Tag: Motley Fool

It’s been a day of red ink for ASX shares so far this Tuesday. Breaking with a five-day winning streak so far today, the All Ords is currently down by 0.41%. But it’s been dramatically worse for the Livetiles Ltd (ASX: LVT) share price.

Livetiles shares have plunged in value today. The ASX tech share is presently down by a painful 52.54% at just 2.8 cents per share at the time of writing. We do not have to look too far to see why ASX investors are abandoning this company.

Before today, Livetiles shares had actually been in a trading halt since Thursday last week. Before that, the company’s shares had been under increasing pressure following a disappointing quarterly update delivered on 25 July.

Livetiles did report a 17% increase in operating revenues against FY2021. However, its cash receipts for the three months ending 30 June came to $12.9 million, a year-on-year decline of 11%.

Upon the release of this update, Livetiles shares fell by more than 30%. As of today, the company is now down by close to 70% since 22 July. It’s also down by 72% over 2022 thus far.

Following the release of this update, on Thursday 28 July the company requested a trading halt “pending it releasing an announcement”. Well, we now know what this announcement is.

Livetiles shares are leaving the ASX

This morning, the company revealed it is “voluntarily delisting” from the ASX boards.

Here’s why Livetiles stated it is abandoning its public listing:

The Delisting is considered by the Company’s Board (Board) to be in the best interests of the Company for a number of reasons, including underperformance of the trading price of the Company’s shares, relatively low levels of trading liquidity and a number of flow on consequences…

These factors, as well as the costs and administrative burden of remaining listed on ASX, outweigh the benefits associated with remaining listed.

The company also declared that “the trading price of the Company’s shares in recent years implies a valuation that has been (and remains) consistently and materially lower than the valuations of unlisted companies of a comparable nature and stage to LiveTiles”.

It also notes that “LiveTiles is well funded and has no intention to raise equity capital in the near term”. But any future capital raising will be easier as a private company.

Livetiles will hold a general meeting on 5 September. This will allow shareholders to vote to approve this delisting. If that goes ahead as planned, Livetiles shares will be suspended from the ASX on 6 October and delisted the following day.

The post Down 72% in 2022, Livetiles shares are now delisting from the ASX, here’s why appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#43B02A”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#43B02A”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• LiveTiles share price slumps 31% as quarterly cash bleed worsens

Motley Fool contributor Sebastian Bowen has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended LIVETILES FPO. The Motley Fool Australia has recommended LIVETILES FPO. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

from The Motley Fool Australia https://ift.tt/Pwf3LgF

The Chalice Mining Ltd (ASX: CHN) share price is slipping in lunchtime trade on Tuesday amid news of the company’s 51%-owned South West Project.

The company has agreed to get started on activities that could see it snapping up another 19% stake in the nickel, copper, and platinum group elements project.

At the time of writing, the Chalice Mining share price is $4.63, 1.07% lower than its previous close.

Meanwhile, the S&P/ASX 200 Index (ASX: XJO) is down 0.58% and the S&P/ASX 200 Materials Index (ASX: XMJ) has fallen 1.72%.

Let’s take a closer look at the company’s latest news.

Chalice Mining doubles down on South West Project

The Chalice Mining share price is edging lower amid Venture Minerals Limited (ASX: VMS) announcing the ASX 200 mineral explorer has agreed to kick off the second stage of its joint venture.

The second stage could see Chalice Mining earning an additional 19% hold in the South West Project in return for $2.5 million of expenditure over two years.

That would see it with 70% ownership of the project.

Today’s news comes just weeks after the company identified two new targets at the project.

In the second stage, Chalice Mining will follow up on the new targets to prepare for potential drill testing.

The project also hosts the Thor and Odin prospects. Both have been found to house copper and nickel.

Venture Minerals managing director Andrew Radonjic said Chalice Mining’s commitment to the second stage is “a strong endorsement of the project”.

Radonjic also noted recent nickel findings suggest $2.5 million of additional exploration “should go a long way” to exposing the project’s potential.

If Chalice Mining earns the extra 19% stake, Venture Minerals can choose between contributing 30% or diluting its interest in the joint venture to 10%, reverting its interest to a 1.25% net smelter return royalty.

Chalice Mining share price

Sadly, the Chalice Mining share price is well and truly in the long-term red.

The stock is currently 51% lower than it was at the start of 2022. It has also fallen 31% over the last 12 months.

For comparison, the ASX 200 has dumped 8% year-to-date and 7% since this time last year.

The post What’s driving the Chalice Mining share price on Tuesday? appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#0095C8”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#0095C8”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• Here are the top 10 ASX 200 shares today
• Here are the top 10 ASX shares today
• These ASX 200 mining shares are getting buried. What’s happening?
• Here are the top 10 ASX shares today
• What’s behind the Chalice Mining share price jumping 7% today?

Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

from The Motley Fool Australia https://ift.tt/vJ734uP

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

Let’s face it — some investors just do better than others. It might take some of them more time or require an unpopular track to achieve those superior results. But, in that the best possible net returns relative to a given amount of risk is the ultimate end goal, it only makes sense to do what works best.

With that as the backdrop, here are three not-so-secret secrets that the world’s best investors know, and act upon even when it’s tempting not to. In no particular order…

1. Less is more

It’s a tired (and somewhat overused) cliche. It’s a cliche, however, for all the right reasons including the most important one… it’s absolutely true, particularly as it pertains to investing.

It’s also a vague view without a deeper explanation. So, for less experienced investors, here’s the overarching basis for the “less is more” lesson: Buy and sell less frequently, and hold more of your stocks for longer periods. Not that you shouldn’t adjust as needed should things change in the meantime, but as a rule of thumb you should be thinking about holding periods of at least five years before stepping into a stock.

It’s a toughie to be sure, and the financial media generally doesn’t help. Much of cable TV’s market coverage as well as the web’s constant updates make it sound as if constantly swapping stocks is the best path to wealth. It isn’t. That commentary is largely meant to draw a crowd to deliver advertisements to. Sound investment advice, however, generally doesn’t draw and excite a crowd. It’s a problem simply because investors often make short-term buying and selling decisions at the worst possible time for the worst possible reason, trading away profits right before or right after they’re reaped.

2. Simpler is better

The longer you’re an investor, the more investment prospects other than stocks you’ll come across. Cryptocurrencies have been one of the hotter alternatives of late, while equity and index options seem to be perennial favorites for folks looking to squeeze a little more out of the market. Commodities like gold and even physical real estate also seem to cyclically catch people’s eyes when the stock market feels like it’s running out of steam.

However, many of these manias are gimmicks mostly meant to enrich the people pushing them rather than grow wealth for the investors risking their own capital on them. Like most fads, these manias tend to fizzle out right around the time the masses are just starting to file in.

Your best bet is keeping things simple by sticking with stocks… instruments that have withstood the test of time. They’re not always the best performers in the near term. They tend to be the best performers for the long haul, however, because they’re stakes in companies you can see, understand, and evaluate their earnings. The same can’t be said for cryptos, or even many commodities.

3. Time is your best ally

Finally, the world’s most successful investors understand that the biggest returns are reaped by leaving stock holdings alone for years on end. That’s true even in the years when stocks — or one particular stock — are struggling. The biggest paybacks materialize during the last portions of a holding period in which gains are reinvested in the market.

Some number-crunching puts this reality in perspective. Say you’re contributing $10,000 per year into a fund based on the S&P 500 index (SNPINDEX: ^GSPC), earning an average return of 10% per year, and reinvesting any given year’s earnings. At the end of 30 years, you’d be sitting on a nest egg of just over $1.8 million. The thing is, around $1 million of that total nest egg didn’t take shape until the last eight years of that 30-year stretch. It took 22 years to build up an asset base to take meaningful advantage of the S&P 500’s long-term average return.

Here’s another example of the power of sheer time: Even if you only contributed $10,000 per year to an S&P 500 index fund for 20 years and then just let it ride without any fresh capital being added for the next 10, you’d still end the 30-year stretch with a little over $1.6 million. If you cashed just after the 20 years of annual contributions of $10,000 though, you’d only walk away with about $630,000.

The moral of the story is, get in and stay in for a long as you feasibly can, so you can earn money on as much of your previously earned returns as you can. 

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

The post 3 things only the most successful investors will understand appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#0095C8”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#0095C8”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• What’s driving the Chalice Mining share price on Tuesday?
• Why did this $1.1 billion ASX 300 share just sink 9%?
• IAG share price seesaws amid class action news
• Why is the Fortescue share price sliding on Tuesday?
• Exploding 400% this year, Galileo share price climbs further as work kicks off at ‘exciting new discovery’

James Brumley has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

from The Motley Fool Australia https://ift.tt/SmyBleb

The Centuria Office REIT (ASX: COF) share price is taking a tumble today.

The real estate investment trust (REIT) owns a portfolio of assets in core office markets across Australia’s major cities.

The S&P/ASX 300 Index (ASX: XKO) share closed yesterday trading for $1.86 and is currently trading for $1.69, down 9.1%.

This comes following the release of the company’s full year results for the financial year ending 30 June (FY22) and revised guidance for FY23.

What happened during FY22?

• Statutory net profit of $115 million, up 50% from FY21
• Funds from operations (FFO) up 2.7% year-on-year to $104.9 million
• Achieved 98.2% average rent collection throughout FY22
• $99 million of distributions paid, or 16.6 cents per share

What else happened during the year?

Centuria reported it refinanced $257.5 million in debt during the year. The ASX share’s debt maturity increased to 3.7 years, with no debt expiry until the 2025 financial year. It also increased its debt headroom by $130.5 million.

Gearing as at 30 June stood at 33.8%, with 55.9% of that debt hedged.

The REIT’s portfolio is comprised of 23 office assets valued at $2.3 billion.

Over the 12 months, the ASX share sold one asset for $20.9 million and acquired three new assets, worth $313.7 million.

The average building age in the portfolio dropped to 16 years, with 90% of the offices labelled A-Grade assets.

Occupancy levels increased to 94.7% year-on-year as more people returned to office work. The portfolio’s weighted average lease expiry remained unchanged at 4.2 years. The ASX share said 79% of its rental income comes from government, multinational corporations and listed entities.

What did management say?

Commenting on the results, Grant Nichols, COF fund manager said:

COF has generated solid results in FY22, delivering an increased net profit while providing FFO and distributions consistent with guidance despite the impacts of rising interest rates. The most pleasing aspect of the results was the significant amount of leasing that COF continued to execute, with over 40,000sqm leased during FY22…

Australia’s strong employment rate and rising return to office corporate policies, provide encouraging tailwinds for tenant demand in FY23.

What’s next?

The ASX 300 share looks to be facing some headwinds today from its outlook of a more challenging year ahead.

Nichols noted that “prevailing inflation, and subsequent rising interest rates, have impacted our FY23 FFO guidance”.

“We recognise that a rising interest rate environment creates some future uncertainty, but we remain optimistic for Australian office markets,” he added.

The company’s FY23 guidance for FFO is 15.8 cents per share with a distribution guidance of 14.1 cents per share, a yield of 7.7% based on recent trading prices.

How has this ASX 300 share been performing?

Over the past 12 months, the Centuria Office REIT is down 32%. This compares to a full year loss of 7% posted by the ASX 300.

The post Why did this $1.1 billion ASX 300 share just sink 9%? appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#0095C8”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#0095C8”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• IAG share price seesaws amid class action news
• Why is the Fortescue share price sliding on Tuesday?
• Exploding 400% this year, Galileo share price climbs further as work kicks off at ‘exciting new discovery’
• How to all but clinch a millionaire retirement
• Appen share price sinks 25% as earnings tank amid uncertain outlook

Motley Fool contributor Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

from The Motley Fool Australia https://ift.tt/ijkdE8r

The Insurance Australia Group Ltd (ASX: IAG) share price remains relatively steady so far today amid a company update on legal action.

This morning, the insurance giant provided a short and sharp market update regarding an investor class action.

At the time of writing, IAG shares are exchanging hands at $4.54, down 0.22%.

IAG shareholders launch class action lawsuit

Investors appear unfazed by the company’s latest release to the ASX.

In its statement, IAG advised it has been served with a shareholder representative proceeding over its disclosures regarding COVID-19 business interruption claims.

Los Angeles-based law firm Quinn Emanuel Urquhart and Sullivan took on the case last year which has since moved forward.

The class action was filed in the Supreme Court of Victoria on behalf of investors who acquired IAG shares between 11 March 2020 and 20 November 2020.

As reported by the Australian Financial Review, the legal action relates to the company’s disclosure of its financial exposure to the pandemic.

The claim alleges IAG misrepresented shareholders with an outdated policy that eventually led to a $750 million capital raise in November 2021 to cover COVID-19 impacts.

This resulted in IAG losing around $800 million in its market capitalisation following an announcement relating to “policy wording and capital raising”.

While the proceeding is gathering pace, IAG said it intends to defend its position.

About the IAG share price

It’s been a rollercoaster for IAG shareholders, with the company’s share price reaching a 52-week high of $5.51 in mid-2021 before tumbling to as low as $4.02 in June 2022.

Currently, the IAG share price is up almost 7% this year.

Based on today’s price, the company has a market capitalisation of around $11.02 billion.

The post IAG share price seesaws amid class action news appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#0095C8”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#0095C8”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• Looking for value: The ASX shares this fundie is holding amid rising inflation
• Is the IAG share price a buy following the insurer’s latest update?
• Here are the top 10 ASX 200 shares today
• Why Damstra, Flight Centre, IAG, and Pantoro shares are pushing higher
• Why is the IAG share price lifting 6% higher today?

Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has positions in and has recommended Insurance Australia Group Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

from The Motley Fool Australia https://ift.tt/Nkvxw84

The Fortescue Metals Group Limited (ASX: FMG) share price is down 2.44% in early trading on Tuesday. This is despite the price of iron ore rising 1.28% overnight to US$119 per tonne.

There have been significant fluctuations in the iron ore price of late. It has fallen in a jagged line from US$158 per tonne in March to US$100 per tonne on 21 July. The commodity has rebounded ever since.

The health of the Chinese economy and its steel and construction industries are very influential on the iron ore price. This is because China buys more iron ore than any other country. In fact, China accounts for 70% of the world’s total global iron ore imports by value, according to Statista.

Why has the Fortescue share price been volatile?

The Fortescue share price is arguably more sensitive to any news about China’s economy compared to other ASX mining shares. This is because it is a pure-play iron ore producer.

Fortescue shares are down 7% in the year to date. This compares to a 2.5% dip for Rio Tinto Limited (ASX: RIO) and a 4% gain for BHP Group Ltd (ASX: BHP).

According to the Australian Financial Review (AFR) today, Liberum Capital has issued a note saying China’s steel industry “is in sharp contraction on all fronts”.

According to the note:

China’s steel industry is in sharp contraction on all fronts, responding to collapsing domestic demand. Persistent data weakness has prompted our Restocking Indicator to report its fourth sell signal in a row, despite falls in output.

Finished goods inventories remain too high, which should trigger further destocking.

China’s on-going series of government-backed bailouts of unfinished housing projects has yet to convince stakeholders that we have arrived at the lows of this downcycle.

[The] market clearly doesn’t believe that the proposed bailouts are sufficient to offset weakness, with high yield bonds still trading at their very lows.

Liberum Capital said there was a renewed downturn in property sales in China in July. Sales were down 40% year over year among China’s top 100 property developers.

Liberum Capital said it maintains its sell recommendations on BHP, Rio Tinto, and Antofagasta plc.

The BHP share price is also down this morning by 1.82%. The Rio Tinto share price is also in the red by 1.68%.

Fortescue CEO Elizabeth Gaines presented at the annual Diggers & Dealers Mining Forum this morning.

The post Why is the Fortescue share price sliding on Tuesday? appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#0095C8”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#0095C8”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• What brokers are saying about the Fortescue share price in August
• Guess which 2 ASX 200 shares have some of the highest dividend yields right now
• Experts name 2 ASX 200 dividend giants to buy
• Own Rio Tinto shares? Why CEO has ‘no particular concern’ over China and iron ore price
• Fortescue share price slumps as iron ore price pulls back

Motley Fool contributor Bronwyn Allen has positions in BHP Billiton Limited and Fortescue Metals Group Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

from The Motley Fool Australia https://ift.tt/jcl71J8

The Galileo Mining Ltd (ASX: GAL) share price is jumping today amid a new drilling program.

The miner’s share price is currently trading at $1.135, a 4% gain. For perspective, the S&P/ASX 200 Materials Index (ASX: XMJ) is down 1.44% today.

So what did Galileo report to the market today?

Drilling starts at Callisto discovery

Galileo has restarted drilling at the company’s Callisto discovery near Norseman in Western Australia.

The explorer will follow up palladium, platinum, gold, copper and nickel sulphide intersections reported to the market in May, June and July. 

RC drilling is now underway at about 50 drill holes. Priority targets will be tested for mineralisation.

Laboratory assay results are predicted to be ready from September.

Commenting on the news, managing director Brad Underwood said:

Following the approval of our work program from the Department of Mines (DMIRS), we are now able to begin testing the true extent of mineralisation discovered at Callisto.

We will be drilling on a 50-metre spacing around the previously announced drill results
as well as stepping out up to one kilometre to the north.

We believe the opportunity for discovering a large mineralised system is significant and we look forward to progressing this exciting new discovery.

A diamond drilling contract is also now signed with drilling to start from mid-August.

Galileo share price snapshot

The Galileo share price has exploded nearly 285% in the past year, while it has surged 404% year to date.

However, in the past month, the company’s share price has fallen 14%.

For comparison, the ASX 200 Materials Index has lost nearly 16% in a year and 7% year to date.

This mining company has a market capitalisation of 224 million based on the current share price.

The post Exploding 400% this year, Galileo share price climbs further as work kicks off at ‘exciting new discovery’ appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#0095C8”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#0095C8”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• Why the Galileo Mining share price is charging 9% higher today
• Why Galileo Mining, Platinum, Sezzle, and Woodside shares are dropping
• Up 430% in 2022, Galileo share price wobbles today despite strong drill results
• Why is the Galileo Mining share price galloping 17% higher today?
• What’s behind the frozen Galileo Mining share price today?

Motley Fool contributor Monica O’Shea has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

from The Motley Fool Australia https://ift.tt/G3NXr9J

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

Despite the rampant inflation we’re all feeling today, $1 million is still a lot of money. Indeed, it’s nearly four times the median household net worth of people around retirement age. As a result, even today, a million-dollar nest egg, when combined with Social Security and Medicare, should be enough for a reasonably comfortable retirement in most parts of the country.

That makes a $1 million nest egg a great goal to shoot for. Of course, since it’s so far ahead of where the median household sits, it’s obviously easier said than done. There are no guarantees when it comes to investing, but there is a straightforward, three-step approach that can help you all but clinch that millionaire retirement.

Step 1: Start early

The sooner you get started building your retirement nest egg, the easier it is to reach that $1 million balance. This is because compounding tends to have a bigger base to work from the longer you let it work its magic. The following chart shows the potential growth of a single $10,000 investment over time, based on the rate of return you earn and the number of years you let it compound.

Years Compounding	10% Annual Returns	8% Annual Returns	6% Annual Returns	4% Annual Returns
45	$728,904.84	$319,204.49	$137,646.11	$58,411.76
40	$452,592.56	$217,245.21	$102,857.18	$48,010.21
30	$174,494.02	$100,626.57	$57,434.91	$32,433.98
20	$67,275.00	$46,609.57	$32,071.35	$21,911.23
10	$25,937.42	$21,589.25	$17,908.48	$14,802.44
5	$16,105.10	$14,693.28	$13,382.26	$12,166.53

Data source: author.

That early money can really make a difference to your net worth by the time you retire. Just look at that top row that shows how much larger your single investment can grow if you sock it away and leave it alone for pretty much your entire career.

Step 2: Invest consistently

Of course, if you’re well past the point where you’ve got four-plus decades to wait until retirement, the chance to put that super-early money to work may be behind you. The good news on that front is that you might still have a decent shot of clinching that millionaire retirement by investing consistently.

By making regular investments each payday, each investment has the opportunity to compound between the time you make it and the time you need to tap it for retirement. The following chart shows how much you need to invest each month to reach $1 million by retirement, based on the number of years you have to invest and the rate of return you earn.

Years to Go	10% Annual Returns	8% Annual Returns	6% Annual Returns	4% Annual Returns
45	$95.40	$189.59	$362.85	$662.48
40	$158.13	$286.45	$502.14	$846.05
30	$442.38	$670.98	$995.51	$1,440.82
20	$1,316.88	$1,697.73	$2,164.31	$2,726.47
10	$4,881.74	$5,466.09	$6,102.05	$6,791.18
5	$12,913.71	$13,609.73	$14,332.80	$15,083.19

Data source: author.

While there’s still a huge advantage to starting early, the good news here is that mid-career professionals still have a decent shot of clinching that millionaire retirement. Be forewarned, though, that time can quickly start to work against you.

Look at how much you need to sock away each month if you start saving with ten or fewer years left before you retire. If you thought socking away a few hundred a month early in your career was tough, try going from $0 to a few thousand later in your career. So even though investing consistently is key, starting as soon as possible makes it much more likely to reach your goal.

Step 3: Buy stocks for the long haul

Although the first half of 2022 reminded us that stocks can go down as well as up, over the long haul, there’s still good reason to believe stocks can be a great wealth-building tool. That 10% returns column on the left-hand side of both those tables is there for a reason. That’s about in line with the stock market’s overall historical long-term returns. Stock returns are never guaranteed, but it’s certainly nice to know that these numbers are all in line with what history suggests is in the realm of the possible.

No matter what the market’s future holds, one great approach to buying stocks is to buy a low-cost, broad-based index fund. Those types of investments are widely available in brokerages and in many employer-sponsored 401(k) type plans. They offer market-like returns with almost no overhead costs, and best of all, they tend to beat most actively managed mutual funds over time.

That means that one of the easiest ways to buy stocks is also one of the best. Over time, consistently investing in broad-market index funds gives you a great shot to all but clinch that millionaire retirement.

Get started now

When it comes to saving for retirement, no matter what your personal target is, the sooner you get started, the more time you have on your side. So make today the day to put your plan in place, and boost your shot of reaching that million-dollar nest egg by the time you retire.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

The post How to all but clinch a millionaire retirement appeared first on The Motley Fool Australia.

(function() { function setButtonColorDefaults(param, property, defaultValue) { if( !param || !param.includes(‘#’)) { var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0]; button.style[property] = defaultValue; } } setButtonColorDefaults(“#43B02A”, ‘background’, ‘#5FA85D’); setButtonColorDefaults(“#43B02A”, ‘border-color’, ‘#43A24A’); setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’); })()

More reading

• Appen share price sinks 25% as earnings tank amid uncertain outlook
• The Newcrest share price tumbled 8% in July. What went wrong?
• Credit Corp share price drops 15% as core debt buying market flounders
• What’s going on with the CSL share price on Tuesday?
• Warren Buffett has 10% of Berkshire Hathaway’s portfolio in this recession-resistant sector

Chuck Saletta has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

from The Motley Fool Australia https://ift.tt/LZNdKOo

The Appen Ltd (ASX: APX) share price is tumbling on Tuesday after the company updated the market on an anticipated dint in its first-half earnings.

And while the artificial intelligence and machine learning data provider believes the second half of 2022 will be brighter, a lack of improvement in July means uncertainty remains.

The Appen share price opened 21% lower at $4.49 before tumbling to trade at $4.25 – representing a 25.57% fall. At the time of writing, Appen shares are trading at $4.37 each.

Let’s take a closer look at the news driving the ASX tech favourite into the red.

Appen share price plunges 25% on Tuesday

The Appen share price is plummeting after the company announced it expects to post a loss for the six months ended 30 June.

It said weaker demand for digital advertising caused some of its major customers to slow spending, bringing the company’s unaudited revenue for the first half to US$182.9 million. That marks a 7% drop on the first half of 2021, mainly driven by Appen’s global division.

Lower revenue, foreign exchange impacts, and investments in the company’s transformation activities caused its earnings to nosedive in turn.

Appen expects to post US$8.5 million of underlying earnings before interest, tax, depreciation, and amortisation (EBITDA) – a 69% fall on that of the prior corresponding period.

It also expects the first half to have brought an after-tax loss of US$9.5 million. That’s down from a US$6.7 million profit in the first half of 2021.

In late May, Appen told the market its EBITDA would be “materially lower” in the first half.

Looking to the future, the company expects volumes to increase in the second half on the back of seasonal projects and a ramp-up of existing projects.

However, a failure to improve in July means uncertainty remains about a continued slowdown in its global customers’ spending and their exposure to weaker digital advertising demand.

As such, the conversion of forward orders to sales is less certain than it has been in previous years.

What did management say?

Commenting on the news dragging the company’s share price lower, Appen CEO Mark Brayan said:

The first half of the financial year has been characterised by challenging external operating and macro conditions.

[C]osts in this half are higher primarily due to transformation costs, and investment in product and technology … Together with lower-than-expected revenue, this has impacted earnings and margins.

The fundamentals of our business remain strong and our operational performance and the quality of our service we provide customers continues to improve … we remain committed to our longer-term growth strategy and confident of our prospects in the high growth AI market.

The post Appen share price sinks 25% as earnings tank amid uncertain outlook appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#0095C8”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#0095C8”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• Appen share price on watch as ‘challenging’ first half dints earnings
• Why Appen, EML, Imugene, and Nanosonics shares are sinking
• Why is the Appen share price sinking 15% today?
• Why is the Appen share price leaping 6% on Wednesday?
• Why Appen, Arizona Lithium, Australian Stategic Materials, and Nuix shares are dropping

Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Appen Ltd. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

from The Motley Fool Australia https://ift.tt/pudAvLK

The Newcrest Mining Ltd (ASX: NCM) share price had a tough month in July.

The gold miner’s share price fell 7.61% between market close on 30 June and 29 July. For perspective, the S&P/ASX 200 Index (ASX: XJO) lifted nearly 6% over the same time.

Let’s take a look at how the month of July played out for Newcrest mining.

How did the month go?

Newcrest is a global gold and copper producer with assets in Australia, Canada, and Papua New Guinea.

The Newcrest share price slid 11.3% between market close on 30 June and 19 July before recovering slightly.

The spot gold price has fallen 2.5% from US$1807.30 an ounce at close on 30 June to US$1762.90 at close on 29 July, CNBC data shows. Gold plunged to a monthly low of US$1700 an ounce on 20 July before recovering.

The copper price also dropped 3.5% in July, according to Trading Economics data.

On 21 July, Newcrest released its quarterly exploration report for the three months ending 30 June.

The company achieved its gold production guidance for the 2022 financial year while copper production was 3% lower than its guidance. However, gold production was 31% higher than in the March quarter.

Commenting on the results, Newcrest CEO Sandeep Biswas said:

Newcrest delivered a strong fourth quarter to achieve our group gold production for the year. Over the last four quarters we have steadily increased our gold and copper production, driving lower group All-In Sustaining Costs and delivering a record breaking annual cost performance at Cadia.

We were particularly pleased to record a fourth consecutive quarter of lower group costs during this challenging inflationary environment.

Share price snapshot

The Newcrest share price has lost nearly 28% in a year and 21% year to date.

For perspective, the S&P/ASX 200 Index has lost more than 7% in a year.

Newcrest has a market capitalisation of about $17 billion based on the current share price.

The post The Newcrest share price tumbled 8% in July. What went wrong? appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#0095C8”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#0095C8”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• 5 things to watch on the ASX 200 on Monday
• Inflation is on the rise, so why isn’t the gold price?
• 5 things to watch on the ASX 200 on Friday
• Here are the 3 most heavily traded ASX 200 shares on Wednesday
• What’s the outlook for Newcrest Mining shares in FY23?

Motley Fool contributor Monica O’Shea has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

from The Motley Fool Australia https://ift.tt/eMVQOwv