3 Of The Best ASX Dividend ETFs Reviewed & More
The $100 Billion IPO With $0 Revenue + Buffetts Q3 Portfolio Reveal!
🚨 New Article 🚨 - 3 Of The Best ASX Dividend ETFs Reviewed (VHY vs IHD vs RDV)
G’day, Money Pals!
Who doesn’t love a little extra passive income, right? Cheques rolling in for doing nothing at all sounds pretty sweet to me!
Thanks to diversified dividend focussed ETFs, you can earn yourself a generous dividend yield without relying on a handful of companies. Instead, you can leave all the heavy lifting to the ETF while you do whatever it is you do!
In this article, I’ve reviewed 3 of the best Dividend focussed ETFs on the ASX, and shared my pick of the bunch.
I’ll also give you a few handy things to consider when weighing up whether a dividend ETF is right for you.
You can read the full article via the link below ⬇️
What Caught My 👀 This Week
Over $10 Billion dollars has been raised across 192 companies that have IPO’d on the ASX this year.
For context, 2021 on track to be the most active IPO market by volume since the 2007 mining boom.
Florida based asset manager GQG (ASX: GQG) Partners Inc has been the largest IPO of the lot this year by market value after fetching a $5.9 billion market value upon listing.
#From Around The Web
Rivian: The highest valued U.S. company without any revenues.
Rivian was the latest EV Maker to hit the boards after it IPO’d on the Nasdaq last week. At present, Rivian currently has three models available for pre-order. Two consumer SUVs, and a commercial van for enterprises.
Rivian has got some deep-pocketed backers. A little known retailer known as Amazon.com heads up the list with a 22% stake in the EV Maker. This is huge considering Amazons last-mile delivery ambitions.
Rivian is also yet to produce a single dollar in revenue, and yet currently the worlds 3rd most valuable car manufacturer, behind only Toyota & Tesla with a Market Cap of 146Bn. This makes Rivian the highest Valued U.S. company without any revenues.
Figure #1 - Rivian Market Cap Vs Tesla, Toyota, Volkswagen & Ford
Rivians enormous valuation seems to be justifiable by the market for a few reasons. Namely, its order book, which consists of roughly 50,000 of its R1T & R1S SUV prototypes and over 100,00 of its Commercial Van prototypes for Amazon.com. The company is also handily funded after raising $11 billion from investors as a private company, and an additional $12 billion from its IPO.
That said, Rivian seems a long, long way from generating positive cash-flows, after incurring a loss of $1.0 billion for the year-ended 31 December 2020. Tesla CEO Elon Musk has also weighed in on Rivian after tweeting that “prototypes are trivial compared to scaling production and supply chain.”
Although Rivians is yet to book any Revenue, it does seem to have the backing, and order book to have a red hot crack at developing into an established auto-maker.
How Warren Buffett Made $26Bn on American Express
Warren Buffett’s company, Berkshire Hathaway revealed their 3rd Quarter Earnings this week, which revealed new positions in Pharma PLC, Floor & Décor Holdings Inc. Berkshire also added to their holding in Chevron Corp and divested completely from their holdings in Merck & Co. Inc, Liberty Global PLC and Organon & Co.
Berkshires report also revealed that 70% of the aggregate fair value of their equity portfolio is concentrated in four companies (Apple, American Express, Bank of America and Coca-Cola). Considering the Vice-Chairman of Berkshire, Charlie Munger is on record for saying “diversification preserves wealth, but concentration builds wealth”, this makes a lot of sense.
Reading through Berkshires report got me thinking about some of Berkshires most profitable long term investments. Berkshires 1963 investment in American express sits very high, if not atop that list.
Berkshire owns a roughly 19% stake in AMEX, which is worth $27 billion today. Berkshire’s investment in AMEX has returned shareholders many billions of dollars over the years in share price appreciation and dividends. In 2021 alone they’ve made $8 Billion, following Americans Expresses 55% YTD rise. $8 Billion worth of returns in one year for a decision Berkshire made 58 years ago. Imagine that.
This article tells the story of how Berkshire’s relationship with American Express began, and how the payments company has become a cornerstone of Berkshire’s portfolio.
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