The GARP acronym stands for growth at a reasonable price. 

It was made famous by investor Peter Lynch.

The strategy seeks to combine the best facets of growth and value investing approaches to select individual stock investments.

In the words of Global X, the fund provides access to global companies with:

• Strong earnings growth
• Solid financial strength
• Reasonable valuations

Inside GARP's December 2025 Rebalance

In a fresh report out of the ETF provider yesterday, it highlighted the changes made to the fund.

These changes went into effect in December.

Marc Jocum, Senior Product and Investment Strategist said the latest rebalance resulted in a measured refresh rather than a wholesale shift. 

While some individual holdings changed, the portfolio's core identity remains intact.

It is tilted toward high-quality global companies with improving earnings momentum, resilient fundamentals, and reasonable valuations.

Periods of market noise often tempt investors to chase momentum or retreat to defensives. However, the most durable outcomes tend to come from discipline – owning companies that can consistently grow earnings, maintain balance sheet strength, and trade at a fair price.

What's in?

According to the report, the December 2025 rebalance saw the addition of companies where earnings are improving, but valuations are yet to fully re-rate.

The first inclusion was Rolls-Royce Plc (LSE: RR.). 

Global X said this was due to expanding earnings margins, driven by higher engine flying hours, improved pricing, a greater mix of recurring services revenue, and disciplined cost control.

The company is also emerging as a beneficiary of the AI-driven power generation theme. 

Another inclusion to the fund was Walt Disney (NYSE: DIS) due to improved earnings momentum across its diversified entertainment ecosystem.

Additionally, SoftBank (OTC: SFBQ.F) – a global technology investment conglomerate was added. This was thanks to its unique leverage to the AI megatrend. 

What's out?

The GARP ETF also saw key stock removals from the fund. 

Global X said several high-quality franchises were removed not because their businesses are broken, but because growth has slowed, balance sheet risks have risen, or valuations are no longer warranted.

• Visa (NYSE: V) was exited as earnings growth moderated, balance sheet leverage increased, all amidst regulatory and competitive pressures intensified.
• Costco Wholesale (NASDAQ: COST), despite its exceptional business model, faced slowing revenue momentum and emerging margin headwinds, challenging to reconcile with a premium valuation.
• General Motors (NYSE: GM) screened as optically cheap, but weakening margins and falling returns on equity, perhaps due to uncertainty around EV strategy, meant GM no longer fit a GARP framework.

The post Own the Global X GARP ETF? The fund just made some key changes appeared first on The Motley Fool Australia.

Let's see what makes them potentially top picks for Aussie investors with money to put into the share market:

BetaShares Cloud Computing ETF (ASX: CLDD)

Cloud computing has been called one of the most transformative trends of the 21st century and it is still only partway through its story. The BetaShares Cloud Computing ETF gives investors access to stocks powering the world's digital backbone.

Its holdings include Shopify (NASDAQ: SHOP), ServiceNow (NYSE: NOW), Amazon (NASDAQ: AMZN), Oracle (NYSE: ORCL), and Microsoft (NASDAQ: MSFT). These are all leaders in cloud infrastructure, enterprise software, and online services.

ServiceNow's software helps large organisations automate workflows and reduce inefficiencies, becoming an indispensable tool for corporations undergoing digital transformation. With its customer base growing across government and enterprise sectors, the company is well-positioned to capture more of the global shift toward automation and cloud-based operations.

Analysts at Betashares recently named the BetaShares Cloud Computing ETF as one to consider buying.

VanEck Morningstar Wide Moat ETF (ASX: MOAT)

If you want a focus on quality, the VanEck Morningstar Wide Moat ETF is hard to beat.

This fund invests in US-listed stocks that have wide economic moats. These are competitive advantages that make them difficult to disrupt. Holdings include names such as Adobe (NASDAQ: ADBE), Nike (NYSE: NKE), Walt Disney (NYSE: DIS), and Applied Materials (NASDAQ: AMAT).

With respect to Adobe, its subscription-based software suite, which includes Photoshop, Acrobat, and its growing Experience Platform, continues to deliver reliable recurring revenue and robust profit margins. Its entrenched market position, coupled with expanding AI integration, makes it a textbook example of what wide moat investing is all about.

BetaShares India Quality ETF (ASX: IIND)

Finally, India represents one of the most exciting long-term growth stories on the planet.

The BetaShares India Quality ETF provides exposure to high-quality Indian stocks benefiting from rapid urbanisation, digital transformation, and a rising middle class. Its portfolio includes leaders such as Infosys (NYSE: INFY), Reliance Industries (NSEI: RELIANCE), Tata Consultancy Services (NSEI: TCS), and Bharti Airtel.

A standout here is Reliance Industries, one of India's largest conglomerates. Its operations span energy, retail, and telecommunications. These are sectors that are all expanding alongside the country's economy. Reliance's pivot toward digital services and green energy could make it a long-term winner as India continues modernising.

It was also recently named as one to consider buying by the team at Betashares.

The post Where to invest $10,000 in ASX ETFs next week appeared first on The Motley Fool Australia.

For many Australians, life is simply too busy, yet the goal remains the same: to grow wealth steadily over time without constant effort.

That's where exchange-traded funds (ETFs) come in. They offer an easy way to invest in world-class stocks in a single trade. And for time-poor investors, the right ETFs can keep compounding quietly in the background, even if you only top them up once a year.

Here are three ASX ETFs I'd happily buy and hold on that schedule.

VanEck Morningstar Wide Moat ETF (ASX: MOAT)

The VanEck Morningstar Wide Moat ETF could be a standout choice for investors who want quality without complication. It invests in US stocks that analysts believe possess "wide moats." These are durable competitive advantages that make it difficult for rivals to compete.

This means you are not just buying the biggest stocks; you are buying the most resilient ones. The fund's portfolio currently includes leading names such as Adobe (NASDAQ: ADBE), Nike (NYSE: NKE), and Walt Disney (NYSE: DIS). These are businesses with strong brands, loyal customers, and sustainable pricing power.

Because the ASX ETF is actively rebalanced based on valuation and competitive strength, investors don't need to worry about timing the market or picking individual winners. For time-poor investors seeking high-quality, long-term compounding from globally recognised businesses, it is a simple and powerful option.

Betashares Global Quality Leaders ETF (ASX: QLTY)

If you could only buy one global ETF each year, the Betashares Global Quality Leaders ETF would be near the top of my list. It invests in some of the world's strongest and most consistently profitable companies.

The fund's holdings include Microsoft (NASDAQ: MSFT), Visa (NYSE: V), Nestle (SWX: NESN), and Johnson & Johnson (NYSE: JNJ). These are companies known for their stability, earnings power, and global reach.

For investors with limited time, the Betashares Global Quality Leaders ETF provides a sleep well at night approach to global investing. It quietly goes about its business, diversifying across industries and regions, focusing on high-quality names, and allowing compounding to work steadily in the background.

Vanguard Australian Shares Index ETF (ASX: VAS)

Closer to home, the Vanguard Australian Shares Index ETF offers simple exposure to the ASX 300, capturing around 90% of the Australian share market's total value.

That means instant diversification across major sectors like banking, mining, healthcare, and retail, all in one investment. Its top holdings include BHP Group Ltd (ASX: BHP), Commonwealth Bank of Australia (ASX: CBA), and Wesfarmers Ltd (ASX: WES), giving investors access to the backbone of the Australian economy.

For investors who only want to invest once a year, it could be a great way to capture the long-term performance of the local market without the stress of picking individual stocks.

The post 3 ASX ETFs I'd buy if I could only invest once a year appeared first on The Motley Fool Australia.

But if you're not sure which shares to buy, don't worry!

That's because there are plenty of exchange-traded funds (ETFs) out there for investors to choose from.

They give you instant diversification, exposure to global themes, and an easier way to build a long-term portfolio without trying to pick winners and losers.

With that in mind, here are five top ASX ETFs worth considering in October:

Betashares Nasdaq 100 ETF (ASX: NDQ)

For growth-focused investors, the Betashares Nasdaq 100 ETF is often the first stop they will make. And it isn't hard to see why. This ASX ETF tracks the Nasdaq 100 index, home to tech giants such as Apple (NASDAQ: AAPL), Microsoft (NASDAQ: MSFT), Amazon.com (NASDAQ: AMZN), and Nvidia (NASDAQ: NVDA). These are the stocks leading the charge in areas like artificial intelligence, cloud computing, and digital advertising. While the ride can be volatile, the long-term returns from the Nasdaq have been outstanding.

Betashares Asia Technology Tigers ETF (ASX: ASIA)

The Betashares Asia Technology Tigers ETF is another top option to consider in October. It provides exposure to the next generation of technology leaders across Asia. Think of names like Taiwan Semiconductor Manufacturing Co (NYSE: TSM), Samsung Electronics, and Alibaba (NYSE: BABA). These are companies at the forefront of semiconductors, ecommerce, and cloud infrastructure. With Asia's middle class expanding rapidly, demand for digital services is only expected to grow, giving this ASX ETF significant long-term potential.

VanEck Morningstar Wide Moat ETF (ASX: MOAT)

The VanEck Morningstar Wide Moat ETF takes a different approach to the others. It invests in US companies that have durable competitive advantages and fair valuations. Its holdings change periodically but currently include Nike (NYSE: NKE), Walt Disney (NYSE: DIS), and PepsiCo (NASDAQ: PEP). The fund has a track record of outperforming broader US markets over time, making it a compelling buy-and-hold option.

Betashares Global Cybersecurity ETF (ASX: HACK)

Cybersecurity is quickly becoming a necessity for businesses. That makes the Betashares Global Cybersecurity ETF one of the most relevant ASX ETFs for the next decade. Its portfolio includes global leaders like CrowdStrike Holdings Inc (NASDAQ: CRWD), Palo Alto Networks Inc (NASDAQ: PANW), and Cisco Systems Inc (NASDAQ: CSCO). As threats escalate and spending on cybersecurity grows, this ETF could benefit from structural demand that doesn't depend on the economic cycle.

Vanguard MSCI Index International Shares ETF (ASX: VGS)

For investors looking for core global exposure, the Vanguard MSCI Index International Shares ETF could be a standout pick in October. It provides access to more than 1,200 international stocks across the US, Europe, and Asia. Holdings include names such as Nestle (SWX: NESN), Toyota Motor Corp (TYO: 7203), and Roche Holding AG (SWX: ROG). With broad diversification and Vanguard's low-cost structure, this fund is a simple yet powerful way to capture long-term market growth.

The post 5 top ASX ETFs to buy in October appeared first on The Motley Fool Australia.

Investments that offer both growth and income potential are usually lucrative ones. A company, or set of companies in the case of an ETF, that can afford to pay out substantial income whilst consistently growing its earnings and profits is often a sign of a potentially hot investment.

One such investment is in my own ASX share portfolio, and is one that I have held for a number of years now. Ever since my first purchase, this ASX ETF has delivered both growth and income in spaces. As such, I have no plans to ever sell this high-flying ETF.

It is none other than the VanEck Morningstar Wide Moat ETF (ASX: MOAT).

The VanEck Wide Moat ETF is a fund that is designed to mimic the investing philosophy of the legendary Warren Buffett.

Buffett has long touted the benefits of investing in companies with 'wide economic moats'. A moat is a concept Buffett himself coined a while ago. It refers to an intrinsic competitive advantage a company can possess, which helps it stay ahead of its competition, in the same way a castle's moat kept out intruders centuries ago.

An ASX ETF to buy for growth and income?

There are a few forms that this kind of moat can take. Some examples include a strong and trusted brand, a cost advantage over competitors, or providing a good or service that customers find difficult to avoid paying for.

The VanEck Wide Moat ETF holds a portfolio of US stocks that are selected based on their perceived possession of at least one of these moats.

We can see this in action by looking at some of this ASX ETF's holdings. As of 31 August, these included the likes of Alphabet, Boeing, Nike, Disney, Adobe, Caterpillar, Microsoft and Clorox.

It's not hard to see why these names appear in MOAT's holdings. Microsoft, for example, provides products like Office, Teams and Windows that are indispensable in modern workplaces. Disney has some of the best intellectual property in entertainment, while Nike has one of the world's most beloved brands.

This strategy has worked exceptionally well for this ASX ETF. Since its inception in mid-2015, MOAT units have appreciated by about 210% (at recent pricing), which works out to be roughly 12% per annum.

In addition, its investors have also routinely enjoyed substantial dividend income from this ETF. MOAT tends to pay out just one dividend distribution every year. But it's often a substantial one. To illustrate, investors have just banked an annual payout worth $7.56 per unit. That gives this ASX ETF a trailing yield of about 6.1%.

If we combine both growth and income, MOAT investors have enjoyed an average return of 15.05% per annum since inception (again, as of 31 August).

Past performance is never a guarantee of future returns, of course. But even so, this track record, I believe, speaks for itself.

The post I own this ASX ETF for both growth and dividend income appeared first on The Motley Fool Australia.

For that kind of approach, exchange-traded funds (ETFs) are ideal.

But which ones? Here are three of the best ASX ETFs for long-term investors who want to keep things simple.

Vanguard MSCI Index International Shares ETF (ASX: VGS)

The Vanguard MSCI Index International Shares ETF provides exposure to more than 1,200 stocks from developed markets outside Australia. That means instant diversification across regions like the U.S., Europe, and Japan.

Its holdings include big names such as Apple (NASDAQ: AAPL), Walt Disney (NYSE: DIS), Microsoft (NASDAQ: MSFT), and SAP SE (ETR: SAP), giving investors access to world-leading stocks across technology, consumer staples, and entertainment. For Australians who already have plenty of exposure to local banks and miners, the Vanguard MSCI Index International Shares ETF is a great way to spread risk globally with a single click of the button.

Betashares Australian Quality ETF (ASX: AQLT)

Another ASX ETF to consider is the Betashares Australian Quality ETF. It is a smart way to focus your local investments on the highest-quality stocks. The Betashares Australian Quality ETF tracks an index of around 40 ASX shares selected for high profitability, strong balance sheets, and stable earnings.

Holdings include names like CSL Ltd (ASX: CSL), Macquarie Group Ltd (ASX: MQG), and Cochlear Ltd (ASX: COH). These shares are leaders in their fields and have demonstrated the ability to grow consistently. For investors who only want to check in once a year, owning a curated basket of quality Aussie shares removes a lot of the guesswork. It was recently named as one to buy by the team at Betashares.

iShares S&P 500 ETF (ASX: IVV)

Finally, the iShares S&P 500 ETF is an obvious choice. It gives investors exposure to the 500 largest stocks listed in the U.S. This makes it one of the simplest ways to invest in the world's biggest and most dynamic market.

With names like Alphabet (NASDAQ: GOOGL), Amazon (NASDAQ: AMZN), and Nvidia (NASDAQ: NVDA) in the mix, the iShares S&P 500 ETF captures some of the biggest drivers of global innovation. Over the long term, the S&P 500 has been one of the most consistent wealth creators in history, making this ETF a cornerstone for any long-term portfolio.

The post The best ASX ETFs to buy if you only want to invest once a year appeared first on The Motley Fool Australia.

That's because there are a growing number of exchange traded funds (ETFs) out there for investors to choose from.

But which ones could be buys for Aussie investors right now?

To narrow things down lets take a closer look at five ASX ETFs that could be worth considering if you have $2,000 to invest into the share market this week. They are as follows:

Vanguard MSCI Index International Shares ETF (ASX: VGS)

The first ASX ETF for investors to look at is the Vanguard MSCI Index International Shares ETF. It gives you exposure to around 1,200 large and mid-cap companies from developed markets — including the US, Japan, the UK, and Europe. It is a low-cost, highly diversified way to invest in the world's most established economies and industries.

VanEck Morningstar Wide Moat ETF (ASX: MOAT)

Another ASX ETF for investors to look at is the VanEck Morningstar Wide Moat ETF. It holds a concentrated portfolio of US companies that analysts believe have sustainable competitive advantages. It also blends in value by selecting stocks trading at attractive prices relative to their fair value. Current holdings include giants such as Walt Disney (NYSE: DIS), Boeing (NYSE: BA), and Nike (NYSE: NKE).

Betashares Asia Technology Tigers ETF (ASX: ASIA)

A third ASX ETF to look at is the Betashares Asia Technology Tigers ETF. It is focused on leading tech companies across Asia, including Tencent, Alibaba, Samsung, and PDD Holdings. For investors who want exposure beyond Silicon Valley, this fund taps into one of the fastest-growing digital economies on the planet.

Betashares Crypto Innovators ETF (ASX: CRYP)

If you are bullish on the long term outlook of cryptocurrencies but don't want to invest in coins then this ASX ETF could be for you. It offers investors exposure to the companies building the crypto economy. This includes exchanges like Coinbase (NASDAQ: COIN), as well as miners and blockchain infrastructure providers.

Betashares Australian Quality ETF (ASX: AQLT)

A final option for Aussie investors to consider buying is the Betashares Australian Quality ETF. It is a smart way to own high-quality ASX shares with strong balance sheets, low debt, and stable earnings. In many respects, this is a refined version of the ASX 200 index, which could be ideal for long-term compounding. It was recently named as one to consider buying by the team at Betashares.

The post 5 excellent ASX ETFs to buy with $2,000 appeared first on The Motley Fool Australia.

Over multiple decades, the Oracle of Omaha has built a multi-billion-dollar fortune, all while using a strategy that anyone can understand.

With that in mind, here are five easy steps to start investing like Warren Buffett with ASX shares.

Look for moats

Buffett loves businesses with a sustainable competitive advantage — what he often calls an economic moat. These are the traits that protect a company from rivals and help it generate strong returns over time.

On the ASX, shares like ResMed Inc. (ASX: RMD) and CSL Ltd (ASX: CSL) fit the bill. These companies have deep expertise in healthcare, global reach, and trusted products — all of which are hard for competitors to replicate.

Buy what you understand

Warren Buffett avoids businesses he doesn't understand — no matter how trendy they may seem. Instead, he sticks to circles of competence.

For ASX investors, this could mean sticking to familiar sectors like banks, supermarkets, infrastructure, or healthcare. Businesses like Coles Group Ltd (ASX: COL) or Bunnings and Kmart owner Wesfarmers Ltd (ASX: WES) are easier to understand than a speculative biotech startup with no earnings.

If you can't explain in one sentence how a company makes money, it is probably a red flag.

Buy at a fair price

Warren Buffett once said: "It's far better to buy a wonderful company at a fair price than a fair company at a wonderful price."

That means valuation still matters — but quality counts more. Don't fall into the trap of chasing the cheapest stocks. Instead, look for great businesses trading at reasonable prices.

For example, Goodman Group (ASX: GMG) may not be dirt cheap, but it is a high-quality company with strong long term growth potential. And with its shares down 14% from their 52-week high, this could be a fair price to pay for a wonderful company.

Think long term

Buffett's favourite holding period is forever. He doesn't jump in and out of positions chasing the latest headlines.

The same goes for your ASX share portfolio. Think in terms of decades, not months. Great companies often reward patient investors through growing earnings, dividends, and capital appreciation over time.

Focus on businesses that can compound earnings over many years — not ones trying to hit quarterly earnings targets.

An ETF short cut

If you're after a hands-off approach, there's one ASX ETF that does a lot of the Buffett-style homework for you: the VanEck Morningstar Wide Moat ETF (ASX: MOAT).

This fund tracks an index of high-quality companies with durable competitive advantages and fair valuations.

It currently includes businesses like Nike (NYSE: NKE), Microsoft (NASDAQ: MSFT) and Walt Disney (NYSE: DIS) — all companies with wide moats and strong fundamentals.

This makes it a simple, diversified way to gain access to high-quality global businesses without needing to pick the winners yourself.

Foolish takeaway

Buffett's strategy isn't about flashy trades or hot tips — it is about timeless principles: buy great businesses, understand what you own, be patient, and stay consistent.

With the right mindset and a focus on quality ASX shares (or a Buffett-inspired ETF), you can start building wealth the Warren Buffett way.

The post 5 easy steps to invest like Warren Buffett with ASX shares appeared first on The Motley Fool Australia.

So much so, it has gained around 10% since 22 April.

For many investors, that kind of surge would normally signal that it is too late to invest. But is that actually the case? Let's find out.

A strategy built to uncover value

The VanEck Morningstar Wide Moat ETF isn't your typical fund. It holds a curated portfolio of US-listed companies that analysts believe possess sustainable competitive advantages (wide economic moats) and are trading at discounts to their fair value.

What sets this ASX ETF apart is that it rebalances regularly, meaning it adjusts its holdings to stay aligned with this strategy. Companies that become too expensive or lose their strategic edge are replaced — keeping the portfolio focused on quality businesses trading at attractive prices.

This process ensures the fund consistently leans into value with discipline, regardless of short-term market momentum.

Still value beneath the surface

Despite the recent rally, many of the MOAT ETF's key holdings are still trading well below their 52-week highs.

This includes names like Nike, Adobe, Merck, Huntington Ingalls, Walt Disney, and Constellation Brands.

For example, Adobe has been expanding into AI and marketing automation but is still working through market scepticism around its valuation. Nike remains a global powerhouse but has been held back by trade tariff concerns. Meanwhile, Huntington Ingalls, a leader in defence and shipbuilding, is quietly benefiting from rising global security spending but its shares have been left behind.

This mix of underappreciated quality names gives this ASX ETF continued upside potential — even after recent gains.

A discount that might not last

It is also worth noting that the MOAT ETF is currently trading at a slight discount to its net asset value (NAV) — around -1.17%, or $1.42 below fair value.

While only small, this discount suggests investors today are paying less than the market value of the underlying companies, offering a margin of safety that's rare after a sharp price move. For long-term investors, this kind of opportunity — strong momentum combined with a valuation buffer — doesn't come around often.

Foolish takeaway

The MOAT ETF's recent 10% surge might look bad on paper for buyers, but dig a little deeper and you'll find a portfolio still full of undervalued, high-quality companies with competitive moats and long-term tailwinds.

In light of this, it may not be too late to buy this popular fund.

The post MOAT ETF is up 10% in 2 weeks. Is this ASX ETF still good value? appeared first on The Motley Fool Australia.

We're just a few weeks into 2025, but some stocks are already off to the races. There are already nine U.S. exchange-listed stocks with market caps north of $1 billion that have doubled this year. Lower the floor to a market cap of $200 million, and 19 publicly traded companies make the cut.

Three of the largest stocks to double this year are FuboTV (NYSE: FUBO), WeRide (NASDAQ: WRD), and Hims & Hers Health (NYSE: HIMS). Let's take a closer look at why these three companies are taking off in 2025.

1. FuboTV: Up 222%

One stock that has not only doubled -- but actually tripled -- in 2025 is FuboTV. The live TV streaming service was the market's hottest stock in the first full week of trading after landing a big cheese as an investor. Disney (NYSE: DIS) struck a deal to become a 70% stakeholder in Fubo, contributing its larger Hulu + Live TV platform to the business in the process.

At first, it seemed like a shotgun wedding. Disney was working with two other media giants to launch Venu Sports, a streaming service that would combine the live sports programming of all three companies into a single subscription that would set viewers back $43 a month. Venu was hoping to roll out last year, but Fubo -- with its own sports-centric platform -- was able to secure an injunction to at least temporarily block the launch last summer.

Disney and Fubo banding together with their live TV streaming services came with a catch: Fubo would drop its case against Venu, receiving a $220 million cash settlement in the process. It seemed to be a pretty clear case of rewarding the squeaky wheel, but then the story took an even more interesting twist.

Just a week after Disney and Fubo announced their new partnership, Venu Sports fumbled the bundle. The three media giants behind the $43-a-month streaming service decided to go their separate ways. The Fubo pairing with Disney continues to roll on intact.

Fubo had been meandering as a growing but profitless platform operator, but its operations were improving. It was hoping to turn cash flow positive in 2025. It would just take a long time to become a meaningful player with just 1.6 million premium accounts -- less than 10% of the overall market -- for its live TV streaming service.

The new Fubo will reach a combined 6.2 million homes with Hulu + Live TV's 4.6 million subscribers. There is scalability here, and now Fubo has Disney's audience reach and marketing muscle on its side.

2. WeRide: Up 122%

It took just a single day -- and a notable investor -- for WeRide to nearly double. Shares of the Chinese company specialising in autonomous driving products and services soared 81% on Friday after Nvidia (NASDAQ: NVDA) became a minority investor. WeRide was already beating the market in 2025, but now it has more than doubled.

Having the poster child of artificial intelligence (AI) that also happens to be the second-most valuable company by market cap in your corner is obviously a good thing. It also helps that WeRide was a somewhat obscure and lightly traded company that just went public at $15.50 back in October.

Two cautionary notes are warranted here, especially with the shares kicking off this holiday-abridged trading week by opening sharply higher on Tuesday as well. Nvidia's disclosure late last week that it made an investment in WeRide during the fourth quarter is a very small position. Its stake was worth just $25 million at the start of this year. WeRide's market cap jumped roughly $4 billion on Friday following the news.

The second takeaway is that WeRide's revenue declined in 2023 as well through the first three quarters of 2024. It's a leader in an emerging industry, but investors are making big bets following a small bet by Nvidia on a company with a lot to prove.

3. Hims & Hers Health: Up 150%

Hims & Hers -- a telehealth specialist offering convenient and often discounted ways to score everything from birth control to weight loss injections -- soared 172% in 2024. When I singled it out as one of three stocks that can double again in 2025 at the end of last year, I didn't think it would happen in less than two months. Well, it happened.

The telehealth platform initially launched as an online platform for men to discreetly secure hair loss and erectile dysfunction drugs. Hims & Hers has been an impressive growth stock in its first few years of public trading, posting year-over-year growth of at least 45% in every quarter that it's been on the market.

Hims & Hers saw revenue accelerate from 46% in the first quarter of last year to 52% and then 72% in subsequent reports. It won't announce its fourth-quarter results until next week, but analysts see revenue soaring 90% this time around.

The surge in popularity of weekly injectable GLP-1 treatments for weight loss has kicked things up a notch. Novo Nordisk's Wegovy and Eli Lilly's Zepbound have patents protecting their GLP-1 treatments dedicated to weight loss, but an FDA loophole allows for companies like Hims & Hers and other compounders to make reformulated copies of the treatments during production shortages. With demand outpacing supply and a new administration perceived to be as kind to compounders, Hims & Hers is taking off again this year. And Hims & Hers putting out a Super Bowl ad earlier this month calling out the greed of the pricey Big Pharma offerings is adding fuel to that momentum fire.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

The post 3 hot US stocks that have already doubled in 2025 appeared first on The Motley Fool Australia.

But three of the best could be named below. Here's what you need to know about them:

BetaShares NASDAQ 100 ETF (ASX: NDQ)

One of the best ASX ETFs out there is arguably the BetaShares NASDAQ 100 ETF.

This hugely popular fund aims to track the performance of the Nasdaq-100 Index (before fees and expenses). The Nasdaq-100 is home to 100 of the largest non-financial companies listed on the Nasdaq market.

This includes many companies that are at the forefront of the new economy such as Apple (NASDAQ: AAPL), Microsoft (NASDAQ: MSFT), and Nvidia (NASDAQ: NVDA).

The fund manager, Betashares, highlights that its strong focus on technology means that "NDQ provides diversified exposure to a high-growth potential sector that is under-represented in the Australian sharemarket."

VanEck Vectors Morningstar Wide Moat ETF (ASX: MOAT)

Another ASX ETF to unwrap this Christmas is the VanEck Vectors Morningstar Wide Moat ETF.

If you are inspired by Warren Buffett and his style of investing, then this fund could be the one for you.

That's because this Buffett-inspired ETF gives investors access to a group of companies that have fair valuations and sustainable competitive advantages or wide moats.

These are the qualities that the Oracle of Omaha will often look for when he is finding investments for Berkshire Hathaway (NYSE: BRK.B). At present, the fund is invested across ~50 shares including the likes of Adobe (NASDAQ: ADBE), Nike (NYSE: NKE), and Walt Disney (NYSE: DIS).

This focus on sustainable competitive advantages appears to work. Over the past 10 years, the index this fund tracks has generated an average return of 16.7% per annum.

Betashares Global Quality Leaders ETF (ASX: QLTY)

Finally, a third ASX ETF that would be great to unwrap at Christmas is the Betashares Global Quality Leaders ETF.

This fund is home to the highest quality companies in the world. To qualify, these companies need to score highly on metrics such as returns on equity and profitability, low leverage, and earnings stability.

There are currently approximately 150 shares included in the future. These shares come from a range of geographies and global sectors, many of which are under-represented in the Australian share market.

Betashares' recently recommended the ETF as one for investors to buy. It notes that "a focus on quality, defence, and patience can pay off for investors."

The post The best ASX ETFs to unwrap this Christmas appeared first on The Motley Fool Australia.

It's been a good year for Walt Disney (NYSE: DIS) investors. Shares of the media giant are trading 24% higher in 2024 heading into the final full trading week of the year. This happens to match the 24% increase for the S&P 500. If the media giant can edge out the market in the next few days it will be the first time since 2020 that Disney stock beats the S&P 500.

Naturally investors don't want to simply be a pace car for the market, much less fall well short of the S&P 500 the way they have in the three previous years. Can Disney outperform the market in 2025 for the first time in five years? Let's take a closer look.

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Getting back on track

Instead of closing out 2024 with a bang, Disney is stumbling on its way to the finish line. Last week, Disney's ABC agreed to pay $15 million to settle a defamation lawsuit with President-elect Donald Trump. This past weekend, Disney disappointed at the local multiplex after a stellar recovery in 2024.

Mufasa: The Lion King collected just $35 million in domestic ticket sales over the weekend, and $122 million worldwide. Industry predictions were eyeing $50 million domestically and $180 million globally in box office receipts. Adding insult to injury, the big-budget entry in the iconic Lion King franchise fell woefully short in the U.S. to the debut of Sonic the Hedgedog 3 and its $62 million take from stateside audiences.

A couple of rungs lower, Disney's Moana 2 -- after three weekends at the top domestically -- fell to fourth place. It was overtaken by Wicked for the bronze, defying gravity, if you will, as it opened a week earlier than the sequel to 2016's Moana. It bears pointing out that Wicked doesn't have the same international appeal of Moana 2, as the latter has more than doubled box office receipts outside of the U.S. market.

Moana 2 is going to be a big winner for Disney's bottom line. It has now topped $790 million globally, on its way to become the third Disney theatrical release of 2024 to top $1 billion following the summertime successes of Inside Out 2 and Deadpool & Wolverine. None of Disney's studio releases in 2023 crossed that mark. Mufasa is now highly unlikely to join this year's three big winners. It will be challenging just to avoid a charge in the new fiscal year for the estimated $200 million production.

The ABC settlement and lackluster Mufasa premiere are small hiccups for a company that has won more than lost in 2024. Disney is well positioned to continue roaring as fiscal 2025 plays out.

Be prepared

This will be Disney's first year of double-digit gains since 2020. The shares would go on to experience back-to-back years of double-digit-percentage declines before squeezing out a 4% increase in 2023. Building on the momentum of 2024 is essential.

There will be obstacles in 2025. Disney's domestic theme parks have stalled in recent quarters. It now faces an "epic" challenge as rival Comcast opens Epic Universe in Walt Disney World's backyard in May. Disney's linear networks segment should continue to fade in popularity as more consumers turn to streaming services. An iffy economy or global uneasiness could rattle most of Disney's operations.

The positives still outweigh the negatives. After back-to-back quarters of positive operating profits, Disney+ and the rest of the media stock's streaming platforms have the leverage and content to dramatically ramp up on the bottom line. Disneyland will kick off the original gated attraction turning 70 with a celebration in May that will last for more than a year.

Disney's studio will have plenty of potential blockbusters. The 2025 release slate includes fresh Marvel releases in the Captain America and The Fantastic Four franchises. On the animated front, Zootopia 2 and Pixar's Elio should fare well. There's also a highly anticipated live action spin on Lilo & Stitch. The final Disney cinematic release of the 2025 calendar year will be Avatar: Fire and Ash. The previous film in that franchise -- 2022's Avatar: The Way of Water -- is the world's highest-grossing film since the pandemic.

Analysts have been inching their profit targets higher in recent weeks. They now see the House of Mouse posting a 12% increase in earnings per share on a 5% move higher in revenue for all of fiscal 2025. Disney's dividend has returned and has already been hiked twice. The board recently updated investors with plans to announce CEO Bob Iger's successor by early 2026. The pieces are in place for Disney to take the wheel of market leadership in 2025.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

The post Can Disney stock finally beat the market in 2025? appeared first on The Motley Fool Australia.

As things stand, I am poised to record a return of over 40% for the 12 months.

How did I get here?

My exposure to high-quality companies in the tech, retail, and healthcare sectors helped my portfolio outperform this year.

The star of the show was undoubtedly my overweight position in Life360 Inc (ASX: 360). At the time of writing, the location technology company's shares are up 200% year to date.

The now departed Altium also gave me significant funds to reallocate elsewhere after being taken over by Renesas this year. I didn't stick around to see the takeover complete. Instead, I locked in the gains in April and reinvested them back into the tech sector through Pro Medicus Limited (ASX: PME) and TechnologyOne Ltd (ASX: TNE).

Both of these ASX tech stocks have rocketed in value since then, compounding the funds even further.

I like to buy high-quality companies when an opportunity presents itself. This proved successful with ResMed (ASX: RMD) and Universal Store Holdings Ltd (ASX: UNI) last year.

ResMed's shares were down heavily because of weight loss wonder drug concerns. They have returned approximately 50% this year. Whereas doom and gloom in the retail sector dragged youth fashion retailer Universal Store to very inviting levels. Its shares are up approximately 85% in 2024.

Also contributing to the good performance were ASX share portfolio holdings such as Lovisa Holdings Ltd (ASX: LOV), Xero Ltd (ASX: XRO), Telix Pharmaceuticals Ltd (ASX: TLX), Westpac Banking Corp (ASX: WBC), and the Betashares Nasdaq 100 ETF (ASX: NDQ).

I also took advantage of a sharp pullback in the Walt Disney Co (NYSE: DIS) share price. This high-quality company's shares have rallied over 30% since then.

It's not all sunshine and rainbows

I would love to say that all portfolio holdings performed well in 2024, but that isn't the case. And will almost never be the case. This is why portfolio diversification is so important.

I was let down by Endeavour Group Ltd (ASX: EDV) and Domino's Pizza Enterprises Ltd (ASX: DMP), and CSL Ltd (ASX: CSL) underperformed the market.

Nevertheless, I believe the quality of these companies remains high (certainly CSL!) and I expect them to perform better in 2025. I may even take advantage of this weakness to add to positions in 2025.

There were also plenty of missed opportunities. Goodman Group (ASX: GMG) and Qantas Airways Ltd (ASX: QAN) shares are two that I planned to buy and never did. They are up in the region of 45% to 70% in 2024.

Another one I missed was Starbucks Corp (NASDAQ: SBUX). I had intended to purchase the coffee chain giant's beaten down shares the same day I bought Disney shares. But the announcement of a new CEO that day saw Starbucks rocket 30% before I could and left me wondering what could've been.

What's the plan in 2025?

I'm confident in my ASX share portfolio as we head into 2025.

But as always, I will look for opportunities to buy high-quality companies when they are trading at fair (or cheap) prices.

I will also continue to stay clear of speculative stocks that promise the world and deliver nothing but losses.

After all, it's just as important to avoid bad stocks as it is to buy great ones.

The post My ASX share portfolio is up 40% in 2024! Here's my strategy for 2025 appeared first on The Motley Fool Australia.

The Dow Jones Industrial Average has been around since the late 19th century. Its storied past has made it one of the key benchmarks that investors turn to for gauging stock market performance.

The 30 components in the Dow have changed a lot in recent years, with the addition of Amazon, Salesforce, and other growth names. Still, the Dow acts as a great representative of the broader market. And with all but two components paying dividends (Amazon and Boeing), the Dow is a great starting point for discovering blue-chip dividend stocks.

Microsoft (NASDAQ: MSFT) and Walt Disney (NYSE: DIS) have been components of the Dow since the 1990s, while Nike (NYSE: NKE) was added in 2013. Here's why all three Dow stocks are balanced buys worth considering through 2025.

Microsoft's advantages make up for potential AI challenges

Microsoft will report its fiscal 2025's first-quarter earnings on Oct. 30. Investors will likely be watching for sustained growth in its Intelligent Cloud, artificial intelligence (AI) product improvements, engagement with Microsoft 365 Copilot and GitHub Copilot, guidance for fiscal 2025, and the company's capital expenditure (capex) plans.

The company has been growing capex faster than revenue as it ramps up AI spending -- and there are concerns that spending may not pay off as much as investors hope, which could pressure the stock price. But management has lots of advantages over smaller companies. For starters, it has more cash, cash equivalents, and marketable securities than debt on its balance sheet. Strong financial health gives Microsoft the wiggle room to pounce on exciting opportunities.

Microsoft also generates so much profit that it can afford these aggressive spending plans and still have plenty of cash left over to buy back a ton of its own stock and pay a rapidly growing dividend. In September, the company raised its quarterly dividend by 10% to $0.83 per share and authorised a new $60 billion share repurchase program.

Over the past decade, the company has increased its dividend by 168% and reduced its share count by nearly 10% -- which is impressive considering its high stock-based compensation expense.

Microsoft is a balanced tech stock with a multi-decade runway for continued growth, helping to justify its current price-to-earnings ratio of 35.4. It's a top Dow stock to watch through 2025 and could be an incredibly compelling buy if Wall Street beats its stock price down over short-term concerns.

Nike has a lot of work to do

There's no sugarcoating how bad Nike stock has been in 2024: down over 23% compared to big gains in the major indexes. It is within 20% of a five-year low and is bringing in a new CEO to turn the business around.

Like many companies, Nike is dealing with a slowdown in China. But what's particularly concerning is that lower sales and profitability have spread throughout the business, including footwear and apparel across all regions. Total Nike brand sales for the three months ended Aug. 31 were down 10% compared to the same period last year. And that same period in 2023 wasn't even that impressive of a quarter.

Nike's problems certainly aren't trivial, but they do seem solvable. And when top brands go on sale for challenges that can prove temporary, it's often a phenomenal time to buy the stock. 

The main issues are that it mismanaged customer demand and was hit hard by supply chain disruptions and inflationary pressures. The build-out of Nike Direct, its e-commerce platform, was meant to help it be less dependent on wholesale and engage directly with consumers. But even Nike Direct is struggling, with sales down 13% in the recent quarter.

At just 23.9 times earnings and with a dividend yield of 1.8%, Nike stock stands out as a compelling value and a decent source of passive income in an otherwise expensive market. However, investors should only consider the stock if they are willing to give the company time to turn things around, as the situation could worsen before it gets better.

Disney is returning to growth

Disney is another Dow component that has been a major disappointment for patient investors. The stock is up less than 25% from its 10-year low and is on track to underperform the S&P 500 for the fourth consecutive year. But things are finally looking up for the media and entertainment giant.

Its streaming service, Disney+, is finally profitable. The company is back to generating box office hits, most notably Inside Out 2, which was a smashing success.

Management is paying a dividend and buying back stock again -- a sign it isn't as strapped for cash as it was a couple of years ago when Disney+ was bleeding hundreds of millions of dollars each quarter in operating losses.

Still, Disney is a highly cyclical company that depends on consumer discretionary spending. When household budgets get cut, a Disney trip is likely top of the list. After years of price increases, it just hiked theme park prices again, which could lead to disgruntled customers and hurt demand.

The company is not at the top of its game, but the worst of its box office blues and streaming slog are over. As with Nike, buying Disney now is more of a bet on where it could be years from now than where it is today. It stands out as a top value stock for patient investors to buy now.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

The post If I could buy only 3 Dow Jones stocks through 2025, I'd pick these 3 dividend-growth companies appeared first on The Motley Fool Australia.

The streaming wars have been raging for years now, with some of the world's biggest companies fighting for eyeballs. Amazon, Apple, and others are duking it out, spending billions pumping out content in an attempt to capture market share.

The war is expensive. Although direct financial and viewership data is hard to pin down -- many companies fold their TV divisions into larger segments -- it's clear that the economics aren't working for many.

Few companies have a war chest the size of Apple, but the iPhone maker is reportedly reworking its strategy, trying hard to rein in its massive spending. The company spent at least $20 billion in the five years it has made original content -- that doesn't include the billions it spent licensing content as well, spending a whopping $500 million on movies from just three directors. Despite these numbers, it's managed to capture just 0.2% of TV viewing in the United States.

But it's a different story for the streaming king, Netflix (NASDAQ: NFLX) -- the company that launched a thousand streamers. Netflix pioneered the streaming category, and everybody else is playing catch-up. Here's a closer look at its enduring success.

Netflix is raking in cash and beating expectations

The streaming giant released its third-quarter earnings results on Thursday, 17 October and Wall Street was impressed. It exceeded consensus estimates for both revenue and earnings per share (EPS). The market reacted to the news, and shares are up about 10% as of this writing.

While it's no longer the only streamer turning a profit, it's the only one that has reliably for years and on the scale it is. Walt Disney reported an operating income of $47 million for Q3 2024 for its streaming services, which include Disney+, Hulu, and ESPN+. Netflix's Q3 operating income? Nearly $3 billion.

Take a look at the company's steady rise in operating income over the last few years in the chart below.

NFLX Operating Income (TTM) data by YCharts

Tiered subscriptions are changing the game

Many of us remember the promise of streaming -- premium content at a fraction of the cost of cable with no ads. Unfortunately for consumers, but fortunately for investors, that promise has been broken.

Hulu helped pioneer the 'ad-supported' model, in which users choose between a low-cost tier with ads and a premium, ad-free tier. Netflix introduced its ad-supported tier in late 2022, and it was an immediate boon for the company's bottom line, as you can see in the previous chart.

An ad-supported tier allows for more users to join who would otherwise feel the service is too expensive, and the numbers back this up: Ad-supported subscriptions were up 35% last quarter. On the income side, any potential loss from offering a cheaper tier is largely compensated for by ad revenue.

Netflix is still delivering hits

While many streamers are struggling to deliver shows that take off, Netflix is not. The company has had a string of hits recently with shows like Nobody Wants This and House of Ninjas -- a show in Japanese that delivered a larger United States audience than Apple's $250 million Masters of Air.

The second season of the company's smash hit Squid Game is set to release soon, as well as several other high-performing IPs. Netflix seems to be firing on all cylinders at the moment.

Incredibly, despite what might appear to be a market share that is approaching saturation, Netflix accounts for just 8.4% of TV watching in the US. There is a lot of room to run here.

Now, the stock is trading at a pretty high premium -- its price-to-earnings ratio (P/E) is currently sitting just shy of 40 -- but I think its prospects easily justify it. Netflix is in the driver's seat at the moment and has a huge amount of space to expand and plenty of wiggle room in pricing that can continue to boost sales. While the war is far from over, Netflix certainly has the upper hand.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

The post Netflix's latest earnings call sent its stock surging. Should you buy now? appeared first on The Motley Fool Australia.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

There are a few things that United Parcel Service (NYSE: UPS), Walt Disney (NYSE: DIS), and Ford Motor Company (NYSE: F) have in common. They are Wall Street juggernauts, components of the S&P 500. The stocks all pay a dividend; two of the three currently top a 5% yield.

They're also out of favor. UPS, Disney, and Ford are trading 22%, 28%, and 29% below their 52-week highs. Stretch out the timeline, and the three stocks are trading 45% to 60% below their all-time highs set in either 2021 or 2022. This isn't a problem. It's an opportunity. Let's dive into why these are three great dividend-paying S&P 500 stocks that you can hold for the long haul.

1. United Parcel Service

Brown has been more black and blue lately. The provider of parcel delivery and supply chain solutions saw its revenue slide 9% to $91 billion last year. Profitability took an even bigger hit.

The near-term challenges are real. Striking a five-year deal with the UPS Teamsters union last summer locks its workforce in place through mid-2028, but it comes at the expense of a margin-gnawing spike in labor costs over the past year. The increases will continue through the next four years, but it will be more manageable.

It's no fun when an income statement is burning at both ends, and this could be particularly problematic for income investors. UPS has increased its quarterly distributions for 15 consecutive years. The rising payouts and shrinking share price find the shares yielding 5% right now. Is this sustainable if business continues to contract as expenses keep expanding?

This doesn't have to be an accordion of cacophony. UPS rolled out layoffs earlier this week after a much larger sea of pink slips earlier this year. Analysts see a return to revenue growth in the second half of this year, followed by a bottom-line recovery in 2025. If they're right, UPS will have wiggle room to keep its streak of dividend hikes coming. You can also pick up UPS at a reasonable 14 times next year's projected earnings.

2. Disney

Another household name with an attractively depressed share price is Disney. The media stock is moving lower for the sixth consecutive month. You can buy Disney for less than 19 times forward earnings.

There are a lot of things going well for the company, despite its stock chart going the other way. Disney returned to box office dominance this summer with the world's two highest-grossing films of 2024, and it has two movies coming out over the holidays that should fare even better. Disney+ is finally profitable. There are some near-term hiccups at its theme parks and a more long-lasting problem with its legacy media networks, but the sum of all of these mouse parts points to healthy growth in the near future.

Disney's current yield of 1% is much lower than the other names on this list, but the entertainment bellwether did boost its semiannual distributions by 50% earlier this year. The bullish play here will still be in the form of capital appreciation over dividend checks.

3. Ford

The highest yield and lowest earnings multiple on the list belongs to Ford, but let's start with a brake check. Growth has slowed to single-digit upticks at the automaker for three consecutive quarters. Trading at a P/E ratio of 11 sounds great until you realize that it's based on its market cap of $42 billion. Ford's enterprise value is $168 billion once you consider its debt.

The car market is cyclical, and Ford is struggling to get the balance right between its electric vehicles and its more traditional rides. The current 5.7% yield will reward patient investors, but the hefty disbursements are at the mercy of Ford stepping on the accelerator again and controlling costs. Analysts see flat revenue and earnings growth for Ford next year, and we know how drivers feel about flats. The bullish catalyst here is that falling interest rates could spur fresh interest in big-ticket purchases. Aren't you due for a new car? Ford hopes that you turn to the iconic car manufacturer.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated. 

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

The post 3 magnificent S&P 500 dividend stocks down 45% to buy and hold forever appeared first on The Motley Fool Australia.

Pelosi has been a fixture of American politics for decades. Most notably, she made history in 2007 when she was elected as the first female Speaker of the House of Representatives, a role she returned to in 2019 and held until 2023.

During her tenure as Speaker, Pelosi shepherded through some of the most consequential legislation in American history, including the Affordable Care Act (also known as ObamaCare), the Dodd-Frank reforms to the US financial system and (more recently) the Chips and Science Act and the Inflation Reduction Act.

As momentous as these achievements are, Pelosi has attracted fame for another aspect of her public life, particularly amongst the investing community: Her stock-picking prowess.

Together with her husband Paul, Nancy Pelosi's stock-picking decisions have begun to raise some eyebrows over the past few years, thanks to their roaring success. American politicians aren't prohibited from investing in stocks, although they (and their spouses) are required to disclose their trades with haste. Hence our awareness of their success in the Pelosi case.

According to a report in the Australian Financial Review (AFR) this week, the Pelosi portfolio has had a rough 2024 to date, but remains up by around 700% over the past decade.

But the report names a local parliamentary rival to Pelosi, one that ASX investors can directly relate to. That Nancy Pelosi-like stock picker is none other than Ted O'Brien, Shadow Energy Minister and Liberal National Party member for the House of Representatives seat of Fairfax, Queensland.

Our very own Nancy Pelosi stock picker?

According to the report, O'Brien has the highest-performing stock portfolio in the Australian Parliament, with an average return of 64.7% between the May 2022 election and 30 June 2024.

Australian parliamentary regulations aren't as aggressive as they are in the US. Here, members and senators are only required to disclose their holdings, not every time they buy or sell ASX shares.

But even so, this means we get a glimpse into the ASX (and international) shares that O'Brien currently holds positions in.

According to the Parliament's Register of Members' Interests, O'Brien held the following stocks as of May 2022:

• Aurizon Holdings Ltd (ASX: AZJ)
• Fortescue Ltd (ASX: FMG)
• JB Hi-Fi Ltd (ASX: JBH)
• Newcrest Mining Ltd (now delisted)
• One Market Ltd (now delisted)
• Rio Tinto Ltd (ASX: RIO)
• Super Retail Group Ltd (ASX: SUL)
• Suncorp Group Ltd (ASX: SUN)
• Tabcorp Holdings Ltd (ASX: TAH)
• Telstra Group Ltd (ASX: TLS)
• Woolworths Group Ltd (ASX: WOW)
• News Corporation (ASX: NWS)
• Lottery Corporation Ltd (ASX: TLC)
• Endeavour Group Ltd (ASX: EDV)
• Walt Disney Co (NYSE: DIS)
• Fox Corporation (NASDAQ: FOXA)(NASDAQ: FOX)

In November of 2022, O'Brien disclosed that his spouse initiated a position in Findi Ltd (ASX: FND),  a position that has probably resulted in a windfall.

Just yesterday, O'Brien reported a major portfolio update. He revealed that he has completely exited his positions in the following companies:

• Fortescue
• Rio Tinto
• Tabcorp
• Telstra
• News Corp
• Walt Disney
• Fox Corp
• Endeavour

It seems O'Brien still counts Aurizon, Woolworths, JB Hi-Fi, Lottery Corp, Super Retail and Suncorp shares in his portfolio though.

With a two-year return of 64.7%, many ASX investors will no doubt find O'Brien's holdings insightful, to say the least. Let's see if he can match Pelosi's 700% return over a decade.

The post Who is Australia's Nancy Pelosi stock-picking equal? appeared first on The Motley Fool Australia.

These days the answer to that question is actually quantifiable by seeing which stocks have the most engagement on social media.

Of course, popularity on social media means nothing about whether those shares are worth investing in.

But it's still fascinating to see what the average person on the street is interested in.

Online broker City Index recently conducted research to come up with the 10 most popular stocks on Instagram and TikTok.

Here is what the team found:

People start investing in names they're familiar with

Predictably the list is dominated by US companies:

Funnily enough, Instagram's parent company Meta Platforms Inc (NASDAQ: META) does not make the cut. TikTok owner ByteDance is privately owned.

Even though the business and the stock have endured tough times the past couple of years, Visual Capitalist strategist Marcus Lu noted Disney had the highest social media engagement of any stock via hashtags like #disneystock, #disneystocks, and #disneyshares.

"Amazon comes in second in hashtags, with 1,384 videos regarding its financial performance accompanied by hashtags such as #amazonstock, #amazonstocks, or #amazonshares," Lu wrote on VisualCapitalist.

"In its most recent earnings report, the company disclosed the addition of 5.9 million new subscribers in the second quarter of this year."

The top 10 shows potentially how a person who has never invested starts becoming interested in buying stocks.

"The companies at the top of the list — all American — are some of the biggest brands globally," said Lu.

"This underscores how the general public is most comfortable approaching the stock market through businesses and brands they are most familiar with."

The post Revealed: The top 10 stocks on Instagram and TikTok appeared first on The Motley Fool Australia.

The post-COVID slowdown hasn't been kind to Amazon (NASDAQ: AMZN), and the stock is down 45% so far this year. While the company's e-commerce operations are experiencing weak growth and margins, Amazon is much more than just an online retailer. Let's explore three potentially overlooked factors that could make the stock a buy for long-term investors. 

Cloud computing is Amazon's new backbone 

Amazon's third-quarter results were a mixed bag. Revenue grew by 15% year over year to $127.1 billion, but operating income almost halved to $2.5 billion because of challenges like inflation and overexpansion during the pandemic boom of 2020 and 2021. But while its North American and international e-commerce segments are both bleeding cash -- with operating losses of $400 million and $2.5 billion, respectively -- its cloud computing business, Amazon Web Services (AWS), is helping to pick up the slack. 

AWS segment revenue increased by 27% to $20.5 billion while its operating income jumped 11% to $5.4 billion. With both of Amazon's e-commerce segments burning cash, AWS is now Amazon's foundation. And investors may be overlooking its value. According to analysts at equity research firm Redburn, AWS alone could be on track for a $3 trillion valuation and could be spun off to unlock a better valuation. 

While Redburn's predictions are admittedly optimistic and don't come with a concrete timeframe, they do highlight the huge potential many industry watchers see in Amazon's cloud offering because of its economic moat, which includes a strong brand and economies of scale. The company is using these advantages to attract new clients such as power company Duke Energy, which entered a three-year cloud deal with AWS in November to modernize its electric grid.

Film entertainment could help too

First an online bookstore, then an e-commerce giant, and now the global leader in cloud computing -- Amazon is no stranger to reinventing itself. And while cloud computing looks likely to power most of the company's valuation growth, other business segments could also contribute. 

In November, Amazon announced plans to spend $1 billion a year to produce 12 to 15 movies that it will release in theatres annually. This decision comes in the wake of its March acquisition of Hollywood studio MGM, and could help lay the groundwork for the company to become a fully-fledged entertainment giant that can compete with the likes of Walt Disney.

The new content will also help create a competitive advantage for Amazon Prime, which includes a video-streaming service. 

Management hasn't provided guidance on how much revenue it expects Amazon's film production efforts to generate. But if it's successful, it could provide some much-needed diversification and growth to counteract the slowdown in the company's retail operations. 

Amazon's valuation is still reasonable

Amazon's significant stock declines have made the company more interesting for value-hungry investors. And while the company is far from distressed territory, its price-to-sales ratio of 1.9 is lower than the S&P 500's average of 2.4. And while Amazon's bottom line remains under pressure in the near term, continued growth in AWS and new business could help turn things around in the coming years.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

The post 3 reasons to buy Amazon stock right now appeared first on The Motley Fool Australia.

You might not realize it, but two weeks ago marked one of the most important data releases of the quarter. November 14 was the last day for money managers and wealthy individuals with at least $100 million in assets under management to file Form 13F with the US Securities and Exchange Commission.

A 13F lets Wall Street professionals and everyday investors have a look under the hood to see what the brightest minds on Wall Street bought, sold, and held in the most recent quarter. Even though 13Fs have their flaws -- they're at least six weeks old by the time they're filed, meaning additional trades may have been made -- they can help investors identify the companies and trends garnering the attention of top money managers.

Although most billionaire money managers have used the 2022 bear market as an opportunity to buy high-quality companies at a discount, others haven't been able to run to the exit quickly enough. What follows are three ultra-popular stocks billionaires have been busy selling.

Tesla

There's arguably no stock billionaires sold more aggressively during the third quarter than electric-vehicle (EV) manufacturer Tesla (NASDAQ: TSLA). All told, five billionaire money managers pressed the sell button, including Jim Simons of Renaissance Technologies, Jeff Yass of Susquehanna International, Philippe Laffont of Coatue Management, Ken Griffin of Citadel Advisors, and Israel Englander of Millennium Management. Simons reduced his fund's stake by 99.9%, while the four other billionaire fund managers reduced their stakes by 16% to 55%.

Why run for the exit? One reason may be the realization that Tesla isn't immune to the cyclical challenges facing the auto industry. Tesla has historically been valued at a nosebleed premium to legacy automakers on the notion that it'll outpace these stalwarts in the sales and profit-growth department. However, COVID-related supply chain disruptions, especially in China, coupled with historically high inflation and a weaker US and global economic outlook, bode poorly for near-term EV sales.

Perhaps an even bigger downside catalyst is Tesla's own CEO Elon Musk. Although Musk is a visionary who's been largely credited with helping Tesla become one of the world's largest publicly traded companies, he's also become a significant liability for the company. Aside from the significant distraction of operating social media site Twitter, a large number of promises regarding the debut of new vehicles or innovations have failed to come to fruition. Tesla's valuation is very much dependent on Musk's visions becoming reality.

On the bright side, Tesla is profitable on a recurring basis, and the ramp-up at its two new gigafactories (Berlin, Germany, and Austin, Texas) should allow production and sales to quickly scale. But maintaining its North American market share will undoubtedly prove difficult as legacy automakers and newer players scale their own EV operations.

Walt Disney

Disneyland may be the "Happiest Place on Earth," but Walt Disney (NYSE: DIS) has been nothing short of a frowny face for billionaire investors. During the third quarter, billionaires Ole Andreas Halvorsen of Viking Global Investors, Simons of Renaissance Technologies, and Ray Dalio of Bridgewater Associates, all sold shares. In particular, Halvorsen and Dalio completely exited their respective fund's positions in Disney.

The about-face we've witnessed in Disney stock can likely be explained by two factors. First, the company still hasn't put its operating issues tied to the COVID-19 pandemic into the rearview mirror. China's zero-COVID strategy continues to hamper Disney's theme-park operations. Additionally, traditional moviegoing hasn't come close to achieving its pre-pandemic level.

The other issue is that Walt Disney's streaming services are racking up some jaw-dropping losses as they scale. While direct-to-consumer revenue rose 8% in the company's fiscal fourth quarter (ended Oct. 1, 2022), the segment's operating loss nearly doubled to $1.5 billion.  Poor operating performance is not something Disney shareholders are used to.

However, the subscriber figures at Disney+ (164.2 million) have ramped up incredibly fast, and the company appears confident the segment will turn the corner to profitability by the end of fiscal 2024.

What's more, Walt Disney has exceptional pricing power and the ability to engage consumers like no other media company. In short, these billionaire sellers may ultimately regret their decision.

Meta Platforms

The third ultra-popular stock billionaires were busy selling in the third quarter is social media behemoth Meta Platforms (NASDAQ: META). Billionaires Stephen Mandel of Lone Pine Capital, Griffin of Citadel Advisors, and Simons of Renaissance Technologies, all slashed their stakes in Meta by multiple millions of shares from the sequential second quarter.

Perhaps the biggest knock against Meta is a weakening macroeconomic outlook for the US and global economy. Advertising is one of the first spending categories to be hit when the winds of recession begin blowing. Given that Meta generates 98% of its revenue from advertising, its top and bottom line are directly impacted by economic weakness.

Another plain-as-day concern billionaires have about Meta is CEO Mark Zuckerberg's exorbitant spending on the metaverse -- the 3D virtual world that allows users to interact with each other and their environment. Reality Labs, the company's metaverse operations, recorded $1.4 billion in sales through the first nine months of 2022, but racked up a jaw-dropping $9.4 billion in losses.  Worse yet, spending is expected to increase in 2023. The end result has been reduced free cash flow and lower quarterly profits.

But as with Walt Disney, I'm skeptical of the skeptics. Meta owns four of the most popular social media assets on the planet (Facebook, Facebook Messenger, WhatsApp, and Instagram) and should benefit from strong pricing power during extended periods of economic expansion.

Furthermore, Meta is sitting on a healthy net cash pile totalling nearly $32 billion. The company has levers it can pull if it wants to boost its free cash flow. The point being that Meta Platforms' operating model is so dominant, and its balance sheet so flush with cash, it has the financial flexibility to make aggressive investments in the metaverse. After all, the metaverse could be the next multitrillion-dollar opportunity.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

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