Stock Pick

  • How teenagers can beat the share pros at investing

    Smiling office man leaning back in chair in front of laptop

    I think that teenagers can beat the share pros at investing.  

    That’s not to say a teen just out of school can whip up an incredible discounted cashflow model for the best growth shares.

    I just mean that it’s possible for a teenager’s portfolio to generate returns as good as, if not better, than a share investment pro (after fees).

    There are some factors that you can point to which give regular investors an advantage. They can more easily invest for the longer-term. Fund managers are commonly judged by their short-term returns. Regular investors can also make unique investment choices. 

    How teenagers can match the investment returns of the share pros

    I think a key fact is that regular investors can invest in exchange-traded funds (ETFs) that are based on an index. The whole point of an investment manager is to invest differently to the index. But the ETF is just following the returns of an index. An index is just a predetermined collection of businesses. Both the Australian share market and the US share market have produced very solid returns over the years.

    A high percentage of share pros don’t outperform their respective benchmarks each year in both the US and Australia. Particularly when fees are taken into account. There are a few managers out there that I think are worthwhile, but plenty of others are just broadly following the index whilst taking hefty fees.

    So if a teenager were just to invest in index-based ETFs then they would likely outperform a large number of share pros, with no investment skill required. Sounds easy, right?

    What ETFs would make good options for teenagers? I like the US-focused iShares S&P 500 ETF (ASX: IVV), the Australian-focused Vanguard Australian Shares Index ETF (ASX: VAS) and the global-focused Vanguard MSCI Index International Shares ETF (ASX: VGS).

    But regular investors can also outperform share pros by filling their portfolios with only the best shares possible like the ones here…

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    Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Vanguard MSCI Index International Shares ETF. 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 teenagers can beat the share pros at investing appeared first on Motley Fool Australia.

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  • 5 things to watch on the ASX 200 on Monday

    On Friday the S&P/ASX 200 Index (ASX: XJO) finished a very positive week on a disappointing note. The benchmark index fell 1.6% to 5,755.7 points.

    Will the ASX 200 be able to bounce back from this on Monday? Here are five things to watch:

    ASX 200 to drop lower.

    The ASX 200 looks set to start the week in the red. According to the latest SPI futures, the benchmark index is poised to open the week 24 points or 0.45% lower. This is despite a reasonably positive end to the week on Wall Street. The Dow Jones traded roughly flat, the S&P 500 rose 0.5%, and the Nasdaq index climbed 1.3%.

    Oil prices storm higher.

    Energy producers including Santos Ltd (ASX: STO) and Woodside Petroleum Limited (ASX: WPL) could be on the rise today after oil prices stormed higher on Friday night. According to Bloomberg, the WTI crude oil price jumped 5.3% to US$35.49 a barrel and the Brent crude oil price pushed 5% higher to US$37.84 a barrel. These gains mean that oil prices almost doubled for the month.

    Gold price jumps.

    Gold miners including Newcrest Mining Limited (ASX: NCM) and Northern Star Resources Ltd (ASX: NST) could be on the rise today after the gold price pushed higher. According to CNBC, the spot gold price rose 1.35% to US$1,751.70 an ounce. US-China tensions supported demand for the precious metal.

    Iron ore miners on watch.

    BHP Group Ltd (ASX: BHP), Fortescue Metals Group Limited (ASX: FMG), and Rio Tinto Limited (ASX: RIO) could push higher today after iron ore prices jumped on Friday night. According to Fastmarkets, courtesy of the AFR, the spot iron ore price jumped 5.5% to US$102.39 a tonne. This was driven by concerns that Brazilian supply could be impacted by the coronavirus pandemic.

    Austal rated as a buy.

    The Austal Limited (ASX: ASB) share price could be going a lot higher from here according to analysts at Goldman Sachs. They have reiterated their conviction buy rating and lifted the price target on the shipbuilder’s shares to $4.08. Goldman is positive on the company due to its multi-year secured backlog of work and potential margin improvement.

    5 “Bounce Back” Stocks To Tame The Bear Market (FREE REPORT)

    Master investor Scott Phillips has sifted through the wreckage and identified the 5 stocks he thinks could bounce back the hardest once the coronavirus is contained.

    Given how far some of them have fallen, the upside potential could be enormous.

    The report is called 5 Stocks For Building Wealth after 50, and you can grab a copy for FREE for a limited time only.

    But you will have to hurry — history has shown the market could bounce significantly higher before the virus is contained, meaning the cheap prices on offer today might not last for long.

    See the 5 stocks

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    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 Austal Limited. 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 5 things to watch on the ASX 200 on Monday appeared first on Motley Fool Australia.

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  • Riots Take Hold Across U.S. as Protests Over George Floyd’s Death Grow

    Riots Take Hold Across U.S. as Protests Over George Floyd’s Death GrowProtests turned violent in cities including Philadelphia, Washington, D.C. and Los Angeles on Saturday night, as demonstrations triggered by the death of George Floyd in Minneapolis have escalated this weekend into the most widespread riots in the U.S. in decades. Photo: Vanessa Carvalho/Zuma Press

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  • Why The World’s Largest Asset Manager Has Seen Its Shares Soar

    Why The World’s Largest Asset Manager Has Seen Its Shares SoarBlackrock, the world’s largest asset manager has seen its share price surge as it doubled down on renewables investment

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  • Market Recap: Friday, May 29

    Market Recap: Friday, May 29Stocks closed at their highest levels since at least March, ending Friday’s volatile session mostly higher after President Donald Trump announced retaliatory measures against China that were less negative for markets as some had feared. Myles Udland, Sean Smith, Rick Newman, and Akiko Fujita discuss on The Final Round.

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  • Twitter warns Trump tweet ‘glorifies violence’

    Twitter warns Trump tweet ‘glorifies violence’President Trump recently signed an executive order to weaken social media companies after his tweet was hidden by Twitter because it ‘glorified violence.’

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  • KeyCorp (KEY): A Rare Banking Stock Hedge Funds Piling Into

    KeyCorp (KEY): A Rare Banking Stock Hedge Funds Piling IntoWe at Insider Monkey have gone over 821 13F filings that hedge funds and prominent investors are required to file by the SEC The 13F filings show the funds' and investors' portfolio positions as of March 31st, near the height of the coronavirus market crash. In this article, we look at what those funds think […]

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  • TX landowners “don’t have to sell their land” despite govt. efforts to build boarder wall: Expert

    TX landowners “don’t have to sell their land” despite govt. efforts to build boarder wall: ExpertAccording to the Wall Street Journal, the government is rushing to survey the land in the Laredo area for a border wall. Legal Director of Racial and Economic Justice Program for Texas Civil Rights Project Efrén Olivares joins Yahoo Finance’s Kristin Myers and Zack Guzman to discuss.

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  • Amazon Shuts Hubs Near Protests; Target Closes More Stores

    Amazon Shuts Hubs Near Protests; Target Closes More Stores(Bloomberg) — Amazon.com Inc. is scaling back deliveries and adjusting routes in a small number of cities including Chicago, Los Angeles and Portland, and Target Corp. is extending store closures nationwide after the death of George Floyd sparked demonstrations across the country.“We are monitoring the situation closely and in a handful of cities we adjusted routes or scaled back typical operations to ensure the safety of our teams,” an Amazon spokeswoman told Bloomberg News.Amazon’s action shows how protests around the country are complicating operations for the e-commerce giant, which has been one of the few consumer-facing companies to benefit during the coronavirus pandemic. Target has been trying to build its online sales business, but retains a heavy bricks-and-mortar presence.Based in Minneapolis where Floyd died in police custody, Target had already closed 32 stores in the area. On Sunday, it said it was closing dozens more around the nation, at least temporarily.“We are a community in pain,” Chief Executive Officer Brian Cornell said in a statement shortly after Floyd’s death. “That pain is not unique to the Twin Cities — it extends across America.”In Chicago and Los Angeles, Amazon delivery drivers received messages Saturday night that said: “If you are currently out delivering packages, stop immediately and return home. If you have not completed your route, please return undelivered packages to the pick-up location whenever you’re able to do so.”Amazon was “in close contact with local officials and will continue to monitor the protests,” and would only re-open delivery stations when it’s safe and will plan delivery routes by monitoring demonstrations in every zip code, according to messages reviewed by Bloomberg.(Adds Target from first paragraph)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

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  • Market Recap: Friday, May 29

    Market Recap: Friday, May 29Stocks closed at their highest levels since at least March, ending Friday’s volatile session mostly higher after President Donald Trump announced retaliatory measures against China that were less negative for markets as some had feared. Myles Udland, Sean Smith, Rick Newman, and Akiko Fujita discuss on The Final Round.

    from Yahoo Finance https://ift.tt/3ey1k88