Once again, a large number of broker notes hit the wires last week. Some of these notes were positive and some were bearish.

Three sell ratings that caught my eye are summarised below. Here’s why top brokers think investors ought to sell these shares next week:

Commonwealth Bank of Australia (ASX: CBA)

According to a note out of Goldman Sachs, its analysts have retained their sell rating but lifted their price target on this bank’s shares slightly to $56.40. Goldman notes that Commonwealth Bank’s third quarter cash earnings of $1.3 billion is running well short of its second half expectations because of provisions. In light of this and its weakening balance sheet, the broker sees little reason that its shares should trade at such a premium to its peers and has reiterated its sell rating. The Commonwealth Bank share price ended the week at $59.60.

Stockland Corporation Ltd (ASX: SGP)

A note out of Citi reveals that its analysts have retained their sell rating on this property company’s shares. According to the note, the broker is concerned that its key residential and retail segments are facing headwinds from the pandemic. It notes that Stockland’s residential segment has seen a sharp decline in deposits and its retail portfolio is experiencing speciality sales declines. The Stockland share price was trading at $2.70 on Friday.

Xero Limited (ASX: XRO)

Analysts at UBS have retained their sell rating and lowly $58.50 price target on this business and accounting software provider’s shares. According to the note, Xero’s maiden profit in FY 2020 fell short of its expectations. In addition to this, while it feels its growth strategy is sound, it believes there is uncertainty around its short term prospects. Furthermore, it feels the risk/reward on offer on a long term basis is unfavourable at these levels. Xero’s shares ended the week at $75.32.

More reading

• Why BHP is an ASX 200 dividend share to buy today
• Top brokers name 3 ASX shares to buy next week
• What to watch on the ASX 200 next week
• Are rental yields better than dividend yields?
• These were the best performing ASX 200 shares last week

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 Xero. 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 Top brokers name 3 ASX 200 shares to sell next week appeared first on Motley Fool Australia.

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

Building an ASX portfolio of shares with a value of a million dollars is hard, yet doable. What you need is the right mindset, the right investments, the right amount of time and the secret ingredient of compound interest!

Let’s get into the nuts and bolts of a million-dollar portfolio.

The path to a million

If you were building a portfolio with monthly $1,000 contributions, it would take just over 61 years to accumulate a million-dollar portfolio if you used term deposits and savings accounts that pay a 1% interest rate.

But that’s where ASX shares come in.

See, by investing in growth assets like shares, you can get a return that’s far above what a high-interest bank account will provide these days.

Let’s take a simple ASX index fund like the Vanguard Australian Shares Index ETF (ASX: VAS). This exchange-traded fund (ETF) has delivered an average return of 7.63% per annum since its inception in 2009.

Investing your $1,000 a month in this ETF will shorten these 61 years to just 26.5 years if we assume the same rate of return and reinvest all dividends.

But let’s say you learn all about investing, take some of the lessons we Fools try and divulge for good investing practice and manage to invest for a higher return than a broad market ETF – let’s say we’re aiming for a 10% return per annum.

Then, the 26.5 years will be whittled down to 22.5.

If you manage an exceptional 15% per annum? It’s 17.5 years, and on and on it goes.

Now you can understand how the great Warren Buffett became a billionaire over his life by managing a compounded rate of return above 20% per annum!

How hard is it to beat the market?

Of course, beating the market over 20 years is difficult – most ASX investors don’t manage it. But if you find great companies, invest in them at a great price (or even just a good price), and don’t do anything silly (like sell the shares in a crash), you can do it.

And you don’t even need to find too many winners – just one can be enough to propel an ASX portfolio to market-beating returns. Warren Buffett has 99% of his capital in just one company (Berkshire Hathaway), after all.

And that’s how you can build a $1,000,000 ASX share portfolio by investing $1,000 a month.

It’s no summer project, that’s for sure! Your success with investing will dictate just how long it will take. But for investors with the ambition and the patience, it can be done.

More reading

• Why a buy and hold strategy for ASX shares is best
• The smartest ASX shares to buy if you have $2,000
• Want to become wealthy? Do this one thing
• 3 ASX dividend shares for income investors to buy next week
• Here’s why the laziest ASX investors end up the richest

Motley Fool contributor Sebastian Bowen 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 Here’s how to create a $1 million ASX portfolio by investing $1,000 a month appeared first on Motley Fool Australia.

from Motley Fool Australia https://ift.tt/3bFjEu7