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Australia’s leading investment platform provider CommSec has released data on the most traded ASX shares on its platform from last week.

Once again, there were a number of familiar faces filling up the top five over the period.

Here’s the data:

Flight Centre Travel Group Ltd (ASX: FLT)

This leading travel agent was far and away the most traded share on the CommSec platform last week. It was attributable to 3.3% of trades over the five days, with a massive 74% coming from buyers. Those investors will be pleased to learn that the Flight Centre share price climbed almost 8% over the five days. Investors have been buying the company’s shares due to COVID-19 vaccine optimism.

Mesoblast limited (ASX: MSB)

This biotechnology company’s shares were popular with investors and accounted for 2.2% of trades on CommSec last week, with the buying and selling evenly split. It looks as though the buyers will be the happier group. The Mesoblast share price climbed a further 12% last week, stretching its month to date gain to 35%. A major deal with Novartis has given its shares a big lift.

Webjet Limited (ASX: WEB)

Investors have also been buying Webjet’s shares due to COVID-19 vaccine news and the reopening domestic borders. Its shares accounted for 2.1% of trades on the platform last week, with buyers contributing 76% of them. Those buyers will have been pleased to see the Webjet share price climb almost 8% last week. This took its month to date gain to a whopping 64%.

Zip Co Ltd (ASX: Z1P)

This buy now pay later provider was popular with CommSec investors again. Its shares were responsible for 1.7% of trades on the platform. And although 58% of these trades came from the buy side, it wasn’t enough to stop the Zip share price from falling 2%. This is despite the release of a strong trading update.

Qantas Airways Limited (ASX: QAN)

Qantas shares were in demand last week and contributed 1.6% of trades on the CommSec platform. As with Flight Centre and Webjet, a sizeable portion (71%) of these trades were from buyers. They appear bullish on its prospects now domestic borders are opening and a vaccine (or three) is on the way. The Qantas share price rose almost 5% last week, making it four weekly gains in a row.

More reading

• Why the Afterpay (ASX:APT) share price and these ASX stocks could get a boost next week
• 2 ASX 200 healthcare shares that outperformed in November 
• Which ASX travel shares performed the best in November? 
• These were the best performing ASX 200 shares in November
• Qantas (ASX:QAN) axes 2,000 jobs

James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of ZIPCOLTD FPO. The Motley Fool Australia owns shares of and has recommended Webjet Ltd. The Motley Fool Australia has recommended Flight Centre Travel Group Limited. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. 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 Sandfire Resources Ltd (ASX: SFR) share price is up 10% in afternoon trading. This comes following a series of releases to the ASX this morning.

Importantly the announcements include significant new high-grade drilling results at the company’s A4 copper silver deposit, along with a detailed strategy update and Sandfire’s approval of a new long-life copper mine in Botswana.

We’ll look at the details of the new mine below. But first, what’s been happening with Sandfire’s share price?

Sandfire’s share price on the rebound

Despite today’s 10% surge, Sandfire Resources’ share price remain down 19% year-to-date.

Like many ASX shares, the company has yet to recover from the bashing it took during the COVID-led market rout earlier in the year. From 20 January through to 23 March, shares fell by 55%. Since the 23 March lows, the share price is up 71%.

By comparison the S&P/ASX 200 Index (ASX: XJO) is up 45% from the 23 March trough.

What did Sandfire announce about its Botswana mine?

In this morning’s announcement, Sandfire revealed its board has given the green light to develop the T3 Motheo Copper-Silver Project in the Kalahari Copper Belt in Botswana. The company says this is an important step in its international growth and diversification strategy.

The cost is estimated at $371 million, which includes mining pre-strip, process plant construction, site infrastructure development, tailings storage, owner’s costs and contingency.

The company’s positive Definitive Feasibility Study (DFS) showed a base case 3.2 million tonnes per annum (Mtpa) operation with the potential for a rapid expansion to 5.2Mtpa.

Forecasting a long-term copper price of US$3.16/lb and all-in sustaining costs of US$1.76/lb for the first 10 years of operations, Sandfire reported an estimated life-of-mine (LOM) revenue of $3.5 billion and earnings before interest, tax, depreciation and amortisation (EBITDA) of $1.4 billion.

The company expects a payback time of 3.8 years from the production start date.

Commenting on the new mine approval, Sandfire’s CEO Karl Simich said:

Today we have given the green light to the development of a new, long-life copper operation based on the T3 open pit, which we envisage will become the core of our Motheo Production Hub – a new copper production hub in the central portion of the world-class Kalahari Copper Belt, where we have a dominant 26,645 square kilometre ground-holding in Botswana and Namibia… The key message for our shareholders and investors is that this is the start of a much bigger long-term copper production and exploration story for Sandfire in Botswana…

This is, in effect, the dawn of a new global copper province – as evidenced by the scale of the new underground mining operation currently being constructed immediately to the north-east of our project by Cupric Canyon Capital at their Khoemacau Project.

As the new mine gets underway, the Sandfire Resources’ share price will be one to watch.

More reading

• RCEP trade deal boosts Australian exporter share prices
• Why the Encounter Resources (ASX:ENR) share price is up today
• ASX copper miners brush off latest Chinese tariff threat
• Why IDP Education, Sandfire, Telix, & Treasury Wine shares are dropping lower
• Sandfire Resources (ASX:SFR) share price lower amid China copper ban rumours

Motley Fool contributor Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. 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 Lynas Corporation Ltd (ASX: LYC) share price has just had a top month. Lynas shares started November at $2.83, and closed yesterday at $3.78. That means the Lynas share price is up 33.57% for the month of November.

You might remember Lynas from its dalliance with the giant conglomerate Wesfarmers Ltd (ASX: WES) a couple of years ago. Back then, Wesfarmers tried (unsuccessfully) to buy out Lynas and add it to the company’s massive portfolio of subsidiary businesses. Incidentally, Wesfarmers bid $2.25 a share for the company back then.

But Lynas has shown it has what it takes to thrive on its own two feet since. The Lynas share price is up nearly 63% year to date. It’s also up more than 250% from the lows we saw back in March. It even hit a new 52-week high last week.

But why?

A great month (and year) for the Lynas share price

Lynas is a rare earth miner, namely of lithium, the primary ingredient in most rechargeable batteries.

The recent goodwill surrounding Lynas shares appears to have been kicked off by a contract with the United States Department of Defense back in July. This agreement inked a plan to construct a heavy rare earth separation facility. It is set for completion during the current financial year (FY2021).

This goodwill was further boosted by a quarterly update for the quarter ending 30 September 2020. In this announcement, Lynas updated investors on the production issues that had previously plagued both its flagship Mt Weld mine in Western Australia, and its Malaysian operations. After the initial issues, Lynas told the market that output had resumed at 75%. It also reported solid sales numbers, as well as positive cash flow. The Lynas share price hit what was a new 52-week high on that news.

Then, just last week, Lynas yet again came to the market with a positive development. This time, Lynas announced that the company had found “significant and continuous intersections of rare earth minerals… including light rare earth elements and heavy rare earth elements” at its Mt Weld site.

Lynas’ chief executive officer, Amanda Lacaze, had this to say on this discovery:

We are encouraged by these new Exploration Results which go beyond the area of the 2018 Mineral Resources and Ore Reserves Statement. We are committed to exploring below the current mineral resource understand the potential for primary REE mineralisation below the weathered zone.

It’s this avalanche of good news that is likely behind the Lynas share price’s stellar performance over the month of November. And indeed, over 2020 so far.

More reading

• Why the Lynas (ASX:LYC) share price just hit a 52-week high
• ASX 200 events this week that could move the market
• Which 5 ASX shares hit 52-week highs on Friday?

Motley Fool contributor Sebastian Bowen has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. 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’s no secret by now that the S&P/ASX 200 Index (ASX XO) has just finished off one of its best months in history. The ASX 200 gained more than 11% over the month, far more than what it averages in returns every year.

Since the banking sector makes up a massive proportion of the overall ASX 200 (the big four’s weightings alone account for ~20% of the ASX 200), one might assume it’s been a good month for ASX banks too. And that assumption would be correct. So let’s have a look at how the big four ASX banks performed over November, and which one came out on top.

Making bank in November

Let’s start with the ‘big dog’ – Commonwealth Bank of Australia (ASX: CBA). CBA shares closed at $69.02 on Friday 30 October, and finished up yesterday at a price of $79.57. That’s a gain of 15.29% – not bad at all for a month’s work. Incidentally, CBA’s steller November has seen it return to the top of the ASX 200 totem pole, displacing CSL Limited (ASX: CSL), which had occupied the throne for most of 2020.

Turning to National Australia Bank Ltd (ASX: NAB), and we can see that NAB shares started the month priced at $18.60. Since the NAB share price closed at $23.12 yesterday, NAB has banked (excuse the pun) a gain of 24.3% over the month.

Westpac Banking Corp (ASX: WBC) has arguably been the bank that has seen the worst circumstances in 2020 so far. Remember, it was forced to pay an Australian corporate record of a fine a few months ago, which cost it $1.3 billion. So, Westpac started the month at $17.91 a share, and closed up yesterday at $20.25. That’s a gain of 13.07%.

Last, and in this case least (in terms of market capitalisation), we have Australia and New Zealand Banking Group Ltd (ASX: ANZ). ANZ closed October out at a price of $18.81 a share. It closed out November yesterday at a price of $22.76 a share. That means ANZ shareholders have enjoyed an even 21% appreciation over the month.

For what it’s worth, the ASX’s ‘fifth bank’ Macquarie Group Ltd (ASX: MQG) rose from $126.75 to $140.20 over November, a gain of 10.61%.

Foolish takeaway

Looking at these numbers, we can see that NAB was the best ASX banking share to own in November, treating its investors to a very welcome 24.3% gain. This was almost matched by ANZ’s 21%, with CBA and Westpac bringing up the rear with gains of 15.2% and 13.1% respectively. 

More reading

• Why healthcare, tech and consumer staples shares underperformed the ASX 200 in November
• Why the Afterpay (ASX:APT) share price and these ASX stocks could get a boost next week
• Fund managers are snapping up these ASX stocks at a record pace
• ASX 200 up 1%: Domino’s rockets, Collins Foods delivers strong result, GPT offloads asset
• 2 ASX 200 healthcare shares that outperformed in November 

Sebastian Bowen owns shares of National Australia Bank Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of CSL Ltd. The Motley Fool Australia owns shares of and has recommended Macquarie Group Limited. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. 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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ASX healthcare, tech and consumer staples shares were market leading sectors at the height of COVID-19 and lockdown measures. Fast forward to reopening borders and vaccine hopes and these sectors underperformed the S&P/ASX 200 Index (ASX: XJO) in November. With the ASX 200 gaining nearly 10% in November, let’s take a closer look at those shares lagging behind.

ASX consumer staples shares losing steam 

The S&P/ASX Consumer Staples Index was up 0.03% in November. Pantry stocking and higher in-home consumption pushed consumer staple heavyweights Woolworths Group Ltd (ASX: WOW) and Coles Group Ltd (ASX: COL) share prices higher throughout the year. But the supermarket giants remained largely flat in November with the Woolworths share price falling 4% and Coles share price down 1%.

Despite the weak performance, many brokers remain positive on the Woolworths share price, anticipating a strong Christmas trading period. Big brokers including Credit Suisse Group, Morgan Stanley and UBS Group (USA) retain price targets between $40.80 and $44.00 for Woolworths shares. 

Mid-cap consumer staple shares also faced significant challenges in relation to rising tensions with China. These include recent tariffs on wine and the blocking of China’s Mengnui Dairy’s acquisition of Lion Dairy. This has seen the A2 Milk Company Ltd (ASX: A2M) share price unable to pick up steam and remain flat for the month. Meanwhile, the Treasury Wine Estates Ltd (ASX:TWE) share price was down 7% for November. 

Healthcare and technology shares taking a breather 

The S&P/ASX 200 Info Tech Index (ASX: XIJ) was up 4.70% in November which, whilst decent enough, underperformed the wider ASX 200 by nearly 5%. Many tech shares are taking a breather after spectacular runs to new highs throughout the year. These include the likes of Afterpay Ltd (ASX: APT) plateauing after hitting $100 in October and NextDC Ltd (ASX: NXT) falling 10% after more than doubling this year. Xero Limited (ASX: XRO), on the other hand, managed to hit an all-time record high of $135 in late November. 

Similarly, the S&P/ASX Healthcare Index was up 2.72% in November. Healthcare heavyweight CSL Limited (ASX: CSL) closed 4% higher, but its shares are largely flat year to date.

Elsewhere, the Fisher & Paykel Healthcare Corp Ltd (ASX: FPH) share price was down 1.25% after its 60% share price run this year. 

Sonic Healthcare Limited (ASX: SHL) was the worst performing large cap healthcare stock, down almost 6%. Its shares are relatively flat year to date following the adverse impacts of lockdown, coronavirus infection fears and cancellations of elective surgeries. The company’s core base laboratory business revenues are improving with most regions up on prior year levels. This includes negative but improving growth in the United States and United Kingdom. Sonic transitioned its business into providing significant support for COVID testing, especially in the US, Europe and Australia. 

Foolish takeaway

ASX tech and healthcare sectors still delivered positive returns in November. One could argue that their underperformance against the boarder ASX 200 in November was largely attributable to the surge in the share prices of the big four banks. 

More reading

• Why the Afterpay (ASX:APT) share price and these ASX stocks could get a boost next week
• Fund managers are snapping up these ASX stocks at a record pace
• 2 ASX 200 healthcare shares that outperformed in November 
• These were the worst performing ASX 200 shares in November
• ASX 200 drops on Monday

Lina Lim has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of CSL Ltd. and Xero. The Motley Fool Australia owns shares of and has recommended A2 Milk and Treasury Wine Estates Limited. The Motley Fool Australia owns shares of AFTERPAY T FPO, and Woolworths Limited. The Motley Fool Australia has recommended Sonic Healthcare Limited. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The post Why healthcare, tech and consumer staples shares underperformed the ASX 200 in November appeared first on Motley Fool Australia.

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The Syrah Resources Ltd (ASX: SYR) share price has continued its positive run and is pushing higher again on Tuesday.

At one stage today, the graphite producer’s shares were up almost 7% to a 52-week high of 95 cents.

When the Syrah share price hit that level, it meant it had gained a remarkable 116% since this time last month.

Why did the Syrah share price charge higher today?

This morning Syrah announced the completion of a bankable feasibility study (BFS) for the expansion of its natural graphite Active Anode Material (AAM) facility in Vidalia, Louisiana, United States.

This is part of its strategy of becoming the first vertically integrated producer of natural graphite AAM outside of China.

According to the release, the BFS confirms the strong business case for Syrah’s natural graphite AAM production at its Vidalia facility.

In light of this, the company has commenced the Front End Engineering and Design (FEED) for an initial 10ktpa AAM facility at Vidalia in the first quarter of 2021. After which, it intends to increase its capacity in line with growing market demand.

Its study found that the capital cost will be US$138 million, with all-in operating costs of US$3,149 per tonne of AAM. The latter compares to the spot AAM price of US$5,471 per tonne.

Management commentary.

Syrah’s Managing Director and CEO, Shaun Verner, was pleased with the study and notes that spot prices are potentially at a low point of the cycle.

He commented: “The BFS confirms strong positive economics for commercial scale natural graphite AAM production at Vidalia, with robust operating margins implied compared to current observed spot natural graphite AAM prices, which are arguably at the low point of the cycle.”

“Vidalia vertically integrated with Balama presents a unique value proposition: scale; independence and localisation with USA battery production; critical mineral security; and ESG auditability back to the graphite source. The completion of the BFS further enhances engagement with potential offtake customers, financiers, and Government, and represents an exciting milestone in the execution of our USA and vertical integration strategy, which commenced in 2016,” he added.

More reading

• Why healthcare, tech and consumer staples shares underperformed the ASX 200 in November
• Why the Afterpay (ASX:APT) share price and these ASX stocks could get a boost next week
• BetMakers (ASX:BET) share price on watch after announcing major acquisition
• Warren Buffett: a share market crash is coming
• Why the PIlbara Minerals (ASX:PLS) share price is charging higher

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The post Here’s why the Syrah (ASX:SYR) share price jumped to a 52-week high today appeared first on Motley Fool Australia.

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There’re a handful of ASX stocks including the Afterpay Ltd (ASX: APT) share price that could see buying interest next week.

This is when Standard’s & Poor (S&P) announces the changes to key stock benchmarks, including the S&P/ASX 200 Index (Index:^AXJO).

ASX investors should care. A number of studies have shown that new ASX entrants to stock indices tend to outperform in the weeks before and the months after their inclusion.

The opposite happens to ASX stocks that get bumped from these indices.

Rise of passive investments

One reason for this is the growth of index investing. Investors have been increasingly buying into exchange traded funds (ETFs) and other passive investing strategies that hug an index.

Their popularity is driven by the belief that the vast majority of active fund managers cannot beat the index over the longer term. Passive investments charge much lower fees than active managers.

As stocks are added into an index, these ETFs and passive managers have to buy the stock. By the same token, the opposite happens when an ASX stock is dropped.

ASX winners and losers

Another reason behind the performance trend is the fact that new index members tend to be moving from strength to strength. Hence their inclusion. Those that fall to the wayside have often been plagued by challenges.

This of course is unless an ASX stock is dropping out of a larger cap index into a smaller cap index.

Thus,REH

Other stocks that could also be included into the club are the Pointsbet Holdings Ltd (ASX: PBH) share price, Kogan.com Ltd (ASX: KGN) share price and Tyro Payments Ltd (ASX: TYR) share price.

Stocks that may be tossed out are the Avita Therapeutics Inc (ASX: AVH) share price, Cooper Energy Ltd. (ASX: COE) share price, Western Areas Ltd (ASX: WSA) share price and GWA Group Ltd (ASX: GWA) share price.

More reading

• Kogan (ASX:KGN) share price falls on option grants to top execs
• Fund managers are snapping up these ASX stocks at a record pace
• ASX 200 up 1%: Domino’s rockets, Collins Foods delivers strong result, GPT offloads asset
• 3 ASX shares growing the dividend rapidly
• ASX shares looking awesome for next year: economist

Brendon Lau owns shares of Reece Australia Limited. Connect with me on Twitter @brenlau.

The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Avita Medical Limited, Kogan.com ltd, Pointsbet Holdings Ltd, and Tyro Payments. The Motley Fool Australia owns shares of AFTERPAY T FPO. The Motley Fool Australia has recommended Avita Medical Limited, Flight Centre Travel Group Limited, Kogan.com ltd, and Pointsbet Holdings Ltd. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. 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 BetMakers Technology Group Ltd (ASX: BET) share price will be one to watch later this week when it returns from its trading halt.

Why is the BetMakers share price in a trading halt?

This morning the betting technology company requested a trading halt whilst it launched an equity raising to fund a major acquisition.

According to the release, the company has entered into binding agreements to acquire global assets of leading international online sports betting company Sportech PLC for A$56.2 million on a cash-free, debt-free basis.

Management advised that the proposed acquisition of Sportech’s Racing and Digital assets in the United States, United Kingdom, and Europe is intended to accelerate BetMakers’ international growth plans.

It will significantly expand its global customer base and strategic position to fully capitalise on emerging opportunities in the U.S. market. This includes fixed odds wagering.

The acquisition is expected to deliver substantial revenues and earnings before interest, tax, depreciation and amortisation (EBITDA) for BetMakers’ business.

Management advised that on a pro-forma basis for FY 2020, the Tote and Digital Business combined with BetMakers’ existing operations would have delivered A$56.1 million revenue and A$7.7 million EBITDA.

This compares to BetMakers’ stand-alone revenue of A$9.2 million and EBITDA of A$0.8 million.

In addition to this, the company expects to derive strong growth from the Tote and Digital Business, including from synergies and cross-selling opportunities.

“Supercharge” US entry.

BetMakers’ Managing Director, Todd Buckingham, commented: “This Acquisition will supercharge our entry into the U.S. and position the Company for substantial growth on the back of the emerging wagering opportunities in U.S. racing, including Fixed Odds, where we believe we are well placed.”

“The Acquisition would give us a meaningful presence in the U.S., including in 36 of the States and across more than 200 venues, 25 digital outlets and 9,000 betting terminals. It will also greatly expand our global customer base across the UK, Europe and Asia and provides us with an opportunity to expand our product offering at scale in these and other regions,” he added.

Equity raising.

To fund the acquisition, BetMakers is aiming to raise a total of $60 million.  This will be via a fully underwritten $50 million placement and a $10 million share purchase plan.

These funds will be raised at 60 cents per share, which represents a 9.1% discount to its last close price.

More reading

• Here are the best performing ASX tech shares in November

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. 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 legendary investor Warren Buffett — chair and CEO of Berkshire Hathaway Inc (NYSE: BRK.A)(NYSE: BRK.B) — is famous for a number of reasons. First and foremost is the performance of Berkshire, which he has helmed since the mid-1960s.

According to our Fool colleagues over in the United States, since Buffett effectively took over the company, Class A Berkshire shares have gone from around US$12 in 1964 to today’s price of US$343,688 (no, that’s not a typo).

That’s a return of 2,863,966%, or around 20% compounded per year. Berkshire’s Class A shares are also currently the most expensive stock on US markets, and are the living proof of what happens when a successful company never splits its shares.

But apart from Berkshire’s stunning returns, Buffett is perhaps best known for the famous stoicism and opportunism he displays in times of share market turmoil. Buffett habitually does most of his buying when ‘others are fearful’ – in other words, when the markets are tanking.

Buffett tends to sit out of the markets when they are on a tear, waiting, and building his cash pile to deploy when the inevitable rainy day comes. That’s why Berkshire was sitting on more than US$140 billion in cash and cash equivalents (the largest cash pile the company ever had) at the start of 2020, when the markets were approaching new all-time highs.

Buffett: buying low, selling high

Now Warren Buffett has been buying in the months following the March share market crash. But Buffett’s recent buys have been far from ‘optimistic bets’. They include acquiring massive stakes in a range of Japanese industrial conglomerates like Mitsubishi. They also include a stake in Barrick Gold Corp (NYSE: GOLD), one of the largest gold miners in the world.

Gold is viewed by many investors as a ‘safe-haven’, hedge-against-a-crash asset, but Buffett has famously derided gold as an investment in the past. He once said something to the effect of ‘gold has no use, all you can do is cuddle it’. Yet his tune has evidently changed this year.

Buffett has also sold down some of his most successful US investments recently, namely Apple Inc (NASDAQ: AAPL) and Costco Wholesale Corporation (NASDAQ: COST), as well as a bunch of US bank shares.

It seems that the investor who likes to ‘be greedy when others are fearful, and fearful when others are greedy’ is a little fearful himself. And that, friends, is not a good sign for things to come.

More reading

• Why is the Atomos (ASX:AMS) share price up 6% this morning?
• How the biggest companies are the worst investments
• 10 most searched shares in Australia
• Down 17%, is Apple stock a buy?
• I have too many tech shares: Do I sell, buy or hold?

Sebastian Bowen has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and recommends Apple, Berkshire Hathaway (B shares), and Costco Wholesale and recommends the following options: short January 2021 $200 puts on Berkshire Hathaway (B shares), long January 2021 $200 calls on Berkshire Hathaway (B shares), and short December 2020 $210 calls on Berkshire Hathaway (B shares). The Motley Fool Australia has recommended Apple and Berkshire Hathaway (B shares). We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. 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 legendary investor Warren Buffett — chair and CEO of Berkshire Hathaway Inc (NYSE: BRK.A)(NYSE: BRK.B) — is famous for a number of reasons. First and foremost is the performance of Berkshire, which he has helmed since the mid-1960s.

According to our Fool colleagues over in the United States, since Buffett effectively took over the company, Class A Berkshire shares have gone from around US$12 in 1964 to today’s price of US$343,688 (no, that’s not a typo).

That’s a return of 2,863,966%, or around 20% compounded per year. Berkshire’s Class A shares are also currently the most expensive stock on US markets, and are the living proof of what happens when a successful company never splits its shares.

But apart from Berkshire’s stunning returns, Buffett is perhaps best known for the famous stoicism and opportunism he displays in times of share market turmoil. Buffett habitually does most of his buying when ‘others are fearful’ – in other words, when the markets are tanking.

Buffett tends to sit out of the markets when they are on a tear, waiting, and building his cash pile to deploy when the inevitable rainy day comes. That’s why Berkshire was sitting on more than US$140 billion in cash and cash equivalents (the largest cash pile the company ever had) at the start of 2020, when the markets were approaching new all-time highs.

Buffett: buying low, selling high

Now Warren Buffett has been buying in the months following the March share market crash. But Buffett’s recent buys have been far from ‘optimistic bets’. They include acquiring massive stakes in a range of Japanese industrial conglomerates like Mitsubishi. They also include a stake in Barrick Gold Corp (NYSE: GOLD), one of the largest gold miners in the world.

Gold is viewed by many investors as a ‘safe-haven’, hedge-against-a-crash asset, but Buffett has famously derided gold as an investment in the past. He once said something to the effect of ‘gold has no use, all you can do is cuddle it’. Yet his tune has evidently changed this year.

Buffett has also sold down some of his most successful US investments recently, namely Apple Inc (NASDAQ: AAPL) and Costco Wholesale Corporation (NASDAQ: COST), as well as a bunch of US bank shares.

It seems that the investor who likes to ‘be greedy when others are fearful, and fearful when others are greedy’ is a little fearful himself. And that, friends, is not a good sign for things to come.

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Sebastian Bowen has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and recommends Apple, Berkshire Hathaway (B shares), and Costco Wholesale and recommends the following options: short January 2021 $200 puts on Berkshire Hathaway (B shares), long January 2021 $200 calls on Berkshire Hathaway (B shares), and short December 2020 $210 calls on Berkshire Hathaway (B shares). The Motley Fool Australia has recommended Apple and Berkshire Hathaway (B shares). We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. 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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