Businesses that trade at large discounts to their underlying value can provide a sizeable yield. The lower the price/earnings (P/E) ratio, the larger the dividend yield.

There are some very impressive dividend yields out there for investors to take advantage of. I'm going to talk about two with potentially large payouts.

Accent Group Ltd (ASX: AX1)

Accent is a significant retailer of footwear in Australia. It owns a number of brands including The Athlete's Foot, Nude Lucy, Stylerunner, Platypus and other brands. It also acts as a retailer of a number of global brands, including Vans, Hoka, Herschel, Skechers Ugg and others. Additionally, the ASX dividend share recently started opening Sports Direct stores Australia.

That agreement with Frasers to open Sports Direct stores locally has led to access to Frasers brands like Everlast, Karrimor, Lonsdale, Slazenger, as well as global brands like Nike, Adidas, Under Armour New Balance and Puma.

The company recently reported a trading update that showed total group owned sales were up 3.7% year-over-year, though the gross profit margin was down 1.6% year-over-year. FY26 full-year operating profit (EBIT) is expected to be in the range of between $85 million and $95 million, which sadly disappointed the market.

With the Accent share price down 60% in the last year, its dividend yield is still expected to be large, even if the payout projection has reduced. UBS forecasts that Accent could pay an annual dividend per share of 5 cents in FY26, translating into a grossed-up dividend yield of 7.6%, including franking credits.

UBS forecasts that Accent's annual dividend per share could steadily increase over the subsequent financial years. It's trading at 13x FY26's estimated earnings, with profit projected to rise from there.

Bailador Technology Investments Ltd (ASX: BTI)

Bailador is an investment company that focuses on technology businesses which have compelling financials, strong growth potential, possible international revenue generation and the ability to generate repeat revenue.

This ASX dividend share is invested in software across a number of areas including hotel channel management and distribution for online bookings, financial advice and investment management, digital healthcare, tours and activities booking, volunteer management, AI-enabled property investment, fitness and wellness sector and more.

The businesses in the Bailador portfolio are growing at a rapid pace, with FY25 seeing a portfolio-weighted revenue growth rate of 47%. If the businesses continue growing at that sort of speed, the portfolio value could shoot higher in the coming years.

In a December update, Bailador reported that its Updoc value had increased by 20.5% and the PropHero value jumped 45.6%, taking the November 2025 pro-forma pre-tax net tangible assets (NTA) per share to $1.98. That means the Bailador share price is trading at a discount of close to 40%, which is huge.

Due to that massive discount, the potential annualised Bailador grossed-up dividend yield for FY26 is 9.25%, including franking credits.

The post 2 ASX dividend shares with yields above 7%! 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.

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.

But the good news is, with just $1,000, you can begin building wealth through the share market — and the ASX is a great place to start.

Here's how to put that $1,000 to work and start your investing journey the smart way.

Starting with ASX shares

It is always important to understand why you are investing.

That's because knowing your objective will help shape your strategy. For most people starting out, long-term growth is the name of the game — and that means focusing on quality and consistency over short-term wins.

Consider ETFs

If you're new to the market, picking individual stocks can feel overwhelming. That's where exchange traded funds (ETFs) come in. These investment vehicles let you buy a basket of shares in one go, giving you instant diversification.

For example, the Vanguard Australian Shares Index ETF (ASX: VAS) gives you exposure to the top 300 shares on the ASX, including household names like Commonwealth Bank of Australia (ASX: CBA) and BHP Group Ltd (ASX: BHP).

Whereas investors wanting international exposure could turn to the iShares S&P 500 ETF (ASX: IVV). It lets you invest in 500 of the largest companies in the US. This includes iconic companies like Apple (NASDAQ: AAPL), McDonald's (NYSE: MCD), Microsoft (NASDAQ: MSFT), Nike (NYSE: NKE), Starbucks (NASDAQ: SBUX), and Tesla (NASDAQ: TSLA).

Think long term

The most important part of investing with a small amount? Getting started and staying the course.

Investing $1,000 won't make you rich overnight — but it can build momentum. Over time, those initial dollars can grow through compounding returns, especially if you keep adding to your investments consistently.

Even adding $100 or $200 a month can snowball into significant wealth over time.

For example, starting with $1,000 and then adding $200 per month would turn into almost $43,000 in 10 years if you averaged a 10% per annum total return. Keep doing for another decade and your wealth would balloon to over $150,000.

And while 10% per annum returns are of course not guaranteed, they are in line with historical averages.

Foolish takeaway

Starting with $1,000 might not seem like much, but it's more than enough to begin your investing journey. Focus on diversification and quality, and remember: the goal isn't to time the market — it is time in the market that counts.

With patience and a long-term mindset, that first $1,000 could be the foundation of something much bigger.

The post How to become rich with ASX shares starting with just $1,000 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.

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 banner year for the stock market. However, not every stock has been a winner as some sectors performed better than others. Tech and utilities soared, while others like real estate and healthcare underperformed.

So what are the five worst performers on the Dow Jones Industrial Average (DJINDICES: ^DJI) list of blue chip stocks? Let's take a look.

1. Boeing (down 36.5%)

Boeing (NYSE: BA) has had a rough year. It started early as the stock price fell after the door panel on a Boeing jet flown by Alaska Airlines popped off mid-flight. Follow-up investigations revealed a workplace culture where quality controls became overly lax. Boeing brought in a new CEO, but a full-fledged turnaround could take years.

2. Nike (down 27.5%)

Nike (NYSE: NKE) struggled this year as missteps under former CEO John Donahoe (also ousted this year) led to declining sales and profits and market share losses to upstart competitors like On Holding and Deckers' Hoka brand. Nike was also criticized for moving away from brand marketing and wholesale relationships with chains like Foot Locker. It's expected to change strategy under new CEO and company veteran Elliott Hill.

3. Merck (down 8.5%)

Merck (NYSE: MRK) is one of several pharmaceutical stocks that underperformed this year. The company struggled to find growth beyond Keytruda, a cancer drug, as franchises like HPV vaccine Gardasil and diabetes drug Januvia declined due to Gardasil's weakness in China and competition for Januvia. Keytruda now makes up nearly half of its revenue, though the headwinds against other drugs have eaten into profits.

4. Johnson & Johnson (down 6.3%)

Johnson & Johnson (NYSE: JNJ) is also down this year as it's faced headwinds associated with lawsuits around its talcum-based products, and profits have declined due to legal costs and increased research and development (R&D) expenses.

5. Amgen (down 4.8%)

Like other healthcare stocks, Amgen (NASDAQ: AMGN) missed out on the cyclical tailwinds that lifted the broad market, and it's faced challenges with MariTide, a weight loss drug that could be linked to bone mineral density loss. Revenue from oncology treatments and established products like Enbrel are also down.

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

The post These are the 5 worst-performing stocks in the Dow Jones Industrial Average with 2024 almost over 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 S&P 500 Index (SP: .INX) notched another record closing high yesterday, putting the benchmark US index up 33.6% over the past year. However, not all US stocks have joined the rally.

Shares in Intel Corp (NASDAQ: INTC), for example, are down 34.9% since this time last year.

While the CrowdStrike Holdings Inc (NASDAQ: CRWD) share price is up 64.1% in a year, shares are down 23.6% since 8 July.

Nike Inc (NYSE: NKE) has also come under pressure, with shares down 14.9% over a year.

But, an increasing number of Aussie investors have seen the recent headwinds pressuring these blue-chip US stocks as an opportune time to buy the dip.

Aussie investors snapping up US stocks

New data from eToro showed that CrowdStrike, Nike, and Intel were the 'top risers' in the third quarter.

CrowdStrike saw a 77% increase in holders, Nike saw a 24% increase, and Intel followed with a 23% increase in holders over Q3, as these US stocks all came under selling pressure.

CrowdStrike led the pack as investors decided this was no falling knife but rather a rare opportunity after the cybersecurity company's share price plunged more than 40% in July. That came on the heels of CrowdStrike's jumbled update, which led to worldwide computer and system outages.

Nike's share price was hit after the company posted a 10% decrease in revenue in the past quarter amid stiff competition.

And Intel's shares were heavily sold off following a disappointing earnings report in August when the company announced plans to slash its workforce and suspend its dividend payouts.

Commenting on the big boost in interest for these three US stocks, eToro market analyst Josh Gilbert said, "Retail investors went on a hunt for bargains this past quarter, snapping up stocks whose share prices have taken a big hit."

Gilbert added:

The fact that many investors are able to look past short-term price movements of these stocks, such as CrowdStrike's outage, reaffirms their faith in these companies. Being reactive to market changes is a valuable skill for any investor.

Markets are dynamic, and the ability to quickly assess and adapt to new developments – whether in geopolitics, corporate actions, or economic data – can provide a significant edge in navigating volatility and seizing opportunities.

We know that most of our investors have long-term time horizons, so when they see high-quality businesses such as Nike sell-off, they're taking the opportunity with both hands.

As always, whether you're investing in ASX shares or US stocks, be sure to do your own research first. Or simply reach out for some expert advice.

The post 3 beaten-up US stocks Aussie investors are buying the dip on appeared first on The Motley Fool Australia.

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

If you want to invest like a billionaire, you have to be willing to buy shares when a company is experiencing temporary problems. It's only when the near-term outlook is gloomy that you can invest in a great business below what it's worth.

Pershing Square's Bill Ackman and Berkshire Hathaway CEO Warren Buffett have executed a value-based strategy to amass multi-billion-dollar fortunes. While Wall Street chases hot tech stocks, Ackman and Buffett are finding great value in these top retail brands. Let's see perhaps why.

1. Nike

Pershing Square disclosed a portfolio of U.S.-based stocks worth $10 billion in the second quarter. It added two new stocks to the portfolio, including Nike (NYSE: NKE). Ackman's investment strategy involves buying stakes of large, profitable companies when they are on sale, and Nike certainly fits the bill. It dominates the sportswear market with $51 billion in trailing revenue -- and footwear generates two-thirds of that amount.

Nike didn't get to where it is today without plenty of ups and downs over the past 50 years. For an apparel business, revenue can falter during economic recessions or periods of soft consumer demand. High inflation and interest rates have taken a toll on the consumer over the last few years, and Nike felt the sting. The company's revenue fell 2% year over year in the May-ending fiscal fourth quarter.

Management is calling fiscal 2025 a transition year as it repositions itself for long-term growth.

Ackman's purchase is timely. Nike stock is trading at its lowest price-to-earnings (P/E) multiple since 2017. Before the recent revenue decline, Wall Street analysts were expecting Nike to grow earnings at double-digit rates over the long term. Nike can still achieve that pace.

Importantly, most of Nike's problem stems from its lifestyle products. Revenue from performance products, such as running and basketball shoes, grew at healthy rates in the quarter. Demand for fitness products was a positive contributor to the apparel business, and management likes the specific opportunity it sees in women's apparel.

The global sports apparel market is expected to reach $293 billion by 2030. That's an incremental increase of $70 billion over 2023, which is greater than Nike's annual revenue. As a leading brand with a large marketing budget, Nike will undoubtedly grow again, so buying the stock at these lower share prices could pay off handsomely in five years.

2. Ulta Beauty

Warren Buffett's company disclosed a new stake in leading cosmetics retailer Ulta Beauty (NASDAQ: ULTA) last quarter. It's another example of a great investor pouncing on an opportunity to buy an industry-leading business at a fire sale price.

The beauty industry was booming coming out of the pandemic, and it's forecast to grow over the next several years. As an industry leader, Ulta has a competitive advantage based on a wide selection of products across salon styling, skincare, fragrance, and cosmetics. It operates over 1,400 stores that are strategically positioned in high-traffic areas.

The company delivered annualised revenue growth of 15% over the past 10 years, with earnings clocking in at a robust 23% per year, which speaks to the opportunities for this leading retailer to expand and gain market share. However, comparable-store sales fell 1% year over year in the recent quarter, sending the stock down 31% off its previous high.

The strong growth in the beauty market over the last few years has brought more competition. Management noted there are more places to buy beauty products, with over 1,000 new points of distribution opened in the last few years. This has pressured Ulta Beauty's market share.

Still, Buffett or one of his investing deputies is clearly focusing on Ulta Beauty's brand and ability to use that advantage to regain market share. It starts with Ulta's loyalty program, which grew 5% year over year last quarter to 43.9 million members. Offering more value through its loyalty program is a big opportunity for Ulta Beauty to navigate the near-term headwinds in consumer spending and come out on top over the next few years.

The stock currently trades at a forward price-to-earnings ratio of 16 based on next year's earnings estimate. Ulta has tremendous long-term potential. It generates just $11 billion in annual revenue in an industry expected to reach $129 billion by 2028, according to Statista. The stock can deliver excellent returns from here.

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 2 billionaire-held US stocks to buy before 2025 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.

For example, a retiree may appreciate the high dividends that an ASX bank share like Westpac Banking Corp (ASX: WBC) doles out. But a younger investor might wish to go for something with a bit more of a growth profile.

There's no right way to invest when it comes to shares (although there are many wrong ways).

With all this in mind, let's discuss how I allocate my own share market portfolio. As discussed above, this is what works for me, and my own strengths and weaknesses.

Now, I have many many different holdings across my portfolio. So I won't discuss all of them. But I will touch on some theses and strategies that I tend to follow, and explain why.

ASX shares, dividends and franking credits

So to start with, I own a mix of ASX and US shares. This is for many reasons. I love the franking credits and local knowledge that makes ASX investing so rewarding.

But I also love the currency, geographic and economic diversity that comes from investing in the United States. What's more, most of the best companies in the world call the US home.

My selection process is a rather simple one: I look for quality companies, usually with a strong brand, that have demonstrated competency and resiliency over a long period of time.

Let's start with the ASX shares. So I do like a share that pays dividends, preferably those of the fully franked variety. One of my oldest holdings is Telstra Corporation Ltd (ASX: TLS).

I bought Telstra back in 2018 when it was trading for under $2.80 a share. The market hated it then, but I saw a company with a dominant brand providing an essential service. I continue to hold it today for those same reasons.

Another ASX share that is a long-term favourite of mine is National Australia Bank Ltd (ASX: NAB). NAB doesn't have the pricing premium that Commonwealth Bank of Australia (ASX: CBA) does. But I still think it is one of the best-run ASX banks.

My favourite ASX share, though, is Washington H. Soul Pattinson and Co Ltd (ASX: SOL). I've discussed my love of Soul Patts before. But quite simply, it is a diversified market beater with an unmatched dividend record.

Looking across the pacific for my portfolio

Turning to US shares, and again my preference is strong brands and a proven track record. That's why my US shares include names like Apple, Microsoft, Mastercard, Alphabet, Nike and Amazon.

Tesla Inc (NASDAQ: TSLA) is another company that I own. When I first invested in the electric car maker, it was one of my riskier shares. But I have been delighted to see the company grow in size and scale (not to mention value).

Most of my other US shares are within the consumer staples sector. I love the resilience and stability that these kinds of shares can add to a portfolio, as well as the dividends, of course. Among my favourites are Coca-Cola, Pepsi, Starbucks and McDonald's.

Many of these companies have made a habit of raising their dividend every single year, so I have enjoyed watching my dividend income inch up steadily over the years.

So that's my ASX share portfolio in a nutshell and why I own the companies that I do. As I said, it may not be for everyone. But it works for me and my goals. And I sleep soundly every night. What more could one ask for?

The post Here's how I allocate my ASX share portfolio and why appeared first on The Motley Fool Australia.

In 2020, Morgan Housel released The Psychology of Money. I think it deserves to be on the Mount Rushmore of investing books, especially for folks who believe history and behavioral psychology are critical elements for investing.

In the book, Housel has a section describing the stock market as a field where multiple games that have nothing to do with each other are being played at once. To quote from the book:

Few things matter more with money than understanding your own time horizon and not being persuaded by the actions and behaviors of people playing different games than you are.

Here's why this simple concept has lifelong impacts on your money and why it's the best investing lesson I ever learned.

Understanding a stock's price

A stock's price at a given time is merely a representation of the consensus value determined by buyers and sellers. But many of these players' motives and reasons for buying or selling the stock are completely different from yours.

For example, you have retail investors and institutional investors. Retirees and college kids. Long-term investors with multi-decade time horizons and day traders. Short-sellers and folks who only stay on the long side. Options and futures traders and those who only buy shares in stocks. The list goes on and on.

Housel's point is that many of these games have conflicting influences over the price action of a given stock. And for that reason, the price of a stock seldom resembles its long-term intrinsic value.

The tug-of-war between greed and fear

At certain times, the price of a stock can be dominated by greed and, at other times, it can be dominated by fear. In today's brutal bear market, that means you have some traders who may dump perfectly good growth stocks and move into value simply because they are fearful.

They decide they would rather own a stable business with a good balance sheet and positive free cash flow than take a risk on a company whose value comes from what it could be worth in future years and not what it is worth today. As a result, we continue to see exciting growth companies with a lot of potential get sold off heavily in the short term due to panic.

On the flip side, a lot of value stocks, and oil and gas stocks, were arguably underappreciated in 2020 and 2021, while some growth stocks saw their valuations get ahead of themselves. In those years, we saw investors take more risks and cast out companies with low growth. We saw a disregard for the geopolitical importance of utilities, energy stocks, and defense stocks in favor of bets on the next big thing.

Real-world examples

The point here is that you can gain clarity by remembering that a lot of the money in the stock market is playing a completely different game than you are. Once you understand that, it's easy to see why an excellent company like Amazon can fall by over 30% in a couple of weeks for little more than a mediocre earnings report and broader market volatility.

Let's take the example a step further with a stock like Shopify (NYSE: SHOP). Shopify closed the 2019 calendar year at just under $400 a share. It gained tons of momentum during the pandemic as e-commerce grew and the gig economy went into full effect. It ballooned to a market cap of over $200 billion and an all-time-high price per share of $1,762.92 on November 19, 2021; and has since slid to its current price of around $335 per share.

Shopify stock embodies several different games being played at once. On the one hand, you have long-term investors who believe in Shopify's ability to add new merchants, have existing merchants upgrade to more expensive plans, and have those merchants earn more money which benefits Shopify. Then you have a series of folks who were only buying Shopify as a short-term 'pandemic play' and don't care about the underlying business -- which was a big reason why Shopify stock ran up too far, too fast in 2021.

But today, you have yet another game being played -- the game of losing patience by selling growth stocks that make little to no profit and seeking cover in safer names. Once an investor realizes these conflicting games, it starts to make sense why a stock like Shopify can go from boom to bust. It doesn't make the price action in either direction right; it just helps explain why it happened in the first place.

A lesson from Warren Buffett

Warren Buffett is an excellent example of an investor who knows exactly what game he is playing. Buffett has repeatedly admitted he is unlikely to outperform a raging bull market because he doesn't invest in many growth stocks and sticks mostly to value. But he still believes he will outperform the S&P 500 over time -- which has been true over his long-term track record.

Berkshire Hathaway's portfolio may look overly conservative as it contains a lot of insurance companies, banks, oil and gas stocks, and consumer staples companies. But for Buffett, these are the kinds of businesses he wants to invest in. It's his game, and he's playing the stock market according to his own rules and risk tolerance.

An individual investor has no control over the broader stock market. So, imposing control over our investment decisions and style is the best way we can feel comfortable and achieve direction when stock prices seem to rise and fall randomly.

The silver lining

For long-term investors in stocks like Shopify, the whipsaw price action of 400% gains followed by 80% losses in just a two-year period can be confusing and annoying. It can be hard to know a fair price for a company when conflicting motives are tugging at its stock price. However, there is a silver lining.

Over time, fundamentals always win out. One look at the stock charts of successful companies like Nike or Apple, and you'll quickly see that sell-offs are simply par for the course for a successful long-term investment.

The beauty of long-term investing is that it is one of the few games where the odds are in your favor. The stock market tends to fall faster than it goes up but goes up more than it goes down. The average compound annual growth rate of the S&P 500 with dividends reinvested since 1965 has been around 10.5%. That's a massive tailwind for long-term investors to benefit from compound interest.

By investing in quality businesses that you understand and letting time be an ally, an investor stands a better chance of ignoring the noise of the market and focusing on what matters most.

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

The post The single greatest investing lesson I ever learned appeared first on The Motley Fool Australia.

The slip followed the release of data that showed US inflation hit a 30-year high in October.

Over the 12 months ended October, the US's consumer price index increased 6.3%. The index measures how prices for goods and services change month-to-month.

According to reporting by the Wall Street Journal, the initial impact of the data saw the price of stocks drop and that of bonds bolster.

Which stocks dragged on the US market overnight?

Nasdaq

The biggest weights on the Nasdaq Composite include the Moderna Inc (NASDAQ: MRNA) share price, which fell 3.33%.

That of Amazon.com, Inc. (NASDAQ: AMZN) also dropped 2.63% while the newly re-branded Meta Platforms Inc (NASDAQ: FB) share price dipped 2.3%.

Interestingly, the Tesla Inc (NASDAQ: TLSA) share price slightly recovered from its earlier 16% plunge. It gained 4.34% on Wednesday.

S&P 500

Weighing on the S&P 500 were the share prices of Ford Motor Company (NYSE: F), Nike Inc (NYSE: NKE), and Twitter Inc (NYSE: TWTR).

They fell 3.7%, 3.1%, and 2.5% respectively.

ASX 200 tech shares in focus

The dip in US markets might make for an interesting day on the ASX. Particularly, since ASX 200 tech shares tend to trend in line with their Nasdaq-listed peers.

One of the obvious share prices to keep an eye on is that of Afterpay Ltd (ASX: APT). The buy now, pay later company's suitor, Square Inc (NYSE: SQ) saw its share price drop 1.55% overnight.

Both the Xero Limited (ASX: XRO) and Nuix Ltd (ASX: NXL) share prices could also be in for a big session on Thursday.

The 2 ASX 200 tech shares have already struggled this week. They've both fallen 4% since Friday's close.

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It reminded everyone that investing, even for those who do it for a living, never has a 100% win rate.

"To be perfectly honest, we target getting 60% of our decisions correct," Sage Capital portfolio manager Sean Fenton told The Motley Fool.

"If you don't do the hard accounting and actually track your investment decisions and work out your wins and losses, people tend to overestimate their skill. But we do do that — and if we can get 60% of our investment decisions right, it means we're absolutely knocking it out of the park."

So to counter that friend who brags about his new-found riches, here are stories of 6 more ASX shares that fund managers regretted:

Temple & Webster Group Ltd (ASX: TPW)

Online retailers did very well out of the first wave of the COVID-19 pandemic. 

People around the world stayed bunkered down and ordered homewares remotely to make their lives more comfortable.

Sage Capital portfolio manager Kelli Meagher regretted not buying into Temple & Webster, with its shares as low as $2.05 last year. They are trading for $10.16 early Thursday afternoon.

"I regret how conservative I was with my valuation discipline, I suppose, when it came to pure online retail stocks when they first started moving last year," she told Ask A Fund Manager.

"And they've gone up, doubled and tripled, I saw that I'd missed the opportunity – and they just kept going. So there's definitely some remorse from sitting on the sidelines there."

Challenger Ltd (ASX: CGF)

Investment company Challenger has frustrated many shareholders over the last few years.

Trading at $5.34 Thursday afternoon, the stock is more than 38% down on 5 years ago.

U Ethical portfolio manager Jon Fernie admitted defeat.

"The one stock retreat where we got the timing wrong was investing into Challenger several years ago when we thought that interest rates were going to move higher. We also thought that there were going to be regulatory changes that would drive underlying demand for annuities," he told Ask A Fund Manager. 

"Unfortunately, both those things didn't happen. And that led to us ultimately exiting the stock at a lower level. So that was probably one investment decision that we regretted."

Nike Inc (NYSE: NKE) and Lululemon Athletica Inc (NASDAQ: LULU)

For Forager research analyst Chloe Stokes, she wished she was better prepared when markets nosedived in March 2020.

"We saw brilliant companies like Nike and Lululemon down more than 30% in a couple of days," she told Ask A Fund Manager.

"Those stocks would have been excellent investments at market prices, but because I never thought they were cheap enough to invest any time into, I didn't have a thesis ready."

Nike is up almost 30% in the past 12 months, while Lululemon shares have risen 19.2%.

The big lesson for Stokes was that investors, whether professional or amateur, need to have a 'hit list' ready for price dips.

"It might seem like a waste of time, but you never know when the opportunity could come along to own a high-quality business at a more than reasonable price," she said.

"I wouldn't want to miss out on owning some of my favourite businesses if the opportunity presents itself again."

Zoom Video Communications Inc (NASDAQ: ZM)

If ever there was a COVID beneficiary, the video conferencing company that became a verb is it.

Zoom shares have risen about 460% since the start of 2020 when no one was thinking twice about going into the office 5 days a week.

Spaceship portfolio manager Jason Sedawie regretted not getting a piece of that action.

"It's always what you don't buy that hurts you because they can be the potential multi-baggers," he told Ask A Fund Manager.

"Whenever I'm on a Zoom call or Google Meet, I just get reminded of that company."

The video tech provider surprised Sedawie in the way it rose above hot competition from deeper-pocketed rivals.

"We did know about it, but it wasn't something we were really excited about because everyone used Microsoft Teams, Google Hangouts," he said.

"They were a business service that schools and consumers just all of a sudden knew. So they went from 10 million daily meeting participants to 300 million a couple of months later. Just how they scaled and executed and pivoted – I just have a lot of respect."

Tripadvisor Inc (NASDAQ: TRIP)

Hyperion Asset Management lead portfolio manager Jason Orthman remembers buying Tripadvisor shares thinking the business could disrupt traditional booking engines.

"Our research didn't pick up how sticky consumer behaviour was and how strong the competitive offerings were," he told Ask A Fund Manager.

"It took us about 2 quarters to realise our research was incorrect, and we exited. And that saved our investors a lot of money. We lost money on that investment, but we didn't experience the significant downside that those that have held onto that business had."

Tripadvisor stocks have lost more than 34% over the past 5 years.

But there was a final twist to rub salt into the wound.

Stocks for Tripadvisor rival Booking Holdings Inc (NASDAQ: BKNG) have surged almost 83% in the last half-decade.

"We compounded that error, not only buying Tripadvisor, but selling out of Priceline, which is now called Booking Holdings."

The post 6 more shares that haunt fund managers appeared first on The Motley Fool Australia.

The buy now, pay later provider revealed Wednesday night that the likes of Amazon.com Inc (NASDAQ: AMZN), Nike Inc (NYSE: NKE), Target Corporation (NYSE: TGT), Sephora, Macy's and Dell Technologies are now available through its app.

Customers can now generate a single-use card to enter at checkout for any of these brands. The transaction is then facilitated by Afterpay, with all the usual benefits of instalment payments.

Nordstrom Inc, Walgreens Boots Alliance Inc, CVS Health Corp, Kroger Co, Victoria's Secret and Yeti Holdings Inc were also onboarded during the expansion.

The 12 brands, according to Afterpay, represent "almost half" of all the e-commerce volume processed in the United States.

Afterpay North American general manager Zahir Khoja said that consumer demand for online shopping remained high in the post-COVID era.

"Consumers still want the convenience and flexibility of buying with the click of a mouse as part of their 'new normal'," he said.

"We are thrilled to continue to support our customers by allowing them to shop every day at their favourite brands with Afterpay for things they need and want in their lives."

Adding more ways to use Afterpay to fuel growth

The development in North America comes after Afterpay revealed that more than 650,000 Australians signed up in the first 3 weeks of its contactless virtual Mastercard (NYSE: MA) offering.

That product enables customers to use the buy now, pay later service regardless of whether the merchant has an agreement with Afterpay.

"In-store [activity] is expected to further accelerate following the launch of the Afterpay Card in Australia," the company stated in its April quarterly update.

Afterpay shares have had a wild ride this year. Starting the year at $119, it surpassed $160 during intra-day trading in February, then dipped as low as $84.50 last month.

They were sitting at $122.90 after close of trading on Wednesday night, after gaining 3.17% during the day.

Morgan Stanley this week retained its overweight rating and $145 price target for the Australian fintech's stocks.

The post Afterpay (ASX:APT) onboards Amazon, Nike, Target to 'one-time card' appeared first on The Motley Fool Australia.