As I mentioned here earlier, one of the best ways to grow your wealth is to invest in the share market with a long term view.

This is because by investing over a long period, investors can take advantage of compound interest.

Compound interest is the interest that you earn on interest.

It explains why a $50,000 investment generating a 9.5% return would turn into ~$125,000 in 10 years.

It also explains why this investment would grow by a further $185,000 to ~$310,000 during the next 10 years and then finally by another $450,000 to ~$760,000 over the following 10 years.

With that in mind, here are three ASX shares which I think would be great buy and hold investments:

a2 Milk Company Ltd (ASX: A2M)

I think a2 Milk Company could be a great long term investment option for investors. It has been growing at a very strong rate over the last few years and shows no signs of slowing. Especially given the increasing demand for its infant formula in China and the growing footprint of its fresh milk.

Altium Limited (ASX: ALU)

Another buy and hold option to consider is Altium. It is an award-winning printed circuit board (PCB) design software provider. Over the last few years it has been growing at a rapid rate thanks to the proliferation of electronic devices. This is because almost all electronic devices have PCBs inside them. And with the Internet of Things boom still accelerating, the future looks very bright for Altium.

Kogan.com Ltd (ASX: KGN)

A final share to consider as a buy and hold investment is Kogan. It is a growing ecommerce company which is benefiting greatly from the structural change that is happening in the retail industry. This change has been accelerated by the pandemic and looks set to drive strong earnings growth for Kogan over the next decade and beyond.

More reading

• Why I’m not afraid to invest in shares during this recession
• 3 founder-led ASX shares to buy for strong long-term returns
• The 3 ASX tech stocks that helped this fund manager outperform in May
• Is the a2 Milk share price too high to buy?
• Buy these ASX growth shares for monster returns

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Kogan.com ltd. The Motley Fool Australia owns shares of A2 Milk and 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.

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The S&P/ASX 200 Index (ASX: XJO) climbed another 1.8% today to 5,942 points as investors learned what the GDP figures were in the quarter to 31 March 2020. The ABS said Australia’s economy contracted 0.3% last quarter.

Indeed, Treasurer Josh Frydenberg has said that Australia is already in a recession. Though that can’t be officially confirmed until the end of June 2020.

Here are some of the highlights from the ASX 200 today (and other smaller shares):

Zip Co Ltd (ASX: Z1P) soars again

Zip zoomed higher yesterday and it climbed by a further 21.7% today. Investors seem really excited by the prospect of the buy now, pay later business expanding in the US by fully acquiring QuadPay. America is a huge market if you can deliver an exciting product for consumers. The company seems on course to enter the ASX 200.

QuadPay has a high transaction margin and a solid number of customers and merchants.

Big takeover deal for Infigen Energy Ltd (ASX: IFN)

The wind farm business, which was previously in the ASX 200, saw its share price climb 36.4% today as it announced that it has received a takeover offer of $0.80 per share from UAC Energy. UAC Energy is ultimately owned by a Philippine listed business which has large renewable energy projects across Asia.

There is speculation that there could be a bidding war for Infigen, which is why the share price is currently at the takeover price.

Diverging share price movements

At the large end of the ASX 200 the major banks all saw large share price gains. The Commonwealth Bank of Australia (ASX: CBA) share price went up 3.25%, the Westpac Banking Corp (ASX: WBC) share price climbed 4.4%, the Australia and New Zealand Banking Group (ASX: ANZ) share price went up 5% and the National Australia Bank Ltd (ASX: NAB) share price grew 4.6%.

However, at the red end of the ASX it seems investors decided gold miners were too expensive considering the rising share market and the growing Australian dollar.

The Silver Lake Resources Limited. (ASX: SLR) share price fell 8.4%, the Regis Resources Limited (ASX: RRL) share price fell 6.6%, the Gold Road Resources Ltd (ASX: GOR) share price fell 6.3%, the Saracen Mineral Holdings Limited (ASX: SAR) share price dropped 6.2% and the Evolution Mining Ltd (ASX: EVN) share price declined 5.8%.

More reading

• The latest ASX 200 stocks to be upgraded to “buy” amid the recession
• Sezzle Inc shares and 2 other small cap ASX techs surge higher today
• Why Austal, Evolution, Newcrest, & Pro Medicus are tumbling lower
• Why Afterpay, Infigen, Qantas, & Zip Co shares are charging higher
• ASX 200 up 1%: Big four banks jump, Afterpay hits record high

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 ZIPCOLTD FPO. 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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If you’re close to retirement, then I think it would be prudent to focus more on capital preservation and income than growth shares like Afterpay Ltd (ASX: APT).

But which shares should you buy for a retirement portfolio? Below I have picked out two top shares which I think would be great options for retirees. Here’s why I like them:

Goodman Group (ASX: GMG)

The first company which I think would be a great addition to a retirement portfolio is Goodman Group. While property companies have been under a lot of pressure this year because of the negative impact of the pandemic, Goodman Group has come out of this relatively unscathed thanks to the way its portfolio is positioned.

In fact, last month the integrated commercial and industrial property group reaffirmed its earnings and distribution guidance for FY 2020. Management advised that its performance remains strong thanks to customer demand in the online, logistics, food, consumer goods, and digital economy. Given the structural changes we are seeing in the retail sector and with consumer behaviour, I think Goodman Group is well-positioned to deliver solid earnings and distribution growth for retirees for a long time to come.

Wesfarmers Ltd (ASX: WES)

I think it is hard to look past Wesfarmers when constructing a retirement portfolio. I believe the conglomerate is one of the highest quality companies on the Australian share market. Furthermore, with its proud history tracking back all the way to 1914, I don’t think there is a danger of it going away anytime soon. Especially given the quality of its portfolio and the positive long term outlook that the majority of its businesses have.

Overall, I believe it is well-placed to deliver solid earnings and dividend growth for the foreseeable future. This could make it a great long term retirement share to own.

More reading

• The latest ASX 200 stocks to be upgraded to “buy” amid the recession
• Why I’m not afraid to invest in shares during this recession
• Top brokers name 3 ASX 200 shares to buy right now
• The smartest ASX 200 shares to buy with $2,500 today
• ASX 200 up 1%: Big four banks jump, Afterpay hits record high

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of AFTERPAY T FPO and Wesfarmers 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 Exore Resources Ltd (ASX: ERX) share price is going through the roof today after announcing it is set to be acquired by Perseus Mining Limited (ASX: PRU).

At the time of writing, Exore shares are sitting 38.71% higher for the day while Perseus shares have dropped 11.57% lower.

Exore is a junior Australian-based miner with gold projects in Cote d’Ivoire covering a combined area of 2,000 square kilometres. 

What’s the deal?

Subject to certain conditions, Perseus will acquire 100% of Exore by way of a scheme of arrangement in an all-share transaction. If implemented, Exore shareholders will receive 1 Perseus share for every 12.79 Exore shares held.

Based on Perseus’ last closing price of $1.34, the scheme values Exore at a fully diluted equity value of $64 million, or 10.5 cents per share. This represents a 69% premium to Exore’s last closing price of 6.2 cents per share.

Additionally, Exore has elected to exercise its pre-emptive right to acquire the remaining 20% interest in the Bagoe and Liberty projects from Apollo Consolidated. Exore will pay the consideration of US$4.5 million from its existing cash reserves.

Exore and Perseus believe both sets of shareholders will benefit from the increased strength of the combined entity. 

Exore’s 2,000 square kilometres of land in northern Cote d’Ivoire is located within trucking distance of Perseus’ Sissingué Gold Mine. Additionally, Perseus believes it has the financial capacity, technical expertise and in-country experience to advance the Bagoe and Liberty projects, and also explore the balance of Exore’s 2,000 square km land package.

What now?

Subject to the findings of an independent expert’s report, Exore’s board unanimously recommends that Exore shareholders vote in favour of the scheme. Along with Exore shareholder approval, the scheme is also subject to court approvals and TSX approval since Perseus is dual-listed on the Toronto Stock Exchange.

A scheme booklet will be sent to Exore shareholders in due course. It is anticipated that shareholders will then be able to vote on the scheme in late August or early September.

Commenting on the deal, Exore managing director Justin Tremain said:

“In addition to the premium implied by the transaction consideration, Exore shareholders have the opportunity to benefit, at a time of near record gold prices, from Perseus’s strong development and production capabilities which position Perseus as the ideal counterparty to unlock the future value of the company’s Bagoe project, whilst de-risking the need for Exore to discover additional ounces to support a standalone operation or fund a standalone development.”

More reading

• 7 roaring ASX mid-cap shares last week
• Why these ASX shares are well placed to outperform into next month

Motley Fool contributor Cathryn Goh 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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Treasurer Josh Frydenberg declared that we are in a recession for the first time in 30 years! But this isn’t stopping our market from rallying or brokers from upgrading some S&P/ASX 200 Index (Index:^AXJO) stocks.

Australian GDP contracted 0.3% in the March quarter and we need two consecutive quarters of declines before officially going into a recession.

But with all the signs point to another negative number for the current quarter, Frydenberg isn’t waiting.

Recession can’t slow the rally

The news didn’t faze investors with the top 200 stock benchmark jumping 1.8% as we head to the close with most sectors trading in the black.

But it isn’t too late to join the party. In fact, top brokers have only just upgraded these ASX stocks to “buy”.

Electronic and whitegoods retailer JB Hi-Fi Limited (ASX: JBH) got bumped up to “outperform” by Macquarie Group Ltd (ASX: MQG).

This partly explains why the JB Hi-Fi share price jumped 2.5% to $39.78 in late afternoon trade.

Earnings upgrade candidate

The broker spoke with industry insiders and the feedback it got was that there was strong demand for electronics.

“Industry feedback suggests almost all categories in consumer electronics and home appliances are in growth and margins are the best they have been in a long time, with consumers far less picky on brands and happy to pay full ticket prices,” said the broker.

“We had originally expected additional COVID-19 costs would outweigh less promotional activity, but volumes are said to be high enough to compensate these.”

Macquarie thinks there’s a good chance JB Hi-Fi will unveil a pleasant surprise when it reports its full year profit result in August. The broker’s price target on the stock is $41 a share.

Re-rating opportunity

Another stock that got upgraded today by UBS is gold miner Newcrest Mining Limited (ASX: NCM).

Many ASX gold producers like Evolution Mining Ltd (ASX: EVN) and Northern Star Resources Ltd (ASX: NST) have been outperforming with the gold price, but Newcrest is lagging behind.

UBS thinks this isn’t justified and is urging investors to rotate into Newcrest, which it upgraded to “buy” from “neutral”. This is the first time the broker has rated Newcrest a buy since August 2012!

“We have changed our thesis on Newcrest based on our in-depth work on Red Chris and Havieron,” said the broker.

“The inclusion of these projects challenges market perceptions that production is peaking in 2020-21 which was also a component of our prior Sell thesis.

“These projects can materially change market estimates.”

UBS lifted its price target on Newcrest by 6% to $35 a share.

More reading

• These ASX 200 shares could be perfect for a retirement portfolio
• Why I’m not afraid to invest in shares during this recession
• Why JB Hi-Fi shares and 1 other are a buy for long-term growth
• Top brokers name 3 ASX 200 shares to buy right now
• Why Austal, Evolution, Newcrest, & Pro Medicus are tumbling lower

Motley Fool contributor Brendon Lau owns shares of Evolution Mining Limited and Macquarie Group Limited. The Motley Fool Australia owns shares of and has recommended Macquarie 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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I think it is well worth keeping an eye on what substantial shareholders of companies do.

A substantial shareholder is a shareholder that owns 5% or more of a company’s shares. These are often large investors, asset managers, and investment funds.

ASX rules mean that these shareholders are obliged to provide substantial holding notices relating to movements above or below the threshold, and any change of 1% or more.

As a result, I think investors should use these notices to their advantage. After all, they show where the smart money is going.

Two notices that have caught my eye are summarised below:

Boral Limited (ASX: BLD)

A notice of initial substantial holder reveals that Seven Group Holdings Ltd (ASX: SVW) has been buying this building products company’s shares. Over the last three months the investment company has built up a holding of 122,565,694 Boral shares. This means it now has a 10% stake in the company.

Seven Group, which has a number of investments in the construction industry, started picking up shares after they fell heavily during the market crash. Though, it has been buying them as recently as on Tuesday. Boral’s shares are still down over 37% from their 52-week high. This appears to be a level which Seven Group believes is good value.

Marley Spoon AG (ASX: MMM)

According to a change of interests of substantial holder notice, Perennial Value Management has continued to increase its stake in this meal kit delivery company. The notice reveals that over the last three weeks the fund manager has picked up almost 6 million Marley Spoon shares through on-market trades. This has increased its holding in the company from approximately 16.3 million shares, to ~22.2 million shares. This represents a 12.7% stake in the company.

In April Marley Spoon revealed that it experienced a surge in demand for its meal kit subscriptions because of lockdowns and restaurant closures. Time will tell whether these new customers will be retained when restrictions lift, but Perennial Value Management appears confident they will.

More reading

• This embattled ASX 200 company could be the next M&A target
• These ASX shares are set to get a big boost from the next big government stimulus
• These 5 ASX 200 shares were last week’s biggest winners
• ASX 200 Weekly Wrap: Surging bank shares push ASX toward 6,000
• These were the best performing ASX 200 shares last week

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. 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 another positive trading session for the S&P/ASX 200 Index (ASX: XJO), with the index up by 0.82% at the time of writing. The ASX is home to a dynamic and growing small-cap tech share market including Sezzle Inc (ASX: SZL), among others, which today have seen strong share price rises.

Let’s take a look at three of those that have performed particularly well so far today.

Bigtincan Holdings Ltd (ASX: BTH)

Bigtincan has a business model that is centred on ‘sales enablement’.  This is a rapidly growing niche in the IT software market.

It is a capital-light and highly efficient business that has a subscription type model with attractive margins. However, the software-as-a-service (SaaS) provider was only listed on the ASX three years ago and is yet to become profitable. This makes it a relatively risky investment, despite its strong potential.

Bigtincan saw heavy share price falls in the early phase of the coronavirus crisis. However, since mid-March, its share price has rallied strongly. This rally has continued to today, up by another 7.8%, boosted by further positive market sentiment.

Wisr Ltd (ASX: WZR)

Small cap fintech provider, Wisr provides online lines for services such as debt consolidation, car loans home renovations, and travel. Its share price has surged 12% so far today. This follows on from a share price rally since March. However, its share price is still well down from its 12-month high in February.

Wisr was hit hard in the first wave of the pandemic, as discretionary consumer spending was impacted. However, growing consumer optimism is now seeing its share price start to lift higher.

Sezzle Inc (ASX: SZL)

Sezzle is a US-based buy-now-pay-later fintech provider. It is growing rapidly, however, is still a long way behind its much larger rival, Afterpay Ltd (ASX: APT).

Sezzle Inc share price has grown by over 500% since late March. It has risen another 4% higher today. This follows on from a 17% share price surge yesterday.

Sezzle has around 1.3 million users and is growing rapidly. It targets the Gen Z and millennial consumer demographics, like Afterpay and another rival Zip Co Ltd (ASX: Z1P).

Both of these two-market segments make up the largest proportion of all age demographics in the US. These segments are also very tech-savvy and are attracted to this type of online lending.

More reading

• Afterpay share price hits a new record high: Is it too late to invest?
• Why Afterpay, Infigen, Qantas, & Zip Co shares are charging higher
• ASX 200 up 1%: Big four banks jump, Afterpay hits record high
• The Zip Co share price just zoomed to a record high: Is it too late to invest?
• 2 exciting small cap ASX shares that could have big futures

Phil Harpur owns shares of AFTERPAY T FPO. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of BIGTINCAN FPO and ZIPCOLTD FPO. The Motley Fool Australia owns shares of AFTERPAY T FPO. The Motley Fool Australia has recommended BIGTINCAN FPO and Sezzle 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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