Tag: Motley Fool

At lunch on Thursday, the S&P/ASX 200 Index (ASX: XJO) has followed the lead of US markets and is storming higher. The benchmark index is currently up 0.7% to 7,171.7 points.

Here’s what is happening on the ASX 200 today:

Corporate Travel Management’s acquisition boost

The Corporate Travel Management Ltd (ASX: CTD) share price is pushing higher today after receiving a boost from the ACCC. The competition regulator has approved the corporate travel specialist’s proposed $175 million acquisition of the ANZ-based corporate and entertainment travel businesses of Helloworld Travel Ltd (ASX: HLO). The ACCC doesn’t expect the deal to lessen competition.

IGO shares storm higher

The IGO Ltd (ASX: IGO) share price is storming higher today following another strong night for commodity prices. For example, according to CommSec, the nickel price rose 3.6% to US$26,489 per tonne overnight. In other news, this morning joint venture partner Impact Minerals Limited (ASX: IPT) revealed that a significant electromagnetic (EM) conductor has been identified in the extensive ground EM survey at the Broken Hill project in NSW.

Zip shares downgraded

The Zip Co Ltd (ASX: Z1P) share price is falling again on Thursday after being downgraded by the team at UBS. According to the note, the broker has downgraded the buy now pay later provider’s shares to a sell rating and taken a hammer to its price target. The latter is now just $1.00, which is down 81% from UBS’ previous price target of $5.20.

Best and worst ASX 200 performers

The best performer on the ASX 200 on Thursday has been the Pointsbet Holdings Ltd (ASX: PBH) share price with a 14% gain on no news. This sports betting company’s shares have been very volatile this week. The worst performer on the ASX 200 has been the Monadelphous Group Limited (ASX: MND) share price with a 4% decline. Some of this is due to its shares trading ex-dividend this morning.

The post ASX 200 (ASX:XJO) midday update: Corp Travel Management’s ACCC boost, Zip downgraded appeared first on The Motley Fool Australia.

More reading

• Corporate Travel Management (ASX:CTD) share price higher on ACCC Helloworld update
• 5 things to watch on the ASX 200 on Thursday
• These 3 ASX 200 shares are topping the volume charts on Wednesday
• Why Domino’s, Magellan, PointsBet, and Zip shares are falling
• Will Mike Cannon-Brookes bring an extra $1 billion to the table in his AGL takeover bid?

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 Helloworld Limited, Pointsbet Holdings Ltd, and ZIPCOLTD FPO. The Motley Fool Australia owns and has recommended Helloworld Limited. The Motley Fool Australia has recommended Corporate Travel Management Limited and Pointsbet Holdings Ltd. 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/GXCFBQr

The Insurance Australia Group Ltd (ASX: IAG) share price is in the red today amid reports the company is facing nearly $300 million in claims in the Federal Court.

It follows longstanding concerns that IAG could be liable for insurance policies placed on security packages sold by the now-defunct Greensill Capital. Though, the company has denied any exposure to the firm.

Additionally, disastrous flooding in parts of Australia could be weighing on investors’ minds this morning.

At the time of writing, the IAG share price is $4.33, 1.7% lower than its previous close.

For context, the S&P/ASX 200 Index (ASX: XJO) is currently up 0.62%.

Let’s take a closer look at what could be weighing on the insurance giant’s stock on Thursday.

Is this dragging on the IAG share price today?

The IAG share price is sliding today amid reports that it’s being hit with nearly $300 million of claims due to its stake in specialist insurer, Bond and Credit Co.

When Greensill collapsed in early 2021, rumours swirled that IAG could be liable to pay for some of losses associated with the firm’s failure.

That’s because IAG owned a 50% share of Bond and Credit Co, which covered credit policies sold to Greensill entities.

However, IAG sold its share of the specialist insurer in 2019. It claimed the sale eliminated its net exposure to trade credit insurance.

Over the weekend, reports emerged claiming Credit Suisse Virtuoso launched a new claim relating to the firm’s collapse, seeking around $42 million from IAG in the Federal Court.

Today, the Australian Financial Review is reporting White Oak, Credit Suisse, and the German administrator of Greensill Bank are, together, chasing IAG for close to $300 million.

The Motley Fool Australia reached out to IAG for comment but did not receive an immediate response.

Wild weather and flooding continues

More major flooding could also be dragging on the IAG share price today.

Devastating floods have continued to hit parts of Australia’s east coast, as New South Wales (NSW) SES issues evacuation orders for parts of Sydney.

The Bureau of Meteorology is forecasting up to 100 millimetres of rain for the state’s Metropolitan and Illawarra districts. Parts of the Mid North Coast, Hunter, and Central Tablelands are also expected to be impacted.

It has also issued a warning of high tides, heavy surf, coastal erosion, and potential flooding for most of NSW’s coastline.

Additionally, in already sodden south-east Queensland, the bureau has issued yet another major flood warning. This time, for the Logan River.

Parts of the river’s catchments received another 80 millimetres of rainfall overnight. That’s after they received between 400 millimetres and 800 millimetres last weekend.

The bureau is also expecting flooding to return to parts of Brisbane and Ipswich on Thursday and Friday.

IAG share price snapshot

It has been a rough week for the IAG share price.

It has fallen 9.7% since Friday’s close.

That sees it trading for 3% less than it was at the start of 2022. It’s also currently 11% lower than it was this time last year.

The post IAG (ASX:IAG) share price slumps amid $300m Greensill hit appeared first on The Motley Fool Australia.

More reading

• Why is the IAG (ASX:IAG) share price sliding this week?
• 4 ASX shares that love rising interest rates: report
• Here’s why the IAG (ASX:IAG) share price is outperforming today
• Here’s everything you need to know about the IAG (ASX:IAG) dividend
• Leading brokers name 3 ASX shares to sell today

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

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

ASX gold shares have been riding high in 2022 on the back of galloping gold prices.

Initially fuelled by the spectre of rising inflation and more recently by Russia’s invasion of neighbouring Ukraine, gold has soared from US$1,829 at the beginning of the year to US$1,929 today.

That 5.5% boost has helped propel the S&P/ASX All Ordinaries Gold Index (ASX: XGD) to a 4.4% year-to-date gain, even as the All Ordinaries Index (ASX: XAO) has fallen 5.7%.

While not all ASX gold shares have matched those gains, some have done much better.

Below we take a look at 3 little-known junior gold miners whose share prices are going gangbusters.

ASX gold share nears first gold pour

Our first outperforming junior gold miner is Calidus Resources Ltd (ASX: CAI).

The Calidus share price has leapt 23.9% since the opening bell on 4 January. That gives Calidus a market cap of $326 million.

Investors have rewarded the miner following a series of positive exploration and production announcements this year.

The most recent boost came on 28 February, when the ASX gold share reported it was on track for its first gold pour, approximately 10 weeks down the road.

Junior gold miner with a foothold in lithium

Our second booming ASX gold share is Castle Minerals Ltd (ASX: CDT), which also has exposure to lithium.

The Castle Minerals share price has leapt 42.5% this year, giving the miner a market cap of $52 million.

Castle Minerals has released a number of positive announcements in 2022, including exploration license approvals and the identification of 4 high priority gold and lithium targets at its Beasley Creek project in Western Australia.

This ASX gold share leads the pack

Leading the pack of the 3 ASX gold shares under our spotlight today is West Wits Mining Ltd (ASX: WWI).

The West Wits share price has surged 50% since the opening bell on 4 January. It now has a market cap of $81 million.

In February, West Wits reported that its Witwatersrand Basin Project in South Africa had successfully produced its first ore. The company said the project “is enroute to becoming a large gold mine in South Africa, ultimately targeting production of up to 95,000 ounces” of gold per year.

The post 3 ASX junior gold mining shares going gangbusters in 2022 appeared first on The Motley Fool Australia.

More reading

• The miner’s ore reserves are climbing, so how is the Newcrest (ASX:NCM) share price responding?
• Here’s why this ASX graphite share just leapt 9%
• Here’s why the Global Lithium (ASX:GL1) share price is soaring 18% today
• Here’s why the Woolworths (ASX:WOW) share price is sliding today
• Better buy: Apple or all 30 Dow Jones stocks?

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 Bruce Jackson.

from The Motley Fool Australia https://ift.tt/4f1DmWE

The Newcrest Mining Ltd (ASX: NCM) share price has been rising in recent weeks amid an increase in gold and copper ore reserves.

Newcrest shares are currently down 0.7% at $25.42. However, they have surged 12% in the past month.

Let’s take a look at what this miner has been reporting lately.

Gold and copper reserves increase

The Newcrest share price has gained nearly 8% since market close on 16 February. On 17 February, the company reported its gold ore reserves had soared by 10% to 54 million ounces.

Following a review of all production resources, Newcrest updated its mineral resource and ore reserve estimates for the 12-month period ending 31 December 2021.

Measured and indicated resources increased 7% to 104 million ounces of gold, while copper soared 12% to 19 million tonnes.

Meanwhile, inferred resources surged to 39% to 16 million ounces of gold, while copper surged 50% to 3.5 million tonnes.

The company also revealed its half-year results on 17 February.

In the H1 FY22, Newcrest statutory profit fell 46% on the previous corresponding period, while gold production was down 20%. The company declared a fully franked interim dividend of 7.5 US cents (10.4 AU cents). This will be paid to shareholders on 31 March.

On 28 February, Newcrest advised it had received final approval to acquire the remaining stake in Canadian company Pretivm Resources. Currently, Newcrest currently holds a 4.8% stake in its Canadian counterpart.

Gold prices edging higher

The surging gold price could also be having an impact on the Newcrest share price. As my Foolish colleague Bernd Struben reported yesterday, gold prices have been soaring amid inflation concerns and Russia’s invasion of Ukraine.

The gold price has surged by nearly 7% in a month from $1804.40 on 3 February to US$1928.59 per troy ounce at the time of writing.

Newcrest share price snapshot

The Newcrest share price has climbed 4% in the past year, while it is up more than 3% this year to date.

For perspective, the benchmark S&P/ASX 200 Index (ASX: XJO) has returned around 5.5% over the past year.

Newcrest has a market capitalisation of roughly $20.9 billion based on today’s share price.

The post The miner’s ore reserves are climbing, so how is the Newcrest (ASX:NCM) share price responding? appeared first on The Motley Fool Australia.

More reading

• Here’s why ASX gold shares are having another stellar day
• Here’s why ASX gold shares just had their best month in 2 years
• Is Bitcoin or gold a better buy for these uncertain times?
• Newcrest (ASX:NCM) shares rise following Pretivm takeover update
• 5 things to watch on the ASX 200 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 Bruce Jackson.

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

The Talga Group Ltd (ASX: TLG) share price has been storming higher on Thursday morning.

At the time of writing, the graphite producer’s shares are up 9% to $1.50.

Why is the Talga share price storming higher?

Investors have been bidding the Talga share price higher today following the release of an update on drilling activities at its Vittangi Graphite Project in northern Sweden.

According to the release, the final results from its drilling activities have returned world-class grades, which management believes paves the way to upgrade Europe’s largest natural graphite resource for Li-ion batteries. A revision of the Vittangi JORC mineral resource has now commenced.

What is Talga planning?

The release highlights that Talga is building a vertically integrated operation to supply green natural graphite anode products to Li-ion battery manufacturers and automotive OEM customers.

This is a great spot to be in, as by 2031 Europe is forecast to require 1 million tonnes anode per annum (tpa), whilst global demand is projected to reach >8.3 million tpa.

Furthermore, Talga already has relationships with many of the companies that will be making up this sizeable demand. Management notes that its anode products are being trialled by more than 40 customers whose capacity roadmaps underscore the enormity of demand, globally and in Europe.

Talga’s Managing Director, Mark Thompson, was pleased with the results.

He said: “With the commissioning of our Electric Vehicle Anode plant (EVA) underway Talga is well advanced in its plans for vertically integrated anode production in Europe. The consistent high grades from recent drilling at Vittangi are outstanding, and our world-class Swedish natural graphite deposits clearly have room for significant further growth. We are pleased to commence upgrading the scale of resources to match fast growing global demand for cleaner, secure battery supply chains.”

The post Here’s why this ASX graphite share just leapt 9% appeared first on The Motley Fool Australia.

More reading

• Here’s why the Global Lithium (ASX:GL1) share price is soaring 18% today
• Here’s why the Woolworths (ASX:WOW) share price is sliding today
• Better buy: Apple or all 30 Dow Jones stocks?
• Here are 4 ASX shares insiders are putting their money behind
• Bubs (ASX:BUB) share price higher on daigou deal

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 Bruce Jackson.

from The Motley Fool Australia https://ift.tt/hA5wclj

The Global Lithium Resources Ltd (ASX: GL1) share price is off to the races today.

The ASX lithium share is currently trading for $1.765 per share, up 18.46% from this morning’s opening price of $1.49.

Below we take a look at the offtake agreement that looks to be spurring ASX investor interest.

What offtake agreement was announced?

The Global Lithium share price is soaring after the company reported it’s entered into a 10-year spodumene concentrate offtake agreement with Suzhou TA&A Ultra Clean Technology Co.

Suzhou TA&A, the largest Global Lithium shareholder, will also provide technical support services as needed.

As per the agreement, Suzhou TA&A will acquire and take delivery of a least 30% of available product from Global Lithium’s operations. Suzhou TA&A could increase that quantity by up to an additional 15% in each contract year.

The company said prices for its spodumene concentrate (a lithium ore mineral) will be based on recognised market prices.

Commenting on the agreement boosting the Global Lithium share price today, non-executive chair Warrick Hazeldine said:

As Global Lithium continues to advance our significant West Australian lithium portfolio, having the continued support of a world leader like Suzhou TA&A is truly an exceptional vote of confidence in our company, our people and our assets.

Having joined our register in December 2021 as a cornerstone investor, Suzhou TA&A has provided tremendous support in not only maintaining their 9.4% stake but also providing invaluable introductions and assistance, which has led us to signing this Strategic Offtake Agreement.

The agreement remains subject to the approval of both company’s boards.

Global Lithium share price snapshot

With today’s intraday gains factored in, the Global Lithium share price is up 56% year-to-date.

But that’s nothing compared to the 538% gains in Global Lithium’s shares since the company listed on the ASX on 6 May last year.

To put that into context, the All Ordinaries Index (ASX: XAO) has gained 2% over that same period.

The post Here’s why the Global Lithium (ASX:GL1) share price is soaring 18% today appeared first on The Motley Fool Australia.

More reading

• Are high lithium prices here to stay? Industry insiders say yes
• Global Lithium (ASX:GL1) share price rockets 18% on ‘huge achievement’
• How has the Global Lithium (ASX:GL1) share price managed to surge 58% in 2022?

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 Bruce Jackson.

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

You may be wondering why the Woolworths Group Ltd (ASX: WOW) share price is backtracking today.

With the earning seasons wrapped up for most of the S&P/ASX 200 Index‘s (ASX: XJO) shares, Woolworths is trading ex-dividend.

This comes after the retail conglomerate released its half-year scorecard on 23 February, reporting mixed numbers across key financial metrics.

Nonetheless, the board opted to slash its upcoming interim dividend by 26.4% over the prior corresponding period.

At the time of writing, the company’s shares are down 1.44% to $34.73.

Below we take a closer look at Woolworths’ latest dividend and when shareholders can expect payment.

Shareholders set eyes on Woolworths interim dividend

Following the company’s half year results, investors are eyeing Woolworths shares as they go ex-dividend today.

Typically, one business day before the record date, the ex-dividend date is when investors must have purchased shares. If the investor does not buy Woolworths shares before this date, the dividend will go to the seller.

Historically, when a company reaches its ex-dividend day, its shares tend to fall in proportion to the dividend paid out. This is because investors tend to sell off the company’s shares after securing the dividend.

When can shareholders expect to be paid?

For those eligible for Woolworth’s interim dividend, shareholders will receive a payment of 39 cents per share on 13 April. The dividend is fully-franked at a corporate tax rate of 30%, which means investors will receive tax credits from this.

In addition, investors can elect for the dividend reinvestment plan (DRP) which will add a portion of shares to their portfolio instead. This will be based on a 10-day volume-weighted average price from 8 March to 21 March.

There is no DRP discount rate and the last election date for shareholders to opt-in is on 7 March.

Under the company’s capital management framework, there is typically a 70% to 75% dividend payout.

Woolworths share price summary

Since the beginning of 2022, Woolworths shares have lost 7% on the back of weakened investor sentiment. The benchmark ASX 200 index is also down around 4.4% over the same timeframe.

Woolworths shares reached a 52-week low of $33.45 last month, before moving in circles over the following weeks.

Based on today’s price, Woolworths commands a market capitalisation of roughly $42.71 billion and has a trailing dividend yield of 3.06%.

The post Here’s why the Woolworths (ASX:WOW) share price is sliding today appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Thursday
• February was positive for the Woolworths (ASX:WOW) share price. Here’s why
• Here’s what you need to know about the Woolworths (ASX:WOW) dividend
• Should you buy Woolworths (ASX:WOW) shares now for the dividend yield?
• The oil price has just hit an 8-year high. What might this mean for ASX shares?

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 Bruce Jackson.

from The Motley Fool Australia https://ift.tt/Ak4TpqX

It can be useful for investors to keep an eye on which shares have experienced meaningful insider buying.

This is because insider buying is often regarded as a bullish indicator, as few people know a company and its intrinsic value better than its own directors. If they are buying, it suggests that they are confident in the direction the company is heading.

With that in mind, listed below are a few ASX shares that have reported meaningful insider buying recently. They are as follows:

Bega Cheese Ltd (ASX: BGA)

A change of director’s interest notice reveals that the Chairman of this diversified food company has taken advantage of recent weakness in the Bega share price to top up his holding. Executive Chairman, Barry Irvin AM, has picked up 10,000 shares for $46,358.13 through an on-market trade on 2 March. This increased Mr Irvin’s holding to a total of just over 2 million shares. The Bega share price dropped to a 52-week low on Wednesday.

City Chic Collective Ltd (ASX: CCX)

No less than four of this plus-sized fashion retailer’s directors have been loading up on shares following a sharp pullback in the City Chic share price. Its shares came crashing down to earth last month following the release of a disappointing half year result. Based on these on-market purchases, which range from parcels worth $38,000 to $192,000, City Chic’s directors appear confident that the company will bounce back strongly.

Harvey Norman Holdings Limited (ASX: HVN)

Harvey Norman’s co-founder and Chairman, Gerry Harvey, has been buying this retailer’s shares. Mr Harvey picked up approximately 651,000 shares for a consideration $3.365 million via an on-market trade on 28 February. Goldman Sachs would approve of this purchase. Last week the broker retained its buy rating and $6.00 price target on the retail giant’s shares.

Temple & Webster Group Ltd (ASX: TPW)

Another change of director’s interest notice reveals that its co-founder and non-executive director, Conrad Yiu, has been buying shares. Mr Yiu picked up 20,915 shares through a series of on-market trades between 22 to 25 February. This came at the cost of just under $150,000. With the online furniture retailer’s shares down by almost 50% over the last six months, it appears as though this director believes it has created a buying opportunity.

The post Here are 4 ASX shares insiders are putting their money behind appeared first on The Motley Fool Australia.

More reading

• 2 great ASX shares to buy in March 2022: experts
• Top broker says Harvey Norman (ASX:HVN) share price is cheap
• These are the 10 most shorted ASX shares
• 2 top ASX shares this broker loves
• Is now the time to buy these 2 beaten-up ASX shares in March 2022?

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 Temple & Webster Group Ltd. The Motley Fool Australia owns and has recommended Harvey Norman Holdings Ltd. The Motley Fool Australia has recommended Temple & Webster Group Ltd. 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/0qL2NSr

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.

If you’re considering taking a position in Apple (NASDAQ: AAPL) following its 8% pullback so far in 2022, you’re not alone. Price drops of this size are nothing unusual for this stock and have proven to be great buying opportunities amid what’s become a reliable long-term uptrend. As it turns out, making the world’s most popular smartphone — and supporting its sales with a robust app ecosystem — is a lucrative business. Apple is the world’s biggest and most profitable company for a reason. 

However, before taking a swing on a single stock, it’s useful to at least consider a better-balanced alternative like a mutual fund or exchange-traded fund (ETF) that mirrors a blue-chip index like the Dow Jones Industrial Average (DJINDICES: ^DJI). Let’s see why.  

Why Apple looks so juicy

Admittedly, Apple is a very compelling investment prospect. While they’ve not moved in a straight line, Apple shares are up 27% for the past 12 months, higher by 140% for the past two years, and up by nearly 300% since this point in 2019. 

And well they should be. The $2.7 trillion company has continued to grow even when it arguably shouldn’t have. It turned last fiscal year’s $366 billion worth of revenue into net income of nearly $95 billion, shrugging off the impact of the pandemic. That gross revenue total was (another) record. 

iPhone revenue growth seems particularly unstoppable, supported by growing interest in the apps the devices operate. All told, the company sold $192 billion worth of iPhones last year and leveraged them to drive more than $68 billion worth of digital content. Apple’s services business, in fact, ramped up another 27% year over year.

Simply put, Apple looks bulletproof. The company’s growth shows no signs of slowing down despite lingering chatter about smartphone sales leveling out. And, to the extent smartphone saturation and competition will eventually catch up with the company’s iPhone sales, Apple’s got a proven plan B that many companies would be thrilled to call their plan A. That’s more than a little exciting.

Except, maybe Apple isn’t your best next trade, especially if it’s one of your first-ever trades.

The flavors you’re not getting when you bite into Apple

To be clear, you could certainly do much worse than jumping into an Apple stake. It’s a proven company, and a proven stock.

Make no mistake, though. When you own Apple, you’re not just betting on one company, or even on just one kind of business. You’re mostly betting on the iPhone, and what the iPhone can do for the company. See, more than half of 2021’s top line stemmed from iPhone sales, and though the company’s $68 billion services business only makes up about 18% of its total revenue, the bulk of that $68 billion is generated by iPhone users.

In other words, one unexpected iPhone misstep could produce outsize problems for the company.

That’s not a risk you run when buying a basket of diversified stocks like the Dow Jones Industrial Average. Not only does no single company account for more than a tenth of the index’s value (with most of them making up less than 5% of its value), the Dow is highly diversified even within itself. Technology stocks are the biggest single sector, yet they still only make up 22% of the index’s weight. Financials, healthcare, and discretionary stocks are well represented in the Dow as well. The only segment of the market that’s not represented by the Dow Jones Industrial Average is the utilities sector, and only because it’s got its own Dow index.

This is no minor detail. While diversification may often feel like unnecessary defense, that’s a judgment being made when times are good. You diversify a portfolio to protect it from all the unknowns. If you wait to start diversifying after certain pockets of the market are running into turbulence, you’re already too late.

Just food for thought

Like any other piece of investing advice, take this one with a grain of salt. It may not be right for you. If your portfolio already has a well-diversified foundation consisting of index funds, you can afford to venture into higher-risk, higher-reward singular positions like Apple. You may also be eyeing Apple as a more speculative, short-term position that supersedes a long-term mindset. Nothing is ever completely unjustified.

For most investors, though — and particularly anyone just starting to build a portfolio — a basket of blue chips like the Dow is the first position you should take on, and should remain the core of your holdings.

Bottom line? Doing a little too much stock picking and not enough indexing is an easy way to unnecessarily chip away at a portfolio’s value, even when Apple is one of those picks. 

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

The post Better buy: Apple or all 30 Dow Jones stocks? appeared first on The Motley Fool Australia.

More reading

• What happens to stock markets when war breaks out?
• Looking for ASX shares that perform under higher inflation? Read this
• How this tech giant could ‘put booster rockets’ under crypto: expert

James Brumley has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended Apple. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple. The Motley Fool Australia has recommended Apple. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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/qANgrSK

Australian fintech Zeller has officially reached unicorn status – its valuation has surpassed $1 billion – and it’s using that might to win customers from some of the ASX’s biggest banks. 

The unlisted company – provider of financial services for businesses – hit the milestone in just two years. 

It was co-founded by Square’s (Block Inc CDI (ASX: SQ2)) former head of Asia Pacific and Australia country manager Ben Pfisterer, and its former strategy growth lead, Dominic Yap. 

The pair remain Zeller’s CEO and COO.

Let’s take a closer look at what Zeller is bringing to the table against S&P/ASX 200 Index (ASX: XJO) banks.

Zeller fronts up to ASX banking giants

Zeller’s latest funding round has inked it as the fastest Aussie start-up to reach unicorn status. 

In doing so, it has overtaken Airwallex’s previous record of three years.

Just eight months after its launch in May, the fintech had welcomed more than 10,000 Australian businesses to its books.

Zeller hit its milestone $1 billion valuation after a $100 million funding round. The round was led by venture capitalist firm Headline alongside Aussie super fund Hostplus.

And ASX big banks – look out! Zeller will be using the funds to push its product range’s development and “reimagine and replace” traditional banking services.

Previously, Zeller dug into the minds of its customers, finding 67% of businesses wanted to dodge ASX big four banks.

That’s bad news for Commonwealth Bank of Australia (ASX: CBA), National Australia Bank Ltd (ASX: NAB), Westpac Banking Corp (ASX: WBC), and Australia and New Zealand Banking Group Ltd (ASX: ANZ).

So far, 80% of its customers have switched from traditional banks, with most taking up more than just payment products.

“Australian business banking is fundamentally broken,” Pfisterer said.

“A lack of innovation from the incumbents means merchants are overlooked and underserved, at a time when they should be thriving.”

After its latest funding round, Zeller is looking to drop new financial offerings for businesses. 

These will include online payments, “next-generation” banking abilities, “enhanced” credit and debit cards, expense management, lending, and more.

“Our team set out to reimagine business banking by delivering a two-sided finance services operating system,” Pfisterer said. 

“Banking should no longer be transactional … We want Zeller to be at the centre of a business’s financial ecosystem, enabling them to have a complete view of every customer interaction and the overall health of their business.”

The post Australia’s newest tech unicorn, Zeller, is taking on the ASX banks. Here’s how appeared first on The Motley Fool Australia.

More reading

• Here’s how this top broker values the CBA (ASX:CBA) share price
• 2 cheap ASX dividend shares analysts rate as buys
• Can this ASX 200 bank share flame 20% higher?
• Top brokers name 3 ASX shares to buy today
• Why did the ANZ (ASX:ANZ) share price lag the other banks in February

Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended Block, Inc. The Motley Fool Australia owns and has recommended Block, Inc. The Motley Fool Australia has recommended Westpac Banking Corporation. 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/M7LY0FQ