Tag: Motley Fool

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.

There’s a reason Warren Buffett is often regarded as one of — if not the — greatest investors to ever live: He’s very good at it. Tens of billions of dollars good. Due to his success, people often look to his portfolio (via his company Berkshire Hathaway) to influence many of their investing decisions.

Berkshire Hathaway’s portfolio is loaded with blue chip stocks, including its top three holdings: Apple, Bank of America, and Coca-Cola. They each represent 41.3%, 10.2%, and 7.2% of Berkshire Hathaway’s portfolio, respectively (as of March 31, 2022).

If you’re wondering why a company with 50+ holdings has 58.7% of its portfolio in three stocks, it’s because blue chip stocks have stood the test of time and proven to be great long-term investments, regardless of broader economic conditions.

Blue chip companies find a way to survive

For a company to be considered blue chip, it must be worth billions and be one of the top leaders in its sector, and you don’t usually get to that point unless you have lots of resources. Resources that come in handy during bear markets, recessions, and everything in between. Warren Buffett has always preached long-term investing, and part of that is understanding that rough economic times are inevitable, and if companies can’t survive those, they’re likely not very good long-term investments.

Since the 1980s, Apple, Bank of America, and Coca-Cola have made it through Black Monday (1987), the dot-com bubble crash (late ’90s/Early ’00s), the Great Recession (2008), and the early stages of the COVID-19 pandemic (2020). Not only have they made it through, but they’ve also been valuable investments since then.

During the dot-com bubble in 2000, Apple traded at around $150 (the price at the time, not today’s price after stock splits through the years) and dropped as low as $13 in 2002. It’s since provided some of the greatest returns we’ve ever seen in stock market history.

From November 2006 to March 2009, Bank of America’s stock dropped over 94%. Over the next decade, the stock increased by more than 750%. In early 2020, Coca-Cola saw its stock price plunge by more than 36%. In the little over two years since then, the stock has increased by more than 60%.

Keep your eyes on the long-term prize

It can be hard to convince yourself to focus on the long term when you’re seeing your portfolio drop right before your eyes during bear markets and rough periods in the stock market, but it’s necessary. If you’re investing for the long term — and you should be — you have to believe the companies you’re investing in will find ways to adjust to the times and produce great results in the long run.

One thing that Apple, Bank of America, Coca-Cola, and lots of other blue-chip companies have in common is they find a way to adapt to broader economic problems they didn’t themselves create. Apple didn’t cause the dot-com bubble, Bank of America wasn’t the main culprit in the Great Recession, and Coca-Cola didn’t cause a global pandemic. Yet each time, they had the resources available to adapt and weather the storm.

That’s why, like Warren Buffett, you should rely on blue chip companies to represent the bulk of your portfolio. There’s no such thing as a foolproof investment, but blue chip stocks are as good as it gets.

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

The post What Warren Buffett can teach you from his top 3 holdings appeared first on The Motley Fool Australia.

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More reading

• What’s in store for the BetaShares NASDAQ 100 ETF in the next 12 months?
• Why Apple stock is down 17% so far this year
• Why shares in Berkshire Hathaway fell in June

Bank of America is an advertising partner of The Ascent, a Motley Fool company. Stefon Walters has positions in Apple. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Apple and Berkshire Hathaway (B shares). The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended the following options: long January 2023 $200 calls on Berkshire Hathaway (B shares), long January 2024 $47.50 calls on Coca-Cola, long March 2023 $120 calls on Apple, short January 2023 $200 puts on Berkshire Hathaway (B shares), short January 2023 $265 calls on Berkshire Hathaway (B shares), and short March 2023 $130 calls on Apple. The Motley Fool Australia has recommended Apple and Berkshire Hathaway (B shares). 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.

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Are you looking for dividend shares to buy next week? If you are, then you might want to look at the shares listed below that have been named as buys.

Here’s why these ASX dividend shares are rated as buys:

Lovisa Holdings Limited (ASX: LOV)

The first ASX dividend share that could be worth considering is fast-fashion jewellery retailer Lovisa.

While its shares may not provide investors with the biggest yield you’ll find on the market, its dividend has the potential to grow materially in the future. This is due to its bold global expansion plans.

It is because of these plans that Morgans believes “LOV may just prove to be one of the biggest success stories in Australian retail.”

For now, the broker is expecting a 50 cents per share dividend in FY 2022 and a 51 cents per share dividend in FY 2023. Based on the current Lovisa share price of $17.80, this will mean yields of 2.8% and 2.9%, respectively.

Morgans also sees plenty of upside for Lovisa’s shares with its add rating and $21.50 price target.

National Australia Bank Ltd (ASX: NAB)

Another ASX dividend share that could be a top option for income investors is banking giant NAB.

It has been rated as a buy by analysts at Goldman Sachs. They believe the bank has a balance sheet mix that provides investors with the best exposure to the expected domestic system growth over the next 12 to 18 months.

The broker is also expecting some very attractive dividend yields in the near term. Its analysts are currently forecasting a $1.51 per share dividend in FY 2022 and then a $1.68 per share dividend in FY 2023. Based on the current NAB share price of $30.60, this will mean fully franked yields of 4.9% and 5.5%, respectively.

Goldman currently has a conviction buy rating and $34.26 price target on the bank’s shares.

The post Experts say these ASX dividend shares are buys right now appeared first on The Motley Fool Australia.

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More reading

• ‘Raises a whole lot of issues’: Which ASX 200 banks are still funding new fossil fuel projects?
• Experts name 2 ASX growth shares to buy with double-digit upside potential
• The NAB share price is up 20% from its YTD low. Is now the time to buy?
• Why this ASX investment company dumped NAB for Westpac shares
• Should investors buy NAB shares for the dividends? Here’s what I think

Motley Fool contributor James Mickleboro 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 recommended Lovisa Holdings Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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If you’re looking to bolster your portfolio with some blue chip shares in August, you may want to look at the two listed below.

Here’s why these blue chip ASX shares are highly rated right now:

Healius Ltd (ASX: HLS)

The first blue chip ASX 200 share to look at is Healius. It is one of Australia’s largest pathology and diagnostic imaging providers and the name behind a number of brands including Dorevitch Pathology, QML Pathology, Laverty Pathology, and Healthcare Imaging Services.

Healius has been growing at a very strong rate over the last couple of years thanks to huge demand for COVID testing. And while testing volumes are falling, the team at Morgans remain positive on the company. This is due to its belief that Healius’ base business will rebound as COVID headwinds ease.

Morgans has an add rating and $4.30 price target on Healius’ shares.

REA Group Limited (ASX: REA)

Another ASX blue chip ASX 200 share that could be in the buy zone is REA Group. It is a leading online provider of property and property-related services across Australia and Asia.

The company’s realestate.com.au website has been dominating the ANZ market for years and shows no signs of stopping. For example, during the first half of FY 2022, REA reported an average of 12.6 million unique visitors to its website each month. Furthermore, on average, there were 3.3x more visits than the nearest competitor each month.

And combined with its strong pricing power and new acquisitions and revenue streams, the company has been tipped to continue growing at a solid rate for many years to come by the team at Goldman Sachs.

In light of this, the broker currently has a buy rating and $164.00 price target on REA’s shares.

The post 2 blue chip ASX 200 shares analysts rate as buys appeared first on The Motley Fool Australia.

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More reading

• Why I think the REA share price is a bargain buy right now
• Here are the top 10 ASX shares today
• 3 blue chip ASX 200 shares experts say are buys
• Why cheap hamburgers could give beginner ASX share investors food for thought
• How much have REA shares paid in dividends in the last 5 years

Motley Fool contributor James Mickleboro 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 recommended REA Group Limited. 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 Bendigo and Adelaide Bank Ltd (ASX: BEN) share price has been rising recently. It closed 1.18% higher on Friday at $10.30 and is now up around 10% in the past month. But could the regional bank be an opportunity for investors?

It has been an interesting last couple of months for the banking sector. Interest rates have shot higher in Australia, while one big four ASX bank share announced it wanted to buy another regional bank.

The Reserve Bank of Australia (RBA) has been increasing interest rates to try to control inflation, while Australia and New Zealand Banking Group Ltd (ASX: ANZ) has launched a $4.9 billion bid to buy the banking division of Suncorp Group Ltd (ASX: SUN).

Bendigo Bank is an interesting consideration with all of this excitement going on. Let’s look at how brokers rate the regional bank.

Expert views on the Bendigo Bank share price

One of the latest views on the ASX bank share comes from Credit Suisse. It rates it as ‘outperform’ with a price target of $11.10, implying high-single-digit potential for the share price.

The broker thinks banks like Bendigo can benefit from higher interest rates, leading to stronger net interest margins (NIMs). However, it could also be negative in terms of increasing bad and doubtful debts.

However, others are less optimistic. Morgan Stanley is ‘equal-weight’ on the regional bank, though it has increased its profit expectations for FY23 because of higher margins. But, FY24 could be impacted by the higher arrears as well as slower growth of its loan book.

The broker Macquarie has a ‘neutral’ rating on the business, with a price target of $10. While profitability is expected to be helped in the short term, the medium term is less optimistic.

Bendigo Bank is due to release its FY22 earnings on 15 August.

Dividend expectations

One of the main reasons that investors may be interested in ASX bank shares and the Bendigo Bank share price is the potential dividend income.

On CMC Markets, the estimate for the potential FY23 Bendigo Bank grossed-up dividend yield is 7.8%.

Morgan Stanley’s estimate for the FY23 grossed-up dividend yield is 7.7%. The Macquarie estimate for FY23 is 7.9%.

My view

Bendigo Bank isn’t typically going to be the type of business that delivers rapid compound growth, so the its important to choose the right time. Considering the Bendigo Bank share price has risen by almost 20% since mid-June, I don’t think it’s at a cheap price.

If it went back to around $9 (or below), then that could be an opportunistic time to jump on Bendigo Bank, though I’m looking at different areas of the ASX share market for opportunities.

The post Is the Bendigo Bank share price a buy ahead of next month’s earnings? appeared first on The Motley Fool Australia.

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More reading

• What might ANZ’s Suncorp deal mean for competition among ASX 200 banks?
• What’s the outlook in FY23 for ASX 200 bank shares?
• Here are the 5 best ASX 200 bank shares of FY22
• ASX 200 midday update: Chalice Mining jumps, Zip sinks on bearish broker note
• Bendigo Bank shares rise after going long on leverage with ANZ lending acquisition

Motley Fool contributor Tristan Harrison 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 Bendigo and Adelaide Bank Limited. The Motley Fool Australia has recommended Macquarie Group Limited. 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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With a new month upon us, what better time to look at your portfolio and see if there’s room for a new addition of two.

If you’re a fan of exchange traded funds (ETFs), then listed below are three that could be worth getting better acquainted with. Here’s what you need to know about them:

BetaShares Asia Technology Tigers ETF (ASX: ASIA)

The BetaShares Asia Technology Tigers ETF could be a top option for investors that are bullish on the long term outlook of the Asian economy. That’s because this ETF provides investors with easy access to a number of the most promising tech shares in the region. This means you’ll be owning a slice of ecommerce giants Alibaba, Meituan Dianping, and Pinduoduo, as well as search engine company Baidu and WeChat owner Tencent.

BetaShares NASDAQ 100 ETF (ASX: NDQ)

The BetaShares NASDAQ 100 ETF could be another ETF for investors to consider in August. This very popular ETF gives investors exposure to the 100 largest non-financial shares on the famous NASDAQ index. These are many of the largest companies in the world and household names such as Amazon, Alphabet, Apple, Facebook, Microsoft, Netflix, Nvidia, and Tesla. And despite a recent rebound, the ETF is still down 22% this year. This could make it an opportune time to invest with a long term and patient view.

VanEck Vectors Morningstar Wide Moat ETF (ASX: MOAT)

Finally, the VanEck Vectors Morningstar Wide Moat ETF could be another ETF to consider in August. This ETF gives investors access to a diversified portfolio of fairly valued companies with sustainable competitive advantages. At present, there are a total of approximately 50 US based stocks held by the fund. These include the likes of Amazon, Warren Buffett’s Berkshire Hathaway, Boeing, Disney, Kellogg Co, Microsoft, and Salesforce.

The post 3 ETFs for smart ASX investors in August appeared first on The Motley Fool Australia.

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More reading

• Here are 2 ASX ETFs I would buy for 2022 and beyond
• Is the NDQ ETF a no-brainer buy right now?
• 2 quality-focused ETFs I’d load up on in August
• 3 popular ASX ETFs for investors to buy
• 3 high quality ETFs for ASX investors to buy today

Motley Fool contributor James Mickleboro 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 BETANASDAQ ETF UNITS. The Motley Fool Australia has positions in and has recommended BETANASDAQ ETF UNITS. The Motley Fool Australia has recommended BetaShares Asia Technology Tigers ETF and VanEck Vectors Morningstar Wide Moat ETF. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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It is unfortunate that man-made climate change is starting to cause visible havoc around the world.

Experts have warned that extreme events like the bushfires in the summer of 2020 and the severe flooding this year will become more frequent, devastating people and animals alike.

This does mean, though, that someone has to do the rebuilding afterwards.

That’s why Wilson Asset Management senior equity analyst Sam Koch feels like Johns Lyng Group Ltd (ASX: JLG) is undervalued at the moment.

“We believe the combination of Johns Lyng Group’s defensive qualities and superior growth outlook supports a valuation higher than the market,” he said in a memo to clients.

“The resiliency of Johns Lyng Group’s earnings growth is an attractive quality for shareholders in the current volatile macro-economic environment.”

The share price has returned close to 510% over the past five years, but has dipped 14.3% in 2022.

Business not impacted by economic conditions

Johns Lyng provides construction services for the insurance industry. When a claim is made, the company is sent in to evaluate and repair damaged buildings.

According to Koch, this is an activity that hums along independent of any slowdowns in the wider economy.

“Johns Lyng Group’s Australian business provides building insurance and restoration services that are not influenced by the vagaries of the business cycle, whose growth is driven by relationships and service standards,” he said.

“A series of unfortunate natural disasters have recently bolstered activity within the sector which, in our view, Johns Lyng Group is well placed to support.”

The business has recently entered the strata management industry, which provides a new channel for cross-selling its building services.

Massive addressable market across the Pacific Ocean

However, Koch reckons the US market is where Johns Lyng’s “largest medium-term opportunity” lies.

“Following the acquisition of Reconstruction Experts in December 2021, which is a diversified building services provider operating in four states with over four times the population of Australia, Johns Lyng Group now has a platform to roll out its unique model,” he said.

“Whilst the opportunity in the US is significant, early results will be key to assess whether the model is replicable and scalable across the country.”

Wilson holds Johns Lyng shares in two of its funds — WAM Capital Limited (ASX: WAM) and WAM Research Limited (ASX: WAX).

Those funds are not the only fans of Johns Lyng shares. Eight out of nine analysts surveyed on CMC Markets currently recommend the stock as a strong buy.

According to Koch, the business model helps incentivise all the staff to move in one direction.

“Its unique partnership model with owner-operators drives a strong culture of alignment and excellence, which has been a significant contributor to its overall success.”

The post ‘Superior growth outlook’: ASX share raking it in from climate change appeared first on The Motley Fool Australia.

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More reading

• I just bought this ASX company enjoying ‘a constant upgrade cycle’: fundie
• 2 ASX shares you never heard of ready to make hay

Motley Fool contributor Tony Yoo has positions in Johns Lyng Group Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Johns Lyng Group Limited. The Motley Fool Australia has recommended Johns Lyng Group Limited. 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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A new month is just about here so what better time to look at your portfolio and make some new additions.

But which shares should you buy? Listed below are two ASX 200 shares that the team at Bell Potter believe are buys. Here’s what it is saying:

Costa Group Holdings Ltd (ASX: CGC)

This horticulture company could be an ASX 200 share to buy in August. Costa operates ~7,300 hectares of farming assets across five key categories and three regional hubs.

Bell Potter believes that it is well-placed for growth and sees it as a great inflation hedge. It commented:

CGC has deployed ~$540m of capital since CY19 through the acquisition of citrus properties, development of berry acreage in Morocco and China and investment in mushroom and tomato capacity. A return on this investment is expected to be the main driver of earnings through to CY23e. In addition we are seeing favourable YTD pricing trends across the majority of CGC’s product portfolio which provides insulation against inflationary cost pressures.

Bell Potter has a buy rating and $3.75 price target on the company’s shares. This compares favourably to the current Costa share price of $2.57.

TechnologyOne Ltd (ASX: TNE)

Another ASX 200 share that could be in the buy zone is TechnologyOne. Bell Potter likes the enterprise software provider due to its shift to a software as a service (SaaS) business model. Its analysts expect this to underpin stronger margins and equally strong earnings growth.

The broker explained:

The migration [to a fully integrated SaaS solution] is now around three quarters complete and Technology One is starting to reap the benefits of greater recurring revenue and a higher margin. This combination will in our view drive double digit earnings growth for years to come and, as the migration of customers approaches 100%, we expect the multiple to rerate to that of a pure SaaS company.

Bell Potter has a buy rating and $12.50 price target on the company’s shares. This compares to the latest TechnologyOne share price of $11.72.

The post Broker names 2 ASX 200 shares to buy in August appeared first on The Motley Fool Australia.

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More reading

• Analysts name 2 ASX growth shares to buy in August
• Top brokers name 3 ASX shares to buy next week
• 2 highly rated ASX dividend shares that brokers say are buys
• Here’s how much $20k invested in these ASX shares 10 years ago is worth today
• Analysts say these top ASX growth shares are buys

Motley Fool contributor James Mickleboro 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 recommended COSTA GRP FPO and TechnologyOne Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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If you’re a fan of Warren Buffet’s style of buy and hold investing, then you may want to look at the three ASX shares listed below.

These are shares that the team at Bell Potter believe are “champion stocks” and excellent buy and hold options for investors. Here’s what the broker is saying about them:

Goodman Group (ASX: GMG)

The first ASX share that could be a top buy and hold option is integrated industrial property company Goodman. Bell Potter believes Goodman is well-placed for long term growth thanks to its world class portfolio and the increasing demand for industrial property.

The broker commented:

One of the world’s largest integrated industrial property groups with operations centred around development, management and ownership throughout Australia, New Zealand, Asia, Europe, United Kingdom, North America, and Brazil. The long term outlook for industrial and logistics properties is favourable given the continuing growth in ecommerce (or on-line retail sales) and the growing middle class in developing countries.

Sonic Healthcare Limited (ASX: SHL)

Another ASX share that the broker expects to be a long term market beater is Sonic Healthcare. Its analysts rate the pathology provider highly due to their belief that it is well-placed for growth thanks to increasing demand for pathology services and its international expansion opportunities.

Bell Potter explained:

The world’s third largest pathology provider with significant operations in the USA, United Kingdom, Germany, Switzerland, Belgium, Australia and New Zealand. Against the backdrop of continuing growth in the demand for pathology services over the longer term, the group has further international expansion opportunities in both existing and new geographical markets.

Transurban Group (ASX: TCL)

A final ASX share that Bell Potter expects to be a long term market beater is toll road giant Transurban. Bell Potter is bullish due to the company’s strong portfolio and huge development opportunities. The latter is expected to support its growth in the coming decades.

The broker said:

Australia’s largest builder, owner and operator of urban toll road networks. The group also has toll road assets in North America. The group’s current pipeline of growth projects is $3.9 billion (TCL’s share of total project cost) and further huge development opportunities are expected over the next few decades supported by population and economic growth.

The post Broker names 3 ASX 200 shares to buy and hold appeared first on The Motley Fool Australia.

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More reading

• Here are the top 10 ASX 200 shares today
• When inflation = profit: Why this fundie is tipping the Transurban share price to outperform
• 2 ‘good value’ ASX 200 shares offering what investors want right now: expert
• Expert prediction: 3 ASX 200 shares that can ‘do well’ in volatile times
• Why these blue chip ASX 200 shares are rated as buys by experts

Motley Fool contributor James Mickleboro 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 recommended Sonic Healthcare Limited. 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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First Sentier’s Tim Canham reckons the commodities boom ain’t over yet.

He’s particularly bullish on ASX gold share Genesis Minerals Ltd (ASX: GMD) and mineral sands miner Iluka Resources Limited (ASX: ILU).

Canham is a senior portfolio manager within First Sentier’s emerging companies team.

In an interview with the Australian Financial Review (AFR), Canham revealed they have just bought a gold share.

Why buy Genesis Minerals?

Canham said:

Even though it’s not a sector in favour, we have a new position in a gold stock, Genesis Minerals. Former management team of Saracen Minerals, which merged with Northern Star.

The company recently conducted a $100 million capital raising. Genesis also announced a merger with troubled Dacian Gold. This gives the emerging company access to a relatively new processing facility in the region at below replacement value.

This merger and potential further transactions at a time when labour and capital cost pressure are intense, puts the company in an enviable position at a low point in the gold cycle.

The Genesis Minerals share price closed Friday’s session at $1.39, up 4.92%. The gold share is up 94% over the past 12 months but down 18% in the year to date.

Why buy a gold share when commodity prices are falling?

This might come as a surprise given commodity prices have been falling for a few months now. The price of gold has fallen from a recent high of around US$2,052 t.oz in March to US$1,760 t.oz today.

Canham says the environment for gold shares “is very tough given the increasing cost environment in terms of labour, fuel and other processing inputs”.

He adds:

An Achilles heel of the sector is that it has no pricing power, despite the relative cushion of a weaker Australian dollar. But I always like to own some gold, as when it’s in favour, the stocks can really do well. Usually, when you least expect it, you are thankful you own some.

What’s the outlook for commodities?

Canham is “quite bullish” on commodities:

When we look across a number of commodities like natural gas, oil, copper, zircon, and nickel – there has been very little supply response in any those key ingredients for global growth. The current high operating and capital costs make supply growth even more unlikely.

When I attempt to marry this up against these wonderful, smooth, upward-sloping demand charts of electric vehicle production, renewable energy and grid build-out, I do scratch my head. It makes me quite bullish in the medium term on the commodity complex.

Why buy Iluka Resources?

When asked to name an undervalued ASX share that he is most bullish on, Canham nominates Iluka Resources.

Yes, there are headwinds from global recession fears and Chinese housing issues, but the fundamental lack of supply in mineral sands products is very real.

Generally for me to get bullish about a commodity there must be a supply angle (i.e., a lack of it).

We think its rare earth refinery investment in WA is also misunderstood by the market and undervalued. As a manufacturing destination, WA looks attractive with some of the lowest gas prices in the world.

The Iluka Resources share price closed Friday’s session at $9.58, down 0.1%. Iluka shares are down around 4% over the past 12 months and 8% in the year to date.

The post The All Ordinaries gold share ‘in an enviable position’: fundie appeared first on The Motley Fool Australia.

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More reading

• ‘Misunderstood by the market’: Why this fundie says this ASX 200 mining share is undervalued right now
• Here’s why experts say these are the ASX mining shares to buy now
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Motley Fool contributor Bronwyn Allen 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.

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“If you’re going through hell, keep going.”

The above quote is often attributed to Winston Churchill. It sounds like something he might have said, although there is no evidence to suggest that it was, in fact, his.

As per Quote Investigator, it’s possible that it was adopted from a different source, such as “Christian Science Sentinel”, a religious journal, in 1943. There, the story went that a man was asked how he was, to which he replied: “I’m going through hell!”. His friend responded:

“Well, keep going. That is no place to stop!”

No place, indeed.

It’s been a rough ride, Fools. These past few months have tested the resolve of even the most experienced investors, and have no doubt seen many give in to the market’s pessimism.

But to do so now would, I believe, be consequential. 

The market is driven not by perfect information, but instead by incomplete information compounded by investor psychology. When panic sets in, people rush for the exits and leave behind those who are more focused on the underlying businesses and long-term wealth creation.

Bear markets, which can feel like hell for investors, are temporary. And while it mightn’t feel like it at the time, this is where the foundations are set for the next bull cycle. 

Companies like JB Hi-Fi Limited (ASX: JBH), an Australian discretionary retailer recently reported a record sales result. Meanwhile, many companies in the United States that have recently reported their second-quarter earnings results – Netflix (NASDAQ: NFLX) among them – have also surprised to the upside.

Investors who sell out now, or merely remain on the sidelines, might avoid any further pain, should the market fall further. But many will also miss out on the gains which I expect will come to those who remain patient.

I’m not trying to call the bottom of the market. I don’t know when that will be, nor if it has already been. But I will echo the words that Winston Churchill may or may not have said:

“If you’re going through hell, keep going.”

The post ‘If you’re going through hell, keep going’ appeared first on The Motley Fool Australia.

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More reading

• Here are 3 stellar ASX growth shares analysts are tipping as buys
• Is the Pilbara Minerals value-add lithium strategy worth its salt?
• Broker names 2 ASX dividend shares to buy next week
• 2 reasons to buy stock splits (and 1 reason not to)
• Is it safer to pull your money out of the stock market or keep investing for now?

Motley Fool contributor Ryan Newman 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 Netflix. The Motley Fool Australia has recommended Netflix. 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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