It has been a volatile day of trade for the S&P/ASX 200 Index (ASX: XJO) on Tuesday. At lunch the benchmark index has given back its late morning gains and is now down 0.1% to 5,812.6 points.

Here’s what has been happening on the market today:

Bank shares drop lower.

The big four banks are trading lower ahead of the Reserve Bank’s meeting this afternoon. At lunch all of the big four are in the red and acting as a drag on the index. The worst performer in the group has been the Westpac Banking Corp (ASX: WBC) share price with a 1% decline.

ANZ asset sale.

The Australia and New Zealand Banking GrpLtd (ASX: ANZ) share price is trading lower today after announcing an asset sale. ANZ has agreed to sell its New Zealand asset finance business, UDC Finance, to Japan’s Shinsei Bank for NZ$762 million. The sale will provide ~A$439 million (~10bps) of Level 2 Group CET1 capital at settlement. It will also release more than NZ$2 billion of funding provided by ANZ New Zealand.

Vicinity completes placement.

The Vicinity Centres (ASX: VCX) share price has dropped lower after returning from its trading halt. This follows the completion of its $1.2 billion institutional placement. These funds were raised at $1.48 per share, representing a discount of 8% to its last close price. Management advised that the equity raising will strengthen its balance sheet and provide the shopping centre operator with flexibility to respond to the uncertainty caused by COVID-19 and the evolving retail landscape.

Best and worst ASX 200 performers.

The best performer on the ASX 200 on Tuesday has been the Domain Holdings Australia Ltd (ASX: DHG) share price with an 8.5% gain. This may be down to better than expected Australian house price data. The worst performer has been the Vicinity share price with a 3.5% decline after its placement.

More reading

• ASX 200 investor in your 40s? 3 shares to buy now
• Why Evolution, Iress, Pro Medicus, & Vicinity shares are dropping lower
• Is the Newcrest Mining share price a buy?
• Is the NAB share price cheap today?
• ANZ share price climbs higher on asset sale

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 ASX 200 down 0.1%: Big four banks drag ASX lower ahead of RBA meeting appeared first on Motley Fool Australia.

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

In late morning trade the S&P/ASX 200 Index (ASX: XJO) is on course to record another gain. At the time of writing the benchmark index is up 0.25% to 5,832.9 points.

Four shares that have climbed more than most today are listed below. Here’s why they are pushing higher:

The Amaysim Australia Ltd (ASX: AYS) share price has jumped 11% to 35.5 cents. This follows media speculation that the telco company is about to offload its energy business. Amaysim responded to the speculation by confirming that it engaged Luminis Partners some time ago to assist the board with considering options to unlock shareholder value. This includes looking at options for the energy business. However, it stopped short of confirming that a deal is close to being done.

The Bingo Industries Ltd (ASX: BIN) share price has surged 6% higher to $2.68. The catalyst for this strong gain appears to be a broker note out of Citi on Monday. Its analysts upgraded Bingo’s shares to a buy rating with a $3.10 price target. Citi believes concerns over a market share war are unnecessary and appears positive on margin improvements over the long term.

The Brickworks Limited (ASX: BKW) share price has risen 2.5% to $16.03. This follows the release of a trading update this morning by the building products company. For the four months ending 31 May, its BP Australia sales were down 10% on the prior corresponding period. BP North America sales were up 26% (due to acquisitions) and down 30% on a like for like basis. Some investors may have been expecting worse.

The BlueScope Steel Limited (ASX: BSL) share price has stormed 5% higher to $11.76. Investors have been buying the steel producer’s shares after analysts at Ord Minnett reiterated their accumulate rating and $11.90 price target. According to the note, the broker feels that now could be a good time to invest. It believes the worst is behind the company.

More reading

• Amaysim share price flies 22% higher after confirming interest in its energy business
• I think these 2 ASX 200 shares will beat the market
• Got $50,000 to invest for income? Pick these 5 ASX dividend shares
• How to make $1,000 a month in dividends
• Have $4,000? Invest in these 4 ASX shares 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 Brickworks. 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 Amaysim, Bingo, Brickworks, & BlueScope are pushing higher today appeared first on Motley Fool Australia.

from Motley Fool Australia https://ift.tt/2Xn9CcW

The Amaysim Australia Ltd (ASX: AYS) share price is flying higher this morning after the company released an announcement in response to recent media speculation. 

Amaysim is a subscription utility provider, delivering mobile and energy plans to customers around the country. The company launched in 2010 and is Australia’s fourth-largest mobile service provider.

At the end of last year, Amaysim had 1.05 million total mobile subscribers and 201,000 energy subscribers.

Why the Amaysim share price is spiking today

This morning, Amaysim responded to recent media speculation about potential interest in its energy business.

“amaysim does, from time to time, receive a broad spectrum of interest in relation to its businesses. It is amaysim’s policy not to comment on, or engage with, market or media speculation,” the announcement read.

Shedding a bit more light, the company said, “as requested by the ASX, the company confirms that it engaged Luminis Partners some time ago to assist the Board with considering options to unlock shareholder value, including in respect of the energy business. A data room is maintained for the purpose of facilitating discussions with interested parties.”

Amaysim closed out the announcement by stating it is pleased with its overall performance in the current environment and confirmed it is in compliance with continuous disclosure obligations under the ASX Listing Rules.

Today’s announcement follows a report from the Australian Financial Review (AFR) last night that Origin Energy Ltd (ASX: ORG) is in the Amaysim data room, preparing a bid for Amaysim’s electricity and gas retailer, Click Energy. Amaysim acquired Click Energy in May 2017 for $120 million.

According to the AFR, the data room was originally set up to gauge investor interest in a potential capital injection or takeover. However, bidders quickly narrowed its sights to Amaysim’s energy operations.

The AFR believes the sale process has entered the second round and suitors have been sinking their teeth into detailed diligence measures. 

After being up by as much as 21.88% in early trade, the Amaysim share price is sitting 15.62% higher at the time of writing at 37 cents per share.

More reading

• Why Amaysim, Bingo, Brickworks, & BlueScope are pushing higher today
• 3 ASX sectors to benefit from local supply chains
• 3 ASX 200 energy shares to buy before crude oil price rises
• Leading fund manager sees good ASX buying opportunities
• Got $2,000? Here are 2 ASX 200 energy shares to buy today

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.

The post Amaysim share price flies 22% higher after confirming interest in its energy business appeared first on Motley Fool Australia.

from Motley Fool Australia https://ift.tt/2Mode8c

The Newcrest Mining Limited (ASX: NCM) share price has edged 4.10% higher in 2020, but is the ASX gold share in the buy zone?

Why the Newcrest Mining share price has outperformed in 2020

It’s been a reasonably good year for investors in ASX gold shares. The coronavirus pandemic has spooked investors and hurt the global economy. That means shares in Aussie gold miners like Newcrest have managed to outperform the S&P/ASX 200 Index (ASX: XJO).

The index is down nearly 13% this year despite climbing 1.10% higher yesterday. That means the Newcrest Mining share price has outperformed the ASX 200 benchmark by around 17%.

Those are some pretty handy numbers given the current market. As the global gold price continues to climb, so too does Newcrest’s value.

The Aussie gold miner now boasts a $25.1 billion market capitalisation. That means it is well entrenched inside the ASX 50 and could be climbing higher. 

But is now a good time to buy the ASX gold miner?

I personally think Newcrest shares are a touch overvalued right now. Investors are willing to pay a premium for safety, which has pushed Newcrest’s price-to-earnings (P/E) ratio to 28.45. 

With a dividend yield of 1.05%, Newcrest does offer some portfolio income while other ASX shares are slashing distributions. However, I still think there is a bit of panic buying surrounding ASX gold shares right now.

The ASX Resources sector could well outperform in 2020. There is a strong technical environment despite some question marks over exports and our relationship with China.

However, overall commodity prices are high, which is good for the Aussie economy. If the Aussie gold miner can continue production and post good sales numbers in August, the Newcrest Mining share price may be a bargain at $31.09 per share.

Foolish takeaway

The Newcrest Mining share price has managed to edge higher and significantly outperform in 2020. I think whether or not that trend continues is the big question.

In my mind, where the Aussie dollar goes and how geopolitical tensions play out in the coming months will be key.

More reading

• Is the NAB share price cheap today?
• Here are all the ASX 200 companies that announced capital raisings in May
• The big oil price recovery and bounce in ASX oil stocks are bringing out the bears
• 2 ASX 200 shares to watch on Tuesday
• Where to invest $5,000 into ASX 200 shares immediately

Motley Fool contributor Ken Hall 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 Is the Newcrest Mining share price a buy? appeared first on Motley Fool Australia.

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

National Australia Bank Ltd. (ASX: NAB) shares have had a bumpy start to the year. The Aussie bank is trading at $18.07 per share at the time of writing. This is down 26.63% from where it started 2020 at $24.63.

So with all that’s happening on the ASX right now, is the NAB share price in the buy zone?

Why the NAB share price has slumped lower in 2020

The S&P/ASX 200 Index (ASX: XJO) is down 12.92% this year which means NAB shares are underperforming the index by quite a margin.

It’s not the only ASX bank share doing it tough right now. However, NAB has a large business banking segment that could be weighing on shareholders’ minds.

The coronavirus pandemic has spooked investors and raised question marks about global economic growth. Closer to home, many are wondering about loan performance in a downturn and the NAB share price has been sinking as a result.

NAB recently announced $807 million worth of pandemic-related provisions in its half-year earnings. The government stimulus programs are helping to prop up the economy but they won’t last forever.

However, there are signs that things are improving. Even the ‘best case’ forecasts have been bettered here in Australia and the economy is starting to re-open.

That could be good news for the NAB share price and investors. If businesses can start generating cash flow sooner than expected, loan impairments and lost earnings may be mitigated.

I think ASX bank shares can continue to be strong dividend shares in the future. That’s despite recent dividend cuts which will affect short-term portfolio earnings.

There are some who believe the neobanks will rise up and overtake the Big 4 in the coming decade. Even if that is the case, NAB has a stake in that game through its ownership of UBank.

Foolish takeaway

If you’re a buy and hold investor, I feel the NAB share price could represent a bargain at $18.07.

ASX bank shares could be in for a bumpy ride in 2020 but I still think the long-term picture is positive.

More reading

• Is the Newcrest Mining share price a buy?
• The big oil price recovery and bounce in ASX oil stocks are bringing out the bears
• 2 ASX 200 shares to watch on Tuesday
• How to value the big four ASX banks
• Where to invest $5,000 into ASX 200 shares immediately

Motley Fool contributor Ken Hall 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 Is the NAB share price cheap today? appeared first on Motley Fool Australia.

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

The Australia and New Zealand Banking GrpLtd (ASX: ANZ) share price has been a positive performer on Tuesday.

In morning trade the banking giant’s shares climbed 1.5% to $18.31. This follows the release of an announcement relating to an asset sale today.

What did ANZ announce?

This morning ANZ announced that it has agreed to sell its New Zealand asset finance business, UDC Finance, for NZ$762 million to Japan’s Shinsei Bank.

This sale follows a strategic review of the UDC Finance business. It is also in line with its strategy to simplify its business.

According to the release, the sale will provide ~A$439 million (~10bps) of Level 2 Group CET1 capital at settlement.

It will also release more than NZ$2 billion of funding provided by ANZ New Zealand, further strengthening its balance sheet position.

ANZ Bank New Zealand’s CEO, Antonia Watson, was pleased with the asset sale and believes it is a significant vote of confidence for the New Zealand economy.

She said: “With a strong outlook for infrastructure and agriculture projects as the New Zealand economy rebuilds post-Covid-19, there is a significant role for UDC Finance to play. As such, it needs an owner that can invest in and grow the business.”

“Shinsei Bank intends to preserve UDC’s operations, retain UDC employees and provide long term capital to maintain and grow customer lending in New Zealand. The sale will also mean UDC Finance will continue to operate as an independent finance company and enhance competition in the asset finance market,” Ms Watson added.

Is the ANZ share price in the buy zone?

The ANZ share price may have charged notably higher over the last couple of weeks, but I don’t think it is too late to invest.

Although it isn’t my top pick in the sector, I think it remains a great option at the current level. Especially given its improving balance sheet and the quicker than expected reopening of the Australian economy.

More reading

• The big oil price recovery and bounce in ASX oil stocks are bringing out the bears
• How to value the big four ASX banks
• How bankable are the big four ASX bank shares in 2020?
• 5 ASX 200 winners and 3 losers from last week
• ASX 200 Weekly Wrap: Surging bank shares push ASX toward 6,000

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.

The post ANZ share price climbs higher on asset sale appeared first on Motley Fool Australia.

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

This year there have been a large number of companies announcing capital raisings.

While the majority of these came at the height of the COVID-19 pandemic, they continued in May.

Here are all the capital raisings that occurred on the S&P/ASX 200 Index (ASX: XJO) last month:

Atlas Arteria Group (ASX: ALX)

Amount: $495 million, comprising a fully underwritten $420 million institutional placement and a non-underwritten Share Purchase Plan (SPP) to raise up to $75 million.

Offer price: $6.20 per new share, representing a 7.5% discount to its last close price.

Reason: The proceeds will be used to repay its existing €350 million MIBL Facility.

Blackmores Limited (ASX: BKL)

Amount: $117 million, comprising a fully underwritten $92 million institutional placement and non-underwritten SPP to raise up to ~$25 million.

Offer price: $72.50 per new share, which represents an 8.1% discount to its last close price.

Reason: To accelerate growth in Asia, invest in efficiency program, and position its balance sheet for strength.

Breville Group Ltd (ASX: BRG)

Amount: $104 million, comprising a fully underwritten $94 million institutional placement and a $10 million underwritten SPP.

Offer price: $17.00 per new share, which equates to a 9.1% discount to its last close price.

Reason: To enhance Breville’s financial flexibility to continue to invest in the execution of its growth agenda while maintaining a strong financial position. The former includes entering new markets in FY 2021.

Incitec Pivot Ltd (ASX: IPL)

Amount: $675 million, comprising a $600 million fully underwritten institutional placement and a non-underwritten SPP of up to $75 million.

Offer price: $2.00 per new share, which represents an 8.7% discount to its last closing price.

Reason: To take pre-emptive action to strengthen its balance sheet to increase resilience in the current environment and provide financial flexibility to pursue disciplined organic growth opportunities.

Mesoblast limited (ASX: MSB)

Amount: US$90 million (A$138 million) via a placement to existing and new institutional investors.

Offer price: A$3.20 per new share, which represents a 7% discount to its last close price.

Reason: The proceeds will be used predominantly to scale-up manufacturing of its lead product candidate remestemcel-L. This product is for the treatment of critically ill patients suffering with diseases caused by cytokine release syndromes associated with high mortality, particularly COVID-19 acute respiratory distress syndrome.

National Storage REIT (ASX: NSR)

Amount: $330 million, comprising a fully underwritten $300 million institutional placement and a non-underwritten SPP to raise up to a further $30 million.

Offer price: $1.57 per new share, which represents a 7.1% discount to its last close price.

Reason: To strengthen its balance sheet, replenish investment capacity, and provide additional funding flexibility.

Newcrest Mining Limited (ASX: NCM)

Amount: $1.1 billion, comprising a $1 billion fully underwritten institutional placement and a $100 million SPP.

Offer price: $25.60 per new share, representing a 7% discount to its last closing price.

Reason: To purchase the Fruta del Norte Financing Facilities and to fund future growth options such as the construction of declines at Havieron and Red Chris.

Qube Holdings Ltd (ASX: QUB)

Amount: $500 million via a fully underwritten 1 for 6.35 accelerated non-renounceable entitlement offer.

Offer price: $1.95 per new share, representing an 11.8% discount to its last close price.

Reason: To leave the company conservatively geared, with significant balance sheet flexibility and liquidity to continue to pursue its robust growth agenda.

United Malt Group Ltd (ASX: UMG)

Amount: $165 million, comprising a fully underwritten $140 million institutional placement and a non-underwritten $25 million SPP.

Offer price: $3.80 per new share, representing an 11.4% discount to its last close price.

Reason: Taking pre-emptive action to strengthen the balance sheet to increase resilience in the current environment and provide financial and operational flexibility to continue disciplined investment.

More reading

• 3 ASX 200 resources shares to buy today
• 5 things to watch on the ASX 200 on Tuesday
• Forget cheap stocks. Why investors should watch ASX gold shares instead
• ASX 200 Weekly Wrap: Surging bank shares push ASX toward 6,000
• 5 things to watch on the ASX 200 on Monday

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Blackmores 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 Here are all the ASX 200 companies that announced capital raisings in May appeared first on Motley Fool Australia.

from Motley Fool Australia https://ift.tt/3cvNt0J

The ASX energy sector is on a tear since the oil price bounced from its unprecedented meltdown, but the bears might be ready to pounce again.

In case you forgot, the WTI crude benchmark crashed into negative territory for the first time in history on April 20 before rebounding to US$35 a barrel while the Brent nearly doubled since bottoming to US$38 a barrel.

The turnaround sent the Oil Search Limited (ASX: OSH) share price jumping 27% and the Santos Ltd (ASX: STO) share price climbing 25% over the period.

These stocks are more leveraged to the oil price and explains why the Woodside Petroleum Limited (ASX: WPL) share price is trailing with “only” a 9% gain. But that’s still miles ahead of than the 5% increase in the S&P/ASX 200 Index (Index:^AXJO).

More production cuts to support market

However, the party for our energy producers may not last. Experts are casting doubt on the sustainability of the oil price rally even as OPEC and Russia (OPEC+) moved forward their meeting by a week to this Thursday.

There’s speculation that the oil producing bloc will extend the supply cuts that triggered the recovery and moved their next meeting forward to speed things along.

But Australia and New Zealand Banking GrpLtd’s (ASX: ANZ) commodities strategist Daniel Hynes told the Australian Financial Review that this could be a bearish sign instead.

Oil party pooper

OPEC+’s eagerness to bring forward their meeting and keep production quotas in place signify that demand for crude isn’t recovering at the same pace as prices.

Demand for oil plummeted due to the COVID-19 shutdown of the global economy. While the gradual reopening of some countries is lifting demand for fuel, the recovery is patchy, especially as air travel remains off the cards.

The widespread racial riots in the US sparked by the death of George Floyd is also hurting demand for the commodity.

US drivers in a jam

The US summer driving holiday season looks over before it began with Hynes saying that demand was down 25% to 30% over the Memorial Day holiday on May 25, which usually kicks off the season.

“The US driver consumes about 10% of the world’s oil. So, it’s an important sector,” he told the AFR. “Any data highlighting how it’s going will be focused on.”

Foolish takeaway

While oil market looks prone to a pullback, or even a correction, its unlikely that we will see oil turn negative again.

As I wrote back then, that was probably the only occasion time in our lifetime that we will witness such an event.

This means the worst for the market is likely behind us, although the volatility means investors will need to reasonably strong stomach if they wanted to invest in ASX oil-exposed stocks.

More reading

• 2 ASX 200 shares to watch on Tuesday
• How to value the big four ASX banks
• Where to invest $5,000 into ASX 200 shares immediately
• 3 ASX 200 resources shares to buy today
• 5 things to watch on the ASX 200 on Tuesday

Motley Fool contributor Brendon Lau owns shares of Australia & New Zealand Banking Group Limited. Connect with me on Twitter @brenlau.

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 The big oil price recovery and bounce in ASX oil stocks are bringing out the bears appeared first on Motley Fool Australia.

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

ASX 200 shares had a strong start to the week as the S&P/ASX 200 Index (ASX: XJO) jumped 1.10% higher on Monday.

The Resources sector led the benchmark index higher yesterday thanks to strong commodity prices. However, there were more mixed performances across other industries as the market volatility continued.

Find out which ASX 200 shares I’m watching during today’s trade.

2 ASX 200 shares to watch on Tuesday

The BHP Group Ltd (ASX: BHP) share price is one I’m keeping my eye on today. Shares in the Aussie miner jumped 3.09% on Monday thanks to strong iron ore prices, although it has opened today down by 1.68%.

At the time of writing, BHP is worth a whopping $169.1 billion and is the largest ASX 200 share by market capitalisation right now.

Investors could continue to back the Aussie miner in 2020, but I still think its a speculative buy right now with so much uncertainty around trade.

However, there are some tailwinds in the market right now which could push the BHP share price higher. Momentum could be a big factor and I think BHP is one ASX 200 share worth watching today.

Other than BHP, Wesfarmers Ltd (ASX: WES) could be moving. Wesfarmers is an interesting business in a unique position right now.

The Aussie conglomerate is sitting on a pile of cash after selling part of its stake in Coles Group Ltd (ASX: COL) for $1.1 billion. However, it’s not all good news for the ASX 200 share right now.

The group is currently restructuring its retail arm, Kmart Group. In fact, Wesfarmers recently announced the closure of 75 Target stores as sales continue to slump.

Despite opening slightly down this morning, the Wesfarmers share price has still climbed nearly 8% higher this year and is worth keeping on a watchlist. A strong balance sheet is a big plus and provides flexibility to buy more portfolio companies if the right opportunity arises.

Foolish takeaway

There are always many ASX 200 shares worth watching. These are just a couple of the large-caps that I’m keeping an eye during another big day of trade.

More reading

• The big oil price recovery and bounce in ASX oil stocks are bringing out the bears
• 3 ASX shares to buy and hold for the next 2 decades
• Where to invest $5,000 into ASX 200 shares immediately
• 3 ASX 200 resources shares to buy today
• 3 strong ASX dividend shares to buy right now

Motley Fool contributor Ken Hall has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of COLESGROUP DEF SET 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.

The post 2 ASX 200 shares to watch on Tuesday appeared first on Motley Fool Australia.

from Motley Fool Australia https://ift.tt/36RsALU

There aren’t too many ASX shares that I’d feel comfortable about buying and committing to owning for two decades.

But there are a few that I think could be solid ultra-long-term picks. They have shown their worth in the coronavirus so far. 

Washington H. Soul Pattinson and Co. Ltd (ASX: SOL)

Soul Patts could be one of the best ASX shares to invest for the long-term in. Only an exchange-traded fund (ETF) may have a better claim.

It has already been listed on the ASX for over a century, so it clearly has great longevity. But I don’t think it’s on the cusp of irrelevance at all. It’s an investment conglomerate so it can change its investment holdings as time goes on. Soul Patts is apparently about to start investing in regional data centres, a big growth area right now. Current large investments include telecommunications, building products and resources. 

Of the current shares in the ASX 200, I think Soul Patts could be among the group that will operate for the longest time into the future.

The management team of Soul Patts themselves invest for the long-term within the company. So it has long-term characteristics. It is steadily increasing its dividend, which is another attractive future.

Xero Limited (ASX: XRO)

There are only two things certain in life (as the saying goes). Death and taxes. You can’t do a business tax return without tracking your income, expenses, assets and liabilities, then making financial statements. So why wouldn’t you want to use the best tools available?

Xero is an ASX share that provides cloud accounting software and it’s resonating with clients across the world.

It’s no surprise that Xero has a strong market share in New Zealand and Australia as it’s a local business with a great service. But it’s also growing at an extraordinary rate in the UK and doing well in other areas of the world.

Xero generates attractive monthly cashflow at a very high gross profit margin. At the moment Xero is investing heavily for growth and it’s paying off. In two decades (or just one) it could be one of two clear market leader providers in the world.

Wesfarmers Ltd (ASX: WES)

Wesfarmers isn’t normally an ASX share I’d suggest is one of the best dividend shares, or one of the best growth shares. But I think it’s a great blue chip.

It isn’t stuck being a bank or a miner. It will happily adjust what operating businesses it owns over time. Remember that it acquired and years later divested Coles Group Limited (ASX: COL). Wesfarmers isn’t afraid to make big, bold moves. Even if they don’t work out – look what happened to Bunnings UK and Ireland.

The point is that Wesfarmers can acquire businesses to position it for future success. For example, it recently acquired a lithium miner and it also acquired online retailer Catch Group.

Of course, its current businesses are also fantastic. Bunnings may be the best retail businesses in the country.

Foolish takeaway

I think all of these ASX shares would make very good ultra-long-term investments at the current prices. Xero may be able to generate the most growth if it keeps adding subscribers, but I prefer Soul Patts for its diversification.

More reading

• 2 ASX 200 shares to watch on Tuesday
• 3 strong ASX dividend shares to buy right now
• Buy these ASX growth shares for monster returns
• Why Woolworths shares are offering a rare buying opportunity today
• These ASX shares are set to get a big boost from the next big government stimulus

The post 3 ASX shares to buy and hold for the next 2 decades appeared first on Motley Fool Australia.

from Motley Fool Australia https://ift.tt/2U2BLUC