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There’s a famous quote that value investing legend Ben Graham made about share price movements. He said:

In the short run, the market is a voting machine but in the long run, it is a weighing machine.

Graham is saying that in the near term, the prices of financial assets, such as ASX 300 shares, are influenced by the whims and emotions of investors. They cast their votes in a ballot box by buying or selling a company’s shares based on their current beliefs regarding its future potential.

However, in the long run, the valuation of an ASX share will ultimately be judged by its earnings, cash flow, and dividend payments. In this sense, it operates like a weighing scale, where the company’s fundamental characteristics act as the weights that determine its true value.

One ASX 300 stock that is not faring well in the ballot boxes right now is APM Human Services International Ltd (ASX: APM).

Since the start of the year, the APM share price has lost 18% of its value. Things are even worse on a 12-month basis, with this ASX 300 stock losing 40% of its value, as you can see on the chart below.

Is this ASX 300 stock a bargain buy?

While its decline over the last 12 months has been bitterly disappointing for shareholders, it could have created a buying opportunity for the rest of us.

That’s the view of analysts at Goldman Sachs, which believe the shares of the provider of health and human services could more than double in value from current levels.

According to a recent note, the broker has a buy rating and $4.10 price target on its shares. Based on the current APM share price of $1.96, this implies potential upside of 110% for investors.

In addition, the broker is expecting dividends per share of 11 cents in FY 2023 and 12 cents in FY 2024. This represents yields of 5.6% and 6.1%, respectively.

Unsurprisingly, given the above, Goldman believes the value on offer with this ASX 300 stock is compelling. It commented:

We believe the current share price presents a compelling opportunity. At ~11x FY23E P/E, APM is now trading at deep discount to global peer Maximus (MMS.US (Not Covered), 22x PE FY23 Bloomberg Consensus EPS). Ironically APM has de-rated significantly over the last quarter vs MMS despite the fact APM continues to grow its exposure in North America, with optionality for growth in disability, age care and new geographies.

The post 1 undervalued ASX 300 stock (with a 6% yield) to buy right now appeared first on The Motley Fool Australia.

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More reading

• Why APM, Macquarie Telecom, Northern Star, and Origin shares are rising today
• This ASX 300 director just loaded up on $2 million worth of her company’s shares

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended APM Human Services International. 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 Materials Index (ASX: XMJ) is sliding 0.95% today, but this ASX mining share is bucking the trend.

The Western Mines Group Ltd (ASX: WMG) share price is soaring 269.57% at the time of writing to 42.5 cents.

Let’s take a look at what this ASX 200 mining share reported to the market.

Nickel discovery

Investors are buying up Western Mines shares after the company announced the discovery of a “significant nickel system”.

Nickel can be used in lithium-ion batteries for electric vehicles (EV).

Assay results were reported for deep hole MTD023 at the company’s Mulga Tank Nickel, copper and platinum group elements (PGE) project in Western Australia.

The results showed “multiple broad intersections” of nickel sulphide mineralisation.

This included:

• 78m at 0.28% nickel (Ni), 131ppm cobalt (Co), 70ppm copper (Cu), 32ppb platinum (Pt) and palladium (Pd) 118m including
• 20m at 0.38% Ni, 137ppm Co, 57ppm Cu, 45ppb Pt and Pd from 176m and
• 306m at 0.26% Ni, 130ppm Co, 47ppm Cu, 24ppb Pt and Pd from 402m and
• 221.5m at 0.25% Ni, 116ppm Co, 68ppm Cu, 23ppb Pt and Pd from 794.5m including
• 11.5m at 0.37% Ni, 134ppm Co, 75ppm Cu, 43ppb Pt+Pd from 794.5m and
• 88m at 0.44% Ni, 151ppm Co, 85ppm Cu, 38ppb Pt+Pd from 1,212m

The results affirm the presence of an “extensive magmatic nickel sulphide mineral system” within the Mulga Tank Ultramafic Complex, Western Mines said.

Commenting on the results, Western Mines managing director Dr Caedmon Marriott said:

The hole validates our geological model of the complex and really demonstrates a significant working nickel sulphide mineral system with huge volumes of mineralised ultramafic magma.

It could well be a pivotal hole for the company, with these assay results confirming the visual observations of extensive disseminated nickel sulphide mineralisation.

The company will continue to update shareholders as drilling at the site continues.

Western Mines share price snapshot

The Western Mines share price has soared 70% in a year. In the last month, the company’s share price has risen 117%.

This ASX mining share has a market capitalisation of about $17.4 million based on the current share price.

The post Guess which ASX mining share is exploding 270% today on a ‘significant’ discovery appeared first on The Motley Fool Australia.

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More reading

• Buy this ASX 200 mining share for 58% upside: Bell Potter
• How I’m building more passive income to retire early
• Top brokers name 3 ASX shares to buy today
• Why Deep Yellow, Frontier Digital, Magellan, and Novonix shares are dropping today
• This ASX All Ords stock is down 80% in a year, and one billionaire is buying up big

Motley Fool contributor Monica O’Shea 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 S&P/ASX 200 Index (ASX: XJO) is having a mildly positive session. In afternoon trade, the benchmark index is up 0.1% to 7,242.6 points.

Four ASX shares that have failed to follow the market higher today are listed below. Here’s why they are dropping:

Deep Yellow Limited (ASX: DYL)

The Deep Yellow share price is down 4% to 54.5 cents. That’s despite the uranium developer announcing the start of extensive resource drilling programs at the Tumas and Mulga Rock Projects. In addition, at the Alligator River Project, assay results from the 2022 diamond drilling program are expected to be received shortly. This will support the completion of a revised mineral resource estimate for the Angularli deposit.

Frontier Digital Ventures Ltd (ASX: FDV)

The Frontier Digital Ventures share price is down 15% to 59.2 cents. This has been driven by the online listings company undertaking a $13 million institutional placement. These funds were raised at a 19.4% discount of 56 cents per new share. The proceeds will be used to partially fund the final cash contingent consideration payments for the acquisition of key LATAM businesses.

Magellan Financial Group Ltd (ASX: MFG)

The Magellan share price is down 6% to $8.11. This follows the release of another bleak funds under management (FUM) update from the struggling fund manager. Magellan revealed that its FUM fell $2.2 billion during the month. This was driven by net fund outflows of $3.9 billion, which the AFR claims was due to two Airlie Funds Management clients ending their mandates.

Novonix Ltd (ASX: NVX)

The Novonix share price is down 4% to $1.21. Not even some upbeat commentary from management at this battery technology company’s annual general meeting has been able to stop its decline today. Novonix’s Chair commented: “Clearly, the performance of stock has not reflected the considerable work that is being done with customers and in progressing our graphitization technology and related materials and process technologies.”

The post Why Deep Yellow, Frontier Digital, Magellan, and Novonix shares are dropping today appeared first on The Motley Fool Australia.

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More reading

• Magellan share price dives 8% on $4 billion outflows
• Chair says Novonix share price ‘will respond appropriately over time’
• Why Block, Novonix, Piedmont Lithium, and Syrah shares are racing higher
• ‘Very excited’: Why the Novonix share price is leaping 14% on Friday
• 7 ASX dividend shares you can buy for under $10

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 Frontier Digital Ventures. The Motley Fool Australia has recommended Frontier Digital Ventures. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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A billionaire retail businessman has lifted his stake in ASX All Ords stock City Chic Collective Ltd (ASX: CCX).

City Chic shares are 2.29% in the red today and currently trading at 53.3 cents apiece. For perspective, the S&P/ASX 200 Index (ASX: XJO) is down 0.06% at the time of writing.

In the past year, City Chic shares have descended nearly 85%.

Let’s take a look at the details of the recent investor interest in this ASX All Ords stock.

What’s going on?

City Chic Collective is a global retailer that markets to plus-size women around the world.

Amid the major share price dip, billionaire businessman Brett Blundy has boosted his stake in the company from 8.6% to 9.9%.

BBFIT Investments (owned by Blundy) has acquired 3,094,791 new shares for a total cost of $1.39 million.

This follows Blundy increasing his stake in the company from 7.3% to 8.6%, according to a notice on the ASX on 23 March.

Blundy is the co-founder and current chairman of Lovisa Holdings Ltd (ASX: LOV) and founded private investment company BB Retail Capital (BBRC).

ANZ-Roy Morgan Consumer Confidence data, released yesterday, lifted by 1.6 points to 78.2 in the last week.

ANZ senior economist Adelaide Timbrell said:

Consumer confidence remained below 80pts for a fifth consecutive week, the longest time below 80pts since the start of the weekly series in October 2008. 

However, since this release, the RBA has hit the pause button on interest rate rises, which may be a good sign for retail shares next week.

City Chic share price snapshot

City Chic shares have climbed nearly 12% in the year to date and 18% in the last month.

This ASX All Ords share has a market cap of nearly $123 million based on the current share price.

The post This ASX All Ords stock is down 80% in a year, and one billionaire is buying up big appeared first on The Motley Fool Australia.

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More reading

• Here are the 10 most shorted ASX shares this week

Motley Fool contributor Monica O’Shea 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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In afternoon trade, the S&P/ASX 200 Index (ASX: XJO) is on course to record a small gain. At the time of writing, the benchmark index is up slightly to 7,239.5 points.

Four ASX shares that are climbing more than most are listed below. Here’s why they are storming higher:

Core Lithium Ltd (ASX: CXO)

The Core Lithium share price is up 7.5% to 86.5 cents. Investors have been buying this lithium miner’s shares after it released an update on the maiden shipment of spodumene concentrate from the Finniss Lithium Operation in the Northern Territory. Core Lithium revealed that its first 3,500 tonne shipment is ready for export to Yahua in China. This was ahead of schedule, with management previously expecting it to be ready by the end of the month.

Red 5 Limited (ASX: RED)

The Red 5 share price is up 10% to 16.5 cents. This has been driven by the gold miner announcing record production for the month of March. Red 5 produced 17,550 ounces of gold from the King of the Hills Gold Mine in the Eastern Goldfields region of Western Australia. This puts it on course to achieve its second half production guidance of 90,000 to 105,000 ounces at an AISC of A$1,750 to A$1,950 per ounce.

Seek Ltd (ASX: SEK)

The Seek share price is up almost 4% to $24.91. Investors have been buying this job listings company’s shares after brokers responded positively to its guidance update. Macquarie was pleased with its longer term growth plans and has upgraded its shares to an outperform rating with a $32.50 price target.

Viva Energy Group Ltd (ASX: VEA)

The Viva Energy share price is up 4.5% to $3.22. This morning, this fuel retailer announced an agreement to acquire OTR Group for $1.15 billion. It is a leading independent convenience retailer in Australia, generating more than $3 billion of revenue annually and employing approximately 6,500 people.

The post Why Core Lithium, Red 5, Seek, and Viva Energy shares are storming higher appeared first on The Motley Fool Australia.

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More reading

• Big Wednesday: 12 ASX 200 stocks cracking new 52-week highs
• Why is the Core Lithium share price soaring 6% today?
• ASX 200 stock Viva Energy hits multi-year high on $1.2 billion acquisition
• 5 things to watch on the ASX 200 on Wednesday
• Why are ASX 200 lithium shares having such a miserable week?

Motley Fool contributor James Mickleboro has positions in Seek. 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 Seek. 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) is having a bumpy, yet still positive, day so far during this Wednesday’s trading. At the time of writing, the ASX 200 has gained a tentative 0.11%.

But some ASX 200 shares are convincingly outperforming the market today. In fact, we’ve seen a flurry of new 52-week highs this Wednesday on the ASX. Let’s go through not five, not 10, but 12 ASX 200 shares that have just clocked new 52-week highs.

These ASX 200 shares are at new 52-week highs today

Here are the 12 ASX 200 shares that have seen new 52-week highs today:

• Wesfarmers Ltd (ASX: WES) – Wesfarmers shares have sunk into the red at present. But earlier this morning, the ASX 200 conglomerate rose as high as $51.94 a share.
• Telstra Group Ltd (ASX: TLS) – the famous ASX 200 telco Telstra has also scaled new heights today. After several new highs over the past week, Telstra has once again hit a new high watermark for the past 12 months, going as high as $4.30 during today’s trading.
• REA Group Ltd (ASX: REA) – ASX 200 real estate company REA Group is another ASX 200 share having a great time this Wednesday. REA shares clocked $142.34 this afternoon, which is the company’s new 52-week high.
• Cochlear Limited (ASX: COH) – Healthcare leader Cochlear is next up. This company, famous for its hearing assistance devices, has had a bouncy day. But that hasn’t stopped it from nailing a new 52-week high of $243.94 a share today.
• Fisher & Paykel Healthcare Corporation Ltd (ASX: FPH) – This is another ASX 200 share that has seen more than one new high in recent days. But today’s session has raised the bar, with Fisher & Paykel hitting a high of $25.30 a share this morning.
• Qantas Airways Limited (ASX: QAN) – Another famous ASX 200 share, Qantas is our next company soaring to new heights. Qantas lifted to $6.94 a share this morning, although investors have since cooled their jets and sent the shares lower.

Six more stocks making investors happy

• Washington H. Soul Pattinson and Co Ltd (ASX: SOL) – Investing house Soul Patts is another stock feeling the love this Wednesday. Soul Patts shares have also hit a few new highs of late. But today’s benchmark is $31.11 a share for the company.
• Steadfast Group Ltd (ASX: SDF) – Insurance company Steadfast has seen its shares inch higher this session as well. The company closed at $5.93 a share yesterday but clocked a new high of $5.99 just after lunchtime.
• Viva Energy Group Ltd (ASX: VEA) – Oil refiner and service station operator Viva is another ASX 200 share that has seen its share price rocket this Wednesday. Viva shares are currently up more than 4% and hit a new 52-week high of $3.26 a share soon after market open.
• Technology One Ltd (ASX: TNE) – Next we have ASX 200 tech share TechnologyOne. TechnologyOne shares are having a top day today, and rose to a new high of $15.28 mid-morning. The company is now up more than 30% over just the past six months.
• Perseus Mining Ltd (ASX: PRU) – ASX 200 gold shares have been on fire of late, and Perseus is no exception. The gains continue for the company today, with Perseus climbing to a new 52-week high of $2.43 this morning.
• Webjet Limited (ASX: WEB) – Our twelfth and final ASX 200 share to look at today is travel company Webjet. Webjet shares have had a bouncy day, but still managed to hit a new 52-week high of $7.35 a share during this Wednesday’s session.

The post Big Wednesday: 12 ASX 200 stocks cracking new 52-week highs appeared first on The Motley Fool Australia.

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More reading

• Why Core Lithium, Red 5, Seek, and Viva Energy shares are storming higher
• Why did the Wesfarmers share price just smash a new 52-week high?
• The RBA has paused. What can ASX 200 investors expect for the rest of 2023?
• Is right now a once-in-a-decade opportunity to buy CBA shares?
• 5 steps to making $500 in monthly passive income in 2023

Motley Fool contributor Sebastian Bowen has positions in Telstra Group and Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Cochlear, Steadfast Group, Technology One, and Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia has positions in and has recommended Steadfast Group, Telstra Group, Washington H. Soul Pattinson and Company Limited, and Wesfarmers. The Motley Fool Australia has recommended Cochlear, REA Group, and Technology One. 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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Owners of Wesfarmers Ltd (ASX: WES) shares, rejoice! The stock just roared to its highest point in more than 12 months this morning – peaking at $51.94.

Sadly, the stock wasn’t able to keep a hold of its gains. The Wesfarmers share price is $51.27 right now, 0.45% lower than its previous close.

For comparison, the S&P/ASX 200 Index (ASX: XJO) is back in the green right now, rising 0.05% to 7,239.7 points.

Interestingly, there’s been no news to move the Wesfarmers share price in the last eight weeks. Indeed, the last time the market saw a price-sensitive release from the conglomerate was in mid-February when it dropped its earnings for the first half.

So, what might have helped launch the ASX 200 giant to long-forgotten highs today? Let’s take a look.

Wesfarmers share price posted new 52-week high

The Wesfarmers share price cracked its 52-week high earlier today. And it wasn’t alone in doing so.

ASX 200 peers Qantas Airways Limited (ASX: QAN), Telstra Group Ltd (ASX: TLS), and Cochlear Limited (ASX: COH) have also surpassed the milestone in today’s session.

Many of their respective peaks came as the index spiked in early morning trade to peak at 7,262.1 points – the highest it’s been in more than four weeks.

Jumping alongside it was the Wesfarmers share price and the company’s home sector – the S&P/ASX 200 Consumer Discretionary Index (ASX: XDJ).

Both the sector and the stock have gained around 13% so far this year. Though, the company is outperforming over the longer term.

Wesfarmers shares have gained 3.5% since this time last year, while the consumer discretionary sector has slumped around 0.9% and the ASX 200 has dumped 3.8%.

The post Why did the Wesfarmers share price just smash a new 52-week high? appeared first on The Motley Fool Australia.

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More reading

• Big Wednesday: 12 ASX 200 stocks cracking new 52-week highs
• 5 steps to making $500 in monthly passive income in 2023
• Buy NAB and this excellent ASX 200 dividend share for passive income: brokers
• Top ASX shares to buy in April 2023
• Why did the Wesfarmers share price outperform the ASX 200 in March?

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 positions in and has recommended Cochlear. The Motley Fool Australia has positions in and has recommended Telstra Group and Wesfarmers. The Motley Fool Australia has recommended Cochlear. 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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S&P/ASX 200 Index (ASX: XJO) investors received a welcome reprieve yesterday from the Reserve Bank of Australia (RBA).

After raising Australia’s official interest rates at 10 consecutive previous meetings, the RBA opted to pause its tightening cycle in order to properly evaluate the impact of the prior hikes.

The ASX 200 rallied 0.15% in the minutes following RBA governor Philip Lowe’s announcement.

That leaves the official cash rate at 3.6%, for now.

But what can investors expect down the road?

What can ASX 200 investors expect from the RBA next?

While it would be nice if the RBA’s prior rate hikes prove sufficient to bring inflation back within the central bank’s 2% to 3% target range, that appears unlikely.

While Lowe eased off on the hawkish tones from earlier meetings, he did say, “The board expects that some further tightening of monetary policy may well be needed to ensure that inflation returns to target.”

Here’s what some of the industry experts are forecasting.

What are the experts saying?

Matt Simpson, senior market analyst at City Index, believes the pause won’t be indefinite. But it may well last several months, which should offer some ongoing tailwinds for ASX 200 shares.

“The RBA concede that monetary policy ‘may’ need to be tightened, whereas previously it said policy ‘will’ need to be tightened,” Simpson said.

“Even if further tightening materialises, they have allowed the potential for a terminal rate of 3.6%, even if it is a lower probability scenario,” he continued. “And unless the RBA are presented with a surprise uptick on the quarterly inflation print, I think the RBA will be happy to sit with 3.6% for the next two to three months.”

Josh Gilbert, markets analyst at eToro, cautions that following the April pause, any future rate hikes could come as a shock to ASX 200 investors.

“The board were quick to point to the recent banking issues overseas, and they clearly believe that the tighter financial conditions we’re starting to see will do some of the RBA’s job for them,” Gilbert said.

“The caveat to this pause was the board leaving the door open to further hikes,” he added. “Inflation has peaked but if it doesn’t follow the path that the RBA wants, it could feel the need to re-tighten, which could be a big shock to the economy and financial markets.”

Dylan Zhang, ASX equities analyst at Stake, said ASX 200 investors should be aware that more interest rate hikes are likely ahead.

“The pause comes as welcome news to investors, but it’s unlikely this will be the last hike of the cycle,” he said.

As for how this may impact investors’ allocations, Zhang said:

Given the uncertainty over recent weeks, we’ve seen investors on Stake increase their allocation to passive index funds and gold ETFs. But as the pace of rate hikes appears to be slowing, it’s likely we’ll see more investors moving back into tech growth stocks.

National Australia Bank Ltd (ASX: NAB) CEO Ross McEwan believes ASX 200 investors should expect two more interest rate hikes from the RBA in 2023.

According to McEwan (quoted by The Australian Financial Review), “I have been out in the economy and there is still lots going on out there, and I think there is probably two to go.”

Adding that “we need to get rid of inflation”, McEwan said following two more rate increases “my thinking is the economy would have slowed enough to put on a pause”.

We’ll leave off here with Brett Reynolds, chief investment officer at Tiger Brokers Australia.

Saying inflation is “still incredibly high” despite having peaked, Reynolds is also expecting more rate hikes from the RBA in 2023, forecasting the official cash rate will reach 4.0%.

However, he doesn’t expect the central bank to rush.

According to Reynolds:

The RBA will most likely hold rates again in May, but come the middle of the year another 25 basis point rise can be expected… For our local share market, this is likely to result in indexes hitting all-time highs. Our banks remain solid. April is likely to be a strong month on the ASX.

Should the ASX 200 indeed charge to new all-time highs, that would represent more than a 5% upside from today’s levels.

The post The RBA has paused. What can ASX 200 investors expect for the rest of 2023? appeared first on The Motley Fool Australia.

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More reading

• Is right now a once-in-a-decade opportunity to buy CBA shares?
• With inflation peaking, I’m using the Warren Buffett method to buy shares
• How I would retire rich with ASX shares
• 5 things to watch on the ASX 200 on Wednesday
• Why are ASX 200 lithium shares having such a miserable week?

Motley Fool contributor Bernd Struben 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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There are a number of S&P/ASX 200 Index (ASX: XJO) shares that have been hurt in the last few months. And since I love snapping up opportunities, I think they could be bargains to buy today.

Between early February 2023 and the end of March 2023, the ASX 200 dropped by around 5%. A number of shares within the ASX 200 fell harder than that, and I think they could be worth buying for the long term.

Over time, I think good businesses will be able to grow their earnings which will help push share prices higher. With that in mind, I’d rate these two as good buys.

Brickworks Limited (ASX: BKW)

Brickworks is Australia’s leading brickmaker. It’s also involved in the production of a number of other building products including roofing, masonry, paving, cement and so on. The company is also one of the leading brickmakers in the US.

I love that the company has two very high-quality asset groups – its large ownership of Washington H. Soul Pattinson and Co. Ltd (ASX: SOL) shares and the industrial property trusts that it owns half of. Both of these assets are demonstrating long-term valuation creation for shareholders while also paying more cash flow to Brickworks in the form of dividends and rental profit.

The Brickworks share price fell 5.2% from early February 2023 to the end of the quarter.

In the FY23 half-year result, Brickworks said its underlying net assets were worth $35.56 per share. The Brickworks share price is at a 35% discount to this. Yet, the Soul Pattinson share price has risen over 7% since 31 January 2023, further boosting Brickworks’ underlying asset value.

I like that the ASX 200 share continues to grow its dividend to shareholders, despite the uncertainty for the construction industry.

JB Hi-Fi Limited (ASX: JBH)

JB Hi-Fi is one of the largest retailers in Australia, with its national networks of JB Hi-Fi and The Good Guys stores.

Since 25 Jan 2023 to the end of the quarter, the JB Hi-Fi share price fell around 14%. Since March 2022, it’s down around 20%.

I think it’s understandable that consumer electronics and appliance demand could reduce compared to the peak COVID period because of the higher interest rates and inflation. However, I think the decline in the ASX 200 share’s valuation makes up for it. Appliances, phones and computers may still be viewed as essential purchases by households.

Australia’s population continues to grow and I think this provides the business with a pleasing source of potential growth in sales and could allow it to slowly expand its store network as well. The business has also been investing in improving its online capabilities.

Analyst estimates are suggesting a large reduction of the profit and dividend in FY24, compared to FY22. Even so, the current JB Hi-Fi share price is valued at under 13 times FY24’s estimated earnings with a possible grossed-up dividend yield of 7.4%, according to projections on Commsec.

The post After a brutal quarter, I think these ASX 200 shares are a steal! appeared first on The Motley Fool Australia.

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More reading

• 7.5% dividend yield! Should I buy this dirt-cheap ASX 200 stock?
• 5 ASX All Ords shares trading ex-dividend this week
• These are the 10 most shorted ASX shares this week
• Top ASX shares to buy in April 2023
• How much do I need to invest in ASX shares for $100 in weekly passive income?

Motley Fool contributor Tristan Harrison has positions in Brickworks and Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Brickworks and Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia has positions in and has recommended Brickworks and Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia has recommended Jb Hi-Fi. 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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Do you want a million-dollar portfolio in 12 years starting from zero? Well, the good news is that this has been possible in the past and I suspect it could be possible again in the future.

The key to achieving this goal in the space of three Olympic games is to make consistent investments into high-quality ASX shares and hold onto them.

Doing this allows investors to benefit from compounding, which is something that Warren Buffett has spoken about many times before. In fact, the Berkshire Hathaway (NYSE:BRK.B) leader famously quipped that compounding has played a key role in his vast wealth. He said:

My wealth has come from a combination of living in America, some lucky genes, and compound interest.

Aiming for a million with ASX shares

Firstly, it is worth highlighting that 12 years is a short period of time for going from zero to $1 million.

In light of this, we’re going to need to put a decent amount of money into high-quality ASX shares each year. But don’t worry if the figures discussed are outside your comfort zone, it’s possible to achieve our target with lower investments if we increase our investment time horizon.

But for now, let’s aim for $1 million in 12 years.

Over the last 30 years, the Australian share market has generated a total return of 9.6% per annum. It isn’t guaranteed to do the same over the next three decades, but for the sake of this exercise, we’re going to assume that it does.

Based on this, we would need to put $44,000 into the share market each year for 12 years to grow our portfolio to $1 million.

Alternatively, if you’re lucky enough to be sitting on a sizeable cash balance, then you could reduce your yearly outlay. Starting with a $150,000 portfolio, you would need to invest $24,000 into ASX shares each year to grow your wealth to $1 million.

What about a longer time horizon?

Pleasingly, it would be possible to achieve our goal on a smaller budget.

For example, investing $10,000 into the share market each year would turn into $1 million in just under 25 years if you averaged a return of 9.6% per annum.

That may be twice as long as investing $44,000 a year, but it’s less than a quarter of the investment. This demonstrates just how powerful compounding becomes the longer you leave it.

Let’s finish on another Buffett quote that feels quite apt for this.

Someone’s sitting in the shade today because someone planted a tree a long time ago.

The post How ASX investors can build a $1 million portfolio in 12 years appeared first on The Motley Fool Australia.

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More reading

• I’d listen to Warren Buffett to grow my wealth with ASX shares
• Warren Buffett attributes his investing success to these 2 things
• How to build a $100,000 ASX share portfolio in 6 years
• As stock markets dive, here’s Warren Buffett’s advice
• I’m listening to Warren Buffett and loading up on cheap ASX shares

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 Berkshire Hathaway. The Motley Fool Australia has recommended Berkshire Hathaway. 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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