Shares in Eagers Automotive Ltd (ASX: APE) have pulled back sharply in recent weeks. It has left investors wondering whether the once red-hot S&P/ASX 200 Index (ASX: XJO) stock could now be a bargain.

The automotive retailer’s share price has dropped about 18% over the past month and roughly 14% since the start of the year, pushing the stock well below its recent highs.

For a company that has been one of the standout performers in the consumer discretionary sector in recent years, the sudden weakness has caught the market’s attention.

Here’s a closer look at the ASX 200 stock and whether the pullback could represent an opportunity.

BYD as big driver

Part of the decline of this ASX 200 stock reflects profit-taking after a strong rally in 2025. But that’s only part of the reason. The softer start to the year has also been caused by Toyota supply chain issues, which are expected to be resolved in the near term.

Eagers is the largest automotive retail group in Australia. The company owns and operates a large network of new and used motor vehicle dealerships across Australia and New Zealand.

A big driver of Eagers’ success has been electric vehicles, particularly BYD. The ASX 200 stock now operates roughly 80% of BYD dealerships in Australia, giving it unmatched exposure to one of the fastest-growing EV brands in the country.

One of Eagers’ biggest strengths is its scale and market leadership. The company controls about 14% of Australia’s new-vehicle sales. That gives it significant bargaining power with manufacturers and strong brand recognition.

First move in North America

In October, the ASX 200 stock announced a game-changing move, revealing the acquisition of a 65% stake in CanadaOne Auto, one of Canada’s largest dealership groups.

The deal values CanadaOne at around $1.05 billion and marks Eagers’ first expansion into North America. Once completed and approved, Eagers will control 42 dealerships across multiple Canadian provinces.

Cyclical and supply risks

Despite its strengths, Eagers operates in a cyclical sector.

Vehicle sales are closely tied to consumer confidence and economic conditions. If interest rates remain elevated or household budgets come under pressure, new car demand could weaken.

The company is also exposed to supply and demand dynamics in the global auto industry.  

In addition, after several years of strong share price performance, the ASX 200 stock’s valuation has occasionally looked stretched. That makes it vulnerable to pullbacks when market sentiment shifts.

What next for Eagers shares?

Broker sentiment on the ASX stock remains broadly constructive despite the recent share price drop.

Several analysts still view the company as a high-quality operator with a growing dealership network. Bell Potter just upgraded the ASX 200 stock to a buy rating from hold, while slightly trimming its price target to $28.50 from $28.75.

With the shares currently trading at $20.95, the broker’s target suggests potential upside of about 36% over the next 12 months.

And that may not be the full return on offer. Bell Potter is also forecasting a fully franked dividend yield of roughly 3.8% this year. This would lift the potential total return to around 40%.

The post Is this red-hot ASX 200 stock a buy after tumbling 18%? appeared first on The Motley Fool Australia.

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• Broker says these ASX dividend shares are buys

Motley Fool contributor Marc Van Dinther 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 recommended Eagers Automotive Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

A mix of diversified ASX ETFs, bonds, and quality ASX stocks can be a simple starting point for new investors entering the share market.

With thousands of companies to choose from, constant market noise, and the fear of losing money, getting started can feel overwhelming.

But building wealth through investing doesn’t need to be complicated. A straightforward portfolio of broad ASX ETFs, quality ASX shares, and bonds can help investors build a resilient portfolio that grows over the long term.

Here’s how I’d do it.

Broad market index funds

Step one is to start with broad market ASX ETFs. Exchange-traded funds are one of the easiest ways to gain instant diversification. Rather than trying to pick individual winners from day one, investors can spread their money across hundreds of companies.

A simple starting trio could include the BetaShares Australia 200 ETF (ASX: A200) for exposure to Australia’s blue-chip shares. Then add the Vanguard MSCI International Shares ETF (ASX: VGS) for global diversification, and the iShares MSCI Emerging Markets ETF (ASX: IEM) for access to faster-growing developing economies.

Together, these ASX ETFs provide exposure to thousands of companies across Australia, the US, Europe, and emerging markets. That kind of diversification can reduce risk and smooth returns over time.

High-quality ASX stocks

Once the ASX ETFs and the foundations are in place, investors can begin layering in individual companies with strong competitive advantages and long-term growth potential.

The Australian market is home to several world-class businesses that have delivered impressive shareholder returns over decades.

Companies like CSL Ltd (ASX: CSL), REA Group Ltd (ASX: REA), and Xero Ltd (ASX: XRO) have built powerful market positions and continue expanding globally. Adding a handful of quality growth shares can give a portfolio an extra engine for capital appreciation.

Reliable dividend payers

The next step is to include reliable dividend payers. Income is another important component of long-term investing, especially for Australians who benefit from franking credits.

Well-established businesses such as Wesfarmers Ltd (ASX: WES) and Commonwealth Bank of Australia (ASX: CBA) have long histories of returning cash to shareholders through dividends. Reinvesting those dividends can significantly boost returns through the power of compounding.

Stability through bonds

Then it’s time to add stability through bonds. Shares can be volatile, particularly during market downturns. Bonds can help stabilise a portfolio and reduce overall risk.

One easy way to gain exposure is through bond ASX ETFs such as the Vanguard Australian Fixed Interest Index ETF (ASX: VAF). These funds invest in government and high-quality corporate bonds, providing steady income and typically moving less dramatically than equities.

Having a portion of a portfolio in bonds can provide valuable balance during turbulent markets.

Invest consistently, think long term

Perhaps the most important step is simply sticking with the plan: invest consistently and think long term. Markets will rise and fall, sometimes sharply. But history shows that patient investors who regularly add to their portfolios tend to be rewarded over time.

Rather than trying to time the market, a steady investing habit — such as contributing monthly — can smooth out volatility and build wealth gradually.

In the end, successful investing doesn’t require complex strategies or constant trading. A simple mix of diversified ASX ETFs, quality ASX shares, and stabilising bonds can form a powerful foundation for long-term wealth creation.

The post New to investing? Start with ASX ETFs and quality ASX stocks appeared first on The Motley Fool Australia.

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

The S&P/ASX 200 Index (ASX: XJO) suffered a sour start to the trading week this Monday, continuing the pessimism we saw for ASX 200 shares for much of last week.

After bouncing around quite a bit in red territory this session, the ASX 200 ended up closing 0.39% lower by the time trading wrapped up today. That leaves the index at 8,583.4 points.

This rather gloomy start to the Australian trading week follows a similarly bearish end to the American trading week on Saturday morning (our time).

The Dow Jones Industrial Average Index (DJX: .DJI) gave up an early lead to finish down 0.26%.

Meanwhile, the tech-heavy Nasdaq Composite Index (NASDAQ: .IXIC) was hit even harder, falling 0.93%.

But let’s get back to this week and the local markets now for a checkup on how today’s tough trading conditions affected the different ASX sectors this session.

The post Here are the top 10 ASX 200 shares today 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 recommended Challenger. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

March has been a rough month for the Australian share market as a whole. Since the beginning of the month, the S&P/ASX 200 Index (ASX: XJO) has dropped by a nasty 6.4% or so. That’s what a destabilising war, which brought an oil shock, can do to markets. But let’s talk about one ASX 200 share that has done even worse than that. That ASX 200 share is gold stock Newmont Corporation (ASX: NEM).

Newmont stock has had a shocking month. This US-based gold miner closed at $187.22 a share on 2 March, not far from its January all-time record high of $190.91. But it has been all downhill since then. At $154.69 (at the time of writing), Newmont stock has fallen a horrid 17.4% from that 2 March price. That includes the nasty 4.35% drop we’ve seen over just today’s session.

Newmont was a company that, until this month, had seen one of its best runs in years. Over 2025, the gold miner saw its stock increase by approximately 150%, with the first two months of 2026 adding another 23.9%.

This ascent largely mirrored the price of gold itself. Gold had been increasing in value steadily over 2025 and into 2026, hitting a new record high of over US$5,600 an ounce in January. So it was no real surprise to see Newmont shares fare so well.

Newmont stock collapses on lower demand for gold

However, the tables have well and truly turned this March. Gold prices have been hit hard by the onset of the US-Iran war. The precious metal has lost about 10% of its value since the onset of hostilities against Iran, and is trading at about US$5,040 an ounce today. With this fall in the gold price, it’s no surprise to see Newmont stock follow suit. As a gold miner, Newmont’s profitability is highly correlated to the price of gold itself.

This plunge in the price of gold is an interesting dynamic. Gold has long been viewed as a safe-haven asset, and has historically seen demand rise when global economic or geopolitical tensions increase. However, this new war has seen the opposite occur.

One possible explanation is that fears of a severe oil shock that could lead to a sharp rise in global inflation are outweighing more generalised geopolitical concerns to dampen demand for gold. Gold is often viewed as an inflation hedge. However, investors often sell down gold if they expect interest rates to rise. Higher interest rates reduce demand for gold, as gold is an investment that pays no interest.

Given that we are already hearing that our own Reserve Bank of Australia (RBA) could be considering a steeper interest rate hiking cycle this year due to rising oil prices, this could well be what is happening here. Let’s see how Newmont stock fares over the rest of this month.

The post Newmont stock has plunged 17% in March. Here’s why appeared first on The Motley Fool Australia.

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Motley Fool contributor Sebastian Bowen has positions in Newmont. 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.

Shares in IperionX Ltd (ASX: IPX) have tumbled sharply on Monday, with the titanium producer extending a steep sell-off that has wiped out a large portion of its recent gains.

The company’s shares are down a massive 22.62% to $4.07, leaving the stock more than 40% lower over the past week.

Let’s take a closer look at what appears to be driving the sell-off.

ASX queries sharp share price fall

The Australian Securities Exchange (ASX) issued a price query after the company’s shares dropped rapidly in recent sessions.

In response, IperionX said it was not aware of any undisclosed information that could explain the fall in its share price.

The company confirmed it remained compliant with ASX listing rules and had no additional market-sensitive information to release.

That response suggests the sell-off is not linked to a new announcement or previously undisclosed development.

Investors take profits after recent results

Instead, the sharp decline appears to be driven by investors offloading shares following the company’s latest results, which were released last week.

IperionX’s share price had rallied strongly in recent months, climbing to a high above $7 earlier in March before reversing quickly in the days following the report.

Since then, the stock has recorded multiple double-digit daily losses, with heavy trading volumes indicating significant selling pressure.

The company’s shares were down 14.29% on Thursday, then fell another 14.05% on Friday, extending the decline into Monday.

Government support and titanium supply progress

Despite the recent share price volatility, IperionX continues to advance projects aimed at building a domestic US titanium supply chain.

The company recently confirmed that the US Department of War had obligated the final US$4.6 million of funding under the Industrial Base Analysis and Sustainment (IBAS) program. This funding supports the development of a domestic US titanium supply chain.

Separately, the US Government transferred approximately 290 metric tonnes of high-quality titanium alloy scrap to IperionX at no cost.

The material is expected to provide roughly 1.5 years of titanium feedstock for the company’s current scrap-processing capacity.

IperionX also announced that it had received a US$3.3 million prototype purchase order from a major German defence company, Rheinmetall. The order is for the production of titanium components for US Army applications.

Foolish bottom line

With its share price having surged earlier this year, the company’s latest results appear to have prompted profit-taking from investors.

This has triggered a sharp reversal in the stock.

Whether the selling pressure continues will depend on how quickly IperionX can convert its government partnerships into larger commercial agreements.

The post Why the IperionX share price just crashed 22% today appeared first on The Motley Fool Australia.

More reading

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• Here are the top 10 ASX 200 shares today
• Here are the top 10 ASX 200 shares today
• Here are the top 10 ASX 200 shares today
• Here are the top 10 ASX 200 shares today

Motley Fool contributor Aaron Teboneras 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.

The Alliance Aviation Services Ltd (ASX: AQZ) share price is drifting lower in Monday trade, extending a difficult run for the regional aviation operator.

At the time of writing, the Alliance Aviation share price is down 0.85% to 58.5 cents.

The stock has had a rough start to the year and is now down more than 50% in 2026. It is currently trading near its lowest level in almost a decade.

The latest move comes as fresh insider buying has emerged from within the company’s leadership ranks.

Let’s unpack.

Chairman buys shares on market

According to a recent filing, Alliance Aviation Chairman James Jackson has been purchasing shares on market this month.

The disclosure shows that Jackson acquired 50,000 ordinary shares at 59.8 cents each on 13 March.

The purchase was made through an indirect holding associated with Federal Pacific Holdings Pty Ltd, an entity where Jackson is a director.

Following the transaction, Jackson now holds:

• 100,000 shares indirectly through Federal Pacific Holdings
• 20,000 shares indirectly through Mistover Pty Ltd
• 4,050 shares directly

The filing confirmed that the shares were acquired through on market trades.

Director buying is closely watched by investors because it can indicate confidence from insiders with detailed knowledge of a company’s operations.

However, the purchase also comes during a challenging period for the aviation services provider.

Shares have slumped this year

Alliance Aviation’s share price has been under heavy pressure in recent months.

The stock has now fallen more than 50% since the start of 2026. Over the past 12 months, the decline has been even steeper, with the company losing a significant portion of its market value.

The company currently has a market capitalisation of about $94 million and roughly 161 million shares on issue.

Alliance Aviation operates a fleet of aircraft providing contract, charter, and allied aviation services to the mining sector and major airlines across Australia.

Its business model includes fly in, fly out services for resource companies as well as aircraft leasing and wet lease arrangements with airlines.

Challenges continue to weigh on the business

Recent financial results highlight the pressures the company is facing.

Alliance Aviation reported a statutory loss of $105.8 million for the first half of FY26. The loss reflected a $164.8 million write down related to the value of its Fokker aircraft fleet and inventory.

Management also warned that its wet lease arrangement with Qantas Airways Ltd (ASX: QAN) had become commercially unviable under existing terms.

Negotiations with Qantas are currently underway as the companies work to restructure aspects of the agreement.

The company has previously been linked to takeover interest. Qantas once sought to acquire the business in a $611 million deal, but the proposed transaction was blocked by the Australian Competition and Consumer Commission (ACCC).

Alliance Aviation shares remain under pressure as investors weigh the company’s financial performance and ongoing strategic negotiations.

The post This beaten-down ASX airline stock just saw insider buying appeared first on The Motley Fool Australia.

More reading

• Why the IperionX share price just crashed 22% today
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• No savings at 50? I’d follow Warren Buffett’s method to build retirement wealth

Motley Fool contributor Aaron Teboneras 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.

Meridian Energy Ltd (ASX: MEZ) shares are sliding toward a 52-week low after investors reacted coolly to the company’s latest results announcement.

Despite customer growth, the market response has been muted. During afternoon trading, Meridian shares have drifted toward their 52-week low, losing almost 1% at $4.41.

Over the past 12 months, Meridian shares have dropped 11%, trailing the S&P/ASX 200 Index (ASX: XJO), which has risen 10% over the same period.

Here’s what stood out from today’s update and what it could mean for Meridian shares.

Customer growth, retail sales down

The ASX energy company released its operating update for February 2026. It showed customer growth of 2.1% during the month and a year-to-date lift in total water inflows.

However, retail sales volumes in February were 2.7% lower than a year ago, mainly from reduced irrigation demand.

Meridian CEO Mike Roan said:

Although inflows eased during February, this is the first below-average month in the past six. Storage levels remain robust, leaving the system well placed heading into autumn. Our retail growth remains strong. While lower irrigation demand saw sales volumes dip marginally year-on-year, customer numbers increased 2.1% during February, lifting total growth to nearly 20% over the past year, adding further scale and momentum to our Retail business.

Key player Kiwi clean energy

Meridian is one of the largest electricity generators in New Zealand and is heavily focused on renewable energy.

The $6 billion Meridian share primarily generates power from hydro and wind, selling electricity to wholesale markets and to residential and business customers through its retail brands.

Because its generation portfolio is almost entirely renewable, Meridian is often viewed as a key player in New Zealand’s transition to cleaner energy.

Low operating costs, strong margins

One of Meridian’s biggest advantages is its renewable generation base. Hydro and wind assets can deliver low operating costs once built, which can support strong margins when electricity prices are favourable.

Another positive is Meridian’s expanding retail customer base. Recent gains in market share and strong customer growth have helped drive higher electricity sales volumes.

Weather risks and lower demand

At the same time, the earnings of Meridian shares can be highly sensitive to external factors. Electricity prices, water inflows into hydro lakes, and weather conditions can all influence generation and profitability.

The company is also exposed to broader electricity demand trends. Recent data showed national electricity demand in New Zealand was slightly lower than a year earlier, which can pressure pricing and sales volumes.

What next for Meridian shares?

In the near term, Meridian shares could remain volatile as investors assess the outlook for electricity prices and renewable generation.

The latest results showed Meridian returning to profitability with strong operating earnings. However, falling retail sales in February and softer wholesale power prices may continue to weigh on sentiment.

Longer term, however, Meridian’s renewable energy portfolio and growing retail customer base could position the company to benefit from the global shift toward cleaner electricity.

The post Why are these ASX 200 shares diving to near 52-week lows? appeared first on The Motley Fool Australia.

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• Meridian Energy: February 2026 update shows growth and strong storage

Motley Fool contributor Marc Van Dinther 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.

With so many shares to choose from on the Australian share market, it can be difficult to decide which ones to buy. The good news is that brokers across the country are doing a lot of the hard work for you.

Three top ASX shares that leading brokers have named as buys this week are listed below. Here’s why they are bullish on them:

ANZ Group Holdings Ltd (ASX: ANZ)

According to a note out of Citi, its analysts have retained their buy rating and $40.30 price target on this banking giant’s shares. The broker believes that ANZ is the best bank stock to buy now due to its attractive valuation and earnings leverage to higher interest rates. And with interest rates likely to rise in the near future, this bodes well for revenue and earnings growth. Citi also likes ANZ due to its institutional banking exposure and strong balance sheet. The ANZ share price is trading at $37.41 on Monday afternoon.

Breville Group Ltd (ASX: BRG)

Another note out of Citi reveals that its analysts have retained their buy rating and $39.85 price target on this appliance manufacturer’s shares. This follows the release of results from the company’s rival, De’Longhi. Citi believes the results were positive for Breville, highlighting that they demonstrated that coffee machine demand has remained strong. While there are disruption and freight cost risks from the war in the Middle East, the broker remains positive and continues to see plenty of value in Breville’s shares at current levels. The Breville share price is fetching $28.02 at the time of writing.

Northern Star Resources Ltd (ASX: NST)

Analysts at Bell Potter have retained their buy rating and $35.00 price target on this gold miner’s shares. According to the note, Bell Potter was disappointed that Northern Star downgraded its FY 2026 guidance for a second time. This is especially the case given that it thought the company was finally seeing light at the end of the tunnel. While Northern Star has held firm with its cost guidance, Bell Potter expects this to be retracted with its third-quarter update. But despite all these negatives, the broker remains positive. It highlights potential positives from asset rationalisation, given the high capital and operating costs at the likes of Jundee and Thunderbox. The Northern Star share price is trading at $20.64 this afternoon.

The post Leading brokers name 3 ASX shares to buy today appeared first on The Motley Fool Australia.

More reading

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Citigroup is an advertising partner of Motley Fool Money. 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.

Once you reach your late-60s, your superannuation should be at the forefront of your mind. After all, retirement is only around the corner.

By this point in your life, you should know exactly how much superannuation you have and what you need to be able to have the type of retirement you want.

Here’s a breakdown of the average superannuation balance of Aussies aged 66. How does yours compare?

What is the average superannuation balance at age 66 in Australia?

According to Rest Super, the average superannuation balance for Australian men aged 65-69 is $448,518, and for women it is $392,274.

If your superannuation balance is on track with the rest of the population, that’s great news. But it doesn’t mean you have enough to live the retirement lifestyle you want. 

But, how much superannuation do I need to have at age 66?

According to the latest ASFA Retirement Standard, the benchmark for a comfortable retirement has just climbed higher.

Australians now need $54,840 a year, or $77,375 a year for a couple.

To support that level of spending, ASFA estimates you’ll need a super balance of roughly $630,000 as a single and $730,000 as a couple by the age of 67. 

The figures also assume you own your home outright and that you’re receiving the age pension.

In fact, in order to reach that number, ASFA calculates that at the age of 66, for a comfortable retirement, Australians should have a current superannuation balance close to $618,500.

That’s significantly higher than the average balances for Australians aged 65-69.

Why is the average Australian so far behind on their super?

Unfortunately, there are a multitude of reasons.

It’s possible to access your super early in very limited circumstances, including to pay certain expenses on compassionate grounds, as well as terminal illness, incapacity, and severe financial hardship.

For example, there was an uptick in Aussies accessing their super early in the COVID-19 pandemic, driven by soaring living costs, sky-high inflation, and widespread lockdowns that caused significant income losses.

Between 20 April 2020 and 31 December 2020 alone, the ATO received 4.78 million applications for early-release of superannuation, totalling $39.2 billion.

Whatever the reason for accessing your superannuation early, removing funds severely affects long-term compounding growth and lowers balances in the long term. 

At the same time, economic uncertainty and high cost-of-living also mean that individuals have severely curbed the amount of voluntary contributions going into super fund accounts. 

High fees and poor performance also eat into retirement savings. Meanwhile, sticking with an underperforming fund or default option is a mistake that can cost your super balance over time.

Default superannuation investment options are generally designed to benefit a range of investors, but what is considered balanced for one person might not apply to the next.

Growth assets on the S&P/ASX 200 Index (ASX: XJO) might be more appropriate for Aussies with time to ride out any market fluctuations, but those closer to retirement might be more suited to stable assets that can weather a last-minute share market crash. 

The post Here’s the average superannuation balance at age 66 in 2026 appeared first on The Motley Fool Australia.

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Motley Fool contributor Samantha Menzies 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.

Reaching your 50s without much in savings can feel confronting.

Retirement suddenly doesn’t seem as far away as it once did, and it’s easy to start worrying that you may have left things too late to build meaningful wealth.

But one thing I’ve learned from studying long-term investors like Warren Buffett is that wealth isn’t always built quickly. In fact, Buffett himself has often pointed out that most of his wealth was accumulated later in life thanks to the power of compounding.

So even if you feel behind financially at 50, there can still be time to turn things around. The key is focusing on the right strategy.

Focus on buying quality ASX shares

One of Buffett’s most famous principles is his preference for buying wonderful companies at fair prices rather than average companies at cheap prices.

In simple terms, that means looking for businesses with strong competitive advantages, reliable earnings, and products or services that are likely to remain relevant for decades. Think Commonwealth Bank of Australia (ASX: CBA) or Goodman Group (ASX: GMG).

Companies with these characteristics often have the ability to grow steadily over time, which can lead to rising profits, increasing dividends, and higher share prices.

For someone starting later in life, owning businesses like this can be especially important. Instead of constantly trading in and out of shares, the goal is to buy quality companies and give them time to work for you.

Think long term, not short term

Another key part of Warren Buffett’s philosophy is patience.

The share market moves up and down all the time, and short-term volatility can be uncomfortable. But historically, markets have trended higher over long periods as businesses grow and economies expand.

Even starting at 50, an investor could still have a time horizon of 15 to 20 years before retirement. That is a long enough period for compounding to make a meaningful difference.

The important thing is staying invested and allowing strong businesses to grow over time rather than reacting to every market swing.

Let compounding work for you

Compounding is often called the eighth wonder of the world for a reason.

When investments generate returns and those returns are reinvested, the growth begins to accelerate over time. Earnings lead to more earnings, dividends lead to more shares, and the overall portfolio gradually becomes larger.

Even modest annual returns can produce surprisingly large outcomes when given enough time.

For example, an investor who consistently adds to their portfolio and earns long-term share market returns could still build a meaningful nest egg over the next couple of decades.

An investment of $500 a month into ASX shares with an average annual return of 9% (not guaranteed but achievable) would become approximately $320,000 after 20 years.

If you can afford to put $1,000 into the market each month, your investment portfolio would be worth $640,000 in two decades with the same annual return.

Foolish takeaway

Starting to invest at 50 may feel late, but it doesn’t mean the opportunity to build wealth has passed.

Warren Buffett’s approach shows that long-term investing in quality businesses at fair prices can still produce powerful results over time.

By focusing on strong companies, remaining patient, and allowing compounding to work, it is still possible to build meaningful retirement wealth even if you feel like you are starting behind.

The post No savings at 50? I’d follow Warren Buffett’s method to build retirement wealth appeared first on The Motley Fool Australia.

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