Tag: Motley Fool

Are you buying ASX shares as a beginner? Congratulations! Investing in shares is one of the best ways to build long-term wealth, achieve passive income, and perhaps even retire early.

But, like any other asset class, investing in ASX shares successfully is not easy. There are many mistakes you can make along the way. It’s fine to make mistakes, how else would we learn?

So here are some of the things I’d wish I knew before I got started with investing in shares. Hopefully, you can avoid making the same errors as I did.

3 things I wish I’d known when I started investing

Index funds are your friend

An index fund like the Vanguard Australian Shares Index ETF (ASX: VAS) is a single investment that puts your money into a basket of shares. In most cases, it will be the 200 or 300 largest shares on the share market. With an index fund, you are getting the return of the broader market, no more, no less.

When I started out, I had grand plans of smashing the market, year in, year out. But being able to do this takes a lot of time and experience. I wish I started investing in an index fund as my first investment rather than choosing the individual shares I did at the start of my journey.

These days, I invest in both index funds and ASX shares. That way, I can get the market’s return on some of my capital while using the rest to try and achieve outperformance. But I wish I had started out that way. If I had, I would be in a better financial position today.

You can be too diversified

As a beginner investor, you will constantly hear about the benefits of diversification or ‘not putting your eggs in one basket’. This is sage advice. But it is possible to have too much diversification. When I started my investing journey, I wanted to have a finger in every pie.

I held dozens and dozens of shares after a few years, covering emerging markets, the US markets, the ASX, and ‘alternative assets’ like water rights and property.

But after a while, I realised I had too many investments in my portfolio to properly keep track of. And this started to hurt my returns. If I could go back and do things differently, I would stick to a portfolio of 15-20 investments that I have a deep understanding of from the start.

Boring can be best

When I first began my investing journey, I loved investing in exciting companies that were ‘disruptive’, were ‘doing things differently’ and that I found exciting. As the years went on, many of these investments turned out to be lemons.

Today, I have rediscovered the beauty of a boring investment. Companies that have been around for decades might not be the most exciting investments out there. But most old companies are old for a reason – they know how to run their business, sell their products, survive and thrive during the inevitable recession.

That’s why some of my favourite investments today do not feature the likes of Zip Co Ltd (ASX: ZIP), Brainchip Holdings Ltd (ASX: BRN) or Nuix Ltd (ASX: NXL)

Instead, some of my favourite investments include Washington H Soul Pattinson and Co Ltd (ASX: SOL), Coca-Cola Co (NYSE: KO), Wesfarmers Ltd (ASX: WES) and McDonald’s Inc (NYSE: MCD).

Sometimes, especially for new investors, boring can be better.

The post Buying ASX shares as a beginner? Here are 3 things I wish I’d known appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#0095C8”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#0095C8”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• 20+ years of growing dividends. Why I plan to buy more of this ASX 200 stock in 2023
• Here’s how I’d start building a second income this February, for $30 a week
• 3 of the safest ASX 200 dividend stocks in Australia
• Why did the Vanguard Australian Shares Index ETF lag the ASX 200 in January?
• These 2 ASX 200 shares yield 5% and 6% and I can’t wait to buy them

Motley Fool contributor Sebastian Bowen has positions in Coca-Cola, McDonald’s, Vanguard Australian Shares Index ETF, and Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Washington H. Soul Pattinson and Company Limited and Zip Co. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended the following options: long January 2024 $47.50 calls on Coca-Cola. The Motley Fool Australia has positions in and has recommended Washington H. Soul Pattinson and Company Limited and Wesfarmers. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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

There are plenty of exchange traded funds (ETFs) for investors to choose from on the Australian share market.

But which ETFs might be top options right now? Listed below are three exciting ETFs that could be worth considering:

BetaShares Asia Technology Tigers ETF (ASX: ASIA)

The first ETF to look at is the BetaShares Asia Technology Tigers ETF. This ETF gives investors exposure to the best tech stocks in the Asian market. This means you’ll be buying the likes of ecommerce giant Alibaba, search engine company Baidu, and WeChat owner Tencent. And with tech stocks back in favour with investors, China reopening, and the BetaShares Asia Technology Tigers ETF still down meaningfully from its highs, this could be an opportune time to make an investment.

BetaShares NASDAQ 100 ETF (ASX: NDQ)

The BetaShares NASDAQ 100 ETF could be another ETF for investors to consider buying. This popular ETF gives investors exposure to the 100 largest (non-financial) stocks on Wall Street’s NASDAQ index. These are many of the largest companies in the world and household names such as Amazon, Alphabet, Apple, Meta, Microsoft, Netflix, Nvidia, and Tesla. And despite a recent rebound, the ETF is still down 16% over the last 12 months. This could make it a good time to consider an investment.

VanEck Vectors Video Gaming and eSports ETF (ASX: ESPO)

A third and final ETF for ASX investors to consider buying is the VanEck Vectors Video Gaming and eSports ETF. This tech-focused ETF gives investors access to a global video game market estimated to comprise almost 3 billion active gamers and growing. Among its holdings are game developers such as Electronic Arts, Nintendo, Roblox, and Take-Two.

The post 3 scintillating ETFs for ASX investors to buy this month appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#0095C8”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#0095C8”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• ASX investors are buying up the Betashares Nasdaq 100 ETF. Should you?
• Need passive income? Turn $5,000 into $800 every month
• Invested $1,000 in the Betashares Nasdaq 100 ETF (NDQ) 5 years ago? Here’s how much dividend income you’ve earned
• 2 of the best ETFs for beginner investors to buy now
• 3 ASX ETFs you might not know pay dividends

Motley Fool contributor James Mickleboro has positions in BetaShares Nasdaq 100 ETF. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended BetaShares Nasdaq 100 ETF. The Motley Fool Australia has positions in and has recommended BetaShares Nasdaq 100 ETF. The Motley Fool Australia has recommended VanEck Vectors Video Gaming And eSports ETF and Betashares Capital – Asia Technology Tigers Etf. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

from The Motley Fool Australia https://ift.tt/LE18i3Z

Regular readers of The Motley Fool would not need reminding that technology shares took a brutal beating in 2022.

But with the S&P/ASX All Technology Index (ASX: XTX) up 15.5% already this year, one expert has declared the sector is back with a vengeance.

DeVere Group chief executive Nigel Green said that financial updates from US tech giants this week would commence “The Great Rotation back into growth stocks”.

“As market conditions shifted in 2022, investors dumped growth stocks, like tech, in favour of value stocks which were deemed more suitable to the challenging environment,” he said. 

“But what is happening now, we believe, is the beginning of a rebound.”

Mixed results for tech giants

Green did admit the short-term results for big tech were mixed.

“Facebook’s parent company Meta Platforms Inc (NASDAQ: META) has exceeded estimates for revenue in its fourth-quarter earnings report, with the stock soaring in extended trading on the results,” he said.

“While Amazon.com Inc (NASDAQ: AMZN)’s earnings are expected at $0.15 per share, which would be an 89% decrease from the same quarter in 2021.”

Green predicted that Apple Inc (NASDAQ: AAPL) would see declining revenue for the first time since early 2019.

“Alphabet Inc (NASDAQ: GOOGL), the parent company of Google, is expected to report a third consecutive quarter of declining earnings.”

But this won’t stop long-term investors piling back into the tech sector, according to Green.

He cited two reasons why The Great Rotation is on in earnest.

“First, valuations of tech and other growth stocks are currently low having been hit by the previous rotation into value stocks,” said Green.

“Investors are now eyeing these super attractive entry points to top-up their portfolios as the trend is reversing.”

Secondly, investors are looking forward to how macroeconomic factors might change.

“Inflation has seemingly peaked and interest rates are set to stabilise, which takes away a major obstacle for tech stocks.”

Bet on still-cheap tech for strong returns 

Green thus declared that “tech stocks are back” and urged punters to take advantage.

“Rotation into the right growth stocks will provide strong returns.”

He warned, though, that this is not a time for investors to “buy everything”.

“There will be big winners and losers. They must concentrate on high quality, profitable companies which can consistently maintain or steadily grow margin[s].”

And despite lukewarm results, the tech giants shouldn’t be written off.

“[They] still have piles of cash, in some cases hundreds of billions of dollars, and remain enormously profitable,” said Green.

“In addition, these companies maintain considerable user bases, world-class research and development, plus some of the smartest talent on the planet.”

The post ‘The Great Rotation’ has begun: Expert declares tech shares will provide ‘strong returns’ in 2023 appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#0095C8”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#0095C8”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• Meta stock price rockets 19% on $56 billion buyback
• 3 ASX 200 tech shares going gangbusters on Thursday
• What to watch on the US stock market this week: ANZ
• Forget lithium! I’m using the Warren Buffett method to help find winning ASX shares in 2023
• Why Fortescue shares could be facing a Meta-like problem

Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool’s board of directors. Motley Fool contributor Tony Yoo has positions in Alphabet and Amazon.com. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Alphabet, Amazon.com, Apple, and Meta Platforms. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple. The Motley Fool Australia has recommended Alphabet, Amazon.com, Apple, and Meta Platforms. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

from The Motley Fool Australia https://ift.tt/Db5Sj0I

An ASX 200 dividend stock with a five or ten-year streak of raising their dividends is usually a good sign that you’ve found a quality income stock. But an ASX 200 dividend stock with a 20-year-plus streak? That’s ASX dividend royalty.

That’s exactly what the Washington H. Soul Pattinson Co Ltd (ASX: SOL) share price has on offer for income investors today.

Why Soul Patts is a quality ASX 200 dividend stock

I already own Soul Patts shares – in fact, the company is one of my top ASX holdings. But I plan to add far more of this would-be ASX dividend aristocrat to my portfolio in 2023, if the pricing allows it.

I would go one step further and argue that if I had to own just one ASX 200 dividend stock in my portfolio, this would be it.

But let’s backtrack a little and get into the weeds of what makes this company such a special ASX dividend share.

So Soul Patts is one of the oldest companies on the ASX 200. It first put down roots way back in 1872, but become the company we know today in 1903. Its first calling was pharmacies, but today, Soul Patts is a bit of a hard company to pigeonhole.

Its primary business is owning large stakes in other investments for the benefit of its shareholders. In this way, it arguably functions closer to a listed investment company (LIC) or a managed fund rather than the typical kinds of companies we see on the ASX.

Soul Patts invests prudently in a large and diversified portfolio of assets. These include a portfolio of blue-chip shares gained in the LIC Milton Corporation acquisition in 2021. But it also includes its large, strategic investments in a handful of ASX shares. 

For example, Soul Patts owns 12.6% of TPG Telecom Ltd (ASX: TPG), 39.9% of New Hope Corporation Limited (ASX: NHC) and 43.3% of Brickworks Limited (ASX: BKW).

The company also owns a stable of unlisted assets, which includes assets ranging from industrial property to swim schools.

An ASX dividend aristocrat?

This diversified investment portfolio has given Soul Patts the unique distinction of being able to fund annual dividend increases every single year since the year 2000. That’s throughout both the global financial crisis of 2007-2009, as well as the COVID pandemic.

This is an ASX dividend record unmatched on the ASX 200 or, indeed, on the entire ASX. It’s the closest thing the ASX has to a United States-style ‘dividend aristocrat’, which is a US share that has increased its dividends every year for 25 years.

Back in December last year, Soul Patts announced during its annual general meeting that its total shareholder return (share price gains and dividends) came to an average of 12.5% per annum over the 20 years to 30 November 2022.

That was a good 3.4% per annum above what the ASX All Ordinaries Accumulation Index had achieved over the same period.

So, in conclusion, this is an ASX 200 dividend stock I will never own enough of. I can’t wait to add to my position in 2023. If there’s a compelling price point, I’ll be loading the boat with this top-notch company.

The post 20+ years of growing dividends. Why I plan to buy more of this ASX 200 stock in 2023 appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#0095C8”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#0095C8”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• 3 of the safest ASX 200 dividend stocks in Australia
• Here are the 3 most heavily traded ASX 200 shares on Friday
• A rare day in the green: Magellan share price soars 5%
• Why did the Vanguard Australian Shares Index ETF lag the ASX 200 in January?
• Why are ASX 200 iron ore shares being hammered hard on Friday?

Motley Fool contributor Sebastian Bowen has positions in Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Brickworks and Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia has positions in and has recommended Brickworks and Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia has recommended Tpg Telecom. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

from The Motley Fool Australia https://ift.tt/uACy0lD

One of the world’s most famous investors is Warren Buffett.

Over several decades, through his Berkshire Hathaway business, the Oracle of Omaha has delivered stunning returns for investors.

The good news is that Buffett has achieved these feats without any fancy high frequency trading strategy. Instead, he has made long term investments in high quality companies and let compounding work its magic.

The even better news is that there’s nothing to stop you from following Buffett’s investment style to grow your own wealth.

But which ASX shares could be Buffett-style investments right now? Two that tick a lot of boxes are listed below. Here’s what you need to know about them:

Transurban Group (ASX: TCL)

One quality that Buffett looks for when making investments is a competitive advantage or moat. This is something that this toll road operator has with its portfolio of key assets across Australia and North America. If you want to drive across Melbourne and Sydney quickly, you’re probably going to have to use its roads. In fact, the company estimates that customers using Transurban roads (compared to alternative routes) saved a total of 323,000 hours of travel time each workday in FY 2022.

Citi is a fan of Transurban and has a buy rating and $15.70 price target on its shares. Its analysts are also forecasting consistent dividend growth through to FY 2025, which is likely to go down well with an investor like Warren Buffett.

VanEck Vectors Morningstar Wide Moat ETF (ASX: MOAT)

Another (simple) way to invest like Buffett is to buy the VanEck Vectors Morningstar Wide Moat ETF. This is a Warren Buffett-inspired ETF that gives investors access to a diversified portfolio of companies with sustainable competitive advantages and fair valuations. At present, its holdings include businesses with strong moats such as Amazon, Intel, Microsoft, and Walt Disney.

Over the last 10 years, the index that the fund tracks has beaten the market with a total average return of 18.11% per annum. This would have turned a $10,000 investment into over $50,000.

The post Invest like Warren Buffett with these ASX shares appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#0095C8”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#0095C8”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• Buy Westpac and this ASX 200 income share: experts
• Top ASX dividend shares to buy in February 2023
• ASX shares investors rejoice! RBA says inflation has now peaked
• Buy these ASX passive income shares now: experts
• Top ASX shares to buy in February 2023

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Berkshire Hathaway. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended the following options: long January 2023 $200 calls on Berkshire Hathaway, short January 2023 $200 puts on Berkshire Hathaway, and short January 2023 $265 calls on Berkshire Hathaway. The Motley Fool Australia has recommended Berkshire Hathaway and VanEck Morningstar Wide Moat ETF. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

from The Motley Fool Australia https://ift.tt/Dbo2YBC

February 2023 could be an excellent time to start building a second income through ASX dividend shares. It can be done with a small amount of money each week, using the power of compounding to help grow wealth.

I think that investing in ASX shares is one of the best ways to grow our net worth. Many leading companies on the ASX make good profits, but plenty of them also pay dividends.

Australian companies have the added benefit of attaching franking credits to dividends that are paid, boosting the after-tax returns.

Start by saving

Investors don’t need a lot of money to start investing in ASX shares. You can open a share trading account with as little as $500. However, it could make more sense to invest more than $500 at one time so that the brokerage fee is a smaller percentage of the cost.

Bank accounts are finally offering better interest rates, with good ones offering a rate of more than 3%. While we may want to invest our money as soon as possible, our cash can make a decent return while it builds.

Putting aside $30 a week translates to a yearly total of $1,560. Saving this amount each week may be easy for some people and a task for others. It may involve finding cheaper alternatives for products or services, getting extra income from a part-time job, or whatever it takes.

Begin investing

Investing that $1,560 into an ASX share that pays a 5% dividend yield would make $78 of annual dividends in year one. Picking a share with a dividend yield of 10% would generate $156 of annual dividend income. That’s not bad for the start of a second income.

There are some quality blue chips that pay dividend yields of around 5% to 7%, such as Wesfarmers Ltd (ASX: WES), Telstra Group Ltd (ASX: TLS) and Coles Group Ltd (ASX: COL). These are the sorts of names that could do well with a long-term investment strategy.

Investors may consider ASX shares with higher dividend yields than that, but ideally, those names could grow earnings over the long term. Companies with very high dividend yields include Adairs Ltd (ASX: ADH), Shaver Shop Group Ltd (ASX: SSG), Best & Less Group Holdings Ltd (ASX: BST) and Pacific Current Group Ltd (ASX: PAC).

The second income can benefit from compounding

One year of investing is unlikely to unlock all of the passive income that investors are looking for.

Starting off with $75 of annual income after year one is good. Building that to $150 in year two, $225 in year three and so on, by continuing to invest, would build an impressive stream of dividends.

Good businesses tend to keep growing their profit and dividends. If a $100 dividend payment grows by 5% each year because the company increased the dividend, it would be $105 in the second year, $110.25 in the third year, $115.76 in the fourth year and so on.

Investors can benefit from organic dividend growth from their investments, as well as adding more money over time.

The more time we give — and the more money we add — to our investment portfolio, the bigger the dividend cash flow that can be created.

The post Here’s how I’d start building a second income this February, for $30 a week appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#0095C8”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#0095C8”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• Here are the 3 most heavily traded ASX 200 shares on Friday
• Should I buy Coles shares before this month’s ASX earnings update?
• These 2 ASX 200 shares yield 5% and 6% and I can’t wait to buy them
• Here are the 3 most heavily traded ASX 200 shares on Thursday
• Happy days! 8 ASX 200 shares smashing new 52-week highs on Thursday

Motley Fool contributor Tristan Harrison 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 Adairs. The Motley Fool Australia has positions in and has recommended Adairs, Coles Group, Telstra Group, and Wesfarmers. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

from The Motley Fool Australia https://ift.tt/zciqG6n

Most investors would think two factors have the biggest influence on their ability to reach financial independence: income and investment returns.

But US financial expert and buy-and-hold advocate Brian Feroldi sees it differently.

He cites a famous economic rule to explain.

“In the 1920s, Italian economist Vilfredo Pareto noticed something in his garden,” Feroldi said in his Long-Term Mindset newsletter.

“80% of his peas came from just 20% of his plants.”

He then also noticed the same pattern in his day job.

“80% of the land was owned by just 20% of the people.”

That was the birth of the Pareto Principle. 

“It’s since become a powerful tool that helps to separate ‘signal’ from ‘noise’. By zeroing in on the small — but impactful — inputs, you can gain incredible leverage.”

How the Pareto Principle applies to building wealth

The principle also applies to investing.

And this is where the notion that income and investment returns are the most important variables towards financial independence.

They’re not, according to Feroldi.

“Those two factors are important, but they are more ‘noise’ than ‘signal’.”

He said the most important factor to building wealth, the critical 20%, is one’s savings rate as a proportion of take-home pay.

Sure, a massive income is certainly helpful, but Feroldi says it’s not “a cure-all”.

“Just ask some of the highly-paid celebrities and athletes who [end] up filing for bankruptcy protection — Mike Tyson, Nicholas Cage, Lindsay Lohan.”

And high investment returns also help, but it’s absolutely useless if one’s savings rate is miniscule.

“This is why your savings rate is so important. It’s the small input that can [reliably] predict your ability to become wealthy.”

Feroldi admitted concentrating on saving is not an exciting message. But if you do it well then it will be “hard not to become wealthy” over time.

“Over the long run, you have far more control over it than your salary or investment returns.”

The post Expert reveals THE most critical thing to building wealth (and it’s not what you think) appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#0095C8”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#0095C8”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• Morgans names the best ASX growth shares to buy in February
• A new bull market is coming: 3 ASX shares I’d load up on before it gets here
• Morgans names 2 high yield ASX dividend shares to buy this month
• Here are the top 10 ASX 200 shares today
• 3 of the safest ASX 200 dividend stocks in Australia

Motley Fool contributor Tony Yoo 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.

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

If you’re looking for ASX growth shares to buy, then look no further! Morgans has named a number of shares as its best ideas for February.

Two growth shares that have been given the thumbs up are listed below. Here’s why it is bullish on them:

Corporate Travel Management Ltd (ASX: CTD)

This corporate travel booker could be a growth share to buy according to Morgans. It is a big fan of the company and is one of its key picks in the travel sector. Particularly given its attractive valuation and recent acquisitions. The broker explained:

Taking a longer term view, CTD remains as a key pick for the travel sector. We see substantial upside in its share price as the company recovers from the COVID affected travel downturn. In fact, CTD should be a materially larger business post COVID given it has made two highly accretive acquisitions during the downturn. The company has also won a lot of new business, implemented structural cost out opportunities and continued to develop its market leading technology offering which means that it will require less staff in the future. CTD is well managed and has a strong balance sheet (no debt).

Morgans has an add rating and $25.65 price target on the company’s shares.

Jumbo Interactive Ltd (ASX: JIN)

Another ASX growth share to consider is Jumbo. It is the online lottery ticket seller behind the OZ Lotteries brand and the Powered by Jumbo software as a service solution.

Morgans believes that Jumbo is well-placed for growth thanks to opportunities at home and abroad. It also likes its defensive qualities and low capital requirements. It commented:

We believe JIN offers excellent strategic growth opportunities, both in Australia and overseas, supported by a steadily expanding domestic market for digital lottery retailing. The business is cash generative and has a low requirement for ongoing capex. Lottery sales are resilient to economic cyclicality. They do not represent a large proportion of the personal budgets, hovering around 0.5% of household discretionary income in Australia. Although near-term sales are affected by the frequency of large jackpots, over time growth is steady.

Morgans has an add rating and $17.00 price target on its shares.

The post Morgans names the best ASX growth shares to buy in February appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#0095C8”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#0095C8”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• 2 ASX shares in the right place at the right time right now: Elvest
• These were the best performing ASX 200 shares in January
• Here are the top 10 ASX 200 shares today
• 3 of the very best ASX 200 travel shares to buy according to Goldman Sachs
• Here are the top 10 ASX 200 shares 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 Jumbo Interactive. The Motley Fool Australia has recommended Corporate Travel Management and Jumbo Interactive. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

from The Motley Fool Australia https://ift.tt/ic2kLrE

With the ASX 200 index up over 7% already in 2023, it looks like we could soon be entering a bull market.

This could make it an opportune time for investors to look at making some investments before the market takes off.

But which ASX shares would be top options to buy before the bull charges through the door?

3 ASX shares I would buy

If I were going to load up on some ASX shares for a potential bull market, I would look at those which have good operational momentum and positive long-term outlooks, but an underperforming share price.

One ASX share that immediately comes to mind is Temple & Webster Group Ltd (ASX: TPW). Its shares have been punished over the last 12 months and are down almost by a third.

That’s despite the online furniture and homewares retailer growing strongly and having an enviable leadership position in a retail category that is still in the early days of shifting online. Furthermore, with this category having relatively high barriers to entry, it appears well-placed to remain a leader in the future.

In fact, it is for this reason that Goldman Sachs is forecasting Temple & Webster’s earnings before interest, tax, depreciation and amortisation (EBITDA) to grow by a compound annual growth rate (CAGR) of 22% over the next 10 years.

Coffee to the rescue

Another ASX share that I would buy ahead of the bull market is Breville Group Ltd (ASX: BRG). This leading appliance manufacturer’s shares are down 20% over the last 12 months.

And while a slowing housing market and the cost of living crisis could put pressure on demand for appliances, Breville’s exposure to the growing coffee market could offset this. In fact, a recent update from rival De’Longhi appears supportive of this.

In addition, management has the option to rein in its spending on research and development if it wants to trim costs and support its earnings.

A beaten down tech star

Finally, I think Life360 Inc (ASX: 360) could be an ASX share to buy. This location technology company’s shares fell heavily last year when the market sold off unprofitable tech shares.

But with Life360 growing at a rapid rate and expecting to become profitable later this year, I believe a re-rating could happen when this milestone is achieved.

Another reason to be positive is the company’s huge market opportunity. In FY2022, Life360 is expecting to report revenue in the range of US$225 million to US$240 million. This compares to its total addressable market estimated by Goldman Sachs to be US$12 billion globally.

Overall, I believe including these three ASX shares in a balanced portfolio could deliver solid results for investors when the bull market comes.

The post A new bull market is coming: 3 ASX shares I’d load up on before it gets here appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#0095C8”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#0095C8”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• Goldman reveals the ASX shares that could surprise to the upside (and downside) this reporting season
• Goldman Sachs names 2 exciting small cap ASX tech shares to buy right now
• 2 explosive ASX growth shares to buy now: Goldman Sachs
• Leading brokers name 3 ASX shares to buy today
• Forget lithium! I’m using the Warren Buffett method to help find winning ASX shares in 2023

Motley Fool contributor James Mickleboro has positions in Life360. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Life360 and Temple & Webster Group. The Motley Fool Australia has recommended Temple & Webster Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

from The Motley Fool Australia https://ift.tt/BtDUk5r

Morgans has been busy picking out the best shares to buy this month.

If ASX dividend shares are what you’re looking for, then you may want to check out the two listed below.

Here’s what its analysts are saying about these dividend shares:

Dalrymple Bay Infrastructure Ltd (ASX: DBI)

Morgans has this coal terminal operator on its best ideas list and has an add rating and $2.67 price target on its shares. It believes its strong market position will allow the company to pay some big dividends in the near term.

For example, in FY 2023, the broker is forecasting a 21 cents per share dividend. This represents a sizeable 8.4% dividend yield at current levels. The broker commented:

DBI holds the 99 year lease to the 85 Mtpa Dalrymple Bay Coal Terminal, of which c.80% of throughput is metallurgical coal (used in steelmaking). DBCT offers the cheapest export route-to-market for users within its Bowen Basin catchment region. DBCT is fully contracted from 2023 to 2028. Following the successful outcome to its customer tariff negotiations, DBI should be able to deliver resilient, inflation-linked, and very high margin revenues and has provided distribution guidance that implies c.8% cash yield growing at 3-7% pa.

Santos Ltd (ASX: STO)

Another ASX dividend share to buy according to Morgans is Santos. It believes the energy producer is well-placed thanks to its diversified earnings and resilient growth profile. The broker has an add rating and $8.75 price target.

As for dividends, it is expecting Santos to reward its shareholders with a 40.4 cents per share dividend in FY 2023. This equates to a 5.8% dividend yield for investors. Morgans said:

The resilience of STO’s growth profile and diversified earnings base see it well placed to outperform against the backdrop of a broader sector recovery. While pre-FEED, we see Dorado as likely to provide attractive growth for STO, while its recent acquisition increasing its stake in Darwin LNG has increased our confidence in Barossa’s development. PNG growth meanwhile remains a riskier proposition, with the government adamant it will keep a larger share of economic rents while operator Exxon has significantly deferred growth plans across its global portfolio.

The post Morgans names 2 high yield ASX dividend shares to buy this month appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#0095C8”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#0095C8”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• 5 things to watch on the ASX 200 on Thursday
• 5 things to watch on the ASX 200 on Wednesday
• Worried about where ASX 200 oil stocks are heading? Read this
• 5 things to watch on the ASX 200 on Tuesday
• Investing in ASX 200 energy shares? Here’s why the oil price may already have hit its 2023 lows

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.

from The Motley Fool Australia https://ift.tt/nIuqU0H