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The share prices of many ASX lithium shares have suffered a significant sell-off. The cause may have been news of a lower price for a cargo of lithium sold at auction last week. Certainly, this could have caused investors to worry that lithium prices had peaked.

In the last two days of last week, the Pilbara Minerals Ltd (ASX: PLS) share price dropped by around 10%. Since 9 November 2022, it has fallen around 25%.

The Allkem Ltd (ASX: AKE) share price fell 5.7% over Thursday and Friday. The Liontown Resources Ltd (ASX: LTR) share price also declined, down 11%.

What happened to the ASX lithium shares?

Using the digital Battery Material Exchange (BMX) platform, Pilbara Minerals carried out its twelfth spodumene concentration (lithium) auction.

After the process, the company sold two cargoes — a combined total of 10,000 dry metric tonnes (dmt) at an average price of US$7,552 per dry metric tonne (dmt). This announcement was dated 14 December 2022.

Almost a month before, it sold a cargo of 5,000 dmt on the BMX. The company said that the highest bid was US$7,805. So, over that month, the business saw the price dip, after what had essentially been a year of rising prices at the digital auctions.

So, is this the peak of the lithium price and are ASX lithium shares worth buying?

Each lithium business has different contracts, different customers, and a different operational outlook. So, I’ll focus on Pilbara Minerals shares, considering it was the company’s lithium auction that may have started the current events.

Views on the Pilbara Minerals share price

The broker UBS thinks the lithium price could fall significantly from here over time, though the slightly-weaker auction price was much stronger than its long-term expectations. In any case, UBS prefers other ASX lithium shares. It rates Pilbara Minerals shares as a sell, with a price target of just $3.10, implying a further fall of more than 20%.

Morgans recently upgraded the rating to add, with a price target of $4.70. That implies a possible rise of more than 10% from here. It thinks the market overreacted to the auction result, though acknowledged that the share price could fall further. But, the broker suggests the upcoming financials and cash returns to shareholders could be a boost.

The broker Macquarie is still very bullish, with an outperform rating and a whopping price target of $7.60. That suggests a possible rise of more than 80% over the next year. It notes Pilbara Minerals is very profitable with the current price it’s achieving.

I think that the Pilbara Minerals share price reaction has been an overreaction, for now. But, if the lithium price were to fall heavily then that would obviously be bad news. With lithium demand expected to rise in the coming years, and supply taking time to come online, I don’t see a high chance the lithium price will get back down to less than US$2,000 any time soon.

For me, the Pilbara Minerals shares are ones to own for the long term, though 2023 could be a bit volatile.

The post ASX lithium shares have just been crunched. Time to buy? appeared first on The Motley Fool Australia.

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More reading

• Top brokers name 3 ASX shares to buy next week
• Would you be rich if you’d invested in these ASX shares 10 years ago?
• Here are the 3 most heavily traded ASX 200 shares on Friday
• Brokers name 3 ASX shares to buy today
• Make or break: the one metric I’ll be watching for Pilbara Minerals shares next year

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 no position in any of the stocks mentioned. The Motley Fool Australia has recommended Macquarie Group. 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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One of the most important sectors within the S&P/ASX 200 Index (ASX: XJO) is the ASX iron ore shares. These include names like BHP Group Ltd (ASX: BHP), Fortescue Metals Group Limited (ASX: FMG), and Rio Tinto Limited (ASX: RIO). Of course, the iron ore price has a major impact on the fortunes of the big names.

The iron ore price has been highly volatile over the last few years, with Chinese demand playing a key role in its rise and fall.

Aside from the last few weeks, the second half of 2022 has been a period of weakness for iron as the Chinese economy faltered with COVID lockdowns limiting activity within the Asian superpower.

However, the last few weeks have been good for the commodity.

What’s going on with the iron ore price?

As readers may already have guessed, the recovery is seemingly down to an improving position in China.

The country has been steadily lifting its strict COVID rules, encouraging its citizens to adapt to the different COVID variants.

An analyst from the Commonwealth Bank of Australia (ASX: CBA) mining and energy team Vivek Dhar is optimistic about the outlook for steel, the Australian Financial Review reports. He forecasts Chinese policymakers will officially shift to ‘living with COVID’ at China’s ‘Two Sessions’ policy meeting next year in March.

Dhar said the Commonwealth Bank is anticipating China’s infrastructure sector to “drive steel demand substantially”. However, at this stage, it is “unclear whether policymakers will tolerate an increase in steel output to meet stronger demand given current policy restrictions on the alloy”.

Bloomberg also reported that China has hinted at more property support. It reports Chinese Vice Premier Liu as saying the real estate sector is a “pillar” of the economy and that new measures are being considered to improve the financial condition of the industry and boost confidence.

What next for the ASX iron ore shares?

The share prices of BHP, Fortescue, and Rio Tinto seem to be rallying on the expected recovery of economic activity in China.

Will they keep going higher? Certainly, it depends on how the iron ore price performs from here. So how likely is it that the iron ore price could return to US$130 or US$150 per tonne? Indeed, it may have seemed unlikely that the iron ore price would have gone above US$200 in 2021. But, it’s possible that it could go back below US$100 from here too.

Time will tell what happens next.

The post Why did the iron ore price just hit a 6-month high? appeared first on The Motley Fool Australia.

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More reading

• What’s going on with the Fortescue share price on Friday?
• Why Aurizon, Norwest, Rio Tinto, and Strike Energy shares are rising today
• 3 ASX 200 dividend shares with payouts that jumped more than 10% this year
• Here’s why BHP shares are this fund manager’s favourite ASX iron ore pick
• Why is the Fortescue share price having another day to forget?

Motley Fool contributor Tristan Harrison has positions in Fortescue Metals Group. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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On Friday, the S&P/ASX 200 Index (ASX: XJO) finished the week in the red. The benchmark index fell 0.8% to 7,148.7 points.

Will the market be able to bounce back from this on Monday? Here are five things to watch:

ASX 200 expected to fall

The Australian share market looks set to continue its slide on Monday following a poor finish to the week on Wall Street. According to the latest SPI futures, the ASX 200 is expected to open the day 27 points or 0.4% lower this morning. On Wall Street, the Dow Jones was down 0.85%, the S&P 500 fell 1.1%, and the NASDAQ dropped 1%.

Oil prices tumble

ASX 200 energy shares Santos Ltd (ASX: STO) and Woodside Energy Group Ltd (ASX: WDS) could have a poor start to the week after oil prices dropped on Friday night. According to Bloomberg, the WTI crude oil price was down 2.1% to US$74.50 a barrel and the Brent crude oil price fell 2.6% to US$79.04 a barrel. Recession concerns weighed on oil prices.

Chalice named as a buy

The Chalice Mining Ltd (ASX: CHN) share price could rise materially from current levels according to the team at Bell Potter. This morning, the broker has retained its speculative buy rating with an $11.10 price target on its shares. Although Chalice has delayed its scoping study at the Gonneville deposit, the broker was pleased to see “opportunities to potentially improve recoveries of palladium, platinum, and gold.” Bell Potter sees scope for this to increase its gross-revenue-per-tonne well ahead of its current estimates.

Brambles rated as a sell

The Brambles Limited (ASX: BXB) share price could be overvalued according to analysts at Goldman Sachs. This morning, the broker has reiterated its sell rating with a $10.75 price target. The broker said: “We see poor medium term cash generation with elevated pooling capex (currently) and incremental transformation capex going forward. Separately, the risk of the company losing its legacy Costco business remains in place should Costco proceed with its plastics transition with an alternative pooler and/or a different business model.”

Gold price rises

Gold shares Newcrest Mining Limited (ASX: NCM) and Northern Star Resources Ltd (ASX: NST) could have a good start to the week after the gold price pushed higher on Friday. According to CNBC, the spot gold price was up 0.85% to US$1,803 an ounce during the session. This couldn’t stop the precious metal from having its worst week in a month after the US Federal Reserve hardened its inflation stance.

The post 5 things to watch on the ASX 200 on Monday appeared first on The Motley Fool Australia.

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More reading

• Shopping spree: What happened to the Woolworths share price today?
• Here are the 3 most heavily traded ASX 200 shares on Friday
• Why Bank of Queensland, Block, Fletcher Building, and Newcrest are dropping today
• Dirty dichotomy: Why Woodside’s record profits might have only painted a bigger target on its back
• 5 things to watch on the ASX 200 on Friday

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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Are you looking for exchange traded funds (ETFs) to buy for 2023? If you are, then you might want to look at the three top ETFs listed below.

Here’s what you need to know about them:

BetaShares Global Cybersecurity ETF (ASX: HACK)

If you’re interested in tech investment options outside the status quo, then you might want to look at the BetaShares Global Cybersecurity ETF. As you might have guessed from its name, this ETF provides investors with access to the growing cybersecurity sector. This means you’ll be owning cybersecurity companies such as Accenture, Cisco, Cloudflare, Fortinet, Okta, Splunk, Zscaler, Crowdstrike. As we have seen in 2022, cybersecurity is becoming increasingly important and a failure to protect data can lead to significant brand damage and financial loss.

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

Another ETF for investors to consider for 2023 is the VanEck Vectors Video Gaming and eSports ETF. This popular ETF gives investors access to a global video game market that is estimated to comprise almost 3 billion active gamers. Among the companies you’ll be investing in are AMD, Electronic Arts, Nintendo, Nvidia, Roblox, and Take-Two. VanEck highlights that these companies are well-placed to benefit from the increasing popularity of video games and eSports.

Vanguard U.S. Total Market Shares Index ETF (ASX: VTS)

A final ETF for investors to consider is the Vanguard Australian US Total Market Shares Index ETF. This ETF provides investors with exposure to some of the largest companies listed in the United States. Vanguard believes it could be a top option for buy and hold investors that are seeking a combination of long-term capital growth, some income, and international diversification. Among the high quality companies that you’ll be buying a slice of are Amazon, Boeing, JP Morgan, Starbucks, and Walmart.

The post 3 fantastic ETFs for ASX investors to buy for 2023 appeared first on The Motley Fool Australia.

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More reading

• 2 ASX ETFs trading ex-dividend next week
• Here are 2 fantastic ETFs for ASX investors in 2023
• I’d aim for $1 million, buying just 10 cheap ASX shares
• These ETFs allow ASX investors to buy thousands of global shares
• Don’t miss these very exciting ASX ETFs in December

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 BetaShares Global Cybersecurity ETF. The Motley Fool Australia has positions in and has recommended BetaShares Global Cybersecurity ETF. The Motley Fool Australia has recommended VanEck Vectors Video Gaming And eSports ETF. 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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Last week saw a number of broker notes hitting the wires once again. Three buy ratings that investors might want to be aware of are summarised below.

Here’s why brokers think investors ought to buy them next week:

Elders Ltd (ASX: ELD)

According to a note out of Macquarie, its analysts have retained their outperform rating and $14.35 price target on this agribusiness company’s shares. Macquarie was pleased to see Elders maintain its double-digit earnings growth target. And while it sees some risks due to wet weather, it remains positive due to its attractive valuation. The Elders share price ended the week at $10.22.

Life360 Inc (ASX: 360)

A note out of Goldman Sachs reveals that its analysts have retained their buy rating and $7.60 price target on this location technology company’s shares. Goldman believes that Life360 had a solid Thanksgiving holiday season, which it feels eases any risk to its FY 2022 guidance. Outside this, the broker notes that the company’s subscription business trades at a discount to global subscription app peers when adjusting for its superior growth outlook. As a result, it sees scope for a re-rating as Life360 demonstrates pricing leverage, improving unit economics, and progresses to cash flow breakeven in FY 2023. The Life360 share price was fetching $5.63 at Friday’s close.

Pilbara Minerals Ltd (ASX: PLS)

Analysts at Morgans have upgraded this lithium miner’s shares to an add rating with a $4.70 price target. According to the note, the broker believes the selloff last week was an over-reaction and created a buying opportunity for investors. While Pilbara Minerals reported a reduction in BMX auction lithium prices month on month, Morgans isn’t concerned. Its analysts suspect that lithium inventories will need to be rebuilt early next year, which will be supportive of prices. The Pilbara Minerals share price ended the week at $4.10.

The post Top brokers name 3 ASX shares to buy next week appeared first on The Motley Fool Australia.

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More reading

• Would you be rich if you’d invested in these ASX shares 10 years ago?
• Here are the 3 most heavily traded ASX 200 shares on Friday
• Brokers name 3 ASX shares to buy today
• Make or break: the one metric I’ll be watching for Pilbara Minerals shares next year
• Pilbara Minerals share price selloff ‘a significant over-reaction’: broker

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. The Motley Fool Australia has recommended Elders. 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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All eyes have been on up-and-coming lithium share Core Lithium Ltd (ASX: CXO) this year.

Such popularity has likely helped bolster the company’s valuation. The Core Lithium share price has rocketed 68% year to date to trade at $1.06 as of Friday’s close.

Of course, the $1.9 billion lithium hopeful still has a long way to go before it can catch up to the likes of $12 billion soon-to-be S&P/ASX 50 Index (ASX: XFL) lithium producer Pilbara Minerals Ltd (ASX: PLS).

Still, Core Lithium was trading as superannuation platform Superhero’s most traded ASX share of 2022 – edging ahead of giants Pilbara Minerals, Fortescue Metals Group Limited (ASX: FMG), and BHP Group Ltd (ASX: BHP).

But can the company behind the Northern Territory’s Finniss Lithium Project live up to the hype that’s surrounded it this year? Let’s take a look at what the future holds for Core Lithium shares.

Can Core Lithium shares live up to the hype?

The new year looks like it could be a big one for Core Lithium and its shares.

The company recently announced the official opening of its flagship Finniss Lithium Project. Excitingly, the next major news of the project is expected in just a few short months.

The company has tipped the project’s first spodumene concentrate production to occur in the first half of 2023.

Beyond that, Finniss is said to be one of the most capital efficient lithium productions. Its definitive feasibility study (DFS) estimated it would demand just $89 million of start-up capital expenditure.

It also could have the best logistics chain to market of any Aussie lithium project – being mere kilometres from a power station, gas and rail infrastructure, and an hour’s drive from the Darwin Port.

Additionally, the company has avoided using debt to fund the construction of the project. Thus, its breakeven point could come sooner than other lithium hopefuls’.

Not to mention, around 80% of the project’s expected production over its first four years is already under off-take contracts.

That’s a lot of positives if I do say so myself. However, there’s one potential snag in the company’s seemingly bright prospects.

As with nearly all materials shares, Core Lithium’s future profits will be dependent on the battery-making commodity’s price over the coming years. Thus, whether the ASX 200 lithium favourite can live up to the market’s hype might be out of its hands.

The post Can Core Lithium shares really live up to the hype surrounding them? appeared first on The Motley Fool Australia.

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More reading

• Here are the 3 most heavily traded ASX 200 shares on Friday
• Why is the Core Lithium share price gaining on Friday?
• Why did the Sayona Mining share price dive 7% on Thursday?
• Here are the 3 most heavily traded ASX 200 shares on Thursday
• Why is the Core Lithium share price cratering 8% today?

Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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Investors who bought AMP Ltd (ASX: AMP) shares at the start of 2022 have likely enjoyed a good year. The company’s stock has gained 40% since early January.

However, those who have held the financial services stock in their portfolio for a longer period – say a decade – are probably less happy with their investment.

The AMP share price has tumbled 70% since December 2012. Back then, $1,000 would probably have bought an investor 212 shares, each valued at $4.70.

Today, 212 shares would be worth just $296.80. The AMP share price closed Friday’s session at $1.40.

For comparison, the S&P/ASX 200 Index (ASX: XJO) has gained around 57% in that time.

But have the dividends offered by AMP offset the blow? Let’s take a look.

How much have AMP shares paid in dividends in 10 years?

Here are all the dividends handed to those invested in AMP shares over the last 10 years:

AMP dividends’ pay date	Type	Dividend amount
October 2020	Special	10 cents
March 2019	Final	4 cents
September 2018	Interim	10 cents
March 2018	Final	14.5 cents
September 2017	Interim	14.5 cents
March 2017	Final	14 cents
October 2016	Interim	14 cents
April 2016	Final	14 cents
October 2015	Interim	14 cents
April 2015	Final	13.5 cents
October 2014	Interim	12.5 cents
April 2014	Final	11.5 cents
October 2013	Interim	11.5 cents
April 2013	Final	12.5 cents
Total:		$1.705

If one were to have bought AMP shares in December 2012 and held onto their investment over the years to come, they likely would have received a total of $1.705 per share in dividends.

That means our figurative $1,000 investment would have returned $361.46 in that time – meaning a shareholder would still be $341.74 in the red.

As the chart above shows, AMP hasn’t offered a regular dividend since 2019. Originally, the company said it would restart payouts on the sale of AMP Life, which occurred in 2020.

However, in the years since, it has chosen to forgo dividends in favour of maintaining balance sheet strength and conserving capital.  

Looking forward, the company expects to return the proceeds of the sale of Collimate Capital to shareholders. It also recently announced a $1.1 billion capital return.

Part of that is the company’s current $350 million on-market buyback. The remaining $750 million is expected to be returned via a combination of capital return, special dividend, or further buybacks.

Additionally, some experts have tipped AMP shares to restart dividends on the release of the company’s full-year results in February, as my Fool colleague Matthew reported in September.

The post Bought $1,000 of AMP shares 10 years ago? Here’s how much dividend income you’ve received appeared first on The Motley Fool Australia.

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More reading

• 3 ‘boring’ ASX shares with returns over 25% in 2022
• Why did the AMP share price surge 8% in November?
• Thank you Mr Powell! 7 ASX 200 shares cracking new 52-week highs on Thursday
• If you’d bought $10,000 of AMP shares at the start of the year, congrats! Here’s what you’d have now
• 3 ASX 200 shares hitting new 52-week highs on Wednesday

Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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Investing great Warren Buffett is widely reported to have bought his first stock at age 11. Now, the ‘Oracle of Omaha’ has a more than US$100 billion fortune.

It’s no wonder, then, that many Aussie parents looked to the stock market to kick-start their kids’ wealth in 2022. And in doing so, they apparently turned to one particular ASX exchange-traded fund (ETF).

The ASX ETF parents bought on behalf of their kids in 2022

Imagine waking up on your 18th birthday with a portfolio of ASX shares and ETFs waiting for you. Oh, the compounding that could have taken place over the years before one could walk, talk, or get a driver’s licence!

That might be the reality for many young Australians whose parents squirrelled money into the stock market on their behalf in 2022. But what investments were parents buying for their youngsters?

Well, those investing on behalf of their kids in 2022 turned to the Vanguard Australian Shares Index ETF (ASX: VAS). That’s according to data from trading and superannuation platform Superhero.

It recently released its annual Year in Trades review, finding the Vanguard Australian Shares ETF was the most traded Aussie ETF among minor accounts. Minor accounts can be opened by parents investing on behalf of their children.

The Vanguard Australian Shares Index ETF struggled alongside the broader market in 2022. It has fallen 8% year to date. Meanwhile, the benchmark All Ordinaries Index (ASX: XAO) only posted a slightly better performance, falling 7%.

But such volatility didn’t deter investors. Superhero CEO and co-founder John Winters said:

Over the last two years … we’ve seen our customers grow and evolve. There’s an understanding that markets work in cycles and as such the volatility we saw this year has been accepted as a natural market event – and an opportunity to continue building their wealth through investing.

And it wasn’t just Aussie ETFs that savvy parents were snapping up for their kids this year.

The Vanguard 500 Index Fund ETF (NYSEMKT: VOO) came in as the most popular US ETF among Superhero’s minor accounts. Meanwhile, Core Lithium Ltd (ASX: CXO) was the most traded ASX share.

Interestingly, Gen Z has also seemingly developed a taste for ETFs. The Betashares Nasdaq 100 ETF (ASX: NDQ) was the most traded stock among 18- to 25-year-olds using the platform and the Vanguard Australian Shares Index ETF came in second.

The post Future-proofing: The ASX ETF Aussie parents were buying for their kids in 2022 appeared first on The Motley Fool Australia.

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More reading

• Is now really the time to buy ASX 200 shares?
• Could the VAS ETF outperform the BHP share price in 2023?
• Can the Vanguard Australian Shares ETF deliver more outperformance in December?
• It took me years to realise I’m no investing genius like Warren Buffett
• The Vanguard Australian Shares Index ETF soared in November, beating the ASX 200

Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended BetaShares Nasdaq 100 ETF and Vanguard Index Funds – Vanguard S&p 500 ETF. The Motley Fool Australia has positions in and has recommended BetaShares Nasdaq 100 ETF. 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 ASX dividend shares to buy, then you could do a lot worse than the two listed below.

Both of these ASX dividend shares have recently been named as buys by brokers. Here’s why they could be worth considering next week:

Healthco Healthcare and Wellness REIT (ASX: HCW)

According to a recent note out of Goldman Sachs, its analysts believe the Healthco Healthcare and Wellness REIT is in the buy zone for income investors. The broker currently has a conviction buy rating and $2.05 price target on the health and wellness focused real estate investment trust’s shares.

Goldman likes the company due to its strong balance sheet, positive tenant mix, and the resilient valuations in the healthcare sector. It is also positive on the future, noting that “the expansive forecast future demand for assets across the care spectrum, underpinning development opportunities.”

As for dividends, the broker is expecting dividends per share of 7.5 cents in both FY 2023 and FY 2024. Based on the current Healthco Healthcare and Wellness REIT unit price of $1.70, this will mean yields of 4.4%.

Woolworths Limited (ASX: WOW)

Analysts at Citi have named this retail giant as a buy. According to the note, the broker has put a buy rating and $39.50 price target on its shares.

Its analysts appear relatively pleased with Woolworths’ decision to swap pokie machines for pet food and accessories following the acquisition of a 55% stake in Petspiration Group which will be funded from the partial selldown of its Endeavour Group Ltd (ASX: EDV) stake.

Outside this, the broker remains positive on Woolworths’ outlook and is forecasting double digit earnings growth in FY 2023 and FY 2024.

It expects this to lead to fully franked dividends per share of 104 cents in FY 2023 and 114 cents in FY 2024. Based on the current Woolworths share price of $34.31, this will mean yields of 3% and 3.3%, respectively.

The post Brokers name 2 ASX dividend shares to buy next week appeared first on The Motley Fool Australia.

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More reading

• Shopping spree: What happened to the Woolworths share price today?
• Brokers name 3 ASX shares to buy today
• 5 things to watch on the ASX 200 on Friday
• 3 ASX shares to buy for a possible recession next year
• Woolworths share price pushes higher on $600m acquisition

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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As a big fan of buy and hold investing, I periodically pick out a number of popular ASX shares to see how much an investment 10 years ago would be worth today.

While not all shares beat the market, two that have are named below. Here’s how much a $10,000 investment a decade ago would be worth now:

Pilbara Minerals Ltd (ASX: PLS)

This lithium miner has been a sensational performer over the last decade. During this time, the company has gone from a mineral exploration company seeking “to acquire interests in mineral projects having good prospects for near-term development” to one of the world’s largest lithium miners.

Interestingly, 10 years ago, lithium wasn’t even on the menu for Pilbara Minerals. Gold and copper appeared to be the most likely path for the company but all that changed a couple of years later with the acquisition of the Pilgangoora Tantalum-Lithium Project.

This proved to be one of the best decisions the company would ever make and has helped drive the Pilbara Minerals share price materially higher since then. So much so, the company’s shares have generated an average annual return of approximately 65% over the period.

This would have turned a $10,000 investment in 2012 into a whopping $1.5 million today.

Xero Limited (ASX: XRO)

Another market beater over the last 10 years has been cloud accounting platform provider Xero.

Thanks to the shift from accounting on Excel spreadsheets or paper to online, Xero has been growing its subscriber numbers at a consistently strong rate since 2012. This has led to the platform hosting a massive 3.5 million users globally at the last count.

This has underpinned strong revenue growth, which has led to its shares delivering mouth-watering returns for investors over the period. Over the 10 years, Xero’s shares have generated an average annual return of 28.6%. This would have turned a $10,000 investment into almost $250,000.

The post Would you be rich if you’d invested in these ASX shares 10 years ago? appeared first on The Motley Fool Australia.

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More reading

• Why are ASX 200 tech shares being fried on Friday?
• Here are the 3 most heavily traded ASX 200 shares on Friday
• Brokers name 3 ASX shares to buy today
• One ASX share I’ve been buying in preparation for the next bull market
• Make or break: the one metric I’ll be watching for Pilbara Minerals shares next year

Motley Fool contributor James Mickleboro has positions in Xero. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Xero. The Motley Fool Australia has positions in and has recommended Xero. 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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