S&P/ASX 200 Index (ASX: XJO) shares are rebounding on Tuesday after the new US reciprocal tariffs caused chaos yesterday.
ASX 200 shares are currently up 1.53% at 7,455.5 points.
This follows a 4.23% smashing yesterday, with the index closing at a 15-month low.
Many experts are recommending that investors hold their nerve and consider the opportunities that this current volatility presents.
In an article on asx.com.au, a bunch of experts reveal the first ASX share they ever bought and what they have learned over the years.
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Experts reveal 4 key lessons with ASX shares
The first ASX share that Elizabeth Tian bought was BHP Group Ltd (ASX: BHP) in the early 2000s.
Tian, who is now a director of global equity derivatives at Citi, said:
The 'China story' in minerals wasn't nearly as well-known back then as it is today, so I felt I was at the start of long-term trend of rising Chinese demand for Australian minerals.
She adds:
I added to my BHP holding during the 2007-09 Global Financial Crisis and still hold it today.
The stock fits my investment style of favouring long-term thematic trends benefiting from structural change.
Lesson 1: 'I could have done better if I'd sold some stocks earlier'
Tian explains:
Looking back, I've bought some good stocks over the years but have been far less successful at selling.
I tend to buy large-cap stocks and have a 'set-and-forget' approach. I could have done better if I'd sold some stocks earlier.
The first ASX share that Shaw and Partners advisor Felicity Thomas bought was lithium miner, Galaxy Resources, in 2007.
Galaxy Resources later merged with Orocobre to form Allkem.
Allkem then merged with US giant Livent Corporation to create Arcadium Lithium.
Rio Tinto Ltd (ASX: RIO) then bought Arcadium Lithium, with the deal finalised just last month.
Thomas said:
At the time, I was excited by the emerging lithium story and growing demand for batteries, especially with the early rumblings around electric vehicles and energy storage.
I saw lithium as a key ingredient in the future of clean energy and thought I was getting in ahead of the curve.
Lesson 2: 'I wish I'd understood the importance of timing in thematic investing'
Thomas explains:
Just because you're right on the theme doesn't mean you'll be right on the stock or the timing.
I also wish I had done more diligence on the company's balance sheet strength and management's capability to execute, rather than just focus on the 'big picture' opportunity.
The first ASX share that Sebastian Evans bought was Qantas Airways Ltd (ASX: QAN) in 1998.
The CIO of NAOS Asset Management bought the ASX 200 airline share because it was "an iconic Australian business".
Evans reflects:
Over the long term, Qantas has been a successful investment for me.
But the company has had many trials and tribulations during the past 30 years, including the Asian Financial Crisis, sky-high oil prices in the mid 2000's, balance sheet issues and industrial relations challenges.
Qantas faces many variables that are often out of its control and therefore its ability to make a profit each year is not overly predictable, in NAOS's opinion.
Clearly, Qantas's business model over time has changed with much of its valuation now associated with its frequent flyer business.
Lesson 3: '… highly capital-intensive businesses don't always make great listed investments'
Evans said:
Qantas has to keep reinvesting in the business to ensure that it can keep the service levels and customer offering up to a standard that its customers expect and will pay for.
In hindsight, it's important to make your first investment in a stock you can understand to a reasonable degree.
This may not make it the best investment initially but in this case, Qantas allowed me to learn the difference between what may be considered a great and well-known business as opposed to a great investment.
Over time, these subtle differences will become much more obvious.
The first ASX share that VanEck Australia CEO Arian Neiron bought was Woolworths Group Ltd (ASX: WOW) in the mid-1990s.
Neiron said:
The timing was dumb luck.
Australia's retail sector was expanding, and the investment succeeded beyond my expectations – but not because of any investing edge or brilliance on my part.
I sold my Woolworths for some speculative tech companies, which I ended up trading, losing most of my principal.
Lesson 4: 'I wish I knew back then the virtue of investment patience'
Neiron said:
In my experience, the biggest returns came from holding, not trading.
The market rewards conviction, but only if you stick around.
Never underestimate the power of compounding or the critical importance of asset allocation and portfolio diversification.
