Tag: Motley Fool Australia

A few months ago Aussies were rushing to withdraw cash from ASX banks like crazy.

In the second half of March 2020 people were withdrawing large amounts of cash, sometimes millions of dollars at a time. COVID-19 was causing investors and the general public to freak out.

It was reported that banks, such as Commonwealth Bank of Australia (ASX: CBA), Westpac Banking Corp (ASX: WBC), Australia and New Zealand Banking Group (ASX: ANZ) and National Australia Bank Ltd (ASX: NAB) had to use more security vans to deliver funds to branches so that people could withdraw cash.

What’s the situation now with Australians withdrawing cash?

The Reserve Bank of Australia (RBA) releases a monthly update about the total value of ATM cash withdrawals in the country.

According to the stats, ATM cash withdrawals dropped from $9.24 billion in March 2020 to $6.41 billion in April 2020. A drop of just over 30%.

I think the fall can probably attributed to several different things. Some people had already withdrawn the cash they needed. People just weren’t spending as much money in April. Aussies were being encouraged to use their card to pay for things rather than cash, particularly with the contactless function.

Paying by card is usually more convenient for consumers. Physical cash is fairly easy to lose. I’d much rather have cash in the bank earning (a little bit of) interest rather than have physical cash these days.

Tyro Payments Ltd (ASX: TYR) is one of the ASX businesses trying to help change the retail environment to become more digital.

It’s clear that Australian confidence is returning. Time will tell whether that confidence is well placed.

Since 23 March 2020 the CBA share price has risen by 33%, the Westpac share price has gone up by 41%, the ANZ share price has jumped 49% and the NAB share price has risen by 47.5%. ASX banks could rise even further from here. They’re still down significantly from their previous prices. But I think there could be even better opportunities out there. 

More reading

• ASX 200 up 0.45%: Harvey Norman declares special dividend, gold miners race higher
• How to be like Warren Buffett and not lose money investing in ASX 200 shares
• Afterpay share price overbought says analyst
• Why the CBA share price is lagging its big four cohorts
• The smartest ASX shares to invest $10,000 in right now

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 Tyro Payments. 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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ASX shares can provide exposure for investors to the big shift to contactless payments.

Mastercard recently did a survey which showed that consumers are making a shift to contactless payments for regular purchases as people look for safer ways to pay for things.

According to Mastercard, around 80% of people now use contactless payments. In the Asia Pacific region, tap and go transactions in the region grew 2.5 times faster than non-contactless transactions in grocery and drug store categories between February and March.

Perhaps of most interest, Mastercard revealed that 75% of us said that we’ll continue to use contactless payments after the coronavirus pandemic is over. That doesn’t mean cash is totally dead yet. There are certain groups of society that will probably prefer to keep using cash like the elderly.

ASX shares that could benefit from the shift to contactless payments

Afterpay Ltd (ASX: APT)

The buy now, pay later (BNPL) ASX share is revolutionising how we pay for products. Obviously the instalments method is the main difference. But the Afterpay system provides a contactless way to pay for products too.

Afterpay continues to generate excellent growth year after year. The Afterpay share price is up another 5% today and it has grown by 108% over the past year. It’s one to watch but I really don’t know if it’s good value to buy today.

Pushpay Holdings Ltd (ASX: PPH)

Pushpay is an electronic donation business. The ASX share enables people to digitally donate, so they don’t have to be there in person to give their cash. That’s helpful in today’s climate. 

At the moment Pushpay’s focus is on US churches. Americans are very generous with their tithing. There is a large market for Pushpay to target. Management think the revenue opportunity there for the longer-term amounts to $1 billion.

Pushpay can grow into other donation sectors too. US churches aren’t the only opportunities out there. I’m excited by how much Pushpay can grow its profit margins over the next few years.

MFF Capital Investments Ltd (ASX: MFF)

A listed investment company (LIC) wouldn’t strike you as one of the best ways to get exposure to the growth of contactless payments. But I think the ASX share could be a very good way to get that exposure.

Why would MFF Capital be so good? At the end of May 2020, Visa made up 18.5% of MFF’s portfolio and Mastercard made up 16.2% of the portfolio. That means more than a third of the LIC is exposed to contactless payment businesses. I believe Chris Mackay will continue to lead MFF Capital to strong long-term returns. 

Foolish takeaway

I think each of these ASX shares have exciting growth potential thanks to their link with contactless payments. At the current share prices I’d be happy to buy shares of Pushpay and MFF Capital.

More reading

• 3 top ASX shares to buy now to get rich later
• Afterpay share price overbought says analyst
• The Sezzle and Pointsbet share prices have hit new, all time highs. Time to invest?
• How to become a millionaire before your parents with ASX shares
• Why I would buy Afterpay and these exciting ASX tech shares

Tristan Harrison owns shares of Magellan Flagship Fund Ltd. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of AFTERPAY T FPO and PUSHPAY FPO NZX. The Motley Fool Australia has recommended PUSHPAY FPO NZX. 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, the chair and CEO of Berkshire Hathaway (NYSE: BRK.A)(NYSE: BRK.B), is often regarded as the greatest investor of all time.

Though he’s pushing 90, Buffett has shown no signs of slowing down or of stepping back from the game of investing – which he’s been at since he was a child.

As such, I think Warren Buffett is someone we should all look up to and strive to learn from. It’s not just anybody who can build a ~US$476 billion company over a lifetime, after all.

Buffett has dished out a smorgasbord of folksy anecdotes and investing advice over his long career. But for me, one of his quotes stands above all else and it goes something like this: “The first rule of investing is don’t lose money and the second rule of investing is don’t forget the first rule – and that’s all the rules there are.”

Sounds absurdly simple, doesn’t it? You might even be forgiven for dismissing this ‘rule’ as plain old common sense.

But within it lies the true secret to never losing money on the share market, one of the biggest bugbears that holds most people back from investing in the first place.

Everyone knows the share market is a volatile place to have your money. Yes, most of the time it does go up. But it’s those periods where the market crashes and investors’ portfolios lose 10%, 20% or 30% of their value in short periods of time that really scare most people. Fair enough too.

But when Warren Buffett made this remark back in 1985, he also made a follow up remark which is often left out of this quote. He also said, “If you buy things for far below what they’re worth and you buy a group of them, you basically don’t lose money”.

And that’s the real secret to unlocking the wisdom of Buffett’s paramount rule.

Again, it sounds so simple – buying things below what they’re worth…

But this is where things get tricky (and lucrative). It’s the function of the stock market to put a value on individual companies. Most of the time, the market gets it right. But not always. It’s finding these discrepancies that really made Buffett wealthy and it’s how you can follow in his footsteps.

Invest in the ASX 200 like Warren Buffett

Consider the recent market crash we’ve just gone through. Back on 23 March, the market placed a value of $53.44 per share on Commonwealth Bank of Australia (ASX: CBA). Yesterday, the market was valuing CommBank’s shares at $72.20.

Now CommBank’s business hasn’t really changed since then. But its market value has. Anyone who exploited this detachment would be sitting on a healthy 35% gain today by following in Buffett’s footsteps and buying something below what it’s really worth.

Betting against the crowd is never fun or easy. But it’s how you can really get some healthy outperformance in your portfolio.

More reading

• Afterpay share price overbought says analyst
• Why the CBA share price is lagging its big four cohorts
• 3 top ASX shares for growth, income, and value investors to buy today
• Is the CBA share price a buy right now?
• The ASX bank dividend recovery may be better than what the market thinks

Sebastian Bowen 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 Berkshire Hathaway (B shares) and recommends the following options: long January 2021 $200 calls on Berkshire Hathaway (B shares), short January 2021 $200 puts on Berkshire Hathaway (B shares), and short June 2020 $205 calls on Berkshire Hathaway (B shares). The Motley Fool Australia has recommended Berkshire Hathaway (B shares). 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) has recovered from a sizeable decline at the open and is pushing higher. At the time of writing the benchmark index is up 0.35% to 6,166.5 points.

Four shares that have failed to follow the market higher today are listed below. Here’s why they are dropping lower:

The Flight Centre Travel Group Ltd (ASX: FLT) share price is down just over 2% to $17.12. This is despite there being no news out of the travel company today. However, prior to today, its shares were up over 55% since this time last month. I suspect that some investors have decided to take a bit of profit off the table today.

The Smartgroup Corporation Ltd (ASX: SIQ) share price has fallen 4.5% to $6.67. This morning the salary packaging and fleet management company released its annual general meeting presentation. This presentation included its guidance for the first half. According to the release, first half net profit is expected to be $32 million. This will be a decline of 21% from its profit of $40.5 million in the prior corresponding period.

The Woodside Petroleum Limited (ASX: WPL) share price is down 2% to $24.16. This decline appears to have been driven by a pullback in oil prices today. According to CNBC, the WTI crude oil price is down 1.5% to US$38.38 a barrel. This could have been driven by a warning by Goldman Sachs that a 20% oil price correction might already be underway.

The Worley Ltd (ASX: WOR) share price is down almost 5% to $10.14. This follows the release of its Investor Day presentation this morning. Within the presentation management advised that it has postponed all non-essential capital expenditure. One broker that remains positive is Credit Suisse. On Tuesday it upgraded the company’s shares to an outperform rating with a $10.50 price target.

More reading

• Afterpay share price overbought says analyst
• The smartest ASX shares to invest $10,000 in right now
• These ASX shares could defy the market sell-off this morning
• Is the Woodside Petroleum share price cheap today?
• ASX 200 jumps 2.4%, unloved shares keep rising

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Flight Centre Travel 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.

The post Why Flight Centre, Smartgroup, Woodside, & Worley shares are dropping lower appeared first on Motley Fool Australia.

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One of the best investing books I think you can read is Pat Dorsey’s The Little Book That Builds Wealth.

The book is an excellent guide for identifying businesses with robust economic moats or competitive advantages. Economic moats surround many of the best-performing companies in the world. Companies like Apple (NASDAQ: AAPL) and Xero Limited (ASX: XRO). Companies that we wish we had discovered a decade ago! 

Why you should own businesses with economic moats

In his book, Dorsey explains how economic moats protect companies from the fierce attack of competitors to help them to earn above-average returns on the cash they invest:

“Just as moats around medieval castles kept the opposition at bay, economic moats protect the high returns on capital.”

If a company has less competition it can charge a higher price for its products and spend less money on marketing. Now, imagine owning a portfolio full of companies like this, earning high returns year-in, year-out. What impact could that have on your wealth?

What are intangible asset moats?

One important economic moat which can be difficult to spot is the intangible asset moat.

Intangible assets are things like brands, patents and regulatory licenses which cannot be easily matched by competitors. These can create what Dorsey calls, ‘mini monopolies’. They prevent competitors from making and selling the same products and provides the company with pricing power.

3 companies with strong intangible asset moats

Blood product company CSL Limited (ASX: CSL) is an example of a company with a strong intangible asset moat. Through research and development, as well as acquisitions, CSL holds the rights to produce and sell lifesaving medicines and immunotherapies.

These rights aren’t impenetrable. Patents can be challenged and have a finite life. However, because CSL has a diverse portfolio of products, rather than relying on a single product, the moat is far more robust.

Fisher & Paykel Healthcare Corp Ltd (ASX: FPH) is another company supported by a moat of patents. The Fisher & Paykel Healthcare share price has surged over 300% in the last 5 years and the respiratory device manufacturer has been known to battle with rival ResMed Inc (ASX: RMD) over patent infringement.

If patents are the moat around the castle, regulatory licencing is the crocodile swimming in the waters. Regulatory licencing increases the barrier to entry for healthcare companies like CSL. It does this by requiring products to get regulatory approval for sale, but with no restriction on what price products can be sold for.

Finally, milk product company A2 Milk Company Ltd (ASX: A2M) is an example of a company with a growing brand for which customers are willing to pay a premium. Along with an impressive supply chain, the a2 milk brand is very hard for competitors to replicate.

Foolish takeaway

Although intangible assets are hard to see, they can create valuable economic moats that help us to build wealth. A great way to test if an intangible asset gives a company true protection is to ask, “does it give the company pricing power and is it sustainable?”

More reading

• Why CSL, Harvey Norman, IPH, & Saracen shares are charging higher
• 3 top ASX shares for growth, income, and value investors to buy today
• 5 things to watch on the ASX 200 on Wednesday
• How to become a millionaire before your parents with ASX shares
• Why the CSL share price continues to trail the ASX 200

Regan Pearson owns shares of A2 Milk and Xero.

You can follow him on Twitter @Regan_Invests.

The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of CSL Ltd. and Xero. The Motley Fool Australia owns shares of A2 Milk. 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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In late morning trade the S&P/ASX 200 Index (ASX: XJO) has fought back from a sharp decline to edge higher. At the time of writing the benchmark index is up slightly to 6,145 points.

Four shares that are climbing more than most today are listed below. Here’s why they are charging higher:

The CSL Limited (ASX: CSL) share price has pushed 3% higher to $287.15. This morning analysts at Goldman Sachs reiterated their buy rating and $336.00 price target on this biotherapeutics company’s shares. This follows the announcement that CSL is taking up its option to acquire Vitaeris. The clinical-stage biotechnology company is currently focused on the phase 3 development of a treatment for rejection in solid organ kidney transplant patients.

The Harvey Norman Holdings Limited (ASX: HVN) share price has jumped 4.5% higher to $3.72 after the release of a sales update. Although its international operations have been a bit mixed due to forced closures during the pandemic, Harvey Norman’s local operations have delivered very strong growth. Another positive is that the board has declared a special dividend of 6 cents per share. This will be paid to shareholders later this month.

The IPH Ltd (ASX: IPH) share price is up 4% to $7.54 after announcing an acquisition. The company’s AJ Park subsidiary has agreed to acquire New Zealand intellectual property firm Baldwins Intellectual Property. It will be paying approximately NZ$7.9 million, including deferred consideration of NZ$0.4 million. Baldwins’ FY 2020 EBITDA after normalisation adjustments for partner salaries was approximately NZ$2 million.

The Saracen Mineral Holdings Limited (ASX: SAR) share price has surged 9% higher to $4.62. This follows a rebound in the gold price overnight ahead of the U.S. Federal Reserve’s June meeting this week. It isn’t just Saracen on the rise today. The S&P/ASX All Ordinaries Gold index is up a sizeable 2.5% at the time of writing.

More reading

• 3 companies with great intangible asset moats
• ASX winners and losers from last week’s rally
• Harvey Norman share price flat on sales update and special dividend announcement
• Why the CSL share price continues to trail the ASX 200
• ASX 200 jumps 2.4%, unloved shares keep rising

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 CSL Ltd. 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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Morgans Senior Technical Analyst Violeta Todorova has rated the Afterpay Ltd (ASX: APT) share price as overbought. Violeta points out that the share has risen by 571% from its March trough to its peak in intraday trading last week. She further points out the technical indicators are in overbought territory. 

Afterpay has pioneered the buy now, pay later (BNPL) sector within Australia. Accordingly its share price has largely been on a bull run since 2019 and the company posted a sales increase of ~100% for FYTD 2020 when compared with the prior corresponding period. Afterpay has become quite ubiquitous in the Aussie retail sector with its branding displayed across a plethora of retailers and ecommerce websites. 

However, the time of large-scale growth in the Afterpay share price is likely over in the analyst’s view, and I couldn’t agree more. 

Why the Afterpay share price stalled early this week

Last week’s explosion of interest in BNPL companies underscored the low barriers to entry within the sector. At the time of writing, the Zip Co Ltd (ASX: Z1P) share price is up 10% from its trading open on Friday. Zip Co also operates in the BNPL sector. However, unlike Afterpay, it offers other services such as lines of credit and the Pocketbook personal budgeting tool.  In addition, Zip Co targets a generation of older millennials, people aged around 35 years and over.

Furthermore, Zip Co has more stringent credit worthiness checks in place than Afterpay. Therefore it is less exposed to credit defaults as the global economy continues down an uncertain path.

Afterpay is starting to establish itself in the United States. Meanwhile, however, Sezzle Inc. (ASX: SZL), another BNPL player, is a native of the US$5 trillion retail economy and is headquartered there. Sezzle has built a network of 1.3 million users and 14.9 thousand merchants.

The company is laser focused on the credit card shunning generations of Gen Z and Millennials; Afterpay’s core demographic. 

The problem with large numbers

The Afterpay share price values the company at $13.9 billion. This makes it larger than Santos Ltd (ASX: STO). If Afterpay doubles its price once more, it would be valued at more than Woodside Petroleum Limited (ASX: WPL). While this could happen, I sincerely and absolutely doubt it. Afterall, in FY19, Afterpay made $236 million in sales revenue. In contrast, for Sezzle to multiply its share price 10 times would value the company at ~$2.5 billion.

Foolish takeaway

Afterpay is no longer alone in a wide blue ocean. With little barriers to entry, the BNPL marketplace is increasingly crowded. Moreover, larger entrants like the 5% Commonwealth Bank of Australia (ASX: CBA) owned Klarna are yet to really start moving.

Lastly, it has a lower creditworthiness threshold exposing it to credit defaults and is pressing into markets where other competitors are already established. If all that isn’t enough, the company is already valued at more than Santos even though its gross sales are 24 times less.

More reading

• How to be like Warren Buffett and not lose money investing in ASX 200 shares
• Why Flight Centre, Smartgroup, Woodside, & Worley shares are dropping lower
• ASX winners and losers from last week’s rally
• Why the CBA share price is lagging its big four cohorts
• These ASX shares could defy the market sell-off this morning

Daryl Mather owns shares of Sezzle Inc. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of AFTERPAY T FPO and ZIPCOLTD FPO. The Motley Fool Australia has recommended 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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The TPG Telecom Ltd (ASX: TPM) share price grew very strongly between 2011 and 2016 on the back of a series of acquisitions. This included the acquisitions of retail telcos AAPT and iiNet.

This significantly increased TPG’s market scale. It became the second-largest fixed broadband provider after Telstra. However, since then the TPG share price generally failed to gain momentum. This is despite solid gains over the past few months.

Is TPG a good long term buy and hold option for investors?

Let’s first take a closer look at TPG’s business model.

TPG continues to face NBN headwinds

Consumers are migrating from TPG’s legacy of fixed voice and broadband networks to the lower-margin National Broadband Network (NBN). As this continues, this is negatively impacting TPG’s earnings before interest, taxes, depreciation and amortization (EBITDA) and placing downward pressure on the business’s price for shares. In addition, there has been a recent decline in the profitability of its existing NBN customer base.

This trend is reflected in TPG’s financial results for 1H20. Total revenue only grew by a very modest 1% to $1,246.5 million. While underlying EBITDA actually declined by 6% to $399.1 million.

All retail telcos in Australia are in the same boat here. The margins that they receive by purchasing wholesale fixed broadband services from the NBN are wafer-thin and not growing. As their legacy networks shrink further, their overall profitability is also declining.

Higher margin fixed voice still contributes a very significant 29% of gross profit in TPG’s consumer segment. So, profitability will be further impacted as legacy fixed voice is transitioned over to NBN plans over the next few years.

This impact can also be seen from observing TPG’s mix of group broadband subscribers. Only 1,403 of a total of 1,940 broadband subscribers at the end of last year were on NBN plans. As the remainder transition to lower margin NBN products, this will further impact profitability.

In addition, NBN average revenue per user (ARPU) has been steadily declining. It has dropped from $67.4 million in 1H19 to $67.0 million in 2H19 and $66.4 million in 1H20.

Merger with Vodafone places TPG in a stronger position

In March, the ACCC decided not to appeal the Federal Court’s decision to approve the merger of TPG with Vodafone.

I believe that the merger will place TPG-Vodafone in a potentially stronger position to compete with its two main rivals: Telstra Corporation Ltd (ASX: TLS) and Optus. In particular, TPG-Vodafone will be well placed to roll out a competitive 5G offering, driven by Vodafone’s current network.

However, competition will remain tough in the fixed broadband sector. Vodafone currently has a very limited fixed broadband option, so the merger doesn’t provide much initial benefit in that market segment.

Are TPG shares are good long term buy?

I believe TPG’s merger with Vodafone places it in a potentially good position to grow revenues over the next few years.

However, I still have some concerns about declining margins on TPG’s fixed broadband network over the short term. I am therefore not quite convinced it is in the buy zone right now.

This view may change in the months ahead, as we gain more information about the details of the merger.

More reading

• Why the CSL share price continues to trail the ASX 200
• Not keen on Westpac? Then buy these top ASX dividend shares instead
• ASX 200 Weekly Wrap: ASX bulls crash through 6,000 points
• Want high-paying dividends? Try Wesfarmers shares and these 2 other ASX options
• These were the worst performers on the ASX 200 last week

Motley Fool contributor Phil Harpur owns shares of Telstra Limited. The Motley Fool Australia owns shares of and has recommended Telstra 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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Last week, the ASX continued its upwards trajectory with the All Ordinaries Index (ASX: XAO) rising by 4.3% across the week. The market was buoyed largely by a mini boom in buy now, pay later (BNPL) companies and very large volumes being traded in the Australian real estate investment trusts (A-REITS).

Buy now pay later 

The optimism in the emerging BNPL sector was pretty hard to miss last week. Zip Co Ltd (ASX: Z1P) opened the batting with news of a US acquisition to help it expand further into that market. After surging by 30% on Monday, the Zip share price finished 11.2% up for the week. Zip shares rose by another whopping 15.78% yesterday.

All BNPL challengers experienced double digit share price growth last week, with the smaller companies leaping the highest. Openpay Group Ltd (ASX: OPY) ended the week up by 139% on news of a $30 million placement to fund growth. The BNPL provider dipped slightly yesterday, dropping back by 4.87%.

Real estate

The A-REITS also had a very good week and led the large cap and mid cap market in terms of volumes traded. Vicinity Centres (ASX: VCX) led the charge with a successful $1.2 billion placement at a discount and an announcement to cancel distributions for the 6 months to 30 June. The Vicinity share price ended the week up by 13.7% and gained another 5.74% in yesterday’s trade.

Others also saw share price rises and heavy trading. Scentre Group (ASX: SCG) was the breakaway A-REIT, with a share price gain of 16.7% across the week. Scentre shares continued that upward trajectory yesterday with a gain of 9.52%.

Market surprises

Surging share prices raised up several companies last week. Yet among those, the Kogan.com Ltd (ASX: KGN) share price’s 10.24% gain last week is notable because of what it indicates. The company reported surges in sales in April and May, even as stay at home restrictions were lifted. This underlines the ongoing shift in Australian consumer behaviour to online shopping – a move hastened by the recent lockdown.

The most enjoyable story for me last week was the sudden leap by West Australian robotics company FBR Ltd (ASX: FBR). Formerly Fastbrick Robotics, the company manufactures a robot called Hadrian X – a construction robot that can build the walls of a structure from a 3D CAD model. Investors seemed pleased by the company’s announcement that its robot had achieved a rate of 200 bricks per hour in recent trials. FBR Ltd’s share price finished the week up by 173.9%. 

ASX sliders

The gold sector saw a plunge in share prices last week. As sentiment in equities has increased, gold and other precious metals have seen their prices stabilise in US dollars. However, the rising Australian dollar has exacerbated this for our gold miners. Saracen Mineral Holdings Limited (ASX: SAR) saw its share price fall by 13.3%. Gold Road Resources Ltd (ASX: GOR) also saw double digit share price decay. Its share price was down by 14.6% over the week. Both shares continued to slide in yesterday’s trade, with Saracen down another 6.6% and Gold Road down by 9.35%.

Outside of the gold mining companies on interesting story was Nufarm Limited (ASX: NUF). The agricultural chemical company’s share price fell by 7.5% after the company disclosed impacts to its business by the COVID-19 pandemic. It appears this will have a long term impact that is only now coming to light. Nufarm shares dropped another 3.04% in yesterday’s trade.

More reading

• Kogan announces $115 million capital raising to fund future acquisitions
• Can Kogan.com survive Amazon?
• Why you should be buying the dip in ASX gold stocks
• ASX 200 jumps 2.4%, unloved shares keep rising
• Why Credit Corp and Zip Co shares jumped over 15% higher today

Daryl Mather 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 owns shares of and has recommended Kogan.com ltd. The Motley Fool Australia has recommended Scentre Group. 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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One thing the Australian share market is not short of is quality growth shares. But with so many to choose from, it can be hard to decide which ones to buy.

To narrow things down for you, I have picked out three top ASX growth shares which I think could beat the market over the next 10 years.

Here’s why I would buy them:

BetaShares Asia Technology Tigers ETF (ASX: ASIA)

The BetaShares Asia Technology Tigers ETF is not strictly a growth share. However, I’m including it in this list because it provides investors with exposure to a collection of top growth shares. As the name implies, the fund is invested in some of Asia’s biggest and brightest tech companies. BetaShares notes that due to its younger and tech-savvy population, the Asian market is surpassing the West in respect to technological adoption. As such, the sector is anticipated to remain a growth sector for a long time to come. Companies included in the fund are Tencent Holdings, JD.com, Alibaba, Samsung, and Baidu.

Bubs Australia Ltd (ASX: BUB)

Another ASX growth share to consider buying is Bubs Australia. It is an infant formula and baby food company which specialises in goats milk products, but has recently expanded its range into cows milk. Given how much bigger the latter market is, I think this was a smart move and allows the company to benefit from the best of both worlds. Overall, I believe Bubs is well-positioned for long term growth thanks to its expanding distribution footprint in Australia and online and increasing demand in Asia. 

Domino’s Pizza Enterprises Ltd (ASX: DMP)

A final ASX growth share to buy right now could be Domino’s Pizza. I think the pizza chain operator could be a long term market beater. This is due to its ambitious but achievable growth plans. As well as aiming to grow its same store sales by 3% to 6% per annum over the next five years, the company is planning to expand its store network at a strong rate. Management is targeting annual organic new store additions of 7% to 9%. If it delivers on both of these and at least maintains its margins, it should underpin strong earnings growth this decade. For this reason, I think it would be a great buy and hold option.

More reading

• Why Fortescue and these ASX shares are flying high right now
• How to become a millionaire before your parents with ASX shares
• Can you get rich by investing $5,000 a year into ASX shares?
• Invest like Warren Buffett with these ASX 200 shares
• How to turn $20,000 into $275,000 in 10 years with ASX 200 shares

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended BetaShares Asia Technology Tigers ETF and BUBS AUST FPO. The Motley Fool Australia has recommended Domino’s Pizza Enterprises 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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