$25,000 a year is just over $480 a week. For some, that could cover rent. For others, it might fund travel, school fees, or the freedom to reduce working hours.

But how could I build an asset base that can sustainably produce it?

Here’s a quick guide that could help on this quest.

Know the passive income target

If I aim for a 5% portfolio dividend yield, generating $25,000 a year would require roughly $500,000 invested.

That might sound intimidating. But it is possible in time.

I just need to start by building the capital to produce this passive income.

Focus on building capital

Many investors make the mistake of chasing high dividend yields too early.

However, in the early years, growth is often more powerful than income. Companies that reinvest profits at high returns can compound capital faster than traditional dividend payers.

For example, businesses such as ResMed Inc. (ASX: RMD), REA Group Ltd (ASX: REA), or Pro Medicus Ltd (ASX: PME) may not offer meaningful dividend yields today, but their ability to grow earnings can expand my portfolio value significantly over time.

Broad ETFs such as the iShares S&P 500 ETF (ASX: IVV) or the VanEck Morningstar Wide Moat ETF (ASX: MOAT) can also help accelerate capital growth while keeping diversification intact.

The goal in this phase is not income. It is scale.

Time is my best friend

If I were to invest $1,500 a month and achieve an average 10% annual return over the long term (not guaranteed but historically achievable), my portfolio would grow surprisingly fast.

After 10 years, I would have around $300,000, and after 15 years, I would have approximately $600,000.

As you can see, a snowball effect becomes visible after patience has been exercised.

Transition to income producers

Once my portfolio approaches the $500,000 mark, I can gradually rotate toward income-focused assets.

At present, that might include shares such as APA Group (ASX: APA), Transurban Group (ASX: TCL), or Telstra Group Ltd (ASX: TLS). Income-focused ETFs like Vanguard Australian Shares High Yield ETF (ASX: VHY) could also play a role.

At an average 5% dividend yield across the portfolio, a $500,000 portfolio generates $25,000 per year. Increase the yield slightly or allow dividends to grow over time, and the income can expand further.

Foolish takeaway

Passive income is rarely built in a single leap. It is built in stages.

First, grow the capital. Then, convert that capital into reliable income streams. It may take time, but it is certainly worth it.

The post How to make $25,000 of passive income a year appeared first on The Motley Fool Australia.

More reading

• 3 Australian growth stocks to buy in 2026
• Why Nvidia’s insights suggest ASX tech shares are undervalued
• Here are the top 10 ASX 200 shares today
• 3 excellent ASX ETFs to buy for an SMSF in March
• ASX 200 at a record high? Here’s where I still see value

Motley Fool contributor James Mickleboro has positions in Pro Medicus, REA Group, ResMed, and VanEck Morningstar Wide Moat ETF. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended ResMed, Transurban Group, and iShares S&P 500 ETF. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Pro Medicus. The Motley Fool Australia has positions in and has recommended Apa Group, ResMed, Telstra Group, and Transurban Group. The Motley Fool Australia has recommended Pro Medicus, VanEck Morningstar Wide Moat ETF, Vanguard Australian Shares High Yield ETF, and iShares S&P 500 ETF. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

In my view, Siteminder Ltd (ASX: SDR) is one of Australia’s top shares. It has excellent growth potential and every result has shown how effective the business is at capitalising on its opportunity.

Siteminder provides software to help hotels run their operations, analyse their performance and maximise their bookings and revenue.

The company reported its half-year result earlier this week and it included everything I wanted to see. Let’s run through some factors why I think it’s a fantastic business to buy today following a large decline during the past year, as shown on the chart below shows.

Great revenue potential

In the FY26 half-year result, total revenue increased by 25.5% to $131.1 million.

Perhaps more excitingly, annualised recurring revenue (ARR) grew 29.7% to $280.3 million, with subscription ARR climbing 18.4% to $168.6 million and transaction ARR growing 51.3% to $111.7 million. Net property additions came to 2,900 during the half, bringing the total to 53,000 – it continues to pursue larger hotel properties.

Siteminder reported that its average revenue per user (ARPU) increased 11.3% to $435 reflect smart platform initiatives and rising product adoption.

Its initiatives with the smart platform mean the business has the potential to extract more revenue from each hotel client, while unlocking more revenue for them.

‘Channels Plus’ aims to streamline distribution expansion and it was launched in FY25. In less than two years, 7,000 hoteliers and 47 distribution partners have signed up.

‘Dynamic Revenue Plus’ aims to help hoteliers make data-driven commercial decisions through proprietary analytics and artificial intelligence. More than 20,000 rooms are now under management. These efforts “represent a significant step forward” in the company’s ability to deliver “high-margin, AI-driven value” to subscribers.

The ‘Smart Distribution Program’ is designed to optimise the “synergies” between Siteminder’s hoteliers and global distribution partners.

Regarding AI agents and booking, Siteminder said:

As AI adoption accelerates across the travel ecosystem – including tools embedded in the Smart Platform – pricing sophistication, update frequency, and distribution intensity are increasing. In this environment, the cost of latency or error rises materially, reinforcing the need for deterministic, high-reliability execution infrastructure.

The emergence of AI agents further amplifies this dynamic: while they may influence discovery and booking decisions, they rely on trusted systems to execute transactions, synchronise pricing and inventory, and fulfil reservations across fragmented hotel and distribution platforms. This positions SiteMinder’s infrastructure as a foundational layer for AI-enabled commerce.

A targeted annual revenue growth rate of 30% makes this a top Australian share, in my view.

Rising profit margins

Rapid revenue growth alone makes this an incredibly attractive business and compelling investment.

As a software business, the company has pleasing operating leverage potential. In other words, costs don’t rise at the same pace as revenue growth. That translates into rising profit margins and accelerates the company’s intrinsic value.

There were a number margins in the result.

Specifically, the adjusted group gross profit margin increased 98 basis points (0.98%) year-over-year to 67.8%. Within that, the adjusted subscription margin increased 125 basis points (1.25%) to 86.7% through operating leverage and AI-driven efficiencies, and the adjusted transaction margin increased by 558 basis points (5.58%) to 40.1%, boosted by the smart platform.

Adjusted operating profit (EBITDA) grew by 132% to $12.3 million, while reported EBITDA grew $11.2 million to $11.5 million. The statutory net loss improved by $9.1 million to a loss of $3.9 million.

Profitability is rapidly improving at the business and I’m expecting its bottom line to significantly improve in the coming years.

Excellent value for one of Australia’s top shares

The business is clearly doing well, yet the Siteminder share price has sunk. At the time of writing, it has dropped more than 50% from 29 October 2025.

When a business falls that far, it’s a lot cheaper. Yet, the business is generating more revenue than ever and its operating profit margins are increasing.

I think it’s a strong buy today after falling so hard, with its price/earnings (P/E) ratio for its FY30 earnings – whatever that ends up being – is significantly lower. I think the market is dramatically undervalued this business.

The post A rare buying opportunity in 1 of Australia’s top shares? appeared first on The Motley Fool Australia.

More reading

• Why Nvidia’s insights suggest ASX tech shares are undervalued
• Morgans just upgraded these ASX shares to buy ratings
• 2 ASX growth shares I invested in last week with $4,000
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• Why the SiteMinder share price is jumping 8% today

Motley Fool contributor Tristan Harrison has positions in SiteMinder. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended SiteMinder. The Motley Fool Australia has positions in and has recommended SiteMinder. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Tech has not been comfortable to own lately. Artificial intelligence (AI) disruption fears and a sudden market rotation have made growth investors question their convictions, but volatility and opportunity often arrive together.

But if you believe that this selloff is a temporary hiccup, then it could be worth considering the ASX exchange traded funds (ETFs) in this article before they rebound.

Here’s what you need to know about them:

Betashares Nasdaq 100 ETF (ASX: NDQ)

The Betashares Nasdaq 100 ETF is often described as a simple way to invest in US tech giants. That is true, but it misses something important.

The Nasdaq 100 is not just a collection of software companies. It is a portfolio of businesses that sit at the core of digital infrastructure. Think Nvidia (NASDAQ: NVDA), Microsoft (NASDAQ: MSFT), and Alphabet (NASDAQ: GOOGL).

These companies are not fringe innovators. They are building the operating systems of the modern economy. Nvidia designs the chips powering AI data centres, Microsoft’s cloud platform underpins enterprise IT, and Alphabet dominates digital advertising and search.

If artificial intelligence, automation, and cloud adoption continue expanding, the companies inside the Betashares Nasdaq 100 ETF could benefit as central players.

BetaShares S&P/ASX Australian Technology ETF (ASX: ATEC)

Instead of Silicon Valley, this ASX ETF focuses on Australian technology leaders such as WiseTech Global Ltd (ASX: WTC), Xero Ltd (ASX: XRO), and TechnologyOne Ltd (ASX: TNE).

These businesses are building globally competitive software platforms from Australia. They serve logistics companies, accountants, governments, and enterprises around the world.

The BetaShares S&P/ASX Australian Technology ETF provides exposure to that ambition. It reflects the idea that innovation does not have to come exclusively from the United States. Australia has its own cohort of scalable, recurring-revenue businesses expanding offshore.

In periods of tech selloffs, local growth names can be hit hard. That can create long-term entry points for investors who believe in their global potential. This fund was recently recommended by analysts at Betashares.

Betashares Global Cybersecurity ETF (ASX: HACK)

The Betashares Global Cybersecurity ETF offers exposure to a very specific problem that is not going away.

Cyber threats are increasing in frequency and sophistication. As digital infrastructure expands, so does the attack surface.

This ASX ETF holds shares such as CrowdStrike (NASDAQ: CRWD), Palo Alto Networks (NASDAQ: PANW), and Fortinet (NASDAQ: FTNT). These firms are effectively digital security providers for governments and corporations.

Unlike many areas of tech spending, cybersecurity is rarely optional. Even when budgets tighten, protecting networks remains a priority. This bodes well for the long-term growth outlooks of the fund’s holdings.

The post Why now could be a great time to buy these amazing ASX ETFs appeared first on The Motley Fool Australia.

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• Where to invest $1,000 in ASX ETFs next month
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• 5 ASX ETFs to buy with $50,000 today
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• 3 ASX ETFs to target if you anticipate a tech turnaround 

Motley Fool contributor James Mickleboro has positions in BetaShares Nasdaq 100 ETF, Technology One, WiseTech Global, and Xero. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Alphabet, BetaShares Global Cybersecurity ETF, BetaShares Nasdaq 100 ETF, CrowdStrike, Fortinet, Microsoft, Nvidia, Technology One, WiseTech Global, and Xero. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Palo Alto Networks. The Motley Fool Australia has positions in and has recommended BetaShares Nasdaq 100 ETF, WiseTech Global, and Xero. The Motley Fool Australia has recommended Alphabet, CrowdStrike, Microsoft, Nvidia, and Technology One. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Growth investing is about backing businesses that dominate their niches, generate strong returns on capital, and still have room to expand.

But which Australian growth stocks tick these boxes?

Listed below are three that analysts are bullish on and are tipping as buys:

Light & Wonder Inc. (ASX: LNW)

The first Australian growth stock to consider in 2026 is Light & Wonder.

This is not just a gaming machine manufacturer. It is a content company operating across land-based casinos, online real money gaming, and social gaming platforms.

The real strength of Light & Wonder lies in intellectual property. Successful game franchises can be rolled out across physical cabinets, digital channels, and new markets. That multiplies the lifetime value of each piece of content.

As gaming continues shifting toward digital channels and hybrid models, Light & Wonder is positioned across multiple touchpoints rather than relying on a single revenue stream. That diversification gives it more levers to pull over time.

Bell Potter currently rates Light & Wonder shares as a buy with a price target of $220.00.

Pro Medicus Ltd (ASX: PME)

Another Australian growth stock worth serious consideration is Pro Medicus.

Pro Medicus provides imaging software to hospitals and healthcare providers. Its Visage platform allows medical professionals to view and analyse complex imaging data quickly and efficiently.

Healthcare systems do not replace core software lightly. Once embedded, switching costs are high and contracts are often long term.

The company continues to win large hospital networks, expanding its footprint in the US market. With healthcare demand rising and digital imaging volumes growing, Pro Medicus is benefiting from structural tailwinds rather than cyclical ones.

Morgans is a big fan and has a buy rating and $275.00 price target on Pro Medicus’ shares.

REA Group Ltd (ASX: REA)

A final Australian growth stock to consider in 2026 is REA Group.

REA is best known for operating Australia’s leading online property platform. But the real story is its ecosystem.

The company has built a marketplace that connects buyers, sellers, agents, and increasingly data-driven services around property transactions. Premium listings, data insights, and digital tools give REA multiple revenue streams tied to property activity.

Even though property markets can fluctuate year to year, the long-term shift toward digital advertising and data services remains firmly in place. REA’s dominant position gives it pricing power that smaller competitors struggle to match.

The team at UBS is bullish and has a buy rating and $218.90 price target on REA Group’s shares.

The post 3 Australian growth stocks to buy in 2026 appeared first on The Motley Fool Australia.

More reading

• Why Nvidia’s insights suggest ASX tech shares are undervalued
• Here are the top 10 ASX 200 shares today
• 5 things to watch on the ASX 200 on Friday
• 35 ASX All Ords shares with ex-dividend dates next week
• Here are the top 10 ASX 200 shares today

Motley Fool contributor James Mickleboro has positions in Pro Medicus and REA Group. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Light & Wonder Inc. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Pro Medicus. The Motley Fool Australia has recommended Light & Wonder Inc and Pro Medicus. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The Federal Government has announced a second increase to deeming rates, which may affect your eligibility for the age pension.

This follows the first increase to deeming rates in five years, which came into effect on 20 September last year.

The lower deeming rate will rise from 0.75% to 1.25% for financial assets under $64,200 for single pensioners and $106,200 for couples.

The upper deeming rate will be increased from 2.75% to 3.25% for financial assets above these amounts.

The new deeming rates remain well below the typical interest rate on basic savings accounts.

However, they may affect your pension eligibility if the higher rates push your income above the income test thresholds.

You may also receive a lesser pension as a result of higher deemed investment income.

Deeming rates explained

Deeming is the method used to estimate a pensioner’s investment income each year.

Instead of asking pensioners to report their actual returns, the government assumes a ‘deemed’ rate of return.

The relevant deeming rate is applied to the total value of your assets to work out your deemed investment income per year.

That investment income, along with any other income, determines whether you’ll get the age pension, and if so, how much you’ll receive.

Some assets, such as investment property, are not subject to deeming rules. Pensioners have to report actual net rental income received.

For most other assets, including ASX shares, international shares, bonds, and cash in savings accounts, the deeming rates apply.

Minister for Social Services, Tanya Plibersek, said:

To make sure our social security system delivers value for taxpayers it must be grounded in fairness, which is why we have made responsible adjustments to deeming rates.

Minister Plibersek said the upcoming changes were in line with the government’s commitment to gradual changes to deeming rates.

Deeming rates were frozen during the COVID pandemic and remained static for five years until September last year.

Pension boost

At the same time as announcing the new deeming rates, the minister gave an estimate as to how much the age pension payment would increase next month.

Minister Plibersek said she expected the full single rate of age pension to go up by $22.20 per fortnight in the next lot of indexation changes, effective from 20 March.

The Department of Social Services will confirm the exact amount next month.

The post Pensioners’ investment deeming rates to rise for the second time in 6 months appeared first on The Motley Fool Australia.

More reading

• The one question I always ask before buying an ASX share
• Coles or Woolworths shares: Which is the better dividend stock for 2026?
• Why Nvidia’s insights suggest ASX tech shares are undervalued
• The lazy investor’s guide to ASX ETFs
• Why this cheap ASX All Ords stock could rocket 90%

Motley Fool contributor Bronwyn Allen has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Over time, I’ve realised that most investing mistakes don’t come from a lack of intelligence. They come from excitement.

A new theme emerges. A stock runs hard. Everyone is talking about it. It feels urgent. It feels like something is happening.

Whenever I feel that pull, I try to slow myself down and ask one simple question: Would I still want to own this business if the share price didn’t move for three years?

It sounds basic. But it has saved me more than once.

Price movement is not the same as progress

It’s easy to confuse a rising share price with a strengthening business. Sometimes they go together. Often they don’t.

A company can execute well, grow earnings, expand margins, and build long-term value while its share price goes nowhere for a period. Equally, a stock can double on hype without the underlying fundamentals improving much at all.

If I’m only interested because I expect a quick re-rating, that’s speculation. If I’m happy to own the business even through a flat patch, that’s investing.

Businesses, not tickers

When I buy ASX shares, I try to picture the actual business.

What does it sell? Who are its customers? Is the product essential, or discretionary? Does it have an advantage that competitors would struggle to replicate?

If I can clearly explain why the company should be larger, more profitable, or more relevant in five to ten years, I’m far more comfortable ignoring short-term noise.

If I can’t, that’s usually a red flag.

Could it survive a downturn?

Another version of the question is this: what happens if conditions get tougher?

Would customers still buy from this company? Does it have a strong balance sheet? Can it keep investing through a slowdown?

I’m not looking for perfection. But I want resilience.

Markets will correct at some point. They always do. I don’t want to be holding businesses that only work in ideal conditions.

Am I buying the story or the substance?

It’s amazing how persuasive a good narrative can be. Themes like artificial intelligence, electrification, decarbonisation, and digital transformation are real. But not every company attached to those themes will win.

When I feel myself getting swept up in the story, I try to bring it back to numbers: revenue growth, margins, cash flow, return on capital.

Stories can change quickly. Strong economics are harder to fake.

The long game

Most of the wealth built on the ASX has come from holding high-quality shares like Commonwealth Bank of Australia (ASX: CBA) and Wesfarmers Ltd (ASX: WES) for long periods of time.

That requires conviction. And conviction usually comes from understanding, not excitement.

So before I buy any ASX share, I ask myself whether I would still be content owning it if nothing dramatic happened for a while.

If the answer is yes, I’m far more likely to proceed.

Foolish takeaway

Investing does not need to be complicated. For me, it comes down to buying businesses I believe in, at prices that make sense, and being prepared to hold them through quiet periods.

If I would not be comfortable owning the company through three years of sideways movement, I probably should not own it at all.

That single question keeps me grounded. And over time, staying grounded is often what builds real wealth.

The post The one question I always ask before buying an ASX share appeared first on The Motley Fool Australia.

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• The easiest way to get rich and retire a millionaire with ASX shares

Motley Fool contributor Grace Alvino has positions in Commonwealth Bank Of Australia and Wesfarmers. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Wesfarmers. The Motley Fool Australia has recommended Wesfarmers. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

This week’s earnings brought us the latest numbers from two of the S&P/ASX 200 Index (ASX: XJO)’s most popular dividend stocks. On Wednesday, we heard from Woolworths Group Ltd (ASX: WOW) shares, which was followed by its arch-rival Coles Group Ltd (ASX: COL) on Friday.

Boy, was this a tale of two companies.

The market got itself into a lather on Wednesday with what Woolies had to say. Australia’s largest supermarket operator reported a 3.4% rise in revenues to $37.14 billion, as well as a 24.4% increase in earnings to $1.66 billion. That enabled the company to book a net profit after tax of $859 million, up 16.4% year on year.

This prompted investors to send Woolworths shares up a massive 12.97% (I believe the largest-ever one-day gain) on Wednesday.

It was a different story entirely when it came to Coles’ earnings, though.

The second-largest supermarket operator in the country reported revenue growth of 2.5% to $23.6 billion. Underlying earnings rose 10.2% to $1.23 billion, which helped the company post an underlying net profit of $676 million, a 12.5% increase.

But investors were not impressed, sending Coles stock down more than 9% at one point on Friday.

Coles stock vs. Woolworths shares

Both Coles stock and Woolworths shares are popular amongst retirees and ASX income investors. Both companies have defensive, stable earnings bases thanks to their consumer staples nature. And both companies have long paid out decent dividends.

In the past, I’ve discussed my preference for Coles stock as a dividend investment over Woolworths shares. Coles usually offers a high dividend yield for one. That’s thanks to both Woolworths’ tendency to trade at a higher earnings multiple than that of Coles, as well as Coles’ habit of paying out more of its earnings as dividends than Woolworths.

Additionally, Coles has been far more consistent when it comes to dividends than Woolworths. Since its ASX listing in 2018, the company has increased its annual dividends every single year. That’s in stark contrast to Woolworths, whose own dividends have been distinctly more yo-yo-like.

But now that we have fresh dividend announcements from both companies this week, has the dynamic changed?

Which is the better ASX dividend stock?

Both Coles and Woolworths delivered good news to investors on the dividend front. On Wednesday, Woolworths revealed that its 2026 interim dividend would come in at a fully-franked 45 cents per share. That matched last year’s final dividend, but represented a 15.4% rise over the 39-cent interim dividend investors bagged.

For Coles, investors learned on Friday that they are in line for an interim dividend of 41 cents per share. This dividend will also come with full franking credits attached, and represents the highest dividend Coles has ever paid out. It is a 10.81% hike from the 39 cents per share interim payout shareholders enjoyed last year.

Although both companies provided pleasing results for income investors, my preference for Coles as a dividend stock remains unchanged. The company’s impressive dividend growth streak has continued, while Woolworths’ dividend hike, while welcome, merely matches the interim dividend investors received in 2019.

I’m not saying that Coles shares will be a better overall investment compared to Woolworths stock going forward. But I do think Coles will serve as the better income stock.

The post Coles or Woolworths shares: Which is the better dividend stock for 2026? appeared first on The Motley Fool Australia.

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Motley Fool contributor Sebastian Bowen has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has positions in and has recommended Woolworths Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

ASX tech shares have been sold off heavily over the last several months amid AI-related concerns. I think some of them are now significantly undervalued. Comments by the Nvidia Corp (NASDAQ: NVDA) boss – one of the most well-placed to judge the potential impacts of AI – suggest the (ASX) tech share space has gone down too much.

Nvidia is one of the most important businesses in the technology supply chain, providing chips needed for AI and data centres. AI companies like OpenAI and Anthropic wouldn’t be able to do what they do without the foundations provided by Nvidia.

Let’s take a look at what Nvidia CEO Jensen Huang said and how it could be applied to ASX tech shares.

The markets got it wrong

Earlier this week, Huang spoke with CNBC‘s Becky Quick and shared his thoughts on investor concerns that AI agents might affect the earnings of several software companies.

He said that he thought “the markets got it wrong” regarding fears that AI agents will cannibalise the enterprise software industry. He doesn’t think AI agents will replace the software tools, but will use them instead to boost efficiency. Huang then said to CNBC:

That’s the reason why we also say agents are tool users.

All of these tools that we use today, whether it’s Cadence or Synopsys or ServiceNow or SAP, these tools exist for a fundamentally good reason. These agentic AI will be intelligent software that uses these tools on our behalf and help us be more productive.

Nobody’s going to service better than ServiceNow, and they’re going to come up with agents that are really fine-tuned and optimized for the work that uses the tools that they have.

In the end, we need the tools to finish their work and put the information back in a way that we can understand.

I’m not in a position to know how AI tools and their use will develop in the coming years, but I think it would be too bearish to assume businesses will lose a large chunk of clients and margins in the next few years.

Why I think the ASX tech shares are undervalued

A share price is meant to reflect the long-term future prospects of a business, but I don’t think the prospects of names like Xero Ltd (ASX: XRO), TechnologyOne Ltd (ASX: TNE), Pro Medicus Ltd (ASX: PME), Siteminder Ltd (ASX: SDR), REA Group Ltd (ASX: REA), and CAR Group Ltd (ASX: CAR) have dropped by 40% or 50%.

I think all of them have stronger economic moats than what the market is giving them credit for. Virtually all of them delivered strong revenue growth in the most recent reporting season, and I believe that profit margin improvement is quite likely to rise at many of them over the rest of FY26 as well.

I’m not sure I could commit to all of them for 50 years, but I’d be excited to buy any of them for my portfolio as a medium-term investment.

The post Why Nvidia’s insights suggest ASX tech shares are undervalued appeared first on The Motley Fool Australia.

More reading

• Here are the top 10 ASX 200 shares today
• ASX 200 at a record high? Here’s where I still see value
• Top ASX shares to buy with $10,000 in 2026
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• Morgans just upgraded these ASX shares to buy ratings

Motley Fool contributor Tristan Harrison has positions in Pro Medicus, SiteMinder, and Technology One. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Nvidia, SiteMinder, Technology One, and Xero. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Pro Medicus. The Motley Fool Australia has positions in and has recommended SiteMinder and Xero. The Motley Fool Australia has recommended CAR Group Ltd, Nvidia, Pro Medicus, and Technology One. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Not everyone wants to analyse balance sheets, read earnings transcripts, or track broker price targets.

Some investors just want a simple, low-maintenance way to grow their wealth over time without constantly checking the market. If that sounds like you, ASX exchange-traded funds (ETFs) might be one of the easiest ways to invest.

Here’s how I think about it.

Step 1: Accept that simplicity usually wins

The lazy approach isn’t about being careless. It’s about recognising that most people don’t have the time or interest to consistently pick individual stocks.

ETFs allow you to buy a basket of shares in a single trade. Instead of trying to pick the next winning stock, you own a slice of an entire market or sector.

For example, the Vanguard Australian Shares Index ETF (ASX: VAS) gives exposure to a broad range of large Australian stocks in one simple holding. Meanwhile, the Vanguard MSCI Index International Shares ETF (ASX: VGS) provides access to around 1,300 stocks across developed markets outside Australia.

With just two ETFs, you can own a part of over 1,500 businesses globally.

That’s not lazy. That’s efficient.

Step 2: Focus on diversification

The beauty of ETFs is that they remove the need to be right about a single company.

If one stock disappoints, it is usually offset by others performing well. That diversification smooths out the ride and makes it easier to stay invested during market volatility.

If I wanted something even more hands-off, I might consider a diversified fund like the Vanguard Diversified High Growth Index ETF (ASX: VDHG), which combines Australian and international shares with bonds in one portfolio.

Instead of juggling multiple holdings, you can hold one ETF and let it do the work.

Step 3: Automate and forget (mostly)

The real power of a lazy strategy comes from consistency.

Rather than trying to time the market, I’d set up regular monthly investments. Whether it’s $250, $500, or $1,000 a month, the key is to keep buying through good times and bad.

This approach reduces the pressure to pick the bottom, averages out your entry price over time, and builds discipline into your investing process.

Then, instead of reacting to every headline, you let compounding do the hard work.

Step 4: Keep costs low

One of the biggest advantages of index ETFs is cost.

Many broad-market ETFs charge relatively low management fees compared to actively managed funds. Over decades, even small fee differences can significantly impact your end result.

For a long-term investor, keeping costs low is one of the easiest ways to tilt the odds in your favour.

Step 5: Stay invested

The hardest part of investing is not choosing the ETF. It is staying invested when markets fall.

History shows that share markets experience corrections and bear markets regularly. But over long periods, they have tended to rise.

The lazy investor’s edge is not superior stock picking. It is patience.

By owning diversified ASX ETFs, reinvesting dividends, and continuing to contribute during downturns, you give yourself exposure to long-term economic growth without the stress of constant decision-making.

Foolish Takeaway

You don’t need to be glued to the screen to build wealth.

A simple portfolio of broad ASX ETFs, funded regularly and held for years, can be a powerful strategy. It may not feel exciting, but for many investors, boring and consistent beats complicated and reactive.

Sometimes, the laziest approach is also the smartest.

The post The lazy investor’s guide to ASX ETFs appeared first on The Motley Fool Australia.

More reading

• If I had to build an ASX share portfolio from scratch today, here’s how I’d do it
• How I’d Invest $25,000 in Vanguard ETFs today
• 5 amazing ASX ETFs to buy and hold for 20 years
• The easy way for Aussies to invest globally on the ASX
• The sleep easy ETF portfolio to survive market crashes

Motley Fool contributor Grace Alvino has positions in Vanguard Australian Shares Index ETF. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Vanguard Msci Index International Shares ETF. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Clinuvel Pharmaceuticals Ltd (ASX: CUV) shares were out of form on Friday.

The ASX All Ords stock ended the week with a 10% decline to $10.01.

This leaves the biopharmaceutical company’s shares trading close to a 52-week low.

While this is disappointing, the team at Bell Potter believes it has created a compelling buying opportunity for investors.

What is the broker saying about this ASX All Ords stock?

Clinuvel is a biopharmaceutical company distributing its lead drug Scenesse (afamelanotide) across Europe, the US, and Israel. It is for patients with the rare disease erythropoietic protoporphyria (EPP).

In addition, Bell Potter notes that the ASX All Ords stock is looking to diversify revenues through undertaking clinical trials to expand the approved use of afamelanotide in additional indications (such as vitiligo) and is developing additional pharmaceutical products.

The broker highlights that Clinuvel’s performance during the first half was mixed, with revenue falling short of expectations but earnings coming in stronger than expected. It said:

Revenue increased 4% on pcp to $36.9m but was 2% below our forecast and 3% below VA. Earnings were a $2.2m and $2.4m beat to our forecasts at the EBITDA and NPAT lines, respectively, due to opex reducing materially from the preceding half. The company maintained an impressive >90% gross margin. Closing cash balance was $233m with no debt and increased +$9m from 30-June-2025.

While Bell Potter expects a competing product to be approved for EPP in the near future, it is confident that its growth will continue thanks to new product launches. It adds:

Forecasts are updated to reflect lower topline growth and lower operating expenses. The reduction in opex more than offsets the revenue decrease, hence earnings are increased in the forecast period. As detailed in this note, we continue to expect at least one other EPP market entrant will eventually obtain approval in the future, albeit not for at least another 12 months, thus we currently forecast EPP sales peaking in FY27-28 before ACTH and vitiligo restore growth for CUV.

Huge potential returns

According to the note, the broker has retained its buy rating and $19.00 price target on the ASX All Ords stock.

Based on its current share price of $10.01, this implies potential upside of 90% for investors over the next 12 months. It concludes:

CUV’s EPP franchise continues to provide a strong financial foundation, however the key driver of our investment thesis is the opportunity to expand Scenesse into the far larger vitiligo indication. The first vitiligo Phase 3 trial (CUV105) readout is quickly approaching (2H CY26).

A successful readout would drastically de-risk this step-up in market opportunity and see renewed investor enthusiasm. Lastly, the company’s ACTH program could come to market in the next ~2 years and provides another interesting avenue for growth and diversification.

The post Why this cheap ASX All Ords stock could rocket 90% appeared first on The Motley Fool Australia.

More reading

• Buy, hold, sell: Fortescue, NextDC, and Woolworths shares
• Here are the top 10 ASX 200 shares today
• 7 ASX All Ords shares finish earnings season on a 52-week high
• Here’s everything you need to know about Ramsay’s latest dividend
• 3 excellent ASX ETFs to buy for an SMSF in March

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.