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The Regis Resources Limited (ASX: RRL) share price has slipped into the red this year and is down around 7% so far in 2022, and around 32% over the last 12 months.

As can be seen in the chart below, the stock has been volatile these past 3 months, trading as high as $2.42 on 19 April but having slipped to just $1.81 as at Friday’s close.

Meanwhile the S&P/ASX 300 Metals and Mining Index has pushed more than 8% higher so far in 2022.

What’s up with the Regis Resources share price?

Investors have pushed the Regis share price lower in recent weeks despite a levelling in the price of gold, and a company update.

Gold now trades at US$1,818 per troy ounce, having bounced off lows in late May. Meanwhile, on 8 June, Regis Resources also released an update to its mineral resources and ore reserve statement.

“The Group mineral resources as at 31 December 2021… are estimated to be 287Mt at 1.1 g/t gold for 9.92Moz gold,” it said.

“This compares with the estimate at 31 December 2020 of 301Mt at 1.1 g/t Au for 10.36Moz of gold as announced 15 June 2021 post the acquisition of 30% of Tropicana.”

Whereas ore Reserves as at 31 December 2021 were estimated to be 117Mt at 1.1 g/t gold for 4.14Moz gold compared to 145Mt at 1.0 g/t Au for 4.83Moz of gold as announced 15 June 2021.

According to mining company MMG, mineral resources are the concentration of material of economic interest in or on the earth’s crust, whereas ore are the parts of a mineral resource that can at present be economically mined.

In the company’s update, Regis CEO Jim Beyer said:

We have a portfolio of long-life assets that are all in the Tier 1 location of Australia. Our Reserves underpin a Reserve life of more than 9 years and provide a strong platform for the company’s ongoing growth. Our Ore Reserves are estimated at one of the lowest gold price assumptions in the industry thereby continuing to position the business to be resilient through the cycles. Duketon underground reserves growth continues to outpace depletion and regional exploration works continue to identify early stage, but exciting intercepts, in close proximity to our existing mills. Overall we are delivering outcomes that position Regis for ongoing value growth.

The Regis Resources share price climbed 2.11% following the update. Meanwhile, however, Citi downgraded the stock to sell shortly before the release, setting its price target to $1.90 per share in the process.

According to Bloomberg data, Citi is the only broker out of 10 others to rate Regis shares a sell.

The post What’s impacting the Regis Resources share price lately? appeared first on The Motley Fool Australia.

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Motley Fool contributor Zach Bristow 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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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.

After rallying from their early 2020 pandemic lows to new peaks this winter, the three most popular U.S. stock market indexes have tumbled this year — so much so that people are wondering if this is the beginning of another recession. As of June 9, the S&P 500 was down 16% year to date, the Nasdaq Composite was down 25%, and the Dow Jones Industrial Average was down 11%. 

But as an investor, I’m not losing any sleep.

Stock market corrections and bear markets are inevitable. The S&P 500 began in 1957, the Nasdaq Composite began in 1971, and the Dow began in 1896. They have existed through some of the worst economic conditions the U.S. has seen, yet they’re still standing strong, with each producing returns over the decades that have generated massive wealth for long-term investors.

Stay the course

When it comes to money, it’s hard to prevent your emotions from influencing your decisions, and when they do, it’s often not for the better. This is especially the case with investing, and those feelings — whether fearful or upbeat — can easily lead a trader to try to time the market. But there’s an old saying in investing: “Time in the market is more important than timing the market.” That’s why dollar-cost averaging is one of the best investment strategies you can use.

With dollar-cost averaging, you avoid the temptation to time the market because you’re making regular investments steadily on a schedule. You don’t spend time wondering if a stock is at its lowest or highest level; instead, you stay the course and add shares according to the theory that, on average, matters will work out over the long run. Sometimes you’ll buy when a stock is low and positioned for growth; sometimes, you’ll buy when it’s high and about to drop. What’s most important is that you’re consistent and stick to the investing schedule you set for yourself, whether it’s weekly, bi-weekly, monthly, or whatever you choose.

As a long-term investor in individual stocks, I don’t let myself get too wrapped up in the market’s short-term movements. I realize that if I’m buying great investments while they’re on the decline, I’m likely getting them at a discount. The more you can lower your cost basis (the average per-share price you’ve paid), the higher your profit can be when you sell if they recover. This doesn’t mean all companies will rebound by any means, but great blue chip stocks tend to stand the test of time.

There are great companies in the indexes

For those who invest in stock index funds, they too have always managed to rebound in the long run, which is one of the main reasons to invest in them. Having that diversification in the fund ensures one or a couple of companies dropping doesn’t have as big of a toll on the index as a whole. You just have to believe in your investing strategy and not be shortsighted in any moves. People and markets can be irrational. Movements in stock prices don’t always mean companies are fundamentally different; sometimes, it’s just a by-product of human irrationality. When a lot of people get anxious about market conditions and want to sell their investments, the prices of shares can move lower and cause a cascade effect.

There’s a reason for legendary investor Warren Buffett’s aphorism, “Be fearful when others are greedy and greedy when others are fearful.” He understands that stock market drops caused largely due to panic selling present opportunities to investors who are focused on the long run. If a company is a good buy at $200, it should be a great buy at $150, if you believe in it long term.

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

The post 2022 Has Been Rough for Major Indexes. Here’s Why I’m Not Worried. appeared first on The Motley Fool Australia.

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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.

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There are some ASX dividend shares I believe are well-suited to investment portfolios focused on income. And businesses that aim to pay investors an attractive dividend could be useful during this period of volatility and uncertainty.

While I wouldn’t buy a business only for the dividend yield, I think that dividends can form a handy portion of the total returns.

On that note, here are two ASX dividend shares I believe could be good options to consider for income-seekers:

Charter Hall Long WALE REIT (ASX: CLW)

This is one of my preferred picks in the real estate investment trust (REIT) space because of its diversification, long-term contracts and revenue growth potential.

In terms of the portfolio, at 31 December 2021, it had around 550 properties that were worth a combined $7 billion. It had a 99.9% occupancy rate, so that means this ASX dividend share is essentially not letting any properties go to waste by being empty.

The aim of this REIT is to own high-quality real estate on long-term leases with strong tenant covenants. Its weighted average lease expiry (WALE) at December 2021 was 12.2 years. This gives the business long-term rental visibility and stability, in my opinion, particularly when combined with the occupancy rate.

This ASX dividend share’s portfolio is spread across a number of different defensive tenant industries including pubs and bottle shops, government, telecommunications, grocery and distribution, fuel and convenience, food manufacturing, waste and recycling management and ‘other’.

Rental income growth is driven by annual increases in all leases, with 46% of leases linked to CPI and 54% of leases set up with an average fixed increase of 3.1%.

In FY22, the Charter Hall Long WALE REIT is aiming to achieve operating earnings per security (EPS) of at least 30.5 cents, reflecting year-on-year growth of around 4.5%. The distribution translates to a distribution yield of at least 6.8% in FY22 with a payout ratio of 100%.

Pacific Current Group Ltd (ASX: PAC)

This is a business that takes investment stakes in asset managers globally and helps them grow. It’s invested in a number of different fund managers including GQG Partners Inc (ASX: GQG), Banner Oak, Victory Park, Proterra and Carlisle.

The business is seeing ongoing growth of its portfolio’s funds under management (FUM), which is helping grow revenue and profitability. In the FY22 first half, FUM rose 16% to $165 billion, or 11% excluding the US$35 million new investment in Banner Oak. Underlying revenue rose 21% and underlying net profit after tax (NPAT) grew by 26% to $14.6 million.

The profit growth enabled a 50% increase of the interim dividend to 15 cents per share.

At 31 March 2022, this ASX dividend share reported that while its portfolio FUM decreased by $1.4 billion to $164 billion, in native currencies, US dollar-denominated fund managers saw FUM increase by 2.1% and Australian dollar-denominated fund managers saw a 3% rise in FUM.

FY23 earnings could be assisted by a full 12 months of earnings from GQG and Banner Oak. Fundraising progress in the FY22 second half from key private capital boutiques is expected to have a “significant” impact on FY23.

The last 12 months of dividends from Pacific translates into a grossed-up dividend yield of 8.2%.

The post Why I think these 2 ASX dividend shares are ideal for income investors appeared first on The Motley Fool Australia.

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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 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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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.

Supply chains are already stressed for automakers across the world. Given demand for electric vehicles (EVs) is expected to grow by leaps and bounds, that is likely to get worse, with EV batteries widely believed to become the bottleneck. 

Tesla (NASDAQ: TSLA) has been leading the sector in all areas so far, and it plans to continue that role if a raw material supply crunch develops. Tesla builds its own cells at its Gigafactories, recently introducing its 4680 battery in cooperation with Panasonic. But this week it seems to have taken another step to ensure its battery supply with plans to source from an EV competitor. 

A lesser-known leader

While Tesla led the world with sales of more than 900,000 electric cars last year, China-based BYD sold over 600,000 electric vehicles of its own, including both plug-in hybrid and battery electric. Now it seems Tesla will be using BYD as a battery supplier, too. The tie-up would link two EV leaders that combined to sell more than one-third of all battery electric vehicles worldwide last year. 

Aiming to continue domination

Many observers think it will be hard for Tesla to remain the world’s dominant EV seller with automotive giants General Motors, Ford, Volkswagen, and Toyota quickly ramping up EV production. The crowded field will be fighting to keep its battery supply chains full. Rivian Automotive CEO R.J. Scaringe recently said in his annual letter to shareholders that over the next decade, global battery production capacity will need to increase by 20 times to supply the expected demand. 

Tesla plans to stay ahead of the competition by adding BYD as a supplier for lithium-iron-phosphate (LFP) batteries, according to a Reuters report. Tesla disclosed that LFP made up nearly half of batteries used in its vehicles produced in the first quarter. They are potentially a safer and cheaper rival to nickel-and-cobalt-based lithium-ion batteries. 

BYD launched its LFP Blade battery two years ago. Battery sales only made up 7.3% of total revenue for BYD in 2021, but now Tesla may become a customer and help that figure grow. 

Buffett-backed supplier

Tesla had already begun forging relationships with South Korea’s LG Energy Solutions and China’s Contemporary Amperex Technology (CATL) for its LFP battery needs. BYD isn’t nearly as big a player in the EV market as those other Asian companies. But that may soon change due to a relationship with Tesla. 

The report quoted Lian Yubo, BYD’s executive vice president, as saying in an interview this week, “We are now good friends with Elon Musk because we are preparing to supply batteries to Tesla very soon.” If that pans out, Musk won’t be the only famous billionaire to be attracted to BYD. Warren Buffett’s Berkshire Hathaway has been a longtime investor in the Chinese EV company, and it held a 7.7% stake worth nearly $7.7 billion as of Dec. 31, 2021.

While a relationship between the two automotive leaders may be a positive for both companies, Tesla could become the big winner. The company now has four global manufacturing plants. An adequate battery supply could be the critical factor to be able to maximize production from those facilities to supply growing demand. The takeaway for investors is that Tesla seems to have things in place to continue dominating even as fierce competition enters the market. It makes the company’s estimate of 50% annual production growth over multiple years more viable.

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

The post Tesla Looks to Reinforce Its Battery Supply Chain: Why That Matters appeared first on The Motley Fool Australia.

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Howard Smith has positions in BYD and Berkshire Hathaway (B shares). The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Berkshire Hathaway (B shares), Tesla, and Volkswagen AG. 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), short January 2023 $200 puts on Berkshire Hathaway (B shares), and short January 2023 $265 calls on Berkshire Hathaway (B shares). The Motley Fool Australia has recommended 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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Some ASX dividend shares are expected to pay very large payouts in the next couple of years.

The ASX share market has returned an average of around 10% per annum over the long-term. That return has been made up of a return of dividends and capital growth.

What if some ASX shares were able to deliver a (grossed-up) dividend yield of at least 10%? Dividends are not guaranteed and can be cut. However, it could be useful if a business were able to pay large dividends and also deliver capital growth. Of course, capital growth isn’t guaranteed either. A major risk of the ASX share market is an investment not working out.

However, experts believe the below businesses are both good value and could pay large dividends.

Australian Finance Group Ltd (ASX: AFG)

Macquarie is one broker that currently rates Australian Finance Group as a buy.

This ASX dividend share is one of the largest mortgage broking businesses in Australia. It claims to write around 10% of residential mortgages.

The Australian Finance Group share price ended last week down 6.5% at $1.72.

The price target is $2.94 – that implies a potential rise of around 70%.

There is a lot of market focus on rising interest rates at the moment, but Macquarie thinks that Australian Finance Group could be a winner as borrowers try to find a better loan by refinancing.

The company says that brokers are systematically important to all lenders, including those with branch networks, as they provide competition and choice. The overall broker market share of mortgages continues to grow – it was 67% in the first quarter of FY22, up from 50% in FY16.

The company is looking to grow its market share and grow margins through expanding into lending and across non-residential asset classes. Management note that the future development of an asset financing lending product will further accelerate growth.

Macquarie thinks that the ASX dividend share is going to pay a grossed-up dividend yield of 12.6% in FY22 and 12.8% in FY23.

New Hope Corporation Limited (ASX: NHC)

New Hope is one of the largest coal miners in Australia, with its projects including New Acland and Bengalla.

The business is currently benefiting from the elevated price of coal amid strong energy prices after the Russian invasion of Ukraine.

In the quarter for the three months to April 2022, the business generated $358.6 million of underlying earnings before interest, tax, depreciation and amortisation (EBITDA) and it made $281.8 million of cash generation.

However, rainfall and COVID-19 has affected the production in recent months.

Credit Suisse currently rates the business as a buy, with a price target of $4.90. With the New Hope share price closing out last week at $3.84, that implies a possible rise of close to 30%. The broker thinks that New Hope could pay a grossed-up dividend yield of 27% in FY22 and 34% in FY23.

The post Brokers predict these 2 ASX dividend shares will pay yields above 10% appeared first on The Motley Fool Australia.

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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 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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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.

Like many high-growth technology stocks, Amazon.com (NASDAQ: AMZN) has sold off hard in 2022, but it bounced back a bit prior to its recent stock split. Investors without access to fractional share purchases have had the chance to buy Amazon shares at a lower price for a week now, so it’s time for shareholders old and new to refocus on the company’s fundamentals.

While Amazon Web Services is booming, Amazon’s retail business is struggling. Free cash flow has gone negative, but management has also begun repurchasing stock. Amid all these cross-winds, here are the main issues investors should monitor for the rest of the year.

“Still have work ahead of us” in the retail business

The big reason Amazon sold off so much this year is the retail business. After it aggressively built out capacity during COVID-19, demand has slowed as things reopened. Since the capacity build operates with a lag, Amazon has actually overbuilt in the near term.

Complicating matters, Amazon’s head of worldwide retail, David Clark, just announced he would be leaving the company. That adds another layer of uncertainty to the mix, and it’s also an open question as to whether Clark left on his own, or if he was forced out due to recent problems. Of note: Clark just became CEO of logistics start-up Flexport. In the blog post announcing Clark’s retirement, CEO Andy Jassy admitted: “We still have more work in front of us to get to where we ultimately want to be in our Consumer business.”

Amazon noted too much capacity, too much hiring, and high fuel prices as contributing about a $6 billion headwind last quarter, with each component accounting for about $2 billion each. $4 billion of these added costs should stick around this quarter, as the company will need to grow more to fill its capacity, and fuel prices have remained high.

Things to watch in the second half: Productivity, capacity, shipping

First, I’d expect to see progress on the labor front this earnings report. Amazon has the ability to slow or freeze hiring, so investors should assess profitability and the company’s headcount, which it discloses. This was the most “fixable” of Amazon’s problems. 

For the over-capacity, investors may not see any improvement until the second half. That’s because Amazon needs to grow into its capacity, and Prime Day moved from the second quarter last year to the third quarter this year. So, revenue may not grow sufficiently to fill its capacity until Prime Day and then the holiday buying season. Look out for management’s forward guidance and commentary on this front on its next earnings call.

In the meantime, the Wall Street Journal recently reported Amazon is looking to sub-lease space to other tenants in the distribution centers and warehouses. Amazon is reportedly looking to sublet about 10 million square feet of space, with the potential to do more. That 10 million square feet would account for about 2% of Amazon’s total owned and leased square footage at the end of 2021.

Finally, investors should keep an eye on shipping costs. Last quarter, worldwide shipping costs were up 14% even though paid units shipped were flat at 0%. Typically, Amazon has higher shipping costs than paid units, as it monetizes its units in various ways, such as Prime subscriptions and advertising; therefore, investors should see if the spread between costs and units sold widens or narrows. Unfortunately, with fuel prices on the rise, shipping costs could remain high.

Is AWS margin expansion for real?

Turning to Amazon Web Services, last quarter, there was a big step-up in AWS operating margins, which rose from 29.8% to 35.3% quarter-to-quarter. This was largely due to an extension of the useful life of its servers. Investors should also monitor whether AWS is able to maintain these higher margins, or if there is some mean-reversion.

If the new higher operating margin proves to be the new baseline, that could help Amazon’s stock as a whole. That’s because AWS is probably the most valuable part of Amazon, as its most profitable business. AWS made $67 billion in revenue over the past 12 months while growing in the mid-30% range. It seems set to grow for years, perhaps into the multiple hundreds of billions, so a 5% expansion in its eventual operating margin could mean big things for Amazon’s intrinsic value.

It all comes down to profits

Amazon has long gotten a pass from investors in terms of showing current profits for much of its corporate life, but since 2018, Amazon’s profits have taken off. Investors may now be expecting more consistent profitability year in and year out, especially as interest rates have risen. Thus, after the pandemic boom, they haven’t taken very kindly to recent year-over-year declines in operating profit, even as revenue has grown.

The main question across all of these factors is: Will Amazon be able to control costs in an inflationary environment? And where will its operating margins ultimately end up? 

Amazon is a large and complex business, so all the aforementioned factors will need to be examined to get the full picture heading into the second half.

John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Billy Duberstein has positions in Amazon. His clients may own shares of the companies mentioned. The Motley Fool has positions in and recommends Amazon. The Motley Fool has a disclosure policy.

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

The post Amazon Just Split Its Stock: Here’s What Comes Next appeared first on The Motley Fool Australia.

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

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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.

With the recent inflation news driving another massive stock sell-off, investors are once again getting nervous about the future. After all, high inflation means that the Federal Reserve is expected to continue to be forced into raising interest rates , which makes bonds a relatively more attractive investment. Higher interest rates also make it more expensive to borrow, which makes it tougher for businesses to invest in expansion, thus putting demand and growth at risk.

Within that context, it’s pretty easy to make a case for why the stock market could crash again. On top of that, history shows that the market does crash from time to time. As a result, the answer to the question of whether the stock market will crash again is a simple one: Yes, it almost certainly will. The real question to ask, though, is when will it crash?

Are we there yet?

Despite that fear, the reality is that the S&P 500 is already down about 20% from its recent highs. That’s a substantial drop already, and it does offer a sliver of hope that maybe the toughest part of the current market cycle could be behind us.

Still, it’s important to remember that the market attempts to price stocks based on their future value-generating abilities, not based on what their past price movements were. A big reason stocks sold off so heavily when the recent inflation numbers were announced is that those inflation numbers were worse than expected. 

When the market faces substantial negative surprises, it tends to price assets lower to reflect the higher perceived risk and/or lower perceived future returns. As a result, a big part of whether the market will crash again soon depends on how many more negative surprises we have ahead of us.

What can you do about it?

With so much uncertainty facing the market and the near-term future, it can be tempting to get paralyzed into doing absolutely nothing at all. While staying the course is usually a great strategy when it comes to taking part in any recovery that follows a crash, you have to have the right financial foundation in place to really do that.

As a result, now is a superb time to check on that financial foundation of yours and do what you can to get it shored up. That way, when the market does crash again — whenever that may be — you’ll be in a better spot to take advantage of it. the On the flip side, if the market doesn’t crash again within your investing career, having a solid financial foundation in place will still give you great peace of mind even in more typical market volatility.

Key to your financial foundation is to be in control of your debts. About the only reasonable debts to have when you’re investing are ones where all three of the following are true:

• The interest rate is low — interest-free or low single digits.
• The payment is low enough that it doesn’t keep you from covering your basic costs.
• The debt serves a useful purpose for your future.

If your debt doesn’t meet all three of those criteria, making it a priority to either pay off those debts or get them to where they do fit the bill can work wonders for your financial future.

Once your debt is in control, make sure you have a decent — but not oversized — emergency fund in a savings account, CDs, or other very liquid and secure vehicle. Three to six months of your living expenses is a reasonable target. Too much more than that, and you’ll risk losing too much ground to inflation. Too much less, and you’ll risk not having a large enough buffer to cover those ugly surprises that life throws your way.

With your financial foundation in place, it becomes much easier to focus on your future and the longer-term opportunities that stocks can provide. Indeed, if you get that foundation securely enough in place, it can even turn your perspective of market crashes to one where you appreciate the buying opportunities they can provide.

Get started now

The market’s recent declines make it painfully clear that another crash is very possible. The sooner you get your financial foundation in place, the sooner you will get to a point where you can start seeing a market crash as a potential buying opportunity rather than just a reason to panic. So start putting your plans in place now, and make today the day you begin building the foundation that can help you emerge from the next market crash in a much better spot.

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.

The post Is The Stock Market Going to Crash Again? appeared first on The Motley Fool Australia.

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

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Men are more likely to invest in ASX shares than women.

That’s according to a new YouGov survey commissioned by crypto wealth platform Dacxi.

The survey also found that men are almost twice as likely to believe they’ll be rich in their lifetime.

So, what does it mean to be rich?

Some 40% of survey respondents said you needed to earn more than $150,000 a year, after taxes, to be wealthy. Another 36% said you needed a net worth of more than $1 million to qualify. And 23% said you counted as wealthy if you owned your home outright.

Here’s how they plan to get rich.

Inheritances and investment strategies

A total of 24% of participating Australians said the best path towards riches was via family wealth and inheritances.

Having a high-performing investment strategy came in a tight second, with 23% saying this was the best way to become wealthy.

With ASX shares historically offering strong returns over the long-term – the All Ordinaries Index (ASX: XAO) is up 24% over the past five years, without including dividends – we’d have to throw our two cents in with the benefits of having a sound investment strategy.

Interestingly, only 5% said they thought having a financial planner was the best way to grow their wealth.

Asked what they’d do with $10,000 if they had to hold it passively for the next 10 years, 33% of respondents said they’d invest it in ASX shares.

Men ‘more likely’ to invest in ASX shares than women

Men, if we might generalise, tend to take more risks than women.

With that larger risk appetite in mind, 38% of men said they were likely to invest in ASX shares, compared to 28% of women respondents.

A similar pattern emerged in cryptos, with 15% of men saying they’d invest in cryptos like Bitcoin (CRYPTO: BTC) compared to 10% of women.

Commenting on the findings, Dacxi CEO Ian Lowe said:

The best performing assets of the last decade have been the more volatile ones, like cryptocurrency and stocks/shares. With Australian men more likely to choose these assets over women, we can explain a lot of the gap in confidence to become wealthy between men and women in their asset choices…

Ultimately, the big advantage younger generations have is that they can purchase digital or tokenised versions of physical assets like gold and silver as easily as they can a cryptocurrency. Over the long term (multiple decades), diversified portfolios fair best, and it’s never been cheaper or easier to buy and manage one yourself.

The post ASX shares and inheritances: Survey reveals how Aussies plan to get rich appeared first on The Motley Fool Australia.

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The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Bitcoin. The Motley Fool Australia has positions in and has recommended Bitcoin. 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 Kogan.com Ltd (ASX: KGN) share price has had a torrid time over the last year.

Kogan shares have fallen by around 70% in the past 12 months. In just the last month alone, shares in the online retailer have plunged around 15%.

It’s no secret that the e-commerce company has been suffering from several different factors. Sales growth has been declining. It has had too much inventory. Marketing expenses are elevated as it tries to keep shifting products.

Latest business update

The latest insight for investors was in the FY22 third-quarter update. It said that total third-quarter sales were down 3.8% to $262.1 million year-on-year.

However, there were a handful of positives in the growth numbers. Kogan Marketplace revenue rose 19.8% to $78 million, Mighty Ape sales went up 25.8% to $35.4 million, and Kogan First revenue went up 67.9% to $4.2 million.

Gross profit fell by 11.2% to $41 million in the third quarter. Adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) fell by 110.5% to a loss of $0.8 million. Profitability (or lack of) can have a significant impact on the Kogan share price.

However, the company did point out that its active customers grew by 3.6% year on year to 4.1 million, with Kogan First members rising by 264% year on year to 328,000 as of 31 March 2022 – this was a growth of 19.7% since 31 December 2021. It had 345,000 Kogan First members at the end of April 2022.

The company noted that over the next year, it will be “recalibrating its operating costs in line with current growth levels to support a return to the historical operating margins previously generated.”

Kogan’s CEO and founder, Ruslan Kogan, said that while market conditions were challenging right now, it had laid foundations over the past 16 years to put it in good stead today.

Is the Kogan share price an opportunity?

After evaluating the latest update from Kogan, the broker UBS decided the rating on Kogan would be ‘neutral’, and it reduced its price target to $4.30 because the update was worse than expected. However, this price target implies an upside of more than 30%.

The broker thinks that gross profit is going to be hurt because of excess stock. It’s not expecting Kogan to materially improve its profitability until the second half of FY23 (or even later).

Based on a return to profitability in FY23, UBS thinks the Kogan share price is now valued at 45x FY23’s estimated earnings.

Another broker, Credit Suisse, is also negative about the company’s short-term outlook with regard to profitability and costs. However, while it rates it as ‘underperform’, the Credit Suisse price target of $3.75 implies a potential rise of almost 20% over the next year.

Time will tell if the brokers are correct about how much the Kogan share price will rise over the next year. If UBS is right about a return to profitability for Kogan next year, then it could provide a boost for the ASX share.

The post This top broker thinks the Kogan share price has 35% upside appeared first on The Motley Fool Australia.

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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 positions in and has recommended Kogan.com ltd. The Motley Fool Australia has positions in and has recommended Kogan.com 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 for exposure to the beaten down tech sector, then Xero Limited (ASX: XRO) shares could be the answer.

Last week, two leading brokers reiterated their bullish views on the cloud accounting company’s shares in response to news that it has lifted its prices in the ANZ and UK markets.

What are brokers saying about the Xero share price?

According to a note out of Citi, its analysts have reiterated their buy rating and $108.00 price target.

Based on the current Xero share price of $82.93, this implies potential upside of 30% for investors over the next 12 months.

Citi commented:

We see Xero’s decision to increase prices in ANZ and UK as an indication of the company’s confidence in its position in its core markets. While the changes would not have a full impact in FY23e, we estimate the changes represent a 8% uplift to group ARPU and represents upside to our ARPU forecasts. An increase in churn is a factor to consider especially given the slowing economic outlook.

What else was said?

The team at Goldman Sachs is even more bullish on the Xero share price. Its analysts have retained their buy rating and $118.00 price target on the company’s shares.

This suggests that there’s potential upside of 42% for investors between now and this time next year.

Goldman appears to agree with Citi on these price increases. The broker also suspects that increases may be on the way for the rest of the business. It commented:

We remain confident Xero will be able to execute on these increases while preserving its existing subscriber base, noting their strong track record in putting through increases while driving churn lower. We would also not be surprised if NA/ROW markets were also considered for a pricing increase, given they previously followed ANZ/UK by 2 months in Nov-21.

The post Brokers give their verdict on the Xero share price (hint: they are bullish) appeared first on The Motley Fool Australia.

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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 Xero. The Motley Fool Australia has positions in and has recommended Xero. 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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