Tag: Motley Fool

Ask A Fund Manager

The Motley Fool chats with fund managers so that you can get an insight into how the professionals think. In this edition, Catapult Wealth portfolio manager Tim Haselum tells investors to not be anxious about timing.

Investment style

The Motley Fool: How would you describe your services to a potential client?

Tim Haselum: My name’s Tim Haselum. I’m the portfolio manager here at Catapult Wealth. Essentially what I do is I run the model portfolios and the investment recommendations across five portfolios. 

My day-to-day really is just being the filter between research providers and market noise, and sticking to our fundamental investment philosophy and rolling it out to the client. 

Situations like now, people are panicking but the plan should have been agreed to and aligned before this. The whole “Should I buy high, sell low?” — that conversation had to have happened before and now it’s just sticking to the guns and making sure we’re true to the values in terms of what we provide to the client.

MF: With the model portfolio, what sort of investment philosophy do you take?

TH: Our philosophy, essentially the short version, is to be nimble. 

You think about what we’ve seen in the last 10 years, well, value has underperformed growth and I’d say part of the reason, besides low interest rates and [the] tech boom, would be a lot of these companies have been propped up by governments, haven’t been allowed to exit out the index. The value index is very artificial. 

We’ve now seen an interest rate rise, and growth has been actually annihilated, right? The ASX is absolutely destroyed. 

So I think the lesson we’ve learned is you need to have flexibility. Not quite style-neutral, but flexibility. But in our core, in saying that, our main mantras are quality, value buyers, and momentum, and so to us when we talk about quality, we’re talking about filtering out really high leveraged companies, low profitability, very volatile, unpredictable earnings, and then having a slight bias for value. That includes the growth space.

We try [to] look at tech companies that have earnings, and look like they have the momentum to grow the earnings. After we take those two filters, it’s a pure momentum play in terms of the timing of in and out. We want timing for buys and sells. We don’t want to buy on a downtrend, so you do miss, you might miss the bottom, but we want to see the positive moods before we jump in, so we avoid some of these value traps. 

Missing the very bottom is okay, as long as you don’t just get stuck in an AMP Ltd (ASX: AMP) or something like that where it looks like it’s not likely to jump back anytime soon.

We don’t want quality companies that are expensive, and we don’t want poor quality companies that are cheap. For us overall, it’s strategic asset allocation first and foremost, and then style after that.

MF: Are you seeing anxiety among your clients at the moment?

TH: Our client base is quite experienced. But I would say a lot of clients are more itching [to buy]. They’re like, “Oh look, we’ve got some cash. Should we jump in now? Should we jump in now?” 

I think given that we’ve been through COVID and it was such a V-shaped recovery, I guess clients are like, “Well, maybe it’s a V-shape recovery again”. They just want to jump on the bandwagon. 

We’ve had the likes of crypto and certain stocks just shoot up through the stratosphere and so it’s just tempering that and being cautious… is more what we’re doing now.

MF: You personally feel like the stock market recovery will take a little bit longer than back in 2020?

TH: I think it’s too early to tell, because we’ve just had one rate rise so far in Australia. The US is going, but we are very, very early on in this rising cycle. 

Historically [we’ve] seen that, even though we’ll see jitters after the first rate rise, markets just stabilise and then [it] shoots back up again. 

But once the weight of these rate rises start to accumulate and then you might see corporates downgrade their needs. That’s when you see this continuation of the bear market from what could just be a short-term correction.

It’s just that if what the [US Federal Reserve] is saying, soft landing, if some of this issue is transitory, if supply chains can come back online, if China changes their tune on zero-COVID, well perhaps [shares will recover]. 

But what we’re seeing, it’s very early to tell. Don’t burn all your dry powder all in one go.

The post Why missing the market bottom is okay: expert appeared first on The Motley Fool Australia.

More reading

• When might the dividend drought break for AMP shares?
• What was the highest ever AMP share price?
• Why this top broker says the AMP share price is 27% over-valued
• Top brokers name 3 ASX shares to sell next week
• Could the worst now be over for the AMP share price?

Motley Fool contributor Tony Yoo 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/yiqKYMt

The term ‘bear market‘ will invariably send some shivers up the spines of many an ASX investor. Although there will be many Warren Buffett disciples out there that will tell you buying when there is blood on the streets is the quickest way to share market riches, the reality is that most investors like to see their shares go up in value and not down. But a bear market means a falling market. It is technically defined as a market that has retreated by more than 20% from its most recent high.

Now, the S&P/ASX 200 Index (ASX: XJO) is not in bear market territory yet. Yes, the past few weeks have been nasty. But since topping out at 7,632.8 points last August, the ASX 200 has fallen only 6.4% away from that high on today’s pricing. Even when the ASX 200 hit the ‘6000s’ earlier this month, we only got to falls of around 9%.

That stands in stark contrast to the US markets right now. Last Friday saw the flagship S&P 500 Index (INDEXSP: .INX) enter bear market territory for the first time since the COVID crash of 2020. Although the US markets saw a late uptick on Friday night (our time), it wasn’t enough to prevent the S&P 500 from recording a 20% drop from its most recent peak during the trading session. The US’s tech-heavy NASDAQ-100 (INDEXNASDAQ: NDX) has already entered bear market territory recently.

So is a grizzly bear market coming for ASX shares? Or is this just a cub for Aussies?

Is an ASX bear market coming?

Well, according to an article in The Age yesterday, it could, unfortunately, be the former. Financial writer Matthew Lynn describes the possibility of an ASX bear market as looking “inevitable”. Here’s how he described the situation as he sees it:

Why? Because bear markets triggered by recessions are always the worst, and we are now heading for a deep downturn; because valuations were already crazily over-stretched at the peak; and because policymakers are completely out of ammunition to counter the sell-off in equities. Then, add it all up and the market rout could well turn into one of the worst in post-war history…

It might not necessarily match 1973 with its 48 per cent fall. But neither does it look like a mild correction before equities start to march higher again. There is still a lot of pain ahead – and this bear market will be a big one.

Well, not exactly a rosy outlook for ASX shares there, to be sure. Yes, there is always the possibility of a bear market and a protracted period of sub-optimal returns from shares. But that’s just a normal and accepted part of investing. History shows us that ASX bear markets are a regular occurrence. But it also shows us that markets have never before failed to reach and exceed previous highs. 

The post Is a big scary bear coming for ASX 200 shares, or could it be just a playful cub? appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Tuesday
• This fundie has beaten the ASX 200 every year for the past 2 decades. Here’s how
• Here are the top 10 ASX shares today
• Why have ASX 200 shares popped then dropped on Monday?
• ASX 200 midday update: Elders and Codan rocket, Incitec Pivot disappoints

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 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/w6FKm0H

Are you looking for some dividend options for your portfolio? If you are, check out the two ASX 200 shares listed below.

Here’s why these ASX dividend shares have been tipped to as buys:

Rio Tinto Limited (ASX: RIO)

The first ASX 200 dividend share to look at is mining giant Rio Tinto. It could be a top option thanks to strong commodity prices, which are underpinning bumper free cash flows this year.

Goldman Sachs is a fan of the company and has a buy rating and $135.10 price target on its shares. It likes Rio Tinto due to its attractive valuation, strong free cash flow, production growth potential, and compelling low emission aluminium exposure through its ELYSIS inert anode technology. The broker believes this technology could be worth billions.

As for dividends, the broker is forecasting fully franked dividends of approximately US$9.00 per share in FY 2022 and FY 2023. Based on the current Rio Tinto share price of $109.50 and current exchange rates, this will mean yields of approximately 11.5%.

Telstra Corporation Ltd (ASX: TLS)

Another ASX 200 dividend share that could be a top option for income investors is telco giant, Telstra. Especially considering that its outlook is now the most positive it has been in over a decade.

For example, earlier this year the company released its half year results and reported underlying earnings growth for the first time in many years.

Pleasingly, thanks to the success of its T22 strategy and its very promising upcoming T25 strategy, Telstra is expecting to deliver solid and sustainable earnings growth over the coming years.

It is thanks largely to this that the team at Morgans currently have an add rating and $4.56 price target on the company’s shares.

Morgans also continues to forecast fully franked dividends per share of 16 cents in FY 2022 and FY 2023. Based on the current Telstra share price of $3.92, this will mean yields of 4.1% for investors.

The post Analysts rate these ASX 200 dividend shares as buys appeared first on The Motley Fool Australia.

More reading

• Why has the Telstra share price lagged the ASX 200 over the past week?
• How are ASX 200 mining shares responding to the election outcome?
• Down 15% since early March, is the Rio Tinto share price an ASX mining buy?
• Here are the 3 most traded ASX 200 shares on Friday
• These 3 shares are topping the ASX 200 volume charts on Thursday

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 positions in and has recommended Telstra Corporation 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/TuBVmJG

On Monday, the S&P/ASX 200 Index (ASX: XJO) started the week with the smallest of gains. The benchmark index rose ever so slightly to 7,148.9 points.

Will the market be able to build on this on Tuesday? Here are five things to watch:

ASX 200 expected to rise

The Australian share market looks set to push higher again on Tuesday following a strong start to the week on Wall Street. According to the latest SPI futures, the ASX 200 is poised to open the day 14 points or 0.2% higher. On Wall Street, the Dow Jones rose 2%, the S&P 500 climbed 1.85%, and the Nasdaq rose 1.6%.

Tabcorp demerger

The Tabcorp Holdings Limited (ASX: TAH) share price is likely to fall heavily on Tuesday. This is being driven by the demerger of its lottery and Keno businesses into a separate listed entity – The Lottery Corporation Limited (ASX: TLC). Tabcorp will be left with its wager and media and gaming services businesses. The Lottery Corporation generated 55% or $611 million of Tabcorp’s EBITDA in FY 2021.

Oil prices push higher

Energy producers such as Beach Energy Ltd (ASX: BPT) and Santos Ltd (ASX: STO) could have a decent day after oil prices pushed higher overnight. According to Bloomberg, the WTI crude oil price is up 0.35% to US$110.67 a barrel and the Brent crude oil price has risen 0.9% to US$113.59 a barrel. Oil prices rose amid a strong demand outlook.

Gold price rises

Gold miners Evolution Mining Ltd (ASX: EVN) and Regis Resources Limited (ASX: RRL) could have a good day after the gold price pushed higher overnight. According to CNBC, the spot gold price is up 0.5% to US$1,851.7 an ounce. The precious metal was boosted by a softening US dollar.

Technology One half-year results

The TechnologyOne Ltd (ASX: TNE) share price will be on watch on Tuesday when the enterprise software company releases its half-year results. According to a note out of Goldman Sachs, its analysts are expecting a strong result. Goldman expects Technology One to report “ARR A$272mn (+17% vs pcp), revenue A$166mn (+15% vs pcp) and EBITDA A$65mn (+31% vs pcp).”

The post 5 things to watch on the ASX 200 on Tuesday appeared first on The Motley Fool Australia.

More reading

• This fundie has beaten the ASX 200 every year for the past 2 decades. Here’s how
• Here are the top 10 ASX shares today
• What might a Labor government mean for ASX energy shares?
• Why have ASX 200 shares popped then dropped on Monday?
• Here are the 3 most traded ASX 200 shares on Monday

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 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/AkjJ3OG

Exchange traded funds (ETFs) can be a great way for investors to diversify a portfolio. This is because they give investors access to a large group of shares through just a single investment.

But which ETFs should you look at? Listed below are two ETFs that have fallen heavily in 2022 and are now trading close to 52-week lows. This could make them top options for long term focused investors. Here’s what you need to know about them:

BetaShares Asia Technology Tigers ETF (ASX: ASIA)

The first ETF for ASX investors to look at is the BetaShares Asia Technology Tigers ETF. This popular ETF gives investors easy exposure to many of the Asian region’s most exciting growth shares. At present, the ETF is home to ~50 tech companies that are leading Asia’s technological revolution.

The BetaShares Asia Technology Tigers ETF unit price is down 25% since the start of the year. This has been driven by weakness in the tech sector and regulatory concerns in China.

Among the ETF’s holdings are giants such as Alibaba, Baidu, JD.com, Pinduoduo, Samsung, Taiwan Semiconductor, and Tencent.

In respect to Baidu, it is the search engine giant regarded as the Google of China. It is also an artificial intelligence leader and is aiming to be an autonomous vehicle powerhouse.

Whereas Tencent is the tech giant responsible for the WeChat super app which is used by approximately a billion people. This app also has a virtual duopoly with Alibaba’s Ant Group in the mobile payments industry in the country.

BetaShares Global Cybersecurity ETF (ASX: HACK)

Another beaten down ETF for ASX investors to look at is the BetaShares Global Cybersecurity ETF. This ETF gives investors exposure to the leading companies in the growing global cybersecurity sector.

The BetaShares Global Cybersecurity ETF unit price is down almost 20% since the start of the year. Once again, this has been driven by weakness in the tech sector amid rising rates and inflation.

While this is disappointing, it could be a buying opportunity given the increasing demand for cybersecurity services as more infrastructure shifts to the cloud and cyber attacks increase.

Among the companies you’ll be owning with the ETF are Accenture, Cisco, Cloudflare, Crowdstrike, Okta, and Splunk.

CrowdStrike provides the popular Falcon platform. This platform delivers incident response and forensic analysis services that are designed to help businesses understand whether a breach has occurred.

Where Okta is a leading provider of workforce identity solutions. It provides cloud software that helps companies manage and secure user authentication into applications.

The post 2 beaten down ETFs for investors to buy now appeared first on The Motley Fool Australia.

More reading

• 2 high quality ETFs for ASX investors to buy
• Here are 2 ASX-listed ETFs that might be able to fend off inflation
• Here are 2 fantastic ETFs for ASX investors to buy in May
• Here are 2 quality ETFs that are now a lot cheaper
• Here are 2 ETFs delivering breakneck ASX performance

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. owns and has recommended BETA CYBER ETF UNITS. The Motley Fool Australia owns and has recommended BETA CYBER ETF UNITS. The Motley Fool Australia has recommended BetaShares Asia Technology Tigers ETF. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

from The Motley Fool Australia https://ift.tt/4vZnldL

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.

Investors who prioritize dividends and intentionally build a portfolio of dividend-paying stocks typically see massive rewards in the long run, often receiving thousands in monthly retirement income. Profiting from some stocks relies solely on increases in their stock price, but dividends essentially reward investors for holding onto shares. If you want to become a better dividend investor, here are three things you should do. 

1. Focus on companies that increase dividends

What largely makes you successful as an investor is seeing the potential in companies and capitalizing accordingly. You should make decisions primarily with the future in mind, not focusing solely on the past or current metrics. A company’s current dividend yield is important, but what dividend investors should strongly consider is its ability to increase its yearly dividend. Companies may pay the same dividend, but if one is increasing its dividend by 10% annually, it’s more attractive.

Certain companies that have increased their annual dividend payouts for at least 25 consecutive years become part of S&P Dow Indices’ Dividend Aristocrats list, while companies that have increased their payouts for at least 50 consecutive years are Dividend Kings. As a dividend investor, if you focus on either, you can be more confident in your investment. Any company that has managed to become a Dividend Aristocrat or King has shown it can withstand broader economic down periods and recessions and still have the proper cash flow to reward shareholders.

History shows that market down periods are inevitable; you might as well invest in companies that have the financial means to make it through such times.

2. Focus on dividend payouts, not yield

It’s common for investors to look at a company’s dividend yield before making investment decisions, but that can sometimes be misleading. Think about this: Dividend yield is based on the annual dividend payout relative to the company’s stock price. If a company pays out $5 annually in dividends and the stock price is $100, the yield is 5% — which is very lucrative on the surface level.

However, if the stock price drops to $50 for whatever reason, the dividend yield becomes 10%. By all means, a 10% dividend payout is seen as good, but when you consider the sharp price drop that led to that yield, you understand why that alone isn’t a good metric. It would be best if you considered what caused that sharp price drop.

Instead of a strict focus on dividend yield, examine a company’s dividend payout to get more insight into its financial health. The payout ratio is how much of a company’s earnings it’s paying out in dividends. A payout ratio above 100% — meaning the company is paying out more than it’s making — is a major red flag because it’s unsustainable in the long run. It helps to be skeptical of companies that have a dividend payout of more than 50%.

3. Watch out for dividend traps

Dividend traps often occur when something is too good to be true. Let’s take younger, smaller companies, for example. Dividends are paid from a company’s earnings, so any money paid out in dividends is money that’s not being reinvested back into the company. For smaller companies, growth is often high on the priority list, and if management is giving too much of its profit to shareholders instead of reinvesting it back into the company, that could be a cause for concern.

There are some exceptions — like real estate investment trusts (REITs) and master limited partnerships (MLPs) — which have high dividend yields built into their structure. But generally speaking, if the dividend yield seems to be questionably high, you likely want to take a deeper look at why.

The same goes for debt. A company’s debt-to-equity ratio — found by dividing its total debt by shareholder equity — lets you know how much of its daily operations are financed through debt. As a rule of thumb, the higher the debt-to-equity ratio, the more risk a company is taking. You want to be cautious of companies with a lot of debt that pay out dividends. Financially healthy companies should be able to pay out dividends from their profits. 

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

The post 3 ways to become a better dividend investor appeared first on The Motley Fool Australia.

More reading

• Nasdaq sell-off: 2 growth stocks billionaires were buying in Q1
• This fundie has beaten the ASX 200 every year for the past 2 decades. Here’s how
• Here are the top 10 ASX shares today
• Why has the CSL share price lagged the ASX 200 over the past week?
• 3 ASX microcap shares going gangbusters on Monday

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/mw3vhJG

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.

The Nasdaq Composite fell 9% in the first quarter, as many investors weighed concerns about the strength of the economy. Even so, a wave of Form 13-Fs recently filed with the US Securities and Exchange Commission suggests that some asset managers remain bullish on growth stocks.

In the first quarter, billionaire Chase Coleman of Tiger Global Management added over a million shares of CrowdStrike Holdings (NASDAQ: CRWD) to his hedge fund, making it the third-largest position in the portfolio. Likewise, billionaire James Simons of Renaissance Technologies doubled down on Tesla (NASDAQ: TSLA), and the stock now ranks as the second-largest holding in his hedge fund.

Clearly, these professional money managers see something they like in both companies. But let’s take a closer look before you add them to your own portfolio. Here’s what you should know.

1. CrowdStrike Holdings

CrowdStrike is the gold standard in endpoint and cloud workload security. Its cloud-native architecture is the foundation of that success, as it allows the company to crowdsource tremendous amounts of data from the devices on its network. In fact, its Falcon platform captures trillions of security signals each week, and it leans on artificial intelligence (AI) to surface insights and prevent cyberattacks.

That forms a powerful network effect. Each new data point makes CrowdStrike’s AI models a little better at identifying malicious activity, meaning each new customer creates incremental value for all existing customers and vice versa. To add, CrowdStrike has further differentiated itself with a broad suite of software beyond endpoint and cloud workload security, including solutions for identity protection, threat intelligence, and managed services.

Financially, CrowdStrike is firing on all cylinders. Its customer base jumped 65% to 16,325 in the past year, and the average customer spent 24% more, evidencing the successful execution of its land-and-expand growth strategy. In turn, revenue climbed 66% to $1.4 billion and free cash flow jumped 51% to $442 million.

Looking ahead, CrowdStrike is well-positioned to maintain that momentum. The company puts its market opportunity at $67 billion by 2024, and its capacity for innovation should keep it on the cutting edge of cybersecurity. For example, CrowdStrike recently debuted the industry’s first fully managed identity threat protection service. That means organizations that lack the time or talent to handle their own security can outsource it to CrowdStrike. And adding identity protection to that service is especially significant because 80% of cyberattacks start with compromised credentials.

In summary, CrowdStrike has a strong presence in a critical industry, and its market opportunity should only get bigger as digital transformation creates more attack surfaces for hackers. With that in mind, Coleman’s decision to add shares to his hedge fund makes a lot of sense. More importantly, with the stock price down 50% from its high, now is a great time to buy a few shares for your own portfolio.

2. Tesla

In the first quarter, Tesla once again ranked as the leading electric vehicle (EV) brand, capturing a 15.5% market share. The company also continued to take share in total car sales across its three core geographies: China, Europe, and the US. But the real story was Tesla’s operating margin.

In the first quarter, revenue rose 81% to $18.8 billion, but GAAP earnings surged 633% to $2.68 per diluted share. What drove that accelerated growth on the bottom line? Tesla posted an industry-leading operating margin of 19.2%, fueled by increased production, pricing power, and initiatives like single-piece casting. That figure is likely to drop in the near term as production scales at the new factories in Berlin and Texas, but that uptick in capacity should make Tesla even more efficient in the long run.

Even more exciting, CEO Elon Musk announced plans for an EV robotaxi. The company aims to reach volume production by 2024, which puts Tesla one step closer to realizing its goal of launching an autonomous ride-hailing platform. On that note, Musk believes the company’s full self-driving software will be safer than a human driver by the end of the year, paving the way for software to become the most important source of profitability for Tesla’s car business.

Asset manager Ark Invest has a similar outlook. In a recent report, the firm says autonomous ride-hailing platforms could generate $2 trillion in profits by 2030, while boosting global economic output by $26 trillion. On that note, Tesla has more real-world driving data than any rival, which arguably makes it a frontrunner in the race to build a fully autonomous car.

If you think self-driving cars sound like science fiction, what about intelligent machines? Musk believes Tesla’s autonomous humanoid robot (known as Optimus) will ultimately be worth more than the car business. The company could have a prototype as early as this year, and full-scale production could start next year.

The biggest argument against Tesla is valuation. It’s currently worth more than the next seven automakers combined, and the stock trades for 12.8 times sales. But if Tesla executes on its vision of robotaxis and autonomous robots, that multiple may look cheap in hindsight. Renaissance Technologies clearly believes in the company, but should you add the stock to your own portfolio? That depends on your risk tolerance. If you can handle volatility and you believe in Tesla’s vision, I think it’s worth buying a few shares. For what it’s worth, I own the stock and I have no plans to sell. 

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

The post Nasdaq sell-off: 2 growth stocks billionaires were buying in Q1 appeared first on The Motley Fool Australia.

More reading

• Down almost 30% in the past month, here are 2 reasons to buy Tesla shares and 1 reason to hold off
• Why Tesla stock fell again today
• Why Tesla stock got dented today
• Why Tesla stock is falling again today
• The US stock market just took a major dive. What’s going on?

Trevor Jennewine has positions in CrowdStrike Holdings, Inc. and Tesla. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended CrowdStrike Holdings, Inc. and Tesla. The Motley Fool Australia has recommended CrowdStrike Holdings, Inc. 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/aCN960Z

The rise in the popularity of index exchange-traded funds (ETFs) on the ASX over the past decade or two has no doubt been supported by the idea of ‘if you can’t beat it, join it’. The ‘it’ in this case is the market. Specifically the S&P/ASX 200 Index (ASX: XJO).

‘Beating the market’ is the goal of every ASX investor. After all, if an investor can’t beat the market, then they are mathematically better off investing every cent they have in an index fund. So to hear one ASX fund manager has beaten the market every year for two decades is definitely worth a closer look.

As revealed in the Australian Financial Review (AFR), Jamie Nicol is co-founder of the Brisbane-based DNR Capital. This ASX fundie has managed to steer DNR Capital’s flagship High Conviction Australian Equities fund to an annual return of 12.9% per annum since its inception in 2002. That’s a market outperformance of an average 9.3% per annum that the fund’s ASX 200 Accumulation Index benchmark has achieved over the same period.

Meet ‘Mr 13%’ ASX fundie Jamie Nicol

This outperformance has held over many periods of market turmoil. These include the global financial crisis, the pandemic crash, and the gyrations we have seen over 2022 so far.

Nicol reckons this can be explained by “an eye for quality stocks, smart recruitment and decades of hard work”:

Remember, we started at the end of the dotcom crash, some people ended up with portfolios full of junk, it’s got similarities today… When we set up 20 years ago we were keen to go where ideas were, which would provide us with opportunities at different points in the cycle. Quality stocks at attractive prices is what we thought worked. Once this was defined, we then concentrated our portfolios in a limited number of high-quality businesses, but sought to buy them when there was a mispricing opportunity.

But Nichols also says that his firm still looks at finding value in companies that are suffering from “inefficiencies” in the market. These can be a mispricing of a growth opportunity. Or else buying a company that has been oversold over temporary concerns.

At the moment, DNR is “overweight in the mining sector”. But Nicol is also looking at Aristocrat Leisure Limited (ASX: ALL) and Domino’s Pizza Enterprises Ltd (ASX: DMP) as possible candidates for the ‘oversold’ label.

Nicol also cites patience as a necessary virtue for market outperformance. He says, “opportunities to be contrarian and buy out-of-favour businesses remain a fruitful exercise, you perhaps need more patience for the opportunities to be realised”.

The post This fundie has beaten the ASX 200 every year for the past 2 decades. Here’s how appeared first on The Motley Fool Australia.

More reading

• Here are the top 10 ASX shares today
• Why have ASX 200 shares popped then dropped on Monday?
• ASX 200 midday update: Elders and Codan rocket, Incitec Pivot disappoints
• Why the IGO share price is rallying on Monday
• 5 things to watch on the ASX 200 on Monday

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 no position in any of the stocks mentioned. The Motley Fool Australia has recommended Dominos Pizza Enterprises 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/bfmDaiE

Today, the S&P/ASX 200 Index (ASX: XJO) eked out a slight gain on the first day of trade under a new government. At the end of the session, the benchmark index finished 0.05% higher at 7,148.9 points.

Sectors were divided on which direction to head today as investors made sense of financial results, commodity prices, and election outcomes. The biggest winner on Monday was the materials sector amid stronger iron ore prices. Meanwhile, utilities slipped into the red as the market gauged the implications of new energy policies.

However, the question is: which shares delivered the biggest returns to investors on the ASX today? Here are the top ten stocks that came through for investors:

Top 10 ASX shares countdown today

Looking at the top 200 listed companies, Elders Ltd (ASX: ELD) was the biggest gainer today. Shares in the diversified agricultural company strengthened 8.91% after reporting strong first-half results and upgrading its FY2022 earnings guidance. Find out more about Elders here.

The next best performing ASX share across the market today was GQG Partners Inc (ASX: GQG). The global boutique asset management company rallied 8.07% despite there not being any announcements on the ASX. Uncover the latest GQG Partners details here.

Today’s top 10 biggest gains were made in these ASX shares:

ASX-listed company	Share price	Price change
Elders Ltd (ASX: ELD)	$14.92	8.91%
GQG Partners Inc (ASX: GQG)	$1.54	8.07%
Summerset Group Holdings Ltd (ASX: SNZ)	$10.06	6.57%
HUB24 Ltd (ASX: HUB)	$24.91	4.05%
Treasury Wine Estates Ltd (ASX: TWE)	$11.88	4.03%
APM Human Services International Ltd (ASX: APM)	$3.41	3.65%
The a2 Milk Company Ltd (ASX: A2M)	$4.43	3.51%
James Hardie Industries Plc (ASX: JHX)	$38.25	3.41%
Carsales.com Ltd (ASX: CAR)	$19.96	2.99%
Magellan Financial Group Ltd (ASX: MFG)	$15.21	2.98%

Our top 10 ASX shares today countdown is a recurring end-of-day summary to ensure you know which companies were making big moves on the day. Check in at Fool.com.au after the market has closed during weekdays to see which stocks make the countdown.

The post Here are the top 10 ASX shares today appeared first on The Motley Fool Australia.

More reading

• Why have ASX 200 shares popped then dropped on Monday?
• 3 ASX All Ordinaries shares starting the week with new 52-week highs
• Why BrainChip, Codan, Elders, and Karoon Energy are storming higher
• ASX 200 midday update: Elders and Codan rocket, Incitec Pivot disappoints
• Why the IGO share price is rallying on Monday

Motley Fool contributor Mitchell Lawler has positions in Elders Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Hub24 Ltd. The Motley Fool Australia has positions in and has recommended Hub24 Ltd. The Motley Fool Australia has recommended A2 Milk, Elders Limited, Treasury Wine Estates Limited, and carsales.com 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/WdGUMbv

The CSL Ltd (ASX: CSL) share price has edged 1.48% lower since this time last week.

While the global biotech hasn’t released any market sensitive news in that time, investors have been offloading the company’s shares.

CSL shares closed a further 0.73% down on Monday at $273.15 each.

What’s weighing down CSL shares lately?

A couple of factors are playing against CSL shares for the moment as the COVID-19 pandemic begins to subside.

First and foremost, the S&P/ASX 200 Health Care index (ASX: XHJ) has reversed its gains over the past week, down 0.3%. The index closed another 0.16% lower today.

Investors appear to have focused their efforts on better performing ASX sectors such as the S&P/ASX 300 Metals & Mining (ASX: XMM) index. This consists of the top 300 ASX companies that are involved with gold, steel, and precious metals.

For context, the Metals & Mining sector has soared 5.96% from this time last Monday.

And it’s no surprise that commodity prices have skyrocketed, given the war in Ukraine and inflationary movements.

Market psychology can be a powerful force when crowd behaviour chases market rallies or selloffs during downturns.

Another factor that has led CSL shares to fall is the delay to complete the acquisition of Vifor Pharma.

Originally, the deal was due to be wrapped up by June 2022. However, receiving regulatory approvals is taking a little longer.

As such, CSL now expects the takeover to be finalised within the next few months.

CSL share price snapshot

Uncharacteristically, it has been a turbulent year for CSL shareholders, recording a loss of 4% over the last 12 months.

Year to date has not fared any better with the company’s shares down 6%.

Based on valuation grounds, CSL commands a market capitalisation of roughly $131.5 billion.

The post Why has the CSL share price lagged the ASX 200 over the past week? appeared first on The Motley Fool Australia.

More reading

• 2 top blue chip ASX 200 shares to buy now according to experts
• Why I would invest $10,000 into these ASX shares today
• Is the Telstra share price cheap compared to other ASX 200 shares?
• Why CSL shares are ‘going to deliver’ in 2022: fund manager
• ‘Future-proof your portfolio’: experts pick 3 quality growth ASX shares to buy

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 positions in and has recommended CSL 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/0UkGZnS