Tag: Motley Fool

In late afternoon trade, the Westpac Banking Corp (ASX: WBC) share price is on course to end the week in the red.

At the time of writing, the banking giant’s shares are down 0.8% to $21.16.

This latest decline means the Westpac share price is now down over 6% since the start of the month.

Should you buy the Westpac share price dip?

If the broker community is to be believed, this recent pullback could be a great buying opportunity for investors.

For example, analysts at Citi currently have a buy rating and $30.00 price target on the bank’s shares. Based on the current Westpac share price, this implies potential upside of almost 42% for investors over the next 12 months.

In response to its first-quarter update, Citi said:

It is difficult to draw definitive conclusions from a Pillar 3 release, but we conclude that WBC is tracking broadly in-line with Citi’s and consensus expectations.

Elsewhere, Goldman Sachs currently has a conviction buy rating and $27.74 price target on its shares. This suggests potential upside of 31% for investors. Goldman believes Westpac is well-placed for growth thanks to rising interest rates and its cost cutting. It said:

WBC’s shorter-duration replicating portfolio, and current balance sheet performance, should see its NIM outperform peers, [and] despite WBC recently revising its FY24E cost target to A$8.6 bn (from A$8.0 bn), the bank’s performance on cost management remains strong in this inflationary environment with a 9% step down in underlying costs expected over the next two years.

Finally, Morgans is positive and has an add rating and $25.80 price target, implying potential upside of 22%. It commented:

We view WBC as having the greatest potential for return on equity improvement amongst the major banks if its business transformation initiatives prove successful.

The post The Westpac share price is down 6% this month, should you buy the dip? appeared first on The Motley Fool Australia.

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More reading

• Want passive income? Analysts say you can get 6%+ yields with these ASX dividend shares
• Should ASX 200 banks pay more for this implicit government backstop?
• ASX big four bank shares close the day ahead as financial fears linger
• Why New Hope, Pilbara Minerals, Westpac, and Zip shares are pushing higher
• Goldman ‘remains confident in the health’ of ASX 200 bank shares and names it top pick

Motley Fool contributor James Mickleboro has positions in Westpac Banking. 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 Westpac Banking. 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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What a great week it’s been for the New Hope Corporation Limited (ASX: NHC) share price.

The ASX 200 coal share is up 9% after dropping a great set of results for 1H FY23 earlier in the week.

This compares to a 0.2% bump for the S&P/ASX 200 Index (ASX: XJO) this week.

The miner doubled its profits and seriously upsized its dividend by 76% to a new record level.

As my colleague Bernd points out, New Hope is now paying a dividend yield of 17.6%.

That’s nuts.

The coal miner will pay an interim dividend of 30 cents per share fully franked. It will also pay a special dividend of 10 cents per share fully franked.

If you’re not currently an investor and you want a piece of those divvies, you’ll have to buy New Hope shares before the ex-dividend date.

But that’s not til 17 April.

So, if that’s your strategy, maybe it’s worth waiting to see if the New Hope share price drops back a bit following all this market exuberance this week.

By the way, that river of black gold dividends won’t be stopping there, if broker Morgans has it right.

The broker forecasts a fully franked annual dividend of $1 per share in FY23. That’s another massive 18% payout based on the current share price. It forecasts a 90-cent dividend in FY24, which is a 16% yield.

Case closed: New Hope ends the week on a high

The New Hope share price may be slightly in the red today, down 0.35%, but the company is ending the week on a positive note.

New Hope released an update today in relation to legal proceedings brought against it by the liquidators of its subsidiary companies Northern Energy Corporation (NEC) and Colton Coal.

The Supreme Court of NSW dismissed the case after the parties agreed to a settlement.

The deal will cost New Hope $38.5 million.

The company said:

Consistent with the provision raised by the Company and outlined in the Financial Statements for the half year ended 31 January 2023, the economic outflow from the Group arising from the settlement is A$38.5 million.

New Hope has denied any wrongdoing in previous statements on the matter.

What was that all about?

To recap, NEC and Colton Coal were subsidiaries of New Hope. They were placed into voluntary administration in October 2018. Creditors then appointed liquidators in July 2019.

The liquidators investigated whether there were any potential claims to be made against New Hope or the former directors and officers of the subsidiary businesses. They reportedly looked into alleged voidable transactions, insolvent trading, asset transfers, and breaches of directors’ duties.

In a statement back in March 2021, New Hope said that according to media reports that day, the liquidators had estimated the value of the claims at $174.1 million plus interest and costs.

The post Why is the New Hope share price up 9% this week? appeared first on The Motley Fool Australia.

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More reading

• Do New Hope shares really pay a 17.6% dividend yield?
• Passive income hack: 3 simple steps to help you get rich and retire early
• Investing in ASX 200 shares? Don’t bank on an RBA rate pause in April
• 5 things to watch on the ASX 200 on Friday
• Telstra shares: Bull vs. Bear

Motley Fool contributor Bronwyn Allen 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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Looking for a growth share or maybe two to buy? If you are, you may want to look at the two listed below.

Here’s why these ASX growth shares are rated highly right now:

Lovisa Holdings Limited (ASX: LOV)

This fast-fashion jewellery retailer could be a top option for growth investors right now.

Morgans is very positive on the company and believes it is well-placed for growth over the long term thanks to its global expansion. Its analysts commented:

LOV continues to impress us with the rate at which it opens new stores and expands into new markets. As we have said before, LOV may just prove to be one of the biggest success stories in Australian retail. LOV is showing every sign of becoming a global brand.

The broker currently has an add rating and $28.50 price target on its shares.

Webjet Limited (ASX: WEB)

Another ASX growth share that has been named as a buy is online travel booking company Webjet.

Goldman Sachs is positive on the company. It believes Webjet has come out of the pandemic as a significantly stronger company and expects this to lead to strong earnings growth over the coming years. It commented:

We have the stock on our Conviction List as we believe WEB’s Bedbanks business offers a structural growth opportunity which is expected to drive scale benefits and see an improved cost structure with system changes and ERP upgrades which will only be realized as WEB goes through the recovery cycles. […] We note that upside remains thin on this name vs. our Target Price, but consensus expectations for group margins continue to be well below GSe for FY24/25 implying potential consensus upgrades in our view.

Goldman has a conviction buy rating and price target of $7.20 on its shares.

The post Jewellery and travel: Analysts say these ASX growth shares are buys appeared first on The Motley Fool Australia.

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More reading

• Here are the top 10 ASX 200 shares today
• Buy these 3 ASX retail shares: Morgans
• Up 8% in 2023, is right now the time to buy back into Webjet shares?
• Why analysts are very bullish on these ASX growth shares
• Here’s why experts rate these ASX 200 growth shares as buys

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 Lovisa. The Motley Fool Australia has recommended Lovisa. 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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Another week, another bank collapse?

Hopefully not this week… we’ve had enough of those, thank you very much.

The RBA’s next rates call gets tougher

And it seems the US Federal Reserve and the Bank of England (among others) are suitably confident that there’s no looming crisis that they actually decided to raise rates over the last couple of days.

Either that… or they’re so worried about inflation, that they’re prepared to take the risk!

In all likelihood, it’s probably some combination of both.

And that means the RBA has a tough call to make.

They want to tamp down on inflation.

And they know that if the others go, and we don’t, it’ll push the dollar down and import more inflation.

So those are the cases for increasing rates.

On the other hand, they seem concerned about ‘mixed’ data, and the million-odd fixed rate loans that will convert to variable over the next 20 months will do a lot of the heavy lifting for them – long after they’ve stopped raising rates.

I haven’t seen the month-by-month fixed-to-variable rollovers, but if they’re going to happen soon enough – and keep happening – I’d reckon that’d be enough for me to sit pat if I was in Governor’s chair. If the bulk of those rollovers are too far away, I think I’d press the ‘up’ button.

Of course, you might be surprised that Phil Lowe doesn’t consult me on rates decisions. Who’d have thought, right?

So, like the rest of the country, I’ll just wait and see. And wish him luck.

Another day, another hack

Apparently Rio Tinto Limited‘s (ASX: RIO) employee details were accessed by a hacker this week.

That’s on the back of Latitude Group Holdings’s (ASX: LFS) customer data breach last week.

And Optus, Medibank Private Ltd (ASX: MPL) and plenty more over the past few months.

This is the new normal.

I still don’t reckon companies have come to grips with what customer data they should (and shouldn’t) retail.

I still don’t reckon they’ve come to grips with the challenges of effective cybersecurity.

And I still don’t reckon governments have a good framework for preventing, dealing with, and punishing these things.

Investors? I think we should expect that any/every company we own will be hacked at some point. It’ll hurt share prices, temporarily at least. But there’s no way to know who’ll be next, so it’s a case of being ready, then grinning and bearing it.

As Spock (didn’t really) tell Captain Kirk, ‘It’s life, Jim, but not as we know it’.

We’d better get used to it.

Buy Now Pretend Later?

Good news, Australia.

We – private and public alike – are now debt free.

No, seriously.

See, Afterpay has decided that what it offers isn’t really ‘credit’ but ‘working capital’, as reported in today’s AFR.

So, I’ve taken their very impressive lead and reclassified all Australian debt – government debt, mortgage loans, bank overdrafts, credit card debt… the lot! – as working capital.

And just like that, we no longer have any debt.

You’re welcome. Take the weekend off!

(Yes, apparently they seriously said that. And yes, of course that’s absolute tripe. Well, it would be tripe, but I’ve decided that tripe isn’t really an animal’s stomach lining. It’s caviar. You’re – again – welcome.)

Quick takes

Overblown: Predictions. Especially about interest rates. People can have a view on what the RBA should do. But trying to guess what it will do is a mug’s game. The board will make its own decision, based on its own collective judgement. Predictions are a parlour game – sometimes fun, but always useless.

Underappreciated: Quality. Yes, seriously. Now, I mean proper business quality, not just what everyone agrees are ‘blue chips’ (plenty of those have done very poorly). Great businesses tend to win. And their shareholders most often do, too.

Fascinating: It’s too complex to go deeply into for this little space, but Credit Suisse bondholders got wiped out, while shareholders got (some) value for their shares. That’s the opposite of how these things are supposed to go. Why did it happen? Because the people buying bonds couldn’t imagine a scenario in which it would happen, even though it was there in the contract. Buyer beware, indeed.

Where I’ve been looking: For quality (see above). If you have a long term perspective, I reckon you should be putting quality above (almost) everything. Price matters, of course, but what if you could identify quality companies with long term growth potential, available at a decent price. That search is what I’ve been focused on this week.

Quote: “Chains of habit are too light to be felt until they are too heavy to be broken” – Warren Buffett

Fool on!

The post The RBA’s job just got harder appeared first on The Motley Fool Australia.

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More reading

• Brokers name 3 ASX shares to buy now
• Little Green Pharma share price shoots 13% higher after capital raise
• Why Block, Mincor, Race Oncology, and Weebit Nano shares are sinking today
• Why is ASX All Ords healthcare share Race Oncology plummeting 10% today?
• Why Core Lithium, Estia Health, Kingsgate, and St Barbara shares are charging higher

Motley Fool contributor Scott Phillips 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 another busy week for Australia’s top brokers. This has led to the release of a large number of broker notes.

Three broker buy ratings that you might want to know more about are summarised below. Here’s why brokers think these ASX shares are in the buy zone:

Aristocrat Leisure Limited (ASX: ALL)

According to a note out of Goldman Sachs, its analysts have retained their buy rating and $42.80 price target on this gaming technology company’s shares. This follows the company’s investor round table event. Goldman was pleased with what it heard and remains very positive on its outlook and iGaming opportunity. The Aristocrat share price is trading at $36.38 this afternoon

Brickworks Limited (ASX: BKW)

A note out of Morgans reveals that its analysts have retained their add rating on the building products company’s shares with an improved price target to $26.25. This follows the release of its first-half result this week. Although its result was short of expectations, Morgans remains positive due to it trading at a sizeable discount to its net tangible assets (NTA). The broker estimates this to be $35.00 per share. And while it doesn’t expect this discount to close entirely, it sees scope for it to narrow. The Brickworks share price is fetching $22.92 today.

Readytech Holdings Ltd (ASX: RDY)

Analysts at Macquarie have resumed coverage on this enterprise software company’s shares with an outperform rating and $4.00 price target. The broker is positive on Readytech and appears to believe it can achieve its revenue target thanks to its high conviction pipeline and market share gains. The Readytech share price is trading at $3.21 on Friday afternoon.

The post Brokers name 3 ASX shares to buy now appeared first on The Motley Fool Australia.

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More reading

• Citi rates these 3 ASX 200 blue chip shares as buys
• Here are the top 10 ASX 200 shares today
• Here is a pair of ASX 200 shares I would buy and never sell
• Is this the cheapest ASX 200 dividend share to buy today?
• This ASX 200 growth share’s outlook is ‘significantly strong’: Goldman Sachs

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 Brickworks and ReadyTech. The Motley Fool Australia has positions in and has recommended Brickworks. The Motley Fool Australia has recommended ReadyTech. 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 Little Green Pharma Ltd (ASX: LGP) share price is smokin’ hot today, up 13.2% to 22 cents on news of an oversubscribed capital raise.

The ASX All Ords cannabis share came out of a trading halt this morning after the company announced a successful $5 million institutional placement.

Let’s look into the details.

Little Green Pharma share price soaring

In a statement, Little Green Pharma said it has secured “firm commitments” for a $5 million placement.

These commitments are from new and existing institutional and sophisticated investors.

Just over 27 million new shares will be issued at a price of 18 cents per share.

The funds will be used to repay a loan note, which “refreshes the company’s balance sheet for future growth”.

Little Green Pharm hopes to reach break-even point soon by executing current and proposed supply agreements in Europe and driving more sales in Australia.

The company is also working on reducing operational costs.

Little Green Pharma CEO Fleta Solomon said:

We are confident the business’s current momentum will allow it to continue growing sales and leveraging domestic and international medicinal cannabis market opportunities.

The new Little Green Pharma shares will start trading on 31 March.

Other news nudging this ASX cannabis share higher

We first heard about the trading halt and proposed capital raise on Wednesday.

That same day Little Green Pharma announced a “strategic alliance” between its psychedelics subsidiary, Reset Mind Sciences, and Health Insurance Fund of Australia (HIF).

Reset and HIF plan to build a proof-of-concept mental health treatment facility.

The facility will provide psychedelics and psychotherapy to eligible patients.

Reset and HIF will conduct a study to help HIF decide whether to provide member coverage for the treatment.

This follows the Therapeutic Goods Administration (TGA) down-classifying two psychedelics to enable their use in treating mental illness.

The psychedelics are MDMA for post-traumatic stress disorder (PTSD) and psilocybin for treatment-resistant major depressive disorder.

Only a psychiatrist can prescribe the psychedelics. The new rules come into effect on 1 July.

In a statement, Little Green Pharma said the TGA’s ‘down-scheduling’ of MDMA and psilocybin means Australia “will become the first market in the world to recognise psychedelics as medicines … “.

The news caused the Little Green Pharma share price to skyrocket by 46%, as we covered on the day.

Reset Mind Sciences CEO Shaun Duffy said the TGA’s decision was “truly groundbreaking”.

He elaborated:

There is a significant body of research emerging in Australia and globally for the use of psychedelics to treat mental health conditions and this decision allows the use of these drugs for the mental health conditions that have demonstrated the most potential in the research.

Last month, Little Green Pharma received Human Research Ethics Committee (HREC) approval for a clinical trial in the use of psilocybin for patients with treatment-resistant depression.

The post Little Green Pharma share price shoots 13% higher after capital raise appeared first on The Motley Fool Australia.

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More reading

• Why Block, Mincor, Race Oncology, and Weebit Nano shares are sinking today
• Why is ASX All Ords healthcare share Race Oncology plummeting 10% today?
• Why Core Lithium, Estia Health, Kingsgate, and St Barbara shares are charging higher
• Help safeguard your retirement with this key Warren Buffett investment strategy
• Do New Hope shares really pay a 17.6% dividend yield?

Motley Fool contributor Bronwyn Allen 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 another red day on Friday. In afternoon trade, the benchmark index is down 0.3% to 6,947.6 points.

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

Block Inc (ASX: SQ2)

The Block share price has crashed 19% to $88.60. Investors have been selling this payments company’s shares after it was the subject of a short seller attack. Hindenburg Research alleges that Block’s flagship Cash App product facilitates crime and lacks strong compliance controls. It also claims that Block is inflating user metrics.

Mincor Resources NL (ASX: MCR)

The Mincor share price is down 2% to $1.51. This may have been driven by a combination of profit taking from investors and a broker downgrade. In respect to the latter, the team at Bell Potter has downgraded the nickel miner’s shares to a hold rating with a $1.70 price target. It believes Wyloo Metals’ takeover approach is opportunistic.

Race Oncology Ltd (ASX: RAC)

The Race Oncology share price is down 8% to $1.84. This morning the oncology company announced a surprise change to its leadership team. Race Oncology revealed that Dr Daniel Tillett has stepped down from his roles of executive director and chief scientific officer.

Weebit Nano Ltd (ASX: WBT)

The Weebit Nano share price is down over 10% to $4.97. This has been driven by the semiconductor company completing an institutional placement this morning. Weebit Nano has raised $45 million via a fully underwritten institutional placement at a 9.7% discount of $5.00 per new share. The proceeds will be used to fund the further development and commercial roll-out of Weebit Nano’s ReRAM technology.

The post Why Block, Mincor, Race Oncology, and Weebit Nano shares are sinking today appeared first on The Motley Fool Australia.

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More reading

• Why is ASX All Ords healthcare share Race Oncology plummeting 10% today?
• Why is the Weebit Nano share price sinking 12% today?
• Block share price crashes 15% after scathing short seller attack
• 5 things to watch on the ASX 200 on Friday
• Why Brickworks, Healius, Mincor, and Northern Star shares are rising today

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 Block. The Motley Fool Australia has positions in and has recommended Block. 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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Warren Buffett is the world’s most successful investor, amassing a $100 billion fortune over 80 years of investing. So, he’s worth listening to for investing advice, and thankfully, he keeps it very simple for us.

One of the biggest goals most Australians strive for is a happy, healthy, and financially secure retirement.

It’s a great goal to have because we’re living a lot longer these days, so we all need a personal plan as to how we’re going to fund two or three decades of retirement after our working lives are over.

Unless you’re willing to live on the age pension, which is currently $1,064 per fortnight for singles and $1,604 for couples, you’ll need to buy some assets that can deliver reliable passive income and growth.

One investment option is ASX shares.

And you can’t buy them soon enough. As Buffett says, time is the secret sauce to investing success.

What is Buffett’s best retirement investment strategy?

The chair of Berkshire Hathaway Inc provides really simple, specific advice that you can act upon today.

Here it is.

Buffett’s key investment strategy for retirement is to make consistent investments into an S&P 500 Index (SP: .INX) fund throughout your career.

The S&P 500 is the benchmark United States stock market index. It tracks the performance of the 500 largest listed companies by market capitalisation. It’s a real-time measure of the health of the US economy.

Owning shares in an index fund is like owning a little piece of every company within that index.

Buffett reckons consistently buying shares in a low-cost S&P 500 index fund regularly is the most practical long-term investment strategy for ordinary investors trying to secure a decent retirement for themselves.

It’s simple, it takes little time and effort, and it works.

What are the returns like?

The S&P 500 has averaged about a 10% annual return on investment (ROI) over the long term. There’s no guarantee that will continue, but there’s no reason to believe this will suddenly change, either.

A 10% annual return is pretty darn good, especially if you start early in your working life. A 20-year-old investor would have 40 years of 10% average gains ahead of them before retirement in their 60s.

Index funds are not as exciting as ASX shares that skyrocket 50% or 100% (or more) some years due to hot thematic investing trends like we saw in 2021 and 2022 with ASX lithium shares.

But if you believe in the tortoise over the hare, and you don’t have the time or interest to research ASX shares, select individual stocks, and monitor the health of each business over the long term, an index fund is a great option. You get the benefits of diversification, dividends, and low annual fees all in one.

Buffett considers investing in the S&P 500 as a proxy for investing in the United States economy.

In his annual newsletter released on 25 February, Buffett says:

I have been investing for 80 years– more than one-third of our country’s lifetime.

… I have yet to see a time when it made sense to make a long-term bet against America.

How to follow Buffett’s retirement strategy using ASX shares

If you want to follow Buffett’s advice, you have a few choices.

Firstly, you can invest directly in an S&P 500 index fund via a stockbroker or online trading platform.

For some assistance with this, take a look at our story on how to buy US shares in Australia.

Alternatively, you can buy an exchange-traded fund (ETF) on the ASX that tracks the S&P 500.

An example is the iShares S&P 500 (AUD Hedged) ETF (ASX: IHVV). 

The average annual return including distributions has been 9.46% since its inception in 2014. The hedging mitigates the effects of currency fluctuations between the Australian and US dollars.

The ETF has a management fee of 0.10%.

Or, you can apply Buffett’s theory with an Australian flavour, backing our economy over the US economy.

That means buying an S&P/ASX 200 (ASX: XJO) index fund, which exposes you to the top 200 ASX shares by market cap.

The ASX 200 is our benchmark index, similar to the S&P 500 in the US. We’re a smaller country, so our benchmark index has fewer companies.

An example is BetaShares Australia 200 ETF (ASX: A200). The average annual return including distributions has been 7.99% since its inception in 2018.

It has a management fee of 0.04%.

But as my Fool colleague Sebastian points out, the Vanguard Australian Shares Index ETF (ASX: VAS) is by far the most popular index fund on the ASX.

It tracks the performance of the S&P/ASX 300 Index (ASX: XKO).

The Vanguard Australian Shares ETF has returned an average of 9.1% per annum including dividends since its inception in 2009.

It has a management fee of 0.10%.

Don’t overlook ASX index fund fees

There’s very little work involved for the fund manager of an ASX shares index fund, which is why their fees are so much lower than actively managed funds.

Buffett is outspoken about the high fees active managers charge, given that many underperform the S&P 500’s average returns over the long run.

All index funds charge relatively low fees. The difference between them may seem negligible right now, but over a lifetime of investing, they can add up to a lot — like, five figures. That’s serious money!

What does consistent buying mean?

When Buffett says you need to invest consistently, he’s talking about dollar-cost averaging on autopilot.

To grow your wealth without giving your investments much time and attention, you must put your ASX shares investing habits on autopilot.

Your goal is to invest chunks of spare cash into your index fund regularly.

Here are three ways to go autopilot on your investments.

3 ways to put your ASX shares investments on autopilot

Pick a set time interval for investing. Once a month (watch those trading fees, though!), once per quarter, once per year, whatever you are comfortable with. Then don’t miss a single one of those intervals. Buy in bear markets, buy in bull markets. Buy no matter what, and let time and the magic of compounding work.

Be disciplined and trust that over time, you will achieve those perfectly healthy average returns and build a great nest egg for retirement.

Secondly, reinvest the dividends your ASX index fund or ETF pays by purchasing more shares automatically.

Most funds have dividend reinvestment plans (DRPs), whereby you tick a box or fill in a form, and the fund manager will organise the automatic purchase of more shares with those dividends for you.

Set and blissfully forget.

Thirdly, set up a salary sacrifice arrangement whereby your employer will automatically deposit part of your pay into your superannuation fund each month.

Many super funds offer index investment options, so talk to your fund manager about this.

The post Help safeguard your retirement with this key Warren Buffett investment strategy appeared first on The Motley Fool Australia.

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More reading

• Here are 3 ways to get passive income from ASX shares
• Is a dividend ETF really better than an ASX index fund for income?
• Want high income right now? These are the ASX dividend shares I would buy
• I bought these two ASX shares last week, here’s why
• How to generate $300 of monthly income from the Vanguard Australian Shares Index ETF

Motley Fool contributor Bronwyn Allen has positions in Vanguard Australian Shares Index ETF. 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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The share price of All Ordinaries Index (ASX: XAO) healthcare company Race Oncology Ltd (ASX: RAC) is having a day to forget after exiting a trading halt with the news of a leadership shakeup.

The company’s executive director and chief scientific officer (CSO) Dr Daniel Tillett has stepped down from his roles citing “serious differences with some members of the Race board”.

Right now, the Race Oncology share price is $1.805, 9.52% lower than its previous close.

Let’s take a closer look at the news weighing on the ASX All Ords oncology company’s stock today.

What’s going wrong for this ASX All Ords share today?

The Race Oncology share price is tumbling on Friday after the company announced its star CSO and director is stepping away from the company.

Tilliett first became involved with the company in 2019 as a major investor before joining its board and, later, taking on the CSO role. He’s been credited as a key contributor to the discovery of the company’s cancer drug Zantrene’s cardiovascular protective properties.

Tillett commented on his departure, saying:

I have full faith that our CEO Damian [Clarke-Bruce] and the Race clinical and preclinical teams have the capability, skill, and drive to ensure Race’s success.

I am very grateful to have been able to work with so many talented scientists and clinicians during my time at Race, but serious differences with some members of the Race board have made my continued involvement untenable.

He gave a little more detail in an accompanying interview, continuing:

When you’re a director, it’s not an easy job. Many times you have to make decisions that maybe conflict with your own personal wishes and desires, versus the interests of the shareholders, and it’s always the shareholders that have to come first.

In this particular case I’ve put the shareholders’ interests ahead of my own personal interests.

Tillett also assured investors that he has no intent to sell his stock in the ASX All Ords company.

He held around 13.7 million Race Oncology shares as of last month – a roughly 8% stake – with another 2.3 million shares in voluntary escrow until November.

Professor Tim Hammond of the company’s partner Advonate Clinical will succeed Tillett as interim CSO until a replacement is found.

Race Oncology share price snapshot

Today’s tumble sees the Race Oncology share price in the longer-term red.

The stock has dumped 9% since the start of 2023. It’s also trading 35% lower than it was this time last year.

For comparison, the ASX All Ords is trading flat year to date. Looking further back, it has dropped 7% over the last 12 months.

The post Why is ASX All Ords healthcare share Race Oncology plummeting 10% today? appeared first on The Motley Fool Australia.

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More reading

• Why Neuren, Northern Star, Race Oncology, and Westgold shares are storming higher

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 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 end the week in the red. At the time of writing, the benchmark index is down 0.35% to 6,943.6 points.

Four ASX shares that are not letting that hold them back are listed below. Here’s why they are charging higher:

Core Lithium Ltd (ASX: CXO)

The Core Lithium share price is up 4% to 79 cents. This morning, analysts at Macquarie retained their outperform rating and $1.10 price target on this lithium miner’s shares. The broker was pleased with news that the company has signed an agreement to sell additional spodumene to Sichuan Yahua.

Estia Health Ltd (ASX: EHE)

The Estia Health share price is up 14% to $2.67. This has been driven by news that the aged care operator has received a takeover approach from Bain Capital. The private equity firm has tabled a non-binding $3.00 cash per share offer, which will be adjusted for any dividends paid. This represents a 28% premium to the Estia Health share price at yesterday’s close.

Kingsgate Consolidated Limited (ASX: KCN)

The Kingsgate share price is up 11% to $2.00. This morning, this gold miner announced that it has poured its first gold from the reopened Chatree mine in Thailand. Management advised that the Chatree Gold Room poured over 155,732kgs of materials in the first pour in more than 6 years. This will be now sent away for further refining.

St Barbara Ltd (ASX: SBM)

The St Barbara share price is up over 6% to 65.8 cents. This appears to have been driven by a rise in the gold price overnight. The price of the precious metal rose to almost US$2,000 an ounce amid hopes that interest rates won’t rise as much as feared. The S&P/ASX All Ordinaries Gold index is up 1.9% this afternoon.

The post Why Core Lithium, Estia Health, Kingsgate, and St Barbara shares are charging higher appeared first on The Motley Fool Australia.

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More reading

• Estia Health share price jumps 21% on takeover approach
• 5 things to watch on the ASX 200 on Friday
• Here are the 3 most heavily traded ASX 200 shares on Thursday
• Investing in ASX 200 lithium shares? You’ll want to read this
• Why are ASX lithium shares sinking today?

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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