• Will Gold Keep Rising?

    Will Gold Keep Rising?Jul.20 — Joni Teves, precious metals strategist at UBS Investment Bank, discusses the outlook for gold and silver. Both metals have surged this year as the coronavirus pandemic roiled the global economy, spurring sustained demand for havens even as some lockdowns were eased. Teves speaks with Haslinda Amin and Rishaad Salamat on “Bloomberg Markets: Asia.”

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  • Bod share price surges 5% on record revenue growth

    wooden blocks with percentage signs being built into towers of increasing height

    The BOD Australia Ltd (ASX: BDA) share price popped 8% today after the release of the company’s recent quarterly activities report, which outlines a record quarter of revenue growth. Bod shares have since pulled back slightly to be sitting at 27 cents per share, up 5.88% on yesterday’s close.

    What does Bod do?

    Bod Australia is a cannabis-centric healthcare company. Founded in 2014, the company is a developer, manufacturer, distributor and marketer of plant-based natural health supplements and beauty solutions. In late 2016, the company pivoted to focus on cannabis as the market environment improved, developing over the counter and therapeutic products based on good manufacturing practice (‘GMP’) certified cannabis extracts.

    Bod recently launched 9 hemp-based products in collaboration with Swisse Wellness, which are being distributed to more than 2,000 leading retailers such as Coles, Priceline and Chemist Warehouse in Australia. The company also operates in the UK.

    What is driving the Bod share price higher?

    The Bod share price is rising on news that the company has achieved sales revenue of $2.74 million in the quarter ended June 2020. That represents a huge increase of 118% on the previous quarter (Q3 FY 2020). Most impressive, however, was the huge 358% increase in revenue to $6.14 million during FY 2020. The company also announced that cash used in operating activities continued to decrease as revenue from sales increased. 

    Bod reports that revenue growth has been driven by unprecedented demand for CBD, hemp products, new international market entries and Bod’s strong relationship with H&H Group Limited. Furthermore, Bod continued to reduce its cash burn during the quarter to $730,000, marking an 11% decrease on the previous quarter.

    Commenting on the results, Bod CEO Jo Patterson stated:

    This is a great result for Bod and validates the strategic investments made towards key growth opportunities over the past 12 months. Most importantly, Bod now has two core divisions that are generating growing, diversified and sustainable revenue streams and we enter FY2021 with considerable momentum.

    New cannabis prescriptions

    Adding to the positive sentiment around the Bod share price is the confirmation in today’s announcement that the company has received its first medicinal cannabis prescriptions in the UK. The prescription came from a leading medicinal cannabis organisation, which has a number of clinics in London and the UK.

    The UK has approximately 7.3 million consumers using CBD annually and represents a major market opportunity. According to the release, it is estimated this market will grow to be approximately four times larger than Australia’s market by 2028.

    Bod also received a prescription from Project Twenty21, Europe’s largest medicinal cannabis registry, targeting 20,000 patients.

    What now for Bod?

    Looking forward, Bod reports it is focused on delivering important growth objectives via international market and product expansion initiatives. The company has a strong cash balance of $6.3 million, which gives it near-term flexibility and should allow it to pursue growth drivers. The company also confirmed it has not experienced any adverse effect on operations from COVID-19 thus far.

    The Bod share price has been on a tear since its lows in March, gaining 125%, however, it remains down around 42% on this time last year.

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    When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

    Scott just revealed what he believes are the five best ASX stocks for investors to buy right now. These stocks are trading at dirt-cheap prices and Scott thinks they are great buys right now.

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    Motley Fool contributor Daniel Ewing 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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  • ResMed share price rockets to record highs

    ventilator mask

    The ResMed Inc (ASX: RMD) share price has surged more than 26% since mid-June and is currently trading at record highs. With the coronavirus outbreak in Victoria and fears of a ‘second-wave’ spreading around the country, the medical device company has seen renewed interest.

    A leader during the coronavirus pandemic

    ResMed has emerged as a leader during the coronavirus pandemic, which has seen the company’s share price make stellar gains for the year. The company saw a surge in demand for its invasive and non-invasive ventilators at the height of the pandemic.

    In the three months to 31 March, ResMed tripled its ventilator production, producing more than 52,000 units in order to fulfil an urgent contract from the Australian Government. The company went on to provide around 5,500 invasive and non-invasive ventilators to Australia’s national stockpile.

    In addition, ResMed was one of the six companies named to help facilitate the production and supply of ventilators in the United States after the country initiated its Defence Production Act.

    How has ResMed performed?

    In late April, ResMed announced its results for the third quarter of 2020 which was highlighted by a 16% increase in revenue of $769.5 million. ResMed also reported a 39% increase in net operating profit and GAAP gross margin of 58.4% for the quarter.

    The company’s management noted that the coronavirus pandemic resulted in ResMed rapidly pivoting its business in order to accommodate for the production of life support ventilators and mask systems. Despite the surge in demand for masks and ventilators, ResMed saw a decline in new patient diagnoses for its core sleep apnea devices as many people avoided visits to hospitals.

    Is it too late to buy at today’s ResMed share price?

    With fears of a second wave of coronavirus infections emerging in Australia, the ResMed share price could see further upside as demand for ventilation treatments and respiratory humidifiers increases. In my opinion, demand will not only be limited to Australia as COVID-19 cases continue to surge in other countries.

    Brazil, India and South Africa have large populations and ResMed could see substantial demand from these countries as cases continue increasing. In addition, with the winter season approaching in the US, the country could see a more pronounced second wave which could fuel more demand.

    ResMed has been a successful Australian company for many years and in my opinion can still deliver double-digit growth despite being at record highs. Another company to keep an eye on is Fisher & Paykel Healthcare Corp Ltd (ASX: FPH) which could also see renewed demand.

    3 “Double Down” Stocks To Ride The Bull Market

    Motley Fool resident tech stock expert Dr. Anirban Mahanti has stumbled upon three under-the-radar stock picks he believes could be some of the greatest discoveries of his investing career.

    He’s so confident in their future prospects that he has issued “double down” buy alerts on each of these three stocks to members of his Motley Fool Extreme Opportunities stock picking service.

    *Extreme Opportunities returns as of June 5th 2020

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    Motley Fool contributor Nikhil Gangaram 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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  • Why Nearmap and 2 other ASX tech shares are surging higher today

    share price higher

    The ASX tech sector has been one of the strongest performing market sectors today, with many tech listed companies showing strong share price gains.

    Here we look at 3 ASX tech shares that have seen particularly strong share price rises so far today.

    Nearmap Ltd (ASX: NEA)

    Nearmap shares are on fire today, up by 8.4% at the time of writing.

    It has been a rollercoaster ride for the Australian aerial imagery and specialist location data company on the ASX over the past twelve months. One year ago, the Nearmap share price was trading at $3.14, but then trended downward until late March. In particular, the Nearmap share price was hit hard during the early phase of the coronavirus pandemic, dropping to as low as $0.86. Since then it has rallied strongly, and this trend has continued today with its share price currently trading at $2.46.

    A positive update in late May is likely to have contributed to the company’s recent share price growth. Nearmap’s customer base continues to grow strongly and customer churn is now below 10%.

    Bigtincan Holdings Ltd (ASX: BTH)

    Bigtincan has been another standout ASX tech share performer today. Its share price is up by a whopping 9% so far today. This follows on from a strong share price rally since late March. 

    Bigtincan operates in a fast-growing IT software niche known as ‘sales enablement’. The company suffered heavy share price losses during the early phase of the coronavirus pandemic, but now has recovered most of those losses. Bigtincan recently announced the signing of a major new customer contract with global beverage giant Red Bull. This has helped push its share price higher in recent weeks.

    Sezzle Inc (ASX: SZL)

    Buy now, pay later (BNPL) fintech provider Sezzle is based in the United States, however is listed on the ASX.

    The Sezzle share price has surged 9.8% higher so far today. This follows on from a super strong upward share price trajectory since late March. Since that time, the Sezzle share price has risen from $0.37, to currently be trading at $7.14. That’s a massive increase of more than 1800%!

    The BNPL sector has been on a tear in recent months, with other ASX listed providers such as Openpay Group Ltd (ASX: OPY) also performing well.

    I think the recent strong rise in the sector is linked to two key factors. Firstly, the pandemic has encouraged a surge in online shopping, which has flowed through to increased BNPL transactions. Secondly, there is growing market acceptance that the BNPL sector appears to be here to stay. This is boosting investor confidence about the long-term growth prospects of the industry.

    5 stocks under $5

    We hear it over and over from investors, “I wish I had bought Altium or Afterpay when they were first recommended by The Motley Fool. I’d be sitting on a gold mine!” And it’s true.

    And while Altium and Afterpay have had a good run, we think these 5 other stocks are screaming buys. And you can buy them now for less than $5 a share!

    *Extreme Opportunities returns as of June 5th 2020

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    Phil Harpur owns shares of Nearmap Ltd. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of BIGTINCAN FPO and Nearmap Ltd. The Motley Fool Australia has recommended BIGTINCAN FPO, Nearmap Ltd., 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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  • My top 5 ASX growth shares to buy in FY 2021

    man holding light bulb next to growing piles of coins

    If you’re a growth investor then you’re in luck. This is because the Australian share market is home to a large number of quality shares that have the potential to grow very strongly in the coming years.

    Five top growth shares I would buy in FY 2021 are listed below:

    Afterpay Ltd (ASX: APT) 

    Due to the increasing popularity of the buy now pay later payment method with consumers and merchants, I believe this payments company could be a strong performer again in FY 2021. Especially given the incredible active customer growth it is experiencing in the United Kingdom and United States markets. It is also worth noting that Afterpay will launch into Canada this financial year and I wouldn’t be surprised to see further geographic expansion over the next 12 months.

    Altium Limited (ASX: ALU)

    Due to its key Altium Designer product and its exposure to the rapidly growing Internet of Things market, I believe this electronic design software company can continue to grow its revenue and earnings at solid rate in FY 2021. Looking further ahead, I feel confident that Altium is on a path to achieving its revenue target of US$500 million by FY 2025. This is thanks to increasing demand for Altium Designer and its other growing businesses such as NEXUS and Octopart.

    Appen Ltd (ASX: APX)

    Another top growth share to consider buying for FY 2021 is Appen. It is a fast-growing developer of high-quality, human-annotated training data for machine learning and artificial intelligence. Given how spending in these markets is expected to grow materially in the future, I believe Appen is well-placed to continue its impressive growth for many years to come.

    Pushpay Holdings Group Ltd (ASX: PPH)

    Pushpay is another growth share I would buy. It is a donor management platform provider for the faith sector. Pushpay has been growing at a rapid rate in recent years and looks well-placed to continue this trend in the coming years thanks to its leadership position in a niche but lucrative market. Management certainly believes this to be the case. It is aiming to win a 50% share of the medium to large church market in the future. This represents a US$1 billion revenue opportunity and compares very favourably to FY 2020’s revenue of US$127.5 million.

    ResMed Inc. (ASX: RMD)

    A final growth share to consider buying is ResMed. I think the sleep treatment-focused medical device company is well-placed for growth over the next decade thanks to its industry-leading products and sizeable market opportunity. Management estimates that there could be upwards of 1 billion people impacted by sleep apnoea worldwide. As more and more of these sufferers are diagnosed in the coming years, I expect demand for its products to increase.

    5 stocks under $5

    We hear it over and over from investors, “I wish I had bought Altium or Afterpay when they were first recommended by The Motley Fool. I’d be sitting on a gold mine!” And it’s true.

    And while Altium and Afterpay have had a good run, we think these 5 other stocks are screaming buys. And you can buy them now for less than $5 a share!

    *Extreme Opportunities returns as of June 5th 2020

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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 Altium and PUSHPAY FPO NZX. The Motley Fool Australia owns shares of AFTERPAY T FPO and Appen Ltd. The Motley Fool Australia has recommended PUSHPAY FPO NZX and 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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  • 2 ASX shares to buy during ‘Dry July’

    wine glass full of coins

    We are two thirds of the way through Dry July. Whether you are participating for health or charitable reasons, completing Dry July can be a challenge. Rewarding yourself for completing difficult tasks feels great and alcohol is expensive. So why not boost your ASX share portfolio with all of the extra cash you have saved instead! So, on that note, here are two food and beverage related ASX shares that can help you power through the rest of Dry July.

    2 ASX shares to buy in Dry July

    Treasury Wine Estates Ltd (ASX: TWE) – Why Dry July is so hard!

    Treasury has been a great producer of wines and an even better ASX share to buy (unless you happened to buy right before the pandemic hit!). Over the last 5 years, the Treasury Wine share price has had a compound annual growth rate (CAGR) total return (including capital growth and dividends) of 18.85% per annum. Shares currently trade on a price-to-earnings (P/E ratio) of about 19.5x earnings and a dividend yield of 3.6%.

    The share price is down 37% since 24 January, which could present a nice entry point for long-term investors. The company provided a business update on 9 July, which was the first for new CEO, Tim Ford, who commenced the role on 1 July 2020. Preliminary FY20 performance shows EBITS of between $530 and $540 million, representing a 21% decline against the prior year. Management were cautious in the short to medium term given social gathering restrictions internationally.

    As a business directly impacted by COVID-19, with international diversification including Asia and the United States, the Treasury Wine share price could be volatile. But, it would be nice to crack open a bottle of wine in August and pay yourself at the same time! 

    Rural Funds Group (ASX: RFF) – The agricultural land play

    The Rural Funds share price has doubled over the last 5 years. Add in dividends and the stock has grown by a CAGR of 18.71% per annum over the half decade. Shares currently trade on a P/E ratio of about 15.4x earnings and a distribution yield of 4.1%. Rural Funds has guided for an FY21 distribution of 11.28 cents per unit, or an even better yield of 5.5%.

    This ASX share is a great option for investors who need a secure dividend. The business currently has a weighted average lease expiry of 11.5 years.

    Over the long term, the value of agricultural land should appreciate. As the Australian and worldwide population grows, and the middle class of developing countries like China and India boom, the need and desire for fresh produce will increase. Insider Michael Carroll believes in the business, with a recent acquisition of 124,862 shares at $2 per unit.

    Foolish bottom line

    Over the long term, high quality ASX shares should continue to be a life changing asset to own.

    Congratulations to everyone doing Dry July. Treat yourself with some ASX shares now, don’t wait for a drink in August!

    Where to invest $1,000 right now

    When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

    Scott just revealed what he believes are the five best ASX stocks for investors to buy right now. These stocks are trading at dirt-cheap prices and Scott thinks they are great buys right now.

    *Returns as of June 30th

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    Motley Fool contributor Lloyd Prout has no position in any of the stocks mentioned and expresses his own opinions. The Motley Fool Australia owns shares of and has recommended RURALFUNDS STAPLED and Treasury Wine Estates 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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  • Leading brokers name 3 ASX 200 shares to sell today

    Model bear in front of falling line graph, cheap stocks, cheap ASX shares

    On Monday I looked at three ASX shares that brokers have given buy ratings to this week.

    Unfortunately, not all shares are in favour with them right now. Three that have just been given sell ratings are listed below.

    Here’s why these brokers are bearish on these ASX 200 shares:

    Commonwealth Bank of Australia (ASX: CBA)

    According to a note out of Goldman Sachs, its analysts have retained their sell rating and $65.00 price target on this banking giant’s shares. The broker expects Commonwealth Bank to deliver cash earnings from continued operations of $7,815 million in FY 2020. This will be an 8% decline on the prior corresponding period. The broker is also forecasting a 100 cents per share fully franked final dividend, down 56.7% on last year’s final dividend. In light of this, it believes its shares are overvalued at the current level. The Commonwealth Bank share price is trading at $73.21 this afternoon.

    Netwealth Group Ltd (ASX: NWL)

    Analysts at Ord Minnett have downgraded this investment platform provider’s shares to a sell rating with an improved price target of $9.55. Although the broker notes that its performance during the pandemic has been positive, it isn’t enough to stop it from downgrading its shares. It believes Netwealth shares are overvalued at the current level and sees a lot more value in rival Hub24 Ltd (ASX: HUB). The Netwealth share price is changing hands for $11.52 on Tuesday.

    Rio Tinto Limited (ASX: RIO)

    A note out of Credit Suisse reveals that its analysts have retained their underperform rating and $86.00 price target on this morning giant’s shares. Although the broker acknowledges that Rio Tinto had a very strong second quarter, it has concerns over iron ore prices in the near term. It suspects that softer seasonal demand and a recovery in Brazilian shipments could put pressure on the price of the steel making ingredient. The Rio Tinto share price is trading at $105.49 this afternoon.

    Where to invest $1,000 right now

    When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

    Scott just revealed what he believes are the five best ASX stocks for investors to buy right now. These stocks are trading at dirt-cheap prices and Scott thinks they are great buys right now.

    *Returns as of June 30th

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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 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.

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  • IBM beats estimates; sees gains as customers accelerate shift to cloud

    IBM beats estimates; sees gains as customers accelerate shift to cloudIBM has jettisoned some of its legacy business to focus on the high-margin cloud computing business, an area that has seen a lot of action in recent years as companies ramp up their digital shift to boost efficiency. Revenue from the cloud business, previously headed by Krishna, rose 30% to $6.3 billion in the second quarter.

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  • How to buy US FAANG stocks on the ASX

    dice on top of piles of coins spelling the word nasdaq

    FAANG stocks. They’re hot property right now and leading United States shares on a bullish run in 2020.

    But it’s not easy for us Aussies to invest overseas. Not without a specialised broker and/or significant tax and currency headaches.

    However, all that is starting to change thanks to a new exchange-traded fund (ETF). Which one? The ETFS FANG+ ETF (ASX: FANG).

    What is ‘FAANG’?

    FAANG is the acronym used for some of the biggest US tech stocks right now.

    The members of FAANG are Facebook Inc. (NASDAQ: FB), Amazon.com Inc. (NASDAQ: AMZN)Apple Inc (NASDAQ: AAPL)Netflix Inc (NASDAQ: NFLX) and Alphabet Inc. (NASDAQ: GOOG) which is Google’s parent company.

    For what it’s worth, Australia has created its own hot tech acronym. The ‘WAAAX’ tech shares include WiseTech Global Ltd (ASX: WTC), Afterpay Ltd (ASX: APT)Altium Limited (ASX: ALU)Appen Ltd (ASX: APX) and Xero Limited (ASX: XRO).

    But enough with the acronyms, how do you actually buy FAANG stocks through the ASX?

    How to invest in FAANG stocks on the ASX

    The bad news is that you can’t technically buy the individual FAANG stocks through the ASX.

    The good news is that you can get diversified exposure to the whole group and more in the one ETF.

    The ETFS FANG+ ETF started trading on the ASX on 27 February this year. The fund seeks to track the NYSE®FANG+™ Index by investing in a portfolio of FAANG stocks and more.

    It’s worth noting that the fund is not currency-hedged, which means you are exposed to currency risk through movements in the US-Australian dollar. The FANG+ ETF is rebalanced quarterly and has a management fee of 0.35%.

    I’ve included a chart below of the fund’s top holdings by percentage weighting as at yesterday’s close.

    Source: Author, ETF Securities reports

    As you can see, all the big FAANG stocks (and more) have significant weightings in the fund.

    The ETF has climbed 31.5% higher since 2 March compared to a 4.8% decline in the S&P/ASX 200 Index (ASX: XJO).

    That means if you’re looking for an easy way to get exposure to these shares in 2020, this ETFS FANG+ ETF could be for you.

    What about the alternative ways to invest?

    If this ETF doesn’t cut it, there are other ways to invest in US FAANG stocks. One is direct investment but you would need to find a broker that allows offshore investments.

    You could also buy a diversified US ETF like iShares S&P 500 ETF (ASX: IVV). The FAANG stocks make up a significant portion of the S&P 500 by market capitalisation.

    This iShares ETF has a management fee of just 0.04% compared to 0.35% for the ETFS FANG+ ETF. That could make it a good reason to buy for the long term and generate strong after-tax returns.

    Where to invest $1,000 right now

    When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

    Scott just revealed what he believes are the five best ASX stocks for investors to buy right now. These stocks are trading at dirt-cheap prices and Scott thinks they are great buys right now.

    *Returns as of June 30th

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    John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. 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. Ken Hall 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 Alphabet (C shares), Amazon, Apple, Facebook, and Netflix. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Altium and Xero and recommends the following options: long January 2022 $1920 calls on Amazon and short January 2022 $1940 calls on Amazon. The Motley Fool Australia owns shares of AFTERPAY T FPO, Appen Ltd, and WiseTech Global. The Motley Fool Australia has recommended Alphabet (C shares), Amazon, Apple, Facebook, and Netflix. 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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  • Warren Buffett’s advice for managing uncertainty

    Share market uncertainty

    Warren Buffett is the world’s most famous investor. At 89 years old, he’s weathered the GFC, the dot.com bubble, the early 1990s oil price shock, and stock market crashes in the 1970s and 1980s. He has faced uncertainty head on and turned it into a $72 billion fortune.

    Uncertainty abounds right now as the struggle against coronavirus wears on the world economy. To help guide you through these uncertain times, we take a look at Warren Buffett’s advice for managing uncertainty. 

    “If you aren’t thinking about owning a stock for 10 years, don’t even think about owning it for 10 minutes”

    Current events will pass, but in the long term, quality businesses tend to survive. When you’re investing in the share market, you need to have a long-term time horizon. Share prices can fluctuate from day to day and month to month. Over the long term, companies that are able to deliver consistent and growing profits will tend to perform well. But that doesn’t mean there won’t be setbacks and hurdles to overcome. 

    “Price is what you pay. Value is what you get”

    Buffett is emphasising that price and value are not always the same thing. Usually they are linked, but sometimes price does not accurately reflect value. This can be the case when share markets are volatile – share prices may over or underestimate the value of the underlying business. Value investors like Buffett look for shares that are trading below their intrinsic value in the belief that the price will eventually revert to accurately reflect value. 

    “Be fearful when others are greedy and greedy when others are fearful”

    Buffett made some of his best investments during market downturns. Using his value investing philosophy, he pounced on opportunities when markets were in the red. With this quote, Buffett is warning against being caught up when markets are peaking, but to ensure your eyes are open to opportunity when markets fall. This makes good sense. After all, an investor who bought $10,000 worth of Afterpay Ltd (ASX: APT) shares at their March low of $8.90 would be sitting on $83,000 now. 

    5 stocks under $5

    We hear it over and over from investors, “I wish I had bought Altium or Afterpay when they were first recommended by The Motley Fool. I’d be sitting on a gold mine!” And it’s true.

    And while Altium and Afterpay have had a good run, we think these 5 other stocks are screaming buys. And you can buy them now for less than $5 a share!

    *Extreme Opportunities returns as of June 5th 2020

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    Motley Fool contributor Kate O’Brien has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of 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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