We Aussies are mostly preoccupied with the S&P/ASX 200 Index (ASX: XJO) and the companies within it for our day-to-day investing activities. And fair enough too. We are a relatively small country, but we have every right to be proud of our companies and the wealth they have created for generations of Australian families.

But when it comes to the global stage of investing, even ASX blue-chip shares like Commonwealth Bank of Australia (ASX: CBA), Telstra Corporation Ltd (ASX: TLS) and Woolworths Group Ltd (ASX: WOW) are relatively insignificant. I doubt too many investors in Hong Kong, the United Kingdom or the almighty United States of America really care what these companies are doing.

Last month, I looked at the top 10 companies that move our ASX 200 index. But today, I want to take things up a notch and take a look at which companies move global markets. I’ll be drawing from the Vanguard MSCI Index International Shares ETF (ASX: VGS) for this exercise. VGS tracks the MSCI World Index, which tracks the largest companies across the advanced economies of the world, including the USA, Japan, Canada, the UK and Europe.

1) Apple

Everyone knows Apple. The iPhone is perhaps as ubiquitous a product as any – I think almost every person on the planet would know what an iPhone is and how it works. And this is perhaps why Apple is the largest publicly listed company in the world right now. The company’s core product remains the iPhone, but its iPad, Mac, services (like Apple Music and TV) and accessories lines are also formidable in their own right

2) Microsoft

Microsoft is a rare breed of company. It remains the only US-listed company to still be in the top 10 American businesses by size in the year 2000 and today in 2020. Its Office suite of products is also renowned around the world, as is its flagship Windows operating system. Microsoft is also heavily invested in the gaming space, where its Xbox consoles remain industry-leading. Microsoft is the ‘original tech blue chip’ and it’s not a company I would want to bet against.

3) Amazon.com

Amazon is perhaps one of the most phenomenal growth stories in corporate history. Just 20 years ago, this was a company with a share price of around US$42.50. Today, those same shares of this e-commerce behemoth will set you back around US$2,890 – a staggering 6,700% return. No wonder Amazon’s founder Jeff Bezos is the richest man in the world right now.

4) Facebook

Again, everyone knows Facebook and its ambitious and talented (if not controversial) founder and CEO Mark Zuckerberg. But you may not know that Facebook also owns the Messenger, Whatsapp and Instagram platforms as well. The company has also been working on a cryptocurrency of its own as well as a line of virtual reality equipment known as Oculus. Like Zuck or not, Facebook shares are certainly written off at your own peril.

5) Alphabet

Facebook’s largest competitor in the world of online advertising is the search engine pioneer known as Alphabet. Alphabet is best known for its Google subsidiary, which holds a fairly monopolistic grip on the global search engine market (outside China anyway). But the company also owns video platform YouTube, the G suite platform of productivity apps, the Android mobile operating system, and (of course) Google Maps.

6) Johnson & Johnson

Johnson & Johnson is by far the largest healthcare company in the world. You might know it from its Band-Aid and Listerine personal hygiene products, but that’s just the tip of this company’s iceberg. It is also heavily involved with medical equipment research and manufacturing and also makes pharmaceuticals and other medicines.

7) Visa

Visa is a global payments giant. Its devilishly simple business model of clipping the ticket of every transaction going through its network has transformed this former collective into a global payments giant. Chances are every reader gracing this article with their presence has a card in their wallet (or on their phone) with a Visa logo in the corner. Think about that scale, and you have a fair idea of how large this company is.

8) Nestlé

Our first non-American company is this Swiss global foods and drinks titan. Nestlé has its finger in so many pies it’s hard to keep track of them all. Nescafe is probably Nestlé’s most successful product line, but there are many others that you might not have even heard of. A large presence in an evergreen industry is never a bad thing, so it’s no surprise Nestlé joins our market movers list.

9) Procter & Gamble

Like many large conglomerates, you might not have directly heard of Procter & Gamble. But you will almost certainly have heard of some of their brands. This company is a consumer staples giant, with a truly global market. Some of its brands include Gillette razors, Tide laundry detergent, Old Spice deodorant, Fairy dishwashing liquid and Oral-B toothpaste.

It wouldn’t be uncommon to find at least one of Procter & Gamble’s products in any Australian household. Think about that in a global context, and we can see why P&G makes the list.

10) JPMorgan Chase & Co

JP Morgan is the largest bank in the United States and one of the largest banks in the world. Think of it as a quasi-equivalent of one of our own ASX big four banks, for the US. It has extensive retail banking operations through its Chase branches as well as significant presence in commercial banking as well. It’s also a company with a certain myth surrounding it. J.P. Morgan was a ‘titan of industry’ back in his day and is still held up today as one of America’s capitalistic forefathers.

More reading

• Where to invest $5,000 into ASX 200 shares immediately
• The latest ASX stocks to be downgraded by top brokers today
• Fund managers have been buying these ASX 200 shares
• What’s going on with the Coles share price?
• Brokers name 3 ASX 200 shares to buy right now

Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to its CEO, Mark Zuckerberg, is a member of The Motley Fool’s board of directors. Sebastian Bowen owns shares of Alphabet (A shares), Facebook, Procter & Gamble, JPMorgan, Johnson & Johnson, Telstra Limited, and Visa. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and recommends Alphabet (A shares), Facebook, and Visa. The Motley Fool Australia owns shares of and has recommended Telstra Limited. The Motley Fool Australia owns shares of Woolworths Limited. The Motley Fool Australia has recommended Alphabet (A shares), Facebook, and 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 Here are the 10 shares that move global markets appeared first on Motley Fool Australia.

from Motley Fool Australia https://ift.tt/2VJ48YT

Given the bleak outlook for interest rates in Australia, if I had $5,000 sitting in a bank account, I would put it to work in the share market.

This is because the potential returns on offer with ASX shares are vastly superior to the 0.05% base rate you’ll get on the Australia and New Zealand Banking GrpLtd (ASX: ANZ) Online Saver account.

But which ASX shares should you buy? Here are three top ASX 200 shares which I think could provide strong returns for investors over the coming years:

Altium Limited (ASX: ALU)

I think this electronic design software provider is a great long term investment option. Especially after recent weakness in the Altium share price means it is trading 20% lower than its 52-week high. This weakness has been caused by a disappointing performance in FY 2020. However, it is worth noting that this has been caused by the pandemic and should only be a short term headwind. Looking ahead, I believe its outlook is as positive as ever. This is thanks to its exposure to the Internet of Things boom which looks like to accelerate in the coming years thanks to 5G internet.

Nanosonics Ltd (ASX: NAN)

Another top share that I would invest $5,000 into is Nanosonics. I think the infection control company has a very bright future ahead of it thanks to its market-leading disinfection system for ultrasound probes. Although it has been growing its footprint materially over the last few years, it still only has a 19% share of its global addressable market. Given its status as the best in its class, I expect further market share gains in the coming years. This should lead to strong unit sales growth and recurring revenues from the consumables it requires. But perhaps best of all, is that Nanosonics is planning to launch new products in the near future targeting unmet needs. If these are anywhere near as successful, it could launch the Nanosonics share price materially higher over the coming years.

Nearmap Ltd (ASX: NEA)

A final share to consider investing $5,000 into is Nearmap. It is a leading aerial imagery technology and location data company. Its products allow users to conduct accurate virtual site visits without leaving the home or office. This ultimately enables informed decisions, streamlined operations, and, importantly, significant cost savings. Given the quality of its software and the highly fragmented market it operates in, I believe it is well-positioned to grow its market share materially in the coming years. And with the Nearmap share price down 36% from its 52-week high, now could be an opportune to make a patient long term investment.

More reading

• Here are the 10 shares that move global markets
• The latest ASX stocks to be downgraded by top brokers today
• Fund managers have been buying these ASX 200 shares
• What’s going on with the Coles share price?
• Brokers name 3 ASX 200 shares to buy right now

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Nanosonics Limited and Nearmap Ltd. The Motley Fool Australia owns shares of Altium. 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 Where to invest $5,000 into ASX 200 shares immediately appeared first on Motley Fool Australia.

from Motley Fool Australia https://ift.tt/31He1dA

The S&P/ASX 200 Index (Index:^AXJO) running out of puff with the big banks like the National Australia Bank Ltd. (ASX: NAB) share price giving up their morning gains.

But there are others that could be facing some pressure after these leading brokers downgraded their recommendations on these ASX stocks today.

Weakening platforms

The Hub24 Ltd (ASX: HUB) share price and Netwealth Group Ltd (ASX: NWL) share price took a hit today after Credit Suisse cut its rating on both.

The HUB share price tumbled 1.3% to $18.66 while the NWL share price slumped 7% to $8.82 at the time of writing.

The broker was reviewing the latest industry data for ASX-listed wealth platforms, which saw the industry record its second consecutive quarter of capital inflows in the three months to March.

Good times can’t last

“We expect the inflows to be short-lived with the impact of COVID-19 to result in outflows in the typically seasonally stronger June quarter due to superannuation withdrawals and lower contributions,” said Credit Suisse.

“NWL/HUB remained leaders on net flows, capturing an outsized share from the major institutional platforms who generally remained in outflow.

“While NWL/HUB are benefiting from switching, we expect switching to temporarily slow in the June quarter as COVID-19 diverts advisers’ attention to servicing clients.”

Both stocks have also outperformed in recent months and the broker believes consensus expectations may be too lofty.

Credit Suisse lowered its recommendation on HUB24 to “neutral” from “outperform” and Netwealth to “underperform” from “neutral”.

Singing out of key

Meanwhile, UBS cut its rating on the Chorus Ltd (ASX: CNU) share price to “sell” from “neutral”. The NZ and ASX-listed telco outperformed through the coronavirus pandemic as investors sheltered under its relatively defensive earnings and dividends.

But there’s too much optimism priced into the stock and the broker warns that the company could be cutting its dividend.

Bad news-flow

“CNU benefits from being a COVID-19 defensive but share price assumes ‘more for more’ with implied cumulative over-recovery of ~$2bn and implied retail prices over $100 which most consumers can’t afford,” said UBS.

“Our catalyst tracker expects neutral/negative news over the next 12 months (regulation, dividend policy & 5G launches).”

The broker is forecasting around a 10% drop in Chorus’ long run dividend to NZ55 cents a share from NZ60 cents a share.

UBS’ 12-month price target on the NZ stock is NZ$6.75 a share.

More reading

• Here are the 10 shares that move global markets
• Where to invest $5,000 into ASX 200 shares immediately
• Fund managers have been buying these ASX 200 shares
• What’s going on with the Coles share price?
• Brokers name 3 ASX 200 shares to buy right now

Brendon Lau owns shares of National Australia Bank Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Hub24 Ltd. The Motley Fool Australia owns shares of Netwealth. The Motley Fool Australia has recommended Hub24 Ltd. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The post The latest ASX stocks to be downgraded by top brokers today appeared first on Motley Fool Australia.

from Motley Fool Australia https://ift.tt/2Ar0pYx

The Westpac Banking Corp (ASX: WBC) share price was out of form on Friday and dropped lower.

The banking giant’s shares fell almost 0.5% to $18.54.

Why did the Westpac share price drop lower?

Investors appear to have been selling the banking giant’s shares after it admitted to underpaying some of its staff.

According to a media release, Westpac will be remediating current and former employees who were not paid their correct long service leave entitlements due to some calculation errors.

Westpac advised that the errors led to underpayment and overpayment of some long service leave entitlements. These errors were identified as part of a wider review of its payroll and long service leave arrangements.

The bank explained that in some instances, it found that the wrong rules were inadvertently applied in Westpac’s payroll system. This then affected people’s long service leave entitlements.

What is the damage?

At present, the bank estimates that it will be paying approximately $8 million in total to around 8,000 people who were underpaid their long service leave. This figure includes interest.

The good news for those that were overpaid, is that Westpac will not be asking anyone who has been overpaid to repay any money.

Westpac’s Group Executive of Enterprise Services, Alastair Welsh, commented: “We apologise to anyone impacted by these errors and our priority is to make payments as soon as possible.”

“For long service leave entitlements, different rules apply to different employees based on their employment history and work arrangements. Regrettably, our system didn’t correctly capture the right methodology every time,” he added.

Westpac will now put in place measures to ensure that this doesn’t happen again and that future long service leave is correctly calculated.

“We are committed to putting things right for our people and preventing the issue from re-occurring, and we will continue to check our processes to ensure employees receive their correct entitlements,” Mr Welsh concluded.

More reading

• ASX 200 up 0.9%: Citi lifts Afterpay price target, Webjet boosts liquidity
• Down 32% in FY20, is the NAB share price a buy this year?
• Why this leading broker has upgraded Westpac shares to “buy”
• ASX 200 up 0.9%: Big four banks rising, NEXTDC rockets higher
• 5 things to watch on the ASX 200 on Wednesday

Motley Fool contributor James Mickleboro owns shares of Westpac Banking. 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 Westpac share price lower after admitting to underpaying staff appeared first on Motley Fool Australia.

from Motley Fool Australia https://ift.tt/2Bokpf3

Despite being the country where the outbreak of COVID-19 originated, China was the first economy to emerge from the pandemic. Some analysts now predict China’s economy will experience a V-shaped rebound, going from -2% growth this year to 8% in 2021. 

Given the underlying weakness in the Chinese economy – including a soft export market, low domestic demand and lingering trade wars – it’s easy to see why investors would be wary of this market. However, when compared with the bleak economic outlook globally – which will hamper recovery in corporate earnings – some exposure to China looks justified, in my opinion.

It is the only global economy that’s expected to be in positive territory this year.

With full year growth expected to come in at 1.8%, the country appears to have has miraculously dodged a technical recession, and some economists, like BlackRock, expect the world’s second largest economy to experience “near-trend growth” as soon as late 2020.

In addition to the return of strong export markets, what China’s economic stimulus is now focused on is middle-class shoppers spending more as job stability returns to post-COVID-19 levels. China’s reliance on consumer spending cannot be understated, with consumption contributing to two-thirds of the country’s economic growth, according to recent figures.

Greater risk in not investing in China

Despite trade wars, geopolitical tensions and post-COVID-19 economic uncertainty, there are still ways to take measured bets on China. If you’re prepared to do your homework, it’s possible to get good exposure to China’s recovery story. Despite the pandemic, some fund managers have already done this.

For example, back in March at the height of the pandemic, Magellan fund manager, Hamish Douglass increased his allocation to China from 14% a year ago to 25%, via exposure to just a handful stocks. While the fund manager used to be invested only in Apple, Starbucks and Yum Brands, it has now added LVMH, Estee Lauder, Alibaba and Tencent to its holdings in China.

Assuming the focus remains on quality companies, Douglass believes it’s more risky not to invest in China over the next 20 years. He cited Starbucks as a great way to access the Chinese middle-class, where a new store was opening in China on average every 15 hours.

Then there’s Zenith Investment Partners, which pre-COVID had already increased its average exposure to China from 18% to 22%. Zenith’s exposure to what are referred to as A-shares – those listed on the Shanghai and Shenzhen stock exchanges – also doubled from 2% to 4%.

Despite being relatively out of favour, and underweight within (most) global portfolios, in my view Chinese equities look to have been oversold. This creates opportunities for those willing to take a long-term view.

Signs of a rebound are already evident, with recovery picking up steam in June on the back of the Chinese government’s ‘new style’ infrastructure spending (like 5G) – plus other fiscal stimulus measures – designed to drive both domestic consumption and help reopen overseas markets.

Exposure to China through ASX ETFs

If you like the idea of having exposure to China, but don’t have the stomach to be a stock-picker within this market, another way to play China’s recovery story is through ASX-listed China exchange traded funds (ETFs).

Despite rallying 34% in the last year, my favoured ASX-listed China ETF is VanEck Vectors China New Economy (ASX: CNEW). The shares on this index seem to be in the sweet-spot of China’s economic stimulus measures.

In an effort to help stabilise its domestic market, the People’s Bank of China is committed to extending more credit to small businesses that had their liquidity stretched during the lockdown. Unlike the global financial crisis (GFC), this time around economic stimulus measures are primarily focused on technologies of the future, including everything from electric cars, industrial robotics, through to artificial intelligence (AI). As investor with exposure to China, this is something to be aware of.

CNEW seeks to provide investors with access to a portfolio of the most fundamentally sound companies, with the best growth prospects – in consumer discretionary, consumer staples, healthcare, and technology sectors – that are domiciled and listed in mainland China. The three biggest holdings within CNEW (which holds 120 shares) include Guangdong Biolight Meditech Co Ltd, Jiangsu Zitian Media Technology Co Ltd and G-bits Network Technology (Xiamen) Co Ltd A.

Other China-based ETFs listed on the ASX include VanEck Vectors China A-Share (ASX: CETF), which is up by 2.81% over the last 12 months, and Ishares China Large-Cap (ASX: IZZ), which is down 1.28% over the last 12 months.

ETFs aside, it’s also important to note that any ongoing fiscal stimulus-driven upswing for China stocks also bodes well for fund managers whose exposure to China may have fallen along with the market last year. For example, ASX-listed Platinum Asset Management Ltd (ASX: PTM), which has around a 5th of its holdings in China, looks well positioned to benefit from China’s new infrastructure stimulus measures. Since peaking at around $8.50 early February 2018, the Platinum share price is now trading at below half of that high, at $3.76 per share.

Then there are another 30 to 40 funds that could also benefit from their exposure to a Chinese recovery, including the Magellan Global Trust (ASX: MGG) and the Fidelity Asia Fund.

Exposure to China through ASX shares

While resource stocks aren’t in the direct eye of China’s current stimulus measures, some sub-sectors, like base metals (notably iron ore, which is currently selling for around US$100/tonne) are still a net beneficiary of the strong demand for steel. Fortescue Metals Group Limited (ASX: FMG) is the most dominant playmaker in this space in my opinion. Also adding to Fortescue’s fortunes are the export downgrades by its biggest competitors Vale and Rio Tinto Limited (ASX: RIO).

China’s plans to move from coal to gas-fired power, also presents enormous long-term opportunities for Australian providers. Despite a notable deterioration in trade relations, China became Australia’s biggest market for LNG in April, accounting for 40% of total exports. Key beneficiaries include the Queensland-based Origin Energy Limited (ASX: ORG)’s Australia Pacific LNG Venture and the Woodside Petroleum Limited (ASX: WPL)-run North-West Shelf venture in WA.

Resource shares aside, with China’s stimulus measures focused squarely on consumers, any improvement in confidence could also provide a kicker to ASX shares that export high-end consumer discretionary products such as meat, seafood, dairy, fruit, alcoholic beverages and pharmaceuticals. While a growing number of ASX shares export to China, those with the greatest China exposure include winemaker Treasury Wine Estates Ltd (ASX: TWE), milk and infant formula companies A2 Milk Company Ltd (ASX: A2M), and Synlait Milk Ltd (ASX: SM1) plus vitamins company Blackmores Limited (ASX: BKL).

Foolish takeaway

Given the tensions with China on myriad levels right now, it’s important to pick shares with strong exposure to this market carefully. So do your homework – look for shares with 30% or more exposure to China, within markets that appear to be outside the turmoil of any ongoing trade tariff tension, and that will benefit from the ‘translation effect’ when foreign earnings are domiciled back into Australian dollars.

More reading

• Why I would buy Appen and this ASX growth share right now
• Why Adbri, BlueScope, Netwealth, & Rio Tinto shares are tumbling lower
• Rio Tinto share price on watch after Oyu Tolgoi update
• Why I would buy and hold a2 Milk and this ASX 200 share until 2030
• Fund managers have been snapping up Sonic and these ASX 200 stocks

Motley Fool contributor Mark Story owns VanEck Vectors China New Economy shares. The Motley Fool Australia owns shares of and has recommended Blackmores Limited and Treasury Wine Estates Limited. The Motley Fool Australia owns shares of A2 Milk. 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 Here’s how to play China’s V-shaped growth story appeared first on Motley Fool Australia.

from Motley Fool Australia https://ift.tt/2ZwyWx7

If you’re looking to diversify your portfolio to protect it against potential market shocks, then you might want to consider the ASX shares listed below.

I have picked out three top ASX shares in different sectors which I feel could bolster your portfolio if you don’t already have exposure to that particular area of the market.

They are as follows:

BHP Group Ltd (ASX: BHP)

I think having a little exposure to the resources sector can be a good thing for a portfolio. And if you’re going to buy a mining share, you might as well go for the best in the sector. Which I believe to be BHP due to its diverse, world class, and low costs operations, its strong balance sheet, and its attractive valuation. Another positive is its penchant for returning funds to shareholders. Based on the current BHP share price, I estimate that it provides investors with a fully franked ~5% FY 2021 dividend.

ResMed Inc. (ASX: RMD)

If you don’t have exposure to the healthcare sector then ResMed could be a good option. It is a leading medical device company which specialises in sleep treatment hardware and software. I believe ResMed shares could provide strong returns for investors over the next decade thanks to its very positive long term outlook. This is thanks to its exposure to the proliferation of obstructive sleep apnoea (OSA). The company estimates that only 20% of OSA sufferers have been diagnosed at this point. If this is accurate, it gives ResMed a significant runway for growth over the next decade and beyond.

Wesfarmers Ltd (ASX: WES)

Finally, investors looking for exposure to the retail sector may want to consider Wesfarmers. I think the conglomerate is a top option due to its collection of leading retail brands, which all look well-placed for growth over the long term. Especially its key Bunnings brand, which is now its biggest generator of revenue. In addition to its retail exposure, Wesfarmers gives investors a little access to the industrials and chemicals industries through its portfolio. Combined, I believe it is capable of growing its earnings and dividend at a solid rate in the coming years. This could lead to the Wesfarmers share price charging notably higher from where it trades today.

More reading

• Why you can expect further gains for ASX shares this quarter
• Fund managers have been snapping up Sonic and these ASX 200 stocks
• 3 top ASX dividend shares to buy for FY21
• These 3 ASX healthcare shares are at all-time highs!
• ASX 200 stocks to watch for FY2021

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of Wesfarmers Limited. 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.

The post Diversify your portfolio with BHP, ResMed, and Wesfarmers shares appeared first on Motley Fool Australia.

from Motley Fool Australia https://ift.tt/31EnHoZ

If you’re wanting to add a few growth shares to your portfolio in July, then I think the two listed below would be great options.

Here’s why I think they are among the best growth shares on the ASX:

a2 Milk Company Ltd (ASX: A2M)

I think a2 Milk Company shares could provide investors with outsized returns over the coming years. This is because I believe the infant formula and fresh milk company is capable of growing its earnings at a strong rate due to the growing popularity of its infant formula in China (and its modest market share in the key market) and the expansion of its fresh milk footprint in North America.

In addition to this, thanks to the high levels of free cash flow it is generating, a2 Milk Company is currently sitting on a mountain of cash. I believe it is likely to put this to work in the near future and could use it to accelerate its growth through value accretive acquisitions and/or new product launches.

Appen Ltd (ASX: APX)

Another growth share I think would be a great option is Appen. I’m a big fan of Appen due to its exposure to the rapidly growing machine learning and artificial intelligence (AI) markets. It provides high-quality, human annotated dataset development services to these markets. This is an integral part of the process and unsurprisingly means its services are in high demand.

Given the outlook for these markets, I’m confident this will remain the case for a long time to come and drive very strong earnings growth over the next decade. So, although the Appen share price is trading at a record high, I would still buy its shares if you’re planning to make a long term investment.

More reading

• Why I would buy and hold a2 Milk and this ASX 200 share until 2030
• What’s next for WAAAX shares?
• Fund managers have been snapping up Sonic and these ASX 200 stocks
• These 2 ASX tech shares show stellar growth prospects
• Why I’d buy and hold a2 Milk shares until 2025

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of A2 Milk and Appen Ltd. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The post Why I would buy Appen and this ASX growth share right now appeared first on Motley Fool Australia.

from Motley Fool Australia https://ift.tt/3gngA8u

I like to keep an eye on substantial shareholder notices. This is because these notices give you an idea of which shares large investors, asset managers, and investment funds are buying or selling.

Two notices that have caught my eye today are summarised below. Here’s what these fund managers have been buying:

Boral Limited (ASX: BLD)

A notice of change of interests of substantial holder shows that Seven Group Holdings Ltd (ASX: SVW) has been increasing its stake in this building products company. According to the notice, the Australian diversified operating and investment company has recently picked up almost 27 million more Boral shares. This has lifted its holding to a total of 149,434,392 shares, which equates to a 12.19% interest.

With its shares down 35% from their 52-week high, it appears as though Seven Group sees a lot of value in the Boral share price at the current level. Boral seems to be a good fit for Seven, which has a number of interests in the industrial sector. It already owns the WesTrac and Coates Hire businesses.

SEEK Limited (ASX: SEK)

Another notice of change of interests of substantial holder shows that Pinnacle Investment Management Group Ltd (ASX: PNI) has been buying this job listings company’s shares. According to the notice, Pinnacle has lifted its shareholding by approximately 3.6 million shares. This brings it to a total of ~21.8 million. Which represents 6.19% of SEEK’s total shares.

Pinnacle has been buying SEEK’s shares despite them almost doubling from their March low. It appears confident in the company’s long term outlook and its aspiration to grow its revenue to $5 billion later this decade. This compares to FY 2020’s revenue estimate of approximately $1,575 million. I think Pinnacle has made a great move with SEEK and would also be a buyer of its shares with a long term view.

More reading

• What’s going on with the Coles share price?
• Brokers name 3 ASX 200 shares to buy right now
• ASX 200 up 0.55%: Cochlear jumps on FDA approval, Adbri crushed on contract loss
• Risk to supermarkets is rising but is Woolworths share price still a buy?
• 5 things to watch on the ASX 200 on Friday

Motley Fool contributor James Mickleboro owns shares of SEEK Limited. 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.

The post Fund managers have been buying these ASX 200 shares appeared first on Motley Fool Australia.

from Motley Fool Australia https://ift.tt/2C0tXwI