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In afternoon trade, the S&P/ASX 200 Index (ASX: XJO) is on course to record a small decline. At the time of writing, the benchmark index is down 0.1% to 7,306.7 points.

Four ASX shares that are falling more than most today are listed below. Here’s why they are sinking:

ARB Corporation Limited (ASX: ARB)

The ARB share price has crashed 13% to $33.03 following the release of a market update. That update revealed that the 4×4 parts manufacturer expects to report a 12% increase in revenue to $700 million in FY 2022. However, due to a large increase in expenditure, its margins and earnings are under significant pressure.

AVZ Minerals Ltd (ASX: AVZ)

The AVZ share price has sunk 20% to 78.7 cents. Incredibly, the AVZ share price was up as much as 19% at one stage today before capitulating. Although the lithium developer has been granted a mining licence, there are concerns over just how much of the Manono Lithium Project it will end up owning.

Temple & Webster Group Ltd (ASX: TPW)

The Temple & Webster share price is down 7% to $5.01. This morning the online furniture and homewares retailer announced its expansion into the home improvement market with its The Build business. While the home improvement market is clearly a big opportunity, launching a business that is expected to be loss-making for several years in the current environment doesn’t appear to have gone down well with the market.

Zip Co Ltd (ASX: ZIP)

The Zip share price is down 11% to $1.03. The weakness in this buy now pay later provider’s shares appears to have been driven by a couple of factors. One is the impending release of a sizeable number of shares from escrow. The other is a bearish broker note out of UBS from yesterday. The latter saw the broker reiterate its sell rating and cut its price target on Zip’s shares down to a lowly 90 cents.

The post Why ARB, AVZ, Temple & Webster, and Zip shares are sinking appeared first on The Motley Fool Australia.

More reading

• Here are the 3 most heavily traded ASX 200 shares on Wednesday
• Why the AVZ share price went from being up 19% to down 20% today
• The Zip share price is plunging 9% today. Here’s why
• Here’s why the ARB Corporation share price is plunging 10% today
• AVZ share price rockets 19% on ‘watershed moment’

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 Temple & Webster Group Ltd and ZIPCOLTD FPO. The Motley Fool Australia has recommended ARB Corporation Limited and Temple & Webster Group 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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The Qantas Airways Ltd (ASX: QAN) share price has slipped into the red in afternoon trading, down 2.41% to $5.66 per share.

This comes as the S&P/ASX 200 Index (ASX: XJO) has also given up its earlier gains to currently be down 0.2%. It also comes amid news that the full Federal Court today found the airline in breach of the Fair Work Act, dismissing its attempt to overturn an earlier court ruling.

The breach in question relates to Qantas outsourcing of ground handling functions during the global pandemic. The layoffs of its ground handling crews drew the ire of the Transport Workers Union (TWU), which initiated the legal action.

Airline to appeal the ruling

In a statement today, Qantas said it intends to appeal the judgement to the High Court.

According to the airline, “Qantas has always said the decision to outsource our ground handling function was based on lawful commercial reasons in response to the unprecedented impact of the COVID crisis.”

It also noted that even before the onset of the pandemic, it had outsourced ground handling in 55 of the 65 Australian airports it operates from.

Qantas said there were three reasons why it had to outsource the remaining ground functions following the “massive impact of the COVID crisis”.

First, it cited potential annual savings in excess of $100 million per year from employing specialised ground handling companies. It said the savings were needed to help recover from the COVID impacts.

Second, Qantas said outsourcing eliminated the requirement to spend $80 million over five years on ground handling equipment.

And third, outsourcing enabled the airline to better match resources with fluctuating levels of demand.

“Today’s judgment does not mean Qantas is required to pay compensation or penalties,” the company stressed. “We will be asking the Court to stay any further hearings on this issue until after the High Court process.”

Qantas share price snapshot

Despite today’s retrace, the Qantas share price remains up 13% so far in 2022. That compares to a year-to-date loss of around 2% posted by the ASX 200.

The post Qantas share price lower amid Federal Court loss appeared first on The Motley Fool Australia.

More reading

• Top broker tips 17% upside for Qantas shares following Airbus order
• Why is the Webjet share price beating the ASX 200 today?
• Why Alkane, Chalice Mining, PointsBet, and Qantas shares are rising today
• Here are the 3 most heavily traded ASX 200 shares on Monday
• ASX 200 midday update: NAB’s AUSTRAC update, AGL downgrades guidance, Qantas takes off

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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The S&P/ASX 200 Index (ASX: XJO) has had another bumpy ride during this Wednesday’s trading session. After initially spiking to above 7,360 points soon after market open, the ASX 200 has been losing steam all day. It is now down by 0.08% at just over 7,310 points. 

But rather than letting that disappoint us, let’s instead dive a little deeper into the share market’s moves and check out the ASX 200 shares that are currently at the top of the market’s share volume charts, according to investing.com.

The 3 most-traded ASX 200 shares by volume this Wednesday

Telstra Corporation Ltd (ASX: TLS)

Our first ASX 200 share up today is none other than telecommunications giant Telstra. This telco has had a notable 9.74 million of its shares change hands as it currently stands. There hasn’t been much in the way of news out of Telstra today. However, this blue-chip share is defying the gloom of the broader market and has pushed 0.5% higher so far today to a flat $4 a share. This move, together with the telco’s ongoing share buybacks, is probably why Telstra has made the cut today.

Pilbara Minerals Ltd (ASX: PLS)

ASX 200 lithium producer Pilbara is our second share to check out today. So far, a hefty 12.37 million Pilbara shares have bounced around the market. There’s been no news or announcements out of Pilbara. So we should assume that this volume comes down to the company’s share movements today. As it currently sits, Pilbara has lost a hefty 1.7% so far and is currently trading at $2.61 a share. It’s this slide that we can probably thank for Pilbara’s presence here.

AVZ Minerals Ltd (ASX: AVZ)

Our final and most traded ASX 200 share of the day so far goes to lithium stock AVZ Minerals, and by a country mile too. A whopping 110.43 million AVZ shares have been bought and sold on the markets thus far, which is an incredibly high volume. This is undoubtedly a result of the (quite frankly) insane volatility we have witnessed with this company today.

AVZ put out a notice this morning that informed investors that the Democratic Republic of Congo government had granted a mining license to AVZ’s Manono Project. At first, the shares rocketed around 18%. But in a stunning twist, investors appear to have gotten a major case of cold feet, with ANZ shares now down 18% to 81 cents a share. Yes, AVZ has traded between $1.18 and 79 cents a share today. No wonder so many shares have been traded. 

The post Here are the 3 most heavily traded ASX 200 shares on Wednesday appeared first on The Motley Fool Australia.

More reading

• Why the AVZ share price went from being up 19% to down 20% today
• What’s the outlook for the Telstra share price in May?
• What would happen if Appen shares were removed from the ASX 200? 
• ASX 200 midday update: ANZ higher on results, Flight Centre and JB Hi-Fi sink following updates
• Analysts name 2 blue chip ASX 200 dividend shares to buy

Motley Fool contributor Sebastian Bowen has positions in Telstra Corporation Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has 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.

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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.

As fractional share buying has exploded in popularity over the past few years, building a diversified portfolio has never been easier. Generally, a good starting point for well-diversified investors is to buy somewhere around 25 stocks.

However, I go well beyond this threshold for the three reasons we will look at today. In doing so, I run the risk of diversifying too much and simply matching the market’s returns, yet I remain optimistic I can outperform with a more expansive portfolio.

Now, let’s look at why I believe that — and why owning over 100 stocks helps me sleep at night.

FOMO: Fear of missing out

Most people fear letting their portfolio grow too big as it becomes difficult to keep track of all the moving parts. However, I am odd because I am even more scared of missing out on potential multibaggers — even if I don’t have a deep knowledge of them.

What’s more important to me is whether or not a business fascinates me. This fascination can come in many forms. Possibly it’s a financial metric that blows me away. Or perhaps it’s an industry chart that shows a megatrend providing a tailwind for the company’s operations. Or maybe the CEO is an undeniable innovator, and I want to bet on that success.

It can be anything — as long as I’m fascinated. To put it very simply, I would be more heartbroken to see a stock I admire skyrocket without my having any skin in the game than I would be to own it and see it go to zero. While capital preservation may be paramount to some investors, growth is more important to me, regardless of what volatility I may have to face.

But of course — and here’s the big caveat — this strategy definitely isn’t for everybody, and that’s what makes investing unique to each of us and why it is essential to have your portfolio match your temperament.

Adding to my winners

By taking tiny positions (sometimes even $5) in businesses that fascinate me, I do two things:

1. Make sure I don’t forget them.
2. Put some skin in the game, however marginal it may be.

With this little bit of skin in the game, I can let these companies I admire percolate on the back burner. Not forgetting about them — but not worrying about their day-to-day price swings either.

From here, I can add to the position if a stock’s investing thesis becomes more alluring and my knowledge of the company grows. But for the most part, I just let the stocks run on their own.

However, once their stock price doubles, I use that as a natural opportunity to do more research on them and, more importantly, add a little to my holding (once again, perhaps just $5). 

And if it triples, I do the same. And if it quadruples, again the same, and so on until it has grown to a position in my portfolio that requires no further investment (i.e., becomes too large of a holding for me to sleep well at night).

This explanation is a long-winded way of saying I water my flowers (or add to my winners) and let them continue to grow.

The best part about “having” to continue to learn about these winning stocks is that I was already fascinated by them at some point or they wouldn’t be in the portfolio — making the added learning fun and not tedious.

Letting losers fade away

In addition to allowing me to add to my winners over time, owning over 100 stocks also offers natural diversification, allowing my losers to fade away into obscurity in a worst-case scenario.

Look no further than Teladoc Health (NYSE: TDOC) and the huge decline I faced as a shareholder. Yet, even with a considerable 4% portion of my holdings allocated to the company, my portfolio remained flat the following day after the company’s concerning earnings report, thanks to an otherwise strong day in the market and success elsewhere in what I held.

So now what? Well, in Teladoc’s case — nothing. It still accounts for 2% of my portfolio, so it doesn’t necessarily warrant new buying. Down nearly 90% from its all-time highs, there’s no real reason to sell here either.

Am I upset with management? Absolutely! However, I am still fascinated by its ideas and its mission statement “that everyone should have access to the best healthcare, anywhere in the world on their terms.”

With that said, and regardless of your investing temperament, buy what you love, add to your winners, and leave things alone if possible. 

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

The post Why owning over 100 top stocks helps me sleep well at night appeared first on The Motley Fool Australia.

More reading

• 3 ASX shares that could cash in on higher interest rates
• Why the AVZ share price went from being up 19% to down 20% today
• ASX 200 mining shares slump, dragging index into the red
• What’s the outlook for the Telstra share price in May?
• Why did the AFIC share price go backwards in April?

Josh Kohn-Lindquist has positions in Teladoc Health. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Teladoc Health. 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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Yesterday, the Australian share market witnessed an event that has not been seen since 2010. For more than 11 years the cash rate has been falling, but now investors are grappling with rising interest rates and their impact on ASX shares.

The Reserve Bank of Australia (RBA) made the call to bump the cash rate up to 0.35% amid higher than expected inflation numbers. While the response had been anticipated for some time, the S&P/ASX 200 Index (ASX: XJO) still slipped on the news.

Now, the challenge for market participants is to find the opportunities that might arise from this situation.

Why certain ASX shares might get a boost

Over the years, interest earned on cash has faded away to the point of being a negligible amount. However, with Governor Philip Lowe remarking that the cash rate could reach 2.5% over the next couple of years, the potential for earned interest is looking more appealing.

The balance sheet of a company has always been important but if rates continue to rise, they might become even more important. In short, debt will become expensive and cash will receive a greater return.

For this reason, let’s review three ASX shares with little to no debt and a tonne of cash stashed away.

IGO Ltd (ASX: IGO)

The first ASX-listed share on our list is also one of the most loaded up with cash. With around $440 million at the end of the March quarter, mining and exploration company IGO holds a considerable amount of cash with zero debt.

In addition, the battery metals miner recorded a solid quarter recently in terms of net profits after tax (NPAT). During the third quarter, IGO raked in $133 million in earnings, representing an increase of 154% from the previous quarter.

However, the IGO share price has been struggling over the last month as the company wrangles with making a bid for Western Areas Ltd (ASX: WSA).

Zimplats Holdings Ltd (ASX: ZIM)

Another ASX share that could be set to capitalise on higher interest rates is Zimbabwean platinum metals group miner Zimplats.

According to the half-year report, the company had approximately US$429 million (A$603 million) in cash and cash equivalents at the end of December. Meanwhile, Zimplats’ debt level is non-existent with $0 owing on the balance sheet.

In the latest quarterly report, Zimplats managed to increase production by 6% while costs only climbed 2% higher.

GQG Partners Inc (ASX: GQG)

Lastly, our final ASX share that could be set to earn some extra interest is boutique asset management firm GQG Partners.

To be clear, this company does not hold hundreds of millions in cash like IGO or Zimplats. Though, at $78.1 million of cash and $0 of debt, the financial operator is still poised to benefit from higher interest rates.

This would be a pleasant turn of events for GQG shareholders, considering the share price is down 15% year-to-date.

The post 3 ASX shares that could cash in on higher interest rates appeared first on The Motley Fool Australia.

More reading

• Why Appen, Aussie Broadband, IGO, and Kogan shares are sinking today
• Is the IGO share price cheap after dropping 9% in a week?
• What’s happening to ASX nickel shares today?
• Brokers love these 2 ASX dividend shares right now
• Here are the top 10 ASX mining companies by market cap

Motley Fool contributor Mitchell Lawler 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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It has been an incredibly volatile day for the AVZ Minerals Ltd (ASX: AVZ) share price on Wednesday.

After rocketing 19% higher to $1.18 in early trade, the lithium developer’s shares are now down a massive 20% to 79 cents.

What’s going on with the AVZ share price today?

The AVZ share price initially rocketed higher this morning after the company revealed that the Minister of Mines has awarded a mining licence to AVZ’s 75%-owned Dathcom Mining SA business for the flagship Manono Lithium and Tin Project in the Democratic Republic of the Congo (DRC).

The mining licence will cover the entirety of the Roche Dure mineral resource and the Carriere de l’Este exploration target. And while it does exclude a portion of the land holding to the north, AVZ intends to have discussions with the government in the near future regarding this land.

All in all, the company can now advance its early works program ahead of a final investment decision to commence major works and first production toward the later months of 2023.

So why the selloff?

The weakness in the AVZ share price appears to have been driven by some comments at the bottom of its release relating to Manono Project ownership claims.

Under the terms of the joint venture agreement, La Congolaise D’Exploitation Miniere SA (Cominiere), which owns the other 25% of the Dathcom business, will cede 10% of its interest to the DRC Government.

AVZ now wants to acquire the remaining 15% of the interest in Dathcom, which it believes it has the rights to. However, Cominiere has decided to transfer this interest to Jin Cheng Mining Company out of the blue.

So, with AVZ about to sell 24% of its stake in Dathcom to CATH in exchange for a US$240 million cornerstone investment to fund development, the company looks set to have its ownership in the Manono Lithium Project trimmed down to just 51%.

AVZ doesn’t believe this is lawful and intends to fight the claim. Though, how successful it will be is hard to say. After all, the so-called Democratic Republic of the Congo is one of the most corrupt countries in the world according to Transparency International. It ranks 169th out of 180 and sits just a few points away from North Korea.

AVZ commented:

“In relation to the Cominiere Transfer Claim, the Company notes any such purported transfer would be restricted under the terms of the existing shareholders agreement between the Dathcom shareholders and accordingly, any purported transfer of the 15% interest to a third party would be a material breach of the pre-emptive rights contained in the existing Shareholders Agreement owed to AVZI, invalid and of no force or effect.

The Company has considered each of the Dathomir Claim and Cominiere Transfer Claim in detail and believes them to each be spurious in nature, without merit, contain fundamental and material errors, and have no substance or foundation in fact or law. The Company is continuing to take all necessary actions to resist these vexatious and meritless claims and to protect Dathcom’s and its interests, and the Company will consider all options including engaging with the DRC Government and seeking international law remedies.”

The post Why the AVZ share price went from being up 19% to down 20% today appeared first on The Motley Fool Australia.

More reading

• AVZ share price rockets 19% on ‘watershed moment’
• Here are the 3 most heavily traded ASX 200 shares on Friday
• Here are the 3 most heavily traded ASX 200 shares on Thursday
• Here are the 3 most heavily traded ASX 200 shares on Wednesday
• Why is it such a mixed day of trade for ASX lithium stocks?

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.

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Some of the ASX’s biggest mining shares are heading south following a trend reversal throughout the day.

The biggest company on the ASX by valuation, BHP Group Ltd (ASX: BHP), is currently down 0.43% to $47.46.

Likewise, Fortescue Metals Group Limited (ASX: FMG) is shedding 2.72% to $20.05, and Rio Tinto Limited (ASX: RIO) is dipping 0.61% to $111.17.

Ultimately, this has weighed on the S&P/ASX 200 Resources Index (ASX: XJR), which is falling 0.77% to 5,714.2 points.

What’s driving the ASX 200 mining shares lower?

There are a couple of reasons why the ASX 200 mining sector is trading in negative territory.

Firstly, the drop in iron ore prices over the past week is providing strong resistance to the resources industry.

Iron ore prices have sunk almost 5% since this time last Wednesday to trade at US$144.08 per tonne.

Furthermore, as COVID-19 continues to spread throughout China, there are fears that the government may enforce a wider lockdown.

It is expected that there will be a reduction in demand from Chinese steel mills in the next few months. This is because the construction sector has been heavily affected by the government’s strict zero-COVID policy.

The property and infrastructure industry comprises roughly 60% of China’s steel needs.

In addition to the ASX 200 mining sector weakness, the well-known phrase “sell in May and go away” could be playing a hand.

Historically, investors tend to offload their shares before tax time, leading to a broad underperformance across the market. Conversely, there is typically a rally after the end of the financial year, with July usually a strong month.

The post ASX 200 mining shares slump, dragging index into the red appeared first on The Motley Fool Australia.

More reading

• After dropping 7% in a month, can the Rio Tinto share price stage a comeback in May?
• Leading brokers name 3 ASX shares to sell today
• Why is the Fortescue share price down 5% on Tuesday?
• Here’s how some of the biggest ASX 200 shares are responding to the RBA’s rate rise
• How did the Fortescue share price stack up in April?

Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has 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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The Telstra Corporation Limited (ASX: TLS) share price has climbed 1% in the past month, but can it pick up further in May?

The telecommunication giant’s shares are currently edging into the green at $3.995 apiece, up 0.38% so far today. For perspective, the S&P/ASX 200 Index is 0.08% in the red at the time of writing.

Let’s take a look at the outlook for Telstra.

What’s the outlook for the Telstra share price?

Telstra could be a buy, the team at Morgans believes. Analysts have placed a $4.56 price target on the company’s share along with an add rating. This is an upside of more than 14% on the current share price. Morgans also predicts fully franked dividends per share of 16 cents in FY 2022 and FY 2023.

Telstra was among the top three traded ASX 200 shares on Tuesday. The telco has been undertaking a $1.35 billion buyback program.

In recent news, Telstra has appointed Michael Ackland to the role of chief financial officer. Ackland will take over from Vicki Brady, who has been promoted to CEO of the company.

Ackland is currently serving as consumer and small business group executive and will take on his new challenge from 1 September.

Commenting on the news, incoming CEO Vicki Brady said:

I was thrilled that we were able to appoint an internal candidate to the role. Michael has exceptional credentials and is well placed to continue to drive Telstra’s financial outlook and success

Outgoing CEO Andrew Penn added:

Michael has been instrumental in driving T22 changes, including reducing consumer and small business in-market plans from 1800 to 20, as well as improving consumer and small business customers’ digital experience and decreasing call volumes and complaints.

Telstra is now recruiting for a new consumer and small business group executive.

Last week, Telstra announced it will acquire a 51% stake in streaming box provider Fetch TV. This involved a $50 million investment from Telstra. Fetch has 670,000 active subscribers.

Telstra share price snapshot

The Telstra share price has leapt 14% over the past 12 months, but it has lost nearly 5% year to date.

For perspective, the benchmark S&P/ASX 200 Index has returned more than 3% over the past year.

Telstra has a market capitalisation of more than $46.6 billion based on its closing share price today.

The post What’s the outlook for the Telstra share price in May? appeared first on The Motley Fool Australia.

More reading

• What would happen if Appen shares were removed from the ASX 200? 
• ASX 200 midday update: ANZ higher on results, Flight Centre and JB Hi-Fi sink following updates
• Analysts name 2 blue chip ASX 200 dividend shares to buy
• Is the Wesfarmers share price a buy or a sell in May?
• 5 things to watch on the ASX 200 on Wednesday

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.

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The Australian Foundation Investment Co. Ltd (ASX: AFI) (AFIC) share price went down around 1% in April 2022.

The listed investment company (LIC) is also down by 3.4% since the start of 2022.

What happened in April 2022?

While AFIC has a diversified portfolio, it can drop in value just like any other ASX share.

A LIC’s share price can be influenced by two different things: the underlying portfolio performance of the LIC and changes to the premium/discount that investors are willing to pay for the net tangible assets (NTA) of the LIC.

The S&P/ASX 200 Index (ASX: XJO) also fell by almost 1% during April 2022. So, the AFIC portfolio performed similarly to the ASX 200.

The biggest positions in the AFIC portfolio have the biggest influence on the overall portfolio performance. At the end of March 2022, these were the biggest positions:

Commonwealth Bank of Australia (ASX: CBA), BHP Group Ltd (ASX: BHP), CSL Limited (ASX: CSL), Macquarie Group Ltd (ASX: MQG), Transurban Group (ASX: TCL), Westpac Banking Corp (ASX: WBC), Wesfarmers Ltd (ASX: WES), National Australia Bank Ltd. (ASX: NAB) and Woolworths Group Ltd (ASX: WOW).

Over April 2022, the CBA share price dropped 1.8%, the BHP share price fell 7.2% and the CSL share price climbed 1.9%.

Recent investment performance

Every month, AFIC tells investors about its investment performance.

Over the 12-month period to 31 March 2022, the AFIC net asset per share growth plus dividends, including franking, was 11.4%. That underperformed the 16.6% return of the All Ordinaries Total Accumulation Index (ASX: XAOA), including franking.

The last five years also show underperformance by AFIC, with an average portfolio of 10.6% compared to the 10.7% return of the index.

However, beating the index isn’t the LIC’s stated investment objective. It says:

AFIC aims to provide shareholders with attractive investment returns through access to a growing stream of fully franked dividends and enhancement of capital invested over the medium to long term.

The LIC says that its investment style is long-term, fundamental and ‘bottom-up’. Its annual management cost is 0.14%, with no performance fees.

AFIC share price premium or discount?

Investors get a monthly update about whether AFIC shares are trading at a premium or a discount.

At the end of March 2022, the AFIC share price was at a premium of more than 10%, though the size of the premium has reduced over the last couple of months. It has been a while since the AFIC share price was last trading at a discount to its NTA.

The post Why did the AFIC share price go backwards in April? appeared first on The Motley Fool Australia.

More reading

• Could AFIC shares be an ASX inflation hedge?
• Do AFIC shares trade at a discount right now?
• How is AFIC different from an ASX 200 ETF?
• Why has the AFIC share price leapt 5% in 4 weeks?

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 CSL Ltd. The Motley Fool Australia has positions in and has recommended Wesfarmers Limited. The Motley Fool Australia has recommended Macquarie Group Limited and Westpac Banking Corporation. 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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Bitcoin (CRYPTO: BTC) represents different things to different people.

Launched way back in January 2009 by a person or people going under the name Satoshi Nakamoto, the world’s first crypto is sometimes lauded as a financial equaliser. One whose decentralised nature takes control from established financial institutions and is free from government manipulation.

But not everyone agrees with this rosy take.

Just say no

Over the weekend legendary investor Warren Buffett and his long-time right hand man Charlie Munger hosted Berkshire Hathaway’s annual shareholder meeting.

With cryptos gaining mainstream traction across the globe, their opinions on Bitcoin came up.

As Bloomberg reports, Buffett said he’s not sure what to do with the likes of Bitcoin and other cryptos.  According to the Oracle of Omaha, crypto assets aren’t productive like real estate or farmland.

Munger, well-known for his disdain of cryptos, said, “When you have your own retirement account and your friendly adviser suggests you put all your money into Bitcoin, just say no.”

“In my life I try and avoid things that are stupid, and evil and make me look bad in comparison with somebody else. Bitcoin does all three,” he added.

If not cryptos then what?

Buffett and Munger couldn’t have been clearer on their dislike of Bitcoin.

But with resurgent inflation, rather than speculating on stocks like you’re in a casino or investing in digital assets that you may not understand, Buffett recommended (quoted by Bloomberg):

The best investment by far is anything that develops yourself. If you’re the one they pick out to do any particular activity – sing or play baseball or be their lawyer, whatever it may be – whatever abilities you have can’t be taken away from you. They can’t actually be inflated away from you.

How has Bitcoin been tracking?

Crypto investors would have done well to take Warren Buffett’s advice this year.

So far in 2022, the Bitcoin price is down 20%, according to data from CoinMarketCap.

The world’s leading crypto is currently down 45% from its 10 November all-time highs of US$68,790.

The post ‘Stupid and evil’. Warren Buffet and Charlie Munger unload on Bitcoin appeared first on The Motley Fool Australia.

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• Crypto king Bitcoin to be dethroned by this hot rival: experts

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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