Tag: Motley Fool

Many people may think that investing into ASX shares is the only thing you need to think about when it comes to personal finance.

However, I think it’s important to have a good foundation and a good money mindset so that you can invest confidently.

Here are three good personal finance tips:

Have an emergency fund

I think it’s important for every adult Australian to have an emergency fund. At least $1,000 is a good target in my opinion. Having that cash set aside can be invaluable when you need it most.

I believe that having that cash reserve set aside allows you to take on a little more ‘risk’ with your investing. I’m not saying that having an emergency fund should mean you invest in small cap biotech shares. I just mean that having cash set aside can allow you to confidently invest more into (ASX) shares.

Perhaps having an emergency fund would allow you to go for more growth options like Pushpay Holdings Ltd (ASX: PPH) or City Chic Collective Ltd (ASX: CCX). You won’t feel as though you need to go for defensive ideas. 

Personal finance is important for your life and your family. If you have children and a mortgage then it could be a good idea to have up to six months of living expenses set aside in a high interest savings account. There are plenty of places to find a savings account including businesses like Macquarie Group Ltd (ASX: MQG) and Suncorp Group Ltd (ASX: SUN).

Don’t take on risky debt

I think debt is a very dangerous thing when it comes to investing.

It’s almost impossible to buy a property without using debt. However, that’s not the case with investing in shares. You can invest with as little as $500 – you don’t need to borrow to do it.

Debt can accelerate your returns if your investment picks are good. However, the risk of a wipeout is too much in my opinion.

A margin loan could be called precisely when you want to be buying shares not selling them. Selling in a market crash would permanently reduce your wealth.

Every person’s personal finance mindset is different. But if you have debt hanging over your portfolio then you may not invest the same as if you didn’t have that debt. That would be a shame in my opinion. I think it’s best to avoid having high-risk debt when it comes to investing in shares.

And don’t forget, debt isn’t free money. You have to pay interest, which reduces your returns.

Regularly invest

Unless you’re in retirement, most people reading this will be able to invest regularly over the coming years. Or at least when the COVID-19 impacts are over.

A few people may be able to find the next Apple at an early stage and make millions from a relatively small investment. However, you can’t assume that will happen for your portfolio.

I believe the easiest way to invest is to regularly put money to work in your investment account – whether that’s inside or outside of superannuation. The more you put in the more it can grow. If you invest regularly it’s less likely that you’ll miss any good buying opportunities.  

Personal finance can be very simple if you ‘automate’ most of your money. That includes your investment schedule. 

You can regularly invest into your best ASX share ideas – for me it’s something like Pushpay – or you can go for your favourite exchange-traded fund (ETF) like BetaShares Global Quality Leaders ETF (ASX: QLTY) or fund manager like Magellan Global Trust (ASX: MGG).

More reading

• Suncorp cuts 550 jobs
• 2 top notch ASX shares for beginners
• Where to invest $10,000 into ASX shares today
• 3 quality ASX shares that could provide monster returns
• Where to invest $10,000 into ASX shares

Tristan Harrison owns shares of MAGLOBTRST UNITS. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of PUSHPAY FPO NZX. The Motley Fool Australia owns shares of and has recommended Macquarie Group Limited. The Motley Fool Australia has recommended PUSHPAY FPO NZX. 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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According to the latest Westpac Banking Corp (ASX: WBC) Weekly economic report, the banking giant continues to expect the cash rate to stay on hold for as far out as its forecasts go.

This unfortunately means that it could be years before interest rates return to “normal” levels again.

In light of this, I believe ASX dividend shares will remain the best option for income investors for the foreseeable future.

But which dividend shares should you buy? Two that I think would be top options are listed below. Here’s why I would buy them:

Bravura Solutions Ltd (ASX: BVS)

Bravura Solutions is leading provider of software products and services to the wealth management and funds administration industries. It offers a number of quality products such as the Sonata wealth management platform. This popular wealth management platform allows advisers to connect and engage with clients via computers, tablets, or smartphones. It also has the Rufus transfer agency solution, the Garradin back office solution, and the recently acquired Midwinter financial planning solution.

Bravura’s shares have fallen heavily this year due to the impact of the pandemic on its performance. While its near term performance might underwhelm, I’m confident its growth will accelerate again once the crisis passes. This could mean it is a great time to make a patient investment in its shares. Especially given how they offer an attractive 3.3% dividend yield.

Dicker Data Ltd (ASX: DDR)

Another ASX dividend share to consider buying is Dicker Data. It is the leading wholesale distributor of computer hardware and software across the ANZ region. I think it could be a great long term option due to its strong market position, growing vendor agreements, positive tailwinds, and new distribution centre. The latter gives the company significant room to expand its operations and boost its revenue growth once complete. 

For now, this year the company intends to increase its dividend by 31% to 35.5 cents per share. Based on the current Dicker Data share price, this represents a generous fully franked 4.8% dividend yield.

More reading

• 2 ASX dividend shares to buy after the selloff
• 3 quality ASX shares that could provide monster returns
• Why I would buy these quality ASX dividend shares in September
• 3 ASX shares for growth, income, and value investors to buy right now
• 2 ASX dividend shares to buy instead of CBA

Motley Fool contributor James Mickleboro owns shares of Westpac Banking. The Motley Fool Australia owns shares of and has recommended Bravura Solutions Ltd and Dicker Data 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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If you’re looking for additions to your portfolio in September, then I think the three ASX shares listed below would be great options.

I believe they are among the best on offer on the Australian share market and could generate strong returns for investors over the next decade.

Here’s why I rate them as five-star shares:

Appen Ltd (ASX: APX)

The first five-star share to buy is Appen. It is a growing tech company which has a team of over one million crowd-sourced experts preparing the data for the artificial intelligence (AI) and machine learning models. Among its customers are some of the biggest tech companies in the world such as Facebook, Microsoft, and Apple. In addition to this, thanks to the acquisition of Figure Eight last year, the company now has strong position in the government sector. This bodes well for its future growth given the billions of dollars that many Western governments are allocating to their AI activities. All in, I believe Appen is well-positioned to grow its earnings at an above-average rate over the 2020s.

BetaShares NASDAQ 100 ETF (ASX: NDQ)

Another five-star option for investors to consider buying is the BetaShares NASDAQ 100 ETF. This exchange traded fund gives investors access to a large number of high quality companies listed on the famous Nasdaq index. This includes the likes of Amazon, Facebook, Microsoft, Nvidia, Starbucks, and Tesla, to name just a few. Collectively, I believe this group of shares are well-placed to grow at an above-average rate over the next 10 years. This could mean the NASDAQ 100 index continues to outperform the ASX 200 index for some time to come. I think this could make it well worth taking advantage of a recent pullback in the BetaShares NASDAQ 100 ETF share price.

NEXTDC Ltd (ASX: NXT)

NEXTDC is Asia’s most innovative Data Centre-as-a-Service provider and a company I would give five stars to. It is currently building the infrastructure platform for the digital economy, putting it in a fantastic position to benefit from the cloud computing boom. As cloud computing usage increases, I expect demand for its innovative data centre outsourcing solutions and connectivity services to increase with it. This certainly was the case in FY 2020 when NEXTDC posted a 23% increase in underlying earnings before interest, tax, depreciation and amortisation (EBITDA) to $104.6 million.

More reading

• 3 ways Aussies can buy Tesla (NASDAQ:TSLA) shares
• 3 exotic ASX tech ETFs you might want to add to your portfolio today
• Brokers name 3 ASX shares to buy right now
• This ASX tech share is still cheap to buy
• 2 exciting ASX growth shares to buy in September

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 BETANASDAQ ETF UNITS. The Motley Fool Australia owns shares of Appen Ltd. The Motley Fool Australia has recommended BETANASDAQ ETF UNITS. 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 S&P/ASX 200 Index (ASX: XJO) was out of form last week and tumbled lower. The benchmark index dropped 66.1 points or 1.1% to end the period at 5,859.4 points.

While the majority of shares on the index tumbled lower with the market, some managed to push higher. Here’s why these were the best performers on the ASX 200 last week:

Nufarm Limited (ASX: NUF)

The Nufarm share price was the best performer on the ASX 200 last week with a 12.9% gain. Investors were buying the agricultural chemicals company’s shares after analysts at Morgans upgraded them. According to the note, the broker upgraded Nufarm’s shares to an add rating with an improved price target of $4.85. Although it expects a soft FY 2020 result later this month, it suspects that this could be the bottom of the cycle.

Clinuvel Pharmaceuticals Limited (ASX: CUV)

The CLINUVEL share price was on form and stormed 7.9% higher last week. The catalyst for this was the biopharmaceutical company announcing that it is looking to expand its SCENSSE product to treat the disease xeroderma pigmentosum. This is a rare genetic disorder where sufferers have the most extreme deficiencies in their DNA repair processes, leading to a 10,000-fold increase in their risk of skin cancer. There is no known cure for disease at present. CLINUVEL’s SCENSSE product is currently used to treat rare genetic disorder Erythropoietic Protoporphyria.

Vocus Group Ltd (ASX: VOC)

The Vocus share price was a strong performer and also climbed 7.9% higher over the five days. This is despite there being no news out of the telecommunications company last week or any broker notes that I’m aware of. However, a week earlier Yarra Funds revealed that it has been increasing its stake in the company. Yarra Funds has added approximately 9.2 million shares since early in August, increasing its stake to ~6.7%.

Sims Ltd (ASX: SGM)

The Sims share price wasn’t far behind with a gain of 7.8% last week. This appears to have been driven by a broker note out of Macquarie. Its analysts retained their outperform rating and lifted the price target on this scrap metal company’s shares to $11.00. The broker notes that strengthening steel demand is underpinning a rebound in scrap prices. It expects this to support volumes and margin improvements.

More reading

• These were the worst performing ASX 200 shares last week
• The ASX 200 is still stuck in a rut
• ASX 200 drops 0.8%, Nearmap (ASX:NEA) sinks
• The latest ASX stocks upgraded by brokers to “buy” today
• Afterpay (ASX:APT) share price facing new competitive pressure

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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I’m a big advocate of buy and hold investing and firmly believe it is the best way for investors to grow their wealth.

To demonstrate how successful it can be, every so often I like to pick out a number of popular ASX shares to see how much a single $20,000 investment 10 years ago would be worth today.

With that in mind, here’s how $20,000 investments in these ASX shares in 2010 would have fared:

CSL Limited (ASX: CSL)

This biotherapeutics company’s shares have been consistently strong performers over the last decade. This strong form has been driven by the increasing demand for its immunoglobulins, the acquisitions of the Novartis influenza vaccines business, and its high level of investment in research and development activities. These have combined to underpin strong sales and earnings growth over period, leading to CSL shares generating an average total return of 24.9% per annum. This would have turned a $20,000 investment into almost $185,000.

Evolution Mining Ltd (ASX: EVN)

Historically, gold miners are not great long term investments. But that hasn’t been the case over the last decade due to falling rates and a rising gold price. Combined with strong production and acquisitions, this has led to Evolution Mining shares beating the market since 2010. Over that time its shares have generated a 13.5% per annum total return. This means that a $20,000 investment would now be worth $71,000.

REA Group Limited (ASX: REA)

Thanks to the shift to online listings and the emergence of its realestate.com.au website as the dominant player in the Australian housing market, REA Group has been able to grow its earnings at a strong rate over the last 10 years. This has led to the property listings company’s shares smashing the market over the period with an impressive 26.15% per annum total return. Based on this, a $20,000 investment in REA Group’s shares in 2010 would be worth $204,000 today.

More reading

• Why BrainChip, Evolution, Nearmap, & Zip shares are tumbling lower
• Should you buy these beaten down ASX 200 shares?
• 3 outstanding ASX shares to buy and hold for decades
• Where to invest your first $1,000 into ASX shares
• 5 things to watch on the ASX 200 on Thursday

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 CSL Ltd. The Motley Fool Australia has recommended REA 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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There are some ASX dividend shares that are growing their dividends like clockwork every year.

Plenty of businesses that were meant to be good dividend shares have cut their income payments to shareholders this year due to COVID-19.

Businesses like Commonwealth Bank of Australia (ASX: CBA), Sydney Airport Holdings Pty Ltd (ASX: SYD) and Transurban Group (ASX: TCL) have all reduced their payments to shareholders.

But there are other ASX dividend shares that continue to grow their dividends year after year:

APA Group (ASX: APA)

It owns a vast network of 15,000km of natural gas pipelines around Australia with a presence in every mainland state and the Northern Territory. It also owns or has interests in gas storage facilities, gas-fired power stations and renewable energy generation (wind and solar farms). APA owns, or manages and operates, a portfolio of assets and delivers half the nation’s natural gas usage.

APA pays distributions from its annual cashflow. The cashflow from existing assets is fairly steady and it continues to invest in new projections which will grow cashflow further and fund higher distributions. That makes it a very reliable ASX dividend share.

It has increased its distribution every year for the past decade and a half. At the current APA Group share price if offers a distribution of almost 5%.

Rural Funds Group (ASX: RFF)

Rural Funds is an agricultural real estate investment trust (REIT) which owns a variety of farms including almonds, cattle, cotton, macadamias and vineyards.

The ASX dividend share aims to increase its distribution by 4% every year. It’s able to do this because rental increases are built into all of its contracts. Some of the contracts have a fixed 2.5% annual increase, whilst others are linked to CPI inflation, with market reviews.

I like the strategy that Rural Funds has by investing in productivity improvements at its farms. This increases the farm value as well as unlocking rental income growth potential.

As the landlord, Rural Funds doesn’t take on operational risk. But it does own water entitlements which are available for tenants.

At the current Rural Funds share price it has a FY21 distribution yield of around 5%.

Washington H. Soul Pattinson and Co. Ltd (ASX: SOL)

Soul Patts is an investment conglomerate that has been operating for over a century, it was listed in 1903.

I think Soul Patts is the gold standard for ASX dividend shares. It has paid a dividend every year in its history including through the Spanish Flu, world wars and recessions. I think it’s a very dependable income payer.

It has actually grown its dividend every year since 2000. That’s the best record on the ASX. The GFC didn’t stop its streak.

Soul Patts has a diversified portfolio of businesses in its portfolio including TPG Telecom Ltd (ASX: TPG), Brickworks Limited (ASX: BKW), Australian Pharmaceutical Industries Ltd (ASX: API), Clover Corporation Limited (ASX: CLV) and Bki Investment Co Ltd (ASX: BKI).

It’s also invested in unlisted businesses such as financial services, resources, agriculture, swimming schools and Ampcontrol.

Most of the ASX dividend share’s investments pay dividends (and distributions) up to Soul Patts each year. In FY19 Soul Patts paid out around 80% of its net cashflow (after paying for expenses) to investors, whilst keeping the rest to re-invest into more opportunities.

I think many of its largest holdings like TPG, Brickworks, Clover and so on have attractive growth potential.

At the current Soul Patts share price it has a grossed-up dividend yield of 4.1%.

Foolish takeaway

Each of these ASX dividend shares have grown their dividend during COVID-19. They’re very reliable and have potential for long-term dividend growth for many years to come. If I had to pick one it would be Soul Patts for its diversification and ability to invest into new industries.

More reading

• 2 reliable and high quality ASX dividend shares to buy today
• 2 ASX shares I would buy for both growth and income today
• 3 ASX shares I’d buy to quickly add diversification
• Smash low interest rates with these high yield ASX dividend shares
• These 2 ASX 200 shares could be the best value ideas

Tristan Harrison owns shares of RURALFUNDS STAPLED and Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Clover Limited. The Motley Fool Australia owns shares of and has recommended Brickworks, RURALFUNDS STAPLED, and Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia owns shares of APA Group and Transurban Group. 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 was a very volatile five days for the S&P/ASX 200 Index (ASX: XJO) last week. After a series of ups and downs, the benchmark index eventually dropped 66.1 points or 1.1% to end it at 5859.4 points.

While most shares on the index tumbled lower with the market last week, some fell more than most. Here’s why these were the worst performers on the ASX 200 over the period:

Nearmap Ltd (ASX: NEA)

The Nearmap share price was the worst performer on the ASX 200 last week with a 15.5% decline. Investors were selling the aerial imagery technology and location data company’s shares after it completed its fully underwritten institutional placement. Nearmap raised $72.1 million at a 4.2% discount of $2.77. The company raised the funds to take advantage of industry tailwinds and support its growth. Also weighing on its shares was a broker note out Goldman Sachs. Its analysts downgraded Nearmap’s shares to a neutral rating on Friday.

Origin Energy Ltd (ASX: ORG)

The Origin share price wasn’t far behind and dropped 12% over the five days. This appears to have been driven by a pullback in oil prices last week. Oil prices came under pressure due to demand concerns after Saudi Arabia made very deep monthly price cuts to offload its oil.

Resolute Mining Limited (ASX: RSG)

The Resolute share price was out of form and tumbled 11% lower last week. Investors were selling the gold miner’s shares after it revealed that workers at its Syama operation in Mali have threatened to strike. Syama is an important operation for Resolute and contributed 59.4% of its total production during the second quarter. In light of this planned strike, the company has withdrawn its production and costs guidance for FY 2020.

GrainCorp Ltd (ASX: GNC)

The GrainCorp share price was a poor performer and dropped a sizeable 10.5% lower last week. This may have been driven by a broker note out of Morgans. Its analysts retained their hold rating and cut the price target on the company’s shares to $4.18. It expects that strong demand for grain in the domestic market after three years of drought will prevent the company from fully benefiting from higher margin exports.

More reading

• The ASX 200 is still stuck in a rut
• ASX 200 drops 0.8%, Nearmap (ASX:NEA) sinks
• The latest ASX stocks upgraded by brokers to “buy” today
• Leading broker downgrades Nearmap (ASX:NEA) shares
• Afterpay (ASX:APT) share price facing new competitive pressure

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 Nearmap Ltd. The Motley Fool Australia has recommended Nearmap 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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It’s no secret that retail and travel share prices have been among the hardest hit from the COVID-19 mitigation efforts.

When people are ordered to stay home or even just told to maintain social distancing, brick and mortar retailers see their revenues crumble. This in turn puts their landlords under pressure when rents are reduced or simply not paid.

Take Scentre Group (ASX: SCG), for example, which owns and operates retail properties across Australia and New Zealand. The Scentre share price crashed more than 68% during the first 2 months of the COVID outbreak. It’s bounced back strongly since then, but the Scentre share price still remains down 45% year to date.

Airlines, airports and the companies that arrange domestic and international travel have suffered the same fate.

With Australia’s international borders effectively closed and domestic travel hugely reduced, it’s no surprise that the Flight Centre Travel Group Ltd (ASX: FLT) share price has been hammered as well, falling more than 78% following the coronavirus outbreak.

The Flight Centre share price has also rebounded strongly since then. But it still remains down 68% since 2 January.

What Westpac’s consumer sentiment report revealed

On Wednesday, Westpac Banking Corp (ASX: WBC) released its latest consumer sentiment report.

Atop a noticeable rise in consumer confidence, Westpac revealed that:

[Household] preferences have not moved to the ‘riskier’ investments like shares and property (property down from 11.9% to 9.9%; and shares steady around 9%). Rather the shift in preferences, over the year, has been to bank deposits with 32.7% favouring bank deposits compared to 26.7%. The conclusion remains that Australians continue to hold extremely risk averse preferences for their savings.

Foolish takeaway

The trigger that many retail investors are waiting for before parting with the security provided by their cash holdings is either the elimination or effective control of the coronavirus.

When that happens it’s some of the most beaten down shares that could benefit the most.

And the Flight Centre share price along with the Scentre share price could prove to be among the bigger winners. That’s because not only are Australian households holding more cash to invest in the share market, but they’ll be eager to spend that cash on travel and shopping out in real stores once they’re allowed to again.

More reading

• This devastated sector is ripe for buying: fundie
• Is the Flight Centre (ASX:FLT) share price about to take off?
• ASX 200 rises 1%, CSL (ASX:CSL) leads the way
• ASX 200 up 0.95%: Big four banks rise, Scentre collections improve, Nufarm jumps
• Why Magellan, Nufarm, Opticomm, & Scentre shares are storming higher

Motley Fool contributor Bernd Struben has no position in any of the stocks mentioned. 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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Rio Tinto Limited (ASX: RIO) timidly (and all-too-cutely) titled its ASX release “Rio Tinto Executive Committee changes”.

I guess they were updating the schedule of committee meetings?

Maybe adding a couple of people to the committee?

Nope.

The CEO (and Executive Director) JS Jacques is leaving the company, ‘by mutual agreement’.

Oh, and “Chris Salisbury will step down as Chief Executive, Iron Ore with immediate effect” while “Simone Niven will step down as Group Executive, Corporate Relations”.

‘Changes’, indeed.

It is perhaps a small point, given the magnitude of the destruction of the Juukan Gorge rock shelters in the WA Pilbara region.

But at a time when the company is scrambling to right some wrongs (or, at least, to ensure it acted meaningfully and decisively in the wake of the disaster), to use such weaselly words was, perhaps, unwise at the very least.

It’s a small thing, though, in the bigger picture.

Three senior mining company executives are going to walk the plank, their positions being considered untenable.

It is almost certainly too little, too late. But it’s something. 

It’s also notable because of the seriousness of the price being paid — because it’s unusually harsh.

I’m not suggesting that it was inappropriate — you can argue it was both too lenient or too harsh, depending on your perspective — but it is unusual.

As I wrote to the team in an internal message this morning:

“I do think the pressure is ramping up on companies who are seen to break a social contract.

“It’s not even close to the first time mining companies have mined / damaged important sites, but the Rio response is the strongest I can recall.”

You can add that to the focus on CEO salaries over the past few years, and the more recent brouhaha over companies receiving JobKeeper support while also paying bonuses.

And then there’s the ongoing fallout from the banking Royal Commission and the rolling debacle that is AMP Limited (ASX: AMP).

Corporate missteps are both more prominent, and being dealt with more harshly than I can recall.

There’s always been scrutiny of the high-profile, self-styled corporate titans — think Bond, Skase and Packer — but both the magnifying glass and the blowtorch are being applied more strongly and in more places than ever before.

Is it a good thing?

It depends where you stand.

Some of our society like nothing more than a bit of outrage, and a head on a platter to sate the baying crowd.

Some take a legal perspective: if it’s not precluded by law, it’s fair game.

Others expect our companies to exhibit a standard of behaviour that meets a higher moral level.

And yet others don’t care, personally, but want to make sure their companies don’t end up corporate pariahs, with presumably negative consequences for their share prices.

It is, as ever, a complicated issue.

For all of that, though, CEOs and two direct reports don’t leave a company on a whim.

Regardless of what camp you’re in, it seems that the shareholders who matter (and who have the ear of directors) are requiring higher standards and more concrete consequences. And that, perhaps more than ever, high profile wrongdoing will attract media scrutiny.

Of course, that might not mean much — at least in concrete financial terms.

At the time of writing, shares in Rio Tinto were down 0.6% — almost exactly the same as the general fall on the ASX.

That’s hardly a ringing endorsement, nor strong repudiation, of today’s announcement.

And remember, at one point Altria — formerly known as Philip Morris, and one of the largest cigarette manufacturers in the world — was the best performing US stock, measured over half a century.

As ever — and especially in investing — don’t follow the words, or even the actions.

As they say, follow the money.

But that’s where it’s worth paying attention. The money to follow isn’t the share price, but the money being spent with the company.

Investor power might change CEOs, but consumer (or customer) power changes what companies do, and how they make their money — especially in our social media-powered world.

Whether you care about an issue or not, the ability of companies to operate in a way that keeps their ‘social licence’ intact is going to become an ever more important part of assessing their business plans.

Invest accordingly.

Fool on!

More reading

• ASX 200 drops 0.8%, Nearmap (ASX:NEA) sinks
• ASX 200 down 0.95%: Rio Tinto (ASX:RIO) CEO exits, Nearmap (ASX:NEA) sinks lower
• Rio Tinto (ASX:RIO) heads roll, but investors want more
• IGO share price surges on potential sale of Tropicana
• Rio Tinto (ASX:RIO) announces CEO exit following Juukan destruction

Motley Fool contributor Scott Phillips 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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Tesla Inc (NASDAQ: TSLA) has been one of the most popular shares in the world to talk about in 2020 so far. Tesla (and its… eccentric CEO, Elon Musk) have never spent long out of the limelight over the past 5 years. From the infamous ‘private at $420’ tweet and a public showdown with the United States SEC (Securities and Exchange Commission) to the Bladerunner-esque Cybertruck and the more recent stock split, there always seems to be something in the news about Tesla.

But 2020 has brought that ‘something’ into a realm most investors understand (and can’t ignore) – an exploding share price. Tesla has long been a rather volatile share. But 2020 has turned up that dial to 11 (out of 10).

Picture this. At the start of 2020, Tesla shares were priced at US$86 (post-split adjusted) after going as low as US$38 in May 2019. During the March market crash, the shares descended to around US$72.

But it’s been onwards and upwards from there. Today, Tesla shares are asking US$371 after going as high as US$500 less than 2 weeks ago. The shares remain 330% up for the year so far.

But Tesla is listed in the United States, on the Nasdaq exchange to be specific. And whilst many Aussie investors are comfortable buying international shares, many still are not. So how would the latter investor get exposure to Tesla shares on the ASX today? Well, there are 3 easy options.

Tesla on the ASX

Option 1) ETFS FAANG+ ETF (ASX: FANG)

This exchange-traded fund (ETF) tracks a concentrated portfolio of 10 US tech companies, including the FAANG stocks as well as Tesla. Since Tesla has a current weighting in this fund of 15.1% (the heaviest current allocation), this is a great way to own Tesla in your portfolio.

Option 2) BetaShares Nasdaq 100 ETF (ASX: NDQ)

Our second option is this Nasdaq ETF. As I mentioned earlier, Tesla is traded on the Nasdaq exchange and as a result, appears in this ETF (although not in any S&P 500 ETFs as of yet). Tesla shares are the sixth largest holding in NDQ with a 3% weighting.

Option 3) ETFS Battery Tech & Lithium ETF (ASX: ACDC)

Our final option is another ETF, this time with a focus on battery technology (and an ultra-cool ticker symbol to boot). ACDC holds a range of companies that are involved in energy storage and lithium processing. Tesla is ACDC’s largest holding with a 5.3% weighting, joining some other ASX shares like Galaxy Resources Limited (ASX: GXY).

This is a slightly more risky option in my view due to the wild swings often seen in lithium mining shares. But if you’re bullish on both lithium and Tesla, let there be rock, I say.

More reading

• 3 exotic ASX tech ETFs you might want to add to your portfolio today
• Why Tesla stock jumped again on Thursday
• The biggest threat to tech shares
• Tech shares lead ASX rebound but Afterpay (ASX:APT) faces mounting competition
• Correction or crash for ASX 200 shares?

Sebastian Bowen owns shares of Tesla. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and recommends Tesla. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of BETANASDAQ ETF UNITS. The Motley Fool Australia has recommended BETANASDAQ ETF UNITS. 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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