical Industries Ltd (ASX: API), Bki Investment Co Ltd (ASX: BKI) and Milton Corporation Limited (ASX: MLT). It also has private investments in areas like financial services, resources and swimming schools. 

Some of Soul Patts’ most recent investments have been focused on agriculture. It also recently tried to acquire aged care operator Regis Healthcare Ltd (ASX: REG), though its public offer was knocked back quickly.

Soul Patts makes up a big chunk of the underlying Brickworks asset value. The Soul Patts share price has risen by 17% over the past two months and by 54.8% over the last six months.

Reason three: A growing industrial property trust

Brickworks owns a 50% stake in an industrial property trust along with real estate giant Goodman Group (ASX: GMG).

The idea of the trust is for Brickworks to sell its excess land that it no longer needs into the trust and then industrial properties (like warehouses) are built on that land.

The warehouses can then benefit from long-term capital growth whilst also paying strong annual rental profit to Brickworks and Goodman.

The trust’s net asset growth has helped push the Brickworks share price higher over the years.

At the moment the trust is working on building two huge, high-tech warehouses for Coles Group Ltd (ASX: COL) and Amazon. Once the warehouses are completed it’s expected to increase the gross assets of the industrial property trust to at least $3 billion and it will grow the net profit distributions from the trust by at least 25%.

Brickworks said that the Amazon facility is due to be completed in September 2021. The construction of the Coles distribution warehouse is expected to commence in early calendar 2021.

The building products business said that it has sufficient remaining land to provide at least a further five-year development pipeline.

At the current Brickworks share price it offers a trailing grossed-up dividend yield of 4.3%. It’s also priced at 18x FY21’s estimated earnings.

More reading

• Top ASX shares to buy in 2021
• ASX 200 up again on Wednesday
• Washington H. Soul Pattinson (ASX:SOL) share price rises 2% after upbeat AGM
• 3 reasons why Soul Patts (ASX:SOL) is a great ASX dividend share
• Got money to invest? Here are 3 ASX dividend shares to buy

Motley Fool contributor Tristan Harrison owns shares of Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia owns shares of and has recommended Brickworks and Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia owns shares of COLESGROUP DEF SET. 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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