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

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

Moderna (NASDAQ: MRNA), one of the leaders in the race to develop a coronavirus vaccine, was able to take the initial coronavirus sequence and get a vaccine candidate, mRNA-1273, ready for a phase 1 clinical trial in just 42 days.

The biotech’s use of Amazon Web Services (AWS), the cloud-based computing service run by Amazon (NASDAQ: AMZN), enabled this quick development. Moderna runs its Drug Design Studio on AWS, which allows it to design its mRNA drug candidates quickly.

The potential drugs are further analyzed using machine learning to optimize the sequence for manufacturing. And with Moderna’s manufacturing systems running on AWS, converting the vaccine sequences to physical mRNA vaccine candidates ready for preclinical testing was a straightforward process.

Of course, Amazon can’t take all the credit. While AWS undoubtedly helped speed up the process, Moderna’s mRNA platform played a big role in the biotech developing a candidate so quickly. Protein-based vaccines are lagging behind mRNA vaccine-makers, such as Moderna and BioNTech (NASDAQ: BNTX), simply because protein-based drugs take longer to design and optimize – especially at the manufacturing step – as the proteins have more complex structures than mRNAs.

Rather than dealing with the challenging protein step, Moderna and BioNTech let the patients’ cells translate the mRNA sequence into a protein that can elicit an immune reaction just like injecting the protein directly into the patient.

If mRNA-1273 passes its ongoing phase 3 clinical trial, AWS could come into play again. As Moderna ramps up manufacturing capabilities, AWS will allow for a quick technology transfer of its manufacturing model into its partners’ facilities.

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

More reading

• Why Amazon shares climbed 14% last month
• Better Buy: Alphabet vs. Amazon
• 3 ways to play the skyrocketing tech shares
• Better Buy: Netflix vs. Amazon
• Everything you need to know about the coronavirus vaccine race

John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Brian Orelli, PhD 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 Amazon and recommends the following options: long January 2022 $1920 calls on Amazon and short January 2022 $1940 calls on Amazon. The Motley Fool Australia has recommended Amazon. 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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This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

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If you want to invest like Warren Buffett, then I believe you need to think long term. After all, Mr Buffett has famously stated many times before that his favourite holding period is forever.

But which shares can you buy on the Australian share market if you want to follow Mr Buffett’s lead?

Two quality ASX shares that I think Warren Buffett would approve of are listed below. Here’s why I think they could be top buy and hold options:

CSL Limited (ASX: CSL)

I think this global biotech company would tick a lot of boxes for Mr Buffett. CSL has a high return on equity, talented management team, and long track record of generating strong earnings growth and returns for shareholders. It also has a very positive long term outlook thanks to its in demand therapies and its high level of investment in research and development. I estimate that CSL will invest somewhere in the region of US$900 million into its research and development activities this year. Not only do I expect this to generate a compelling return on investment, but also cement its position as a leader in its field.

SEEK Limited (ASX: SEK)

SEEK is an owner and operator of online employment sites in Australia and numerous international markets. For the majority of Australians, SEEK is the first place that businesses and job seekers go to for job listings. I see this market domination as a bit of a moat, which I think is something that Warren Buffett would find attractive. Another positive is its massive opportunity in the China market with its Zhaopin business. It has been growing at a rapid rate in recent years and looks set to underpin strong sales and earnings growth over the next decade. This could make it an excellent buy and hold option.

More reading

• Top brokers name 3 ASX 200 shares to buy today
• Earnings season: What to expect from the CSL FY 2020 result
• Afterpay and Qantas were among the most traded shares on the ASX last week
• Buy these outstanding ASX 50 shares for strong potential returns
• ASX 200 edges lower, Melbourne enters stage 4 lockdown

James Mickleboro owns shares of SEEK Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of CSL Ltd. The Motley Fool Australia has recommended SEEK 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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Australian house prices continued to drift lower in July, falling 0.6%. This is the third straight month of declines and follows a 0.7% fall in June. Melbourne and Sydney led the falls in July, dropping 1.2% and 0.9% respectively. Which ASX shares are likely to be impacted by falling Australian house prices?

ASX shares impacted by house prices

The housing market has been insulated from a more significant downturn by low interest rates, government support, and repayment holidays for distressed borrowers. But the market faces another challenge as Victoria heads into six weeks of hard lockdown. Some have predicted house prices could fall by up to 20% in the state as government stimulus dries up in October and loan repayment holidays end.

Falling house prices can impact ASX shares, as seen during the global financial crisis (GFC). Whilst some query the direct relationship between ASX shares and house prices, I believe two ASX shares, in particular, have their fortunes tied to the real estate market. REA Group Limited (ASX: REA) and Domain Holdings Australia Ltd (ASX: DHG) both run online real estate platforms which will see a slow down in listings as a result of Victoria’s latest restrictions. 

Impacts of the pandemic

The Australian property market was showing strong signs of improvement prior to the onset of the pandemic. This included improvements in national residential listings led by Melbourne and Sydney. According to REA Group, national listings were up 3% in mid March but fell 2% over the full month as the impact of the pandemic took hold. REA Group CEO, Owen Wilson, commented, “prior to the impact of COVID-19, the market recovery was in full flight.” 

The real estate market continues to be negatively impacted by the pandemic and surrounding economic uncertainty. Weakness in new listings is expected to impact revenue with REA Group reporting national listings down 33% in April. The impact of this fall will be revealed in the company’s full year results which are set to be released on Friday. Domain is due to report its full year results on 20 August but has revealed new listing volumes had declined in the high 20% range in April. Like REA Group, Domain has moved to support its customers during the pandemic with discounts and product initiatives. 

Foolish takeaway 

REA Group and Domain will be two ASX shares hoping Victoria’s latest lockdown doesn’t slam the breaks on house prices nationally. With both ASX shares due to report results this month, the financial impact of the pandemic thus far will become clearer. 

More reading

• TPG and 1 other ASX share to buy and hold for long-term growth
• Where to invest $20,000 into ASX shares right now
• Where is the Domain share price headed in August?
• 5 things to watch on the ASX 200 next week
• Is the REA Group share price a buy?

Motley Fool contributor Kate O’Brien has no position in any of the stocks mentioned. The Motley Fool Australia has recommended REA 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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ASX growth shares are having a bumper year.

While many dividend shares have been hammered, growth shares like Afterpay Ltd (ASX: APT) have continued to climb.

I think part of this can be put down to the dividend uncertainty. Investors are happy to take the promise of growth tomorrow compared to buying a dividend share that won’t pay out anything today.

That’s good news for ASX growth shares across a number of sectors. The tech sector has done well and buy now, pay later is surging higher.

However, I’ve got my eye on Nextdc Ltd (ASX: NXT) and one other top ASX growth share in the August earnings season.

Why I’m watching Nextdc and one more ASX growth share

I think the Aussie share market is a bit like a tight sporting contest right now. You don’t quite know who will win and you just can’t look away.

One ASX growth share that I can’t take my eye off is Nextdc. The Nextdc share price has had a bullish run in 2020 and is up 83.3% to $11.97 per share.

That’s an impressive performance, particularly when you consider the impact of the coronavirus pandemic on the S&P/ASX 200 Index (ASX: XJO).

While the benchmark index slumped in the March bear market, Nextdc shares were one of the standout performers.

I have high expectations for the company’s full-year earnings result. Nextdc posted a strong half-year result but I think the growth outlook could be even better in August.

We’ve seen strong demand for data storage and security services in 2020. A rise in sophisticated cyber-attacks and a shift to remote working have accelerated this growth for Nextdc.

There’s no set date for that earnings release yet but Nextdc reported its FY19 earnings on 29 August, so it may be a few weeks away.

I’ve also got my eye on A2 Milk Company Ltd (ASX: A2M) in August. The ASX growth share has climbed 39.8% this year and is trading just shy of its all-time high.

To many, that could mean that A2 Milk is overvalued. However, I think a strong earnings profile underpinned by growing supermarket sales is the key.

The company is also continuing to pursue its international expansion of the brand into Canada.

Demand for A2 products out of Asia is robust which could generate the cash flow needed to realise its potential future growth.

I think A2 Milk is one of those ASX growth shares that’s worth watching this month. The Kiwi dairy group is set to announce its FY20 earnings on 19 August.

Foolish takeaway

These are just a couple of the top ASX growth shares I’m watching this month.

Given the strong share price growth in other sectors like tech, I’m sure we’re in for an eye-opening reporting season this month.

More reading

• Will the Domino’s share price continue to surge in August?
• Nick Scali share price bolstered by strong outlook and dividend upgrade
• Up 21% in a month, is the Northern Star share price a buy?
• Is the BHP share price a good coronavirus hedge?
• 5 things to watch on the ASX 200 on Thursday

Motley Fool contributor Ken Hall has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of A2 Milk and 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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Later this month all eyes will be on the Woolworths Group Ltd (ASX: WOW) share price when it releases its full year results.

The conglomerate is scheduled to release its results on 27 August 2020.

Ahead of the release, I thought I would look to see what the market is expecting from the company.

What should you expect from the Woolworths full year result?

According to a note out of Goldman Sachs, it is expecting the conglomerate to record solid growth in sales in FY 2020.

For the 12 months ended 30 June 2020, the broker expects Woolworths to record a 5.9% year on year increase in sales to $63.52 billion.

A key driver of this growth is expected to be a very strong increase in Australian Food sales during the year. Its analysts expect the segment to report comparable store sales growth of 7.2%, bringing its total sales to $41,878.5 million.

Goldman believes that its Big W, NZ Supermarkets, and Endeavour Drinks businesses will be supporting this growth. It is forecasting sales growth of 8.9% for NZ Supermarkets, 8.6% for Endeavour Drinks, and 7.2% for Big W.

While these businesses are benefiting from the pandemic, its Hotels business has been impacted greatly due to closures. As a result, the broker is forecasting a 21.5% decline in Hotels sales to $1,311.6 million in FY 2020.

What about its earnings?

Unlike rival Coles Group Ltd (ASX: COL), Goldman Sachs isn’t expecting Woolworths’ profits to grow in FY 2020. This is due partly to additional COVID related costs and also its new enterprise agreement.

The broker has pencilled in a 2.6% increase in Australian Food segment earnings before interest and tax (EBIT) to $1,905.6 million on a pre-AASB16 basis. On a post-AASB16 basis, Australian Food EBIT is expected to be $2,198.4 million.

And although solid EBIT growth is also expected from Endeavour Drinks and NZ Supermarkets, and the Big W brand is expected to become profitable at long last, a sharp decline in Hotels EBIT is expected to weigh on its profit result.

Goldman expects Woolworths’ underlying net profit after tax to be at $1,572.7 million, or $1,699 million on a pre-AASB16 basis. This represents a 3.1% year on year decline.

More reading

• 4 coronavirus-resistant blue chip ASX shares
• ASX shares that could get a boost from Victoria’s shutdown
• ASX 200 jumps 2% higher, Afterpay soars
• Woolworths provides update on the impact of COVID-19 restrictions
• 3 high quality blue chip ASX 200 shares to buy

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of COLESGROUP DEF SET and Woolworths 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 ResMed Inc. (ASX: RMD) share price is dropping lower on Thursday morning following the release of its fourth quarter and full year update.

At the time of writing the sleep treatment-focused medical device company’s shares are down 4% to $26.82.

How did ResMed perform in the fourth quarter?

For the three months ended 30 June 2020, ResMed delivered a 10% constant currency increase in revenue to US$770.3 million. This compares to the analyst consensus estimate of US$752 million.

A key driver of this growth was its Europe, Asia, and Other business, which delivered a 22% increase in revenue during the quarter. Management advised that this was primarily driven by sales across its device product portfolio, including increased demand for ventilators due to COVID-19.

The U.S., Canada, and Latin America business grew revenue by 4% during the quarter. This was thanks to strong sales across its mask product portfolio and increased demand for ventilators. This offset softer than expected mask sales during the period.

Finally, the fledgling Software as a Service business was on form and achieved a 7% increase in revenue. This was due to continued growth in resupply service offerings and stabilising patient flow in out-of-hospital care settings.

This led to the company reporting full year FY 2020 revenue of US$2,957 million, up 15% year on year in constant currency.

What about its earnings?

ResMed reported a further increase in its gross margin during the fourth quarter. It increased 60 basis points to 59.9%, which underpinned a 24% increase in quarterly operating profit to US$243.4 million and a 40% lift in quarterly net income to US$193.3 million.

For the full year, the company’s operating profit grew 24% to US$890.9 million and net income lifted 32% to US$692.8 million.

ResMed’s CEO, Mick Farrell, commented: “Our fourth quarter results reflect the strength and resiliency of our business in today’s uncertain environment. We finished fiscal year 2020 with double-digit revenue growth to US$3.0 billion and operating profit up 24% on a non-GAAP basis.”

 “Throughout our fiscal fourth quarter, we continued to support the COVID-19 pandemic response through increased manufacturing of our ventilators, including bilevels, and ventilation mask systems while also supporting our customers with digital health solutions and other innovative tools to enable remote care for patients,” he added.

Outlook.

Mr Farrell appears cautious optimistic on the company’s prospects in FY 2021.

He said: “Looking ahead, we are confident in our ability to navigate through the ongoing challenging clinical and economic environment to deliver for all our stakeholders. Sleep labs and physician practices are reopening across many geographies, and we’re seeing accelerated adoption of digital health solutions which supports our long-term strategy.”

“We remain vigilant and thoughtful about the outlook for our business as we continue to serve our customers, and we believe our strong foundation will accelerate our growth over the longer term,” he concluded.

More reading

• 5 things to watch on the ASX 200 on Thursday
• ResMed and 1 other 5-star ASX 200 share to buy in August
• This is the only ASX sector tipped to report earnings growth this reporting season
• Why I would buy NEXTDC and these stellar ASX growth shares
• 7 ASX shares to watch this reporting season

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia has recommended ResMed 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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2020 hasn’t been a great year for many ASX real estate investment trusts (REITs). The coronavirus pandemic has hurt earnings across a broad range of real estate sectors including office, commercial and retail. However, National Storage REIT (ASX: NSR) shares are one of the few to climb higher this year. Despite its recent gains, is the National Storage share price still a buy?

Why is the National Storage share price doing well?

National Storage provides tailored storage solutions across Australia with a focus on self-storage units.

The Aussie REIT was subject to several takeover bids earlier this year. These included offers at $2.20 to $2.40 per share from China-based Gaw Capital Partners, as well as United States-based Warburg Pincus and Public Storage.

However, the pandemic uncertainty hit in February and all three bidders withdrew from the race.

That saw the National Storage share price plummet to as low as $1.23 per share in the midst of the March bear market.

Things have been reasonably solid since then. Shares in the Aussie self-storage REIT have climbed 51.2% higher since March and are trading at $1.86 per share.

So, how does the National Storage share price stack up against its fellow REITs in August?

Should you buy National Storage shares?

I personally think National Storage is in a better position than many ASX REITs right now.

There are question marks over current property valuations in the retail, commercial and office sectors. That’s largely due to shifting consumer and worker behaviour resulting from the pandemic.

That’s why shares like Scentre Group (ASX: SCG) and Stockland Corporation Ltd (ASX: SGP) are trading at steep discounts.

Retail tenants are likely to struggle from lower foot traffic while arguably demand for bricks and mortar leases will be subdued.

In contrast, now could be a good time for National Storage’s earnings.

Tough economic times can often see people moving homes as they look to downsize or otherwise relocate.

That means demand for self-storage units could be set to surge if we see stress in the residential property market.

Foolish takeaway

The National Storage share price fell 1.3% lower yesterday but I think it could be a solid buy.

As an REIT, I wouldn’t expect huge share price growth. However, non-cyclical earnings and a price-to-earnings (P/E) ratio of just 5.1 could mean it’s on the buy list.

More reading

• Super Retail and 2 other ASX retail shares to watch in August
• Reliable ASX dividend shares still exist
• 2 ASX shares to buy and 2 to avoid as deflation bites
• Top brokers name 3 ASX shares to sell next week
• Value stocks to rise on strong A$ and broker picks the cheapest ASX stocks to buy today

Motley Fool contributor Ken Hall has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Scentre Group. 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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Will pizza be the key to outperformance in August?

Judging by the Domino’s Pizza Enterprises Ltd (ASX: DMP) share price gains, that could be the case.

Domino’s shares are up 5.0% in the last month while the S&P/ASX 200 Index (ASX: XJO) has edged 0.2% lower.

Why the Domino’s share price is soaring

There have been no major announcements from the Aussie food company since mid-April. However, that hasn’t stopped the Domino’s share price continuing to climb.

One big factor has been Domino’s ability to continue operating despite coronavirus restrictions.

Investors seem to be pricing in resilient future earnings, with Domino’s shares jumping 40.2% to $75.52. In fact, Domino’s is currently trading just 1.7% behind its 52-week high.

I think strong momentum and a lack of announcements make the company’s August earnings result one worth watching.

It’s been a long time since we’ve got an insight into Domino’s financials and operations. That means the August 19 full-year result could help re-calibrate expectations for the Domino’s share price.

Is the Domino’s share price a buy?

I think the Victorian lockdown could be good for Domino’s earnings. There are tight restrictions in stage 4 but food delivery is not one of them.

That means Domino’s earnings could be resilient despite economic hardship in many industries.

I also think it’s in a better position than many ASX 200 shares to pay dividends in the near future.

The one concern I would have is the lofty valuation. Domino’s shares trade at a price-to-earnings (P/E) ratio of 49.1 and just shy of its 52-week high.

That means you’re investing a lot of money for little immediate return. If you believe in the long-term growth story, that may not be a huge concern.

However, value investors may be turned off buying Domino’s shares.

Foolish takeaway

The Domino’s share price has had a strong year but I’m not sure the company’s shares are particularly cheap.

If you’re willing to wait, I think the August earnings result could provide a good reset point for the ASX share’s fair valuation.

More reading

• Overvalued or a strong buy? Nextdc and 1 more ASX growth share to watch
• Nick Scali share price bolstered by strong outlook and dividend upgrade
• Up 21% in a month, is the Northern Star share price a buy?
• Is the BHP share price a good coronavirus hedge?
• 5 things to watch on the ASX 200 on Thursday

Motley Fool contributor Ken Hall has no position in any of the stocks mentioned. The Motley Fool Australia has recommended 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 Will the Domino’s share price continue to surge in August? appeared first on Motley Fool Australia.

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Mesoblast Limited (ASX: MSB) shares have surged more than 30% in the past month. Despite this, I believe the Mesoblast share price is poised to go higher. Around nine years ago, the company was part of the S&P/ASX 200 Index (INDEXASX: XJO) and was trading around $9 with a market capitalisation of $2.5 billion at its peak.

Since then, the Mesoblast share price has struggled to gain any traction and was eventually dropped out of the Index. However, since late-March, the Mesoblast share price has surged more than 314% on the back of a potential treatment for COVID-19, which has seen the company re-join the ASX 200 Index. So, is Mesoblast finally going to become a biotech giant and is now the time to invest?

What is fuelling the Mesoblast share price?

Mesoblast is a world leader in developing regenerative medicines for inflammatory diseases. The company made headlines in April after it announced promising results for its Remestemcel-L (Ryonsil) treatment for COVID-19.

According to Mesoblast, Ryonsil is design to counteract the inflammatory process induced by COVID-19 by neutralising inflammation. The product is currently undergoing Phase 3 trials in the United States on COVID-19 patients with acute respiratory distress syndrome.

Ryoncil is already in a number of other clinical trials targeted at reducing inflammatory conditions in patients with steroid-refractory acute graft versus host disease (SR-aGVHD).

What is the outlook for Mesoblast?

There are two important catalysts in the near future that could send the Mesoblast share price soaring. The first is the interim analysis of Ryoncil’s Phase 3 trials in ventilator dependent COVID-19 patients. The Data Safety Monitoring Board (DSMB) has set a date in early September to review the data and will inform Mesoblast on whether further trials should proceed.

The second catalyst is closer and pertains to Ryoncil’s use in treating children with SR-aGVHD. The company is scheduled to meet with the US Food and Drug Administration (FDA) on 13 August. I’ll be keeping a close eye on the Mesoblast share price at this time.

Should you buy?

Mesoblast released its activities report for the fourth quarter in late July. This saw the company end the quarter with US$129.3 million in cash and net operating cashflow of US$2 million. Mesoblast completed a US$90 million capital raising in May and is well positioned to scale-up manufacturing of its products.

Despite the catalysts that could send the Mesoblast share price soaring, I don’t think it would be prudent to jump ahead and buy shares in the company hoping for positive results. Although there may be promising data, investors need to factor in the risk that Mesoblast’s clinical trials fail to reach their endpoint. However, if the company achieves regulatory approval and can manufacture its products at a cost-effective price, it could become a biotech giant.

More reading

• Why Mesoblast, Northern Star, PointsBet, & Splitit shares are racing higher
• ASX 200 down 1.15%: NAB downgraded, Telstra asset sale, gold miners rocket
• These ASX shares are actively fighting coronavirus
• Here’s how to start investing with $5k
• Why this broker thinks Mesoblast shares are a strong buy

Motley Fool contributor Nikhil Gangaram 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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It’s been a good year for the Newcrest Mining Limited (ASX: NCM) share price.

Shares in the Aussie gold miner have rocketed 22.8% but many think it could be headed higher.

Global gold prices have smashed the US$2,000 per ounce barrier and continue to reach new record highs.  Fears over coronavirus and rising inflation have driven the precious metal’s recent rise.

That’s good news for ASX gold shares like Newcrest and Saracen Mineral Holdings Limited (ASX: SAR).

But can the Newcrest share price beat it’s current 52-week high and continue climbing in 2020?

Why one leading fundie likes the Newcrest share price

Fund manager Tribeca Global Natural Resources Ltd (ASX: TGF) is certainly bullish on the ASX gold share.

That’s according to an article in the Australian Financial Review (AFR) quoting Tribeca’s head of research, Todd Warren.

Mr Warren touched on many of the big themes driving gold prices higher. That includes the strong money supply and government stimulus, as well as a prolonged period of low interest rates.

According to the article, Tribeca is bullish on the Newcrest share price with some “exciting results” out of an exploration prospect.

There are other ASX gold shares on the investment manager’s buy list. That includes Saracen shares after the miner’s Super Pit acquisition late last year.

That asset, joint-owned with Northern Star Resources Ltd (ASX: NST), could prove to be a masterstroke.

With gold prices rocketing past US$2,000 per ounce, Saracen may have purchased that stake for an absolute steal.

Tribeca believes the Aussie miner can “strip out costs” from the Kalgoorlie site and generate strong returns.

Should you buy ASX gold shares?

The Newcrest share price currently trades at a price-to-earnings (P/E) ratio of 36.1. That’s certainly cheaper than the 44.9 multiple that Saracen shares currently trade at.

Clearly, Tribeca and other leading fundies are bullish on ASX gold shares like Newcrest.

I personally won’t be buying in, but I can see the appeal for tactical investors. I think a small allocation to gold shares could be a good hedge in the current market.

However, other companies with defensive earnings like Coles Group Ltd (ASX: COL) could also help protect against the downside this year.

More reading

• Up 21% in a month, is the Northern Star share price a buy?
• 5 things to watch on the ASX 200 on Thursday
• Gold hits new high – here are 3 ASX gold shares set to benefit
• ASX 200 down 1.15%: NAB downgraded, Telstra asset sale, gold miners rocket
• Leading fundie says the ASX gold share boom is just beginning

Motley Fool contributor Ken Hall has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of COLESGROUP DEF SET. 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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