Friday, October 15, 2021

How you could become mega-rich by investing in these companies

This is a classic mistake often made by amateur investors. Because something is popular or in big demand, the assumption is that shares in it with be a good buy. They rarely are.

The big peril is over-entry. Suppliers see a goldmine and rush in to supply the assumed demand. But the increased supply cuts the price and most of the new suppliers will go bust.

And there are other perils. China is already an efficient producer of lithium and could increase their supply to the market any time -- thus undercutting and bankrupting other suppliers.

Mining shares of any kind are risky and lithium is one of the riskiest. A cautious investor buys nothing unless it has a solid track record

Australian share market investors are perfectly positioned to benefit from the transition to net zero carbon emissions despite the nation being a major coal exporter to China.

The International Monetary Fund said the surging demand for renewable energy in the coming decades would be good for Australia because the nation has plentiful supplies of lithium, cobalt and nickel.

The minerals are particularly important for battery storage power that will underpin the success of solar and wind energy eventually replacing coal-fired power stations.

In a new report on the World Economic Outlook, the IMF singled out Australia for special mention along with Chile, and to a lesser extent Peru, Russia, Indonesia, and South Africa.

'Countries that stand out in production and reserves include Australia for lithium, cobalt, and nickel,' it said.

Bell Direct senior market analyst Jessica Amir said now was the time to consider investing in lithium miners before more governments around the world, including Australia, introduced more substantial electric vehicle subsidies.

'This is a huge investment opportunity and this will be the hot investment opportunity for the next decade,' she told Daily Mail Australia. 'Thirty per cent of an EV car is the battery and there's a huge lack of supply of lithium and then you've got the world pivoting and pushing to being carbon neutral.

'Clean energy must have a place in investors' portfolios because we're going to see a huge amount of government stimulus going to it, we're going to see a huge uptick in consumer demand.

'You have to remember the basics of investing: a company is based on its future earnings potential, this means that companies that are in this area, they're going to see future earnings growth and share price growth.'


New generation leaving Sydney behind for the Sunshine State

Young families from NSW are turning their lifestyle dreams into reality and leading the mass migration to south-east Queensland in a never-before-seen trend that’s fuelling the state’s booming property market.

Once a magnet for retirees looking to live out their golden years in a golden climate, the sunshine state – and particularly the capital – is now a hotbed of millennials and Gen Z buyers from across the border seeking affordability, space and better quality of life in an age of remote working, according to the new Domain Queensland Spotlight Report, released on Thursday.

The report, which shines a light on the latest property trends across the state, also revealed buyers are now overwhelmingly seeking a four-bedroom house close to the beach with views and room for the fur baby. The areas of Noosa Hinterland, Noosa, Maroochy, Nambour, Buderim, Sunshine Coast Hinterland, Nerang, Broadbeach-Burleigh, Coolangatta and Mudgeeraba-Tallebudgera are claiming the most average views per listing.

“Queensland has been ready for growth for so long, and while it has always been the spot for people to move interstate from Sydney or Melbourne, the pandemic has created a new environment for people to re-imagine what their life is,” said Nicola Powell, Domain chief of research and economics.

“So, we’ve seen an increased volume of people moving from interstate in their prime working years, and while south-east Queensland has always been front of mind for retirees, that’s not the case anymore. Now it’s young families and they want a backyard and Queensland offers that. It offers affordability and so, for some, they’ve been able to put a lifestyle dream into reality.”

“Significant shifts in the population like this don’t occur often,” Dr Powell added.


Regulators investigate greenwashing climate change claims

Corporate Australia is on notice that glib promises to address climate change no longer cut it as so-called ‘greenwashing’ claims hit the courts.

Global regulators and major investors are joining shareholder activists in driving the nation’s corporate sector to deliver credible plans to hit net zero by 2050.

Plans rather than generic pledges are now required. They also need to include short and medium term targets and measurement methodologies.

Major emitters including AGL, BHP, Rio Tinto and Santo have all pledged to hit net zero by 2050 or before.

That has not stopped them from facing growing shareholder backlashes – and even legal challenges – amid criticism their emission reduction strategies will fail to meet the goals of the 2015 Paris Climate Accord.

The nation’s regulators, the Australian Securities and Investments Commission and the Australian Prudential Regulation Authority, have also made it clear they will be increasing their oversight of climate change reporting.

ASIC in July warned company directors they could face misleading and deceptive conduct charges should they overstate the environmental credentials of their operations.

It recently rapped outback gas explorer Tamboran Resources over the knuckles for its claim it would be a net zero emissions producer from first production.

The corporate cop is also reviewing whether superannuation funds which promote their investments as green, clean and ethical actually stack up.

Claims of greenwashing – overstating the environmental benefits of an organisation’s products or environmental footprint – are now hitting the courts.

Oil and gas producer Santos is being sued by the Australasian Centre for Corporate Responsibility for allegedly engaging in misleading or deceptive conduct by claiming gas provides “clean energy” and saying it has a “clear and credible” pathway to net zero by 2040.

ACCR climate and environment director Dan Gocher said while climate change had moved firmly onto the radar of major corporations, too many companies were still not being bold enough in their pledges.

“There is a lot of green washing around net zero,” Mr Gocher said.

“Companies come out and commit to net zero but they don’t provide a lot of substance or their 2025 or 2030 targets are fairly weak. That is a big problem because we know we need to take action now.


Inside the INFURIATING 'greenie' local council which debates nuclear weapons instead of fixing roads and collecting the bins


Ratepayers in an iconic Aussie town are confused and annoyed that their local elected officials are wasting time having debates about 'nuclear disarmament' rather than focusing on issues closer to home.

In just the past year, Ballarat Local Council in regional Victoria, have debated two motions surrounding the complex geopolitical issue.

Greens Cr Belinda Coates put forward the items in an effort to support 'world peace', but her frustrated colleagues and constituents say the Council should stick to fixing the roads and collecting the bins - not trying to influence Kim Jong-un.

'Ballarat City Council shouldn't be wasting its time or the office's time or the councillors' time in dealing with items that are not relating to local government, ' Cr Ben Taylor told A Current Affair.

'And this is not what our ratepayers and residents want to talk about either. 'What is the influence local governments have in relation to this matter of nuclear weapons? We have no influence.

'We can't change North Korea's mind, we can't change Russia or America's mind in relation to nuclear weapons, so why is the local government and especially Ballarat dealing with these types of items?'

At the online Council meeting last month, where the motion was discussed for 30 minutes, Deputy Mayor of the City of Ballarat Amy Johnson said it was delusional for the town to be discussing the issue.

'North Korea, China and Russia, some of the countries that do have nuclear weapons, if you think they are going to listen to the little old Ballarat Council on whether they should have nuclear weapons or not then you need a bit of a reality check,' she said.

Verity Webb from the lobby group Ratepayers Victoria told the program she's not surprised by the bizarre motion. 'To make themselves feel important they pass lots of useless, factitious, bombastic policies,' she said.

'These are the types of things we are forever seeing councillors do, they try to look important, look like they are doing important things in the non-local area because they are actually useless in the local community.'

Out in the streets of the gold rush town, famous for its Victorian architecture, locals were baffled. 'I think they should focus on what the people need, I think nuclear weapons are probably going to be a bit far out for us,' one man said.

'I'd like to see them focus on local matters, before they look at nuclear stuff. When you look at the separation of government, it's not really in their portfolio,' another said.




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