Building wealth through shares does not need to be difficult.

I think the best approach is to look for strong businesses that can continue to become more valuable over time, and then give them years to do the work.

Here are three ASX shares I would be happy to buy with that approach.

Xero Ltd (ASX: XRO)

Xero has become a major accounting platform for small businesses, but I still think the long-term opportunity is much larger than its current customer base.

Its software helps businesses manage accounting, payroll, payments, and other financial tasks that are central to day-to-day operations.

I like that because once a business becomes comfortable using Xero, the platform can become deeply embedded in how it operates.

The company can keep growing by adding more customers, expanding further across major international markets, and increasing the number of services existing customers use.

I think that gives Xero several ways to keep building on its existing business.

Over a long timeframe, small gains in customer numbers and product usage can add up to a much larger business.

National Australia Bank Ltd (ASX: NAB)

NAB would give this portfolio a more established financial business.

What I like most is its strong position in business banking. Australian companies need funding, transaction accounts, payments, and other banking services as they grow, invest, and manage their day-to-day finances.

That gives NAB the opportunity to build broad relationships with business customers across several products and services.

I also think this part of the market can be attractive over the long term because successful businesses often become more valuable banking customers as they expand.

NAB still has a large personal banking operation, but its business banking strength gives it an area where it can stand out from some of its major rivals.

For me, that makes it a bank stock I would be comfortable holding for many years.

Netwealth Group Ltd (ASX: NWL)

Netwealth provides investment and superannuation technology used by financial advisers and their clients.

I think the long-term opportunity comes from becoming increasingly important to those advisers.

Once client assets and processes are moved onto a platform, changing providers can involve significant work. That gives Netwealth the chance to build long-lasting relationships while continuing to improve the technology advisers use.

Australia’s superannuation system also gives the company a strong backdrop.

Workers keep contributing to retirement savings, while investment returns can increase the amount of money already on platforms.

Netwealth can therefore grow by winning more advisers and clients, while the overall pool of wealth it competes for continues to expand.

I think that combination gives the business plenty of room to become larger over the next decade.

Foolish takeaway

I like these three shares because I can see clear reasons why their businesses could be stronger years from now.

Xero can keep expanding its software platform, NAB can deepen its business banking relationships, and Netwealth can capture more of Australia’s growing investment wealth.

I would be comfortable buying all three and giving those opportunities plenty of time to develop.

The post 3 excellent ASX shares I’d buy for long-term wealth creation appeared first on The Motley Fool Australia.

More reading

• Another RBA interest rate hike could be just weeks away. Here’s what the big banks think
• What on earth’s going on with Xero shares?
• How much superannuation is needed to target a $50,000 annual passive income?
• Netwealth Group FY26 earnings: Record profits, platform and adviser growth
• 2 ASX 200 shares I’d buy and 2 I’d avoid amid a surging Aussie dollar

Motley Fool contributor Grace Alvino 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 Netwealth Group and Xero. The Motley Fool Australia has positions in and has recommended Netwealth Group and Xero. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

A broad index fund can be a great way to build wealth, but some exchange-traded funds (ETFs) take a more selective approach.

If I wanted to give myself a chance of outperforming the wider market over the long term, these are three ASX ETFs I would consider.

Betashares Global Quality Leaders ETF (ASX: QLTY)

The QLTY ETF looks for global companies displaying characteristics such as strong profitability, healthy balance sheets, and relatively stable earnings.

I like this approach because long-term wealth creation often comes from businesses that can keep reinvesting successfully rather than simply being large.

The portfolio includes companies from several industries and countries, so investors are not relying on one particular sector to deliver the returns.

Quality businesses can still become expensive or experience disappointing periods, of course. But over a long timeframe, I think concentrating more money in companies with strong financial characteristics gives the fund a reasonable chance of producing attractive returns.

VanEck Morningstar Wide Moat ETF (ASX: MOAT)

The MOAT ETF takes the idea one step further by considering both business quality and price.

It invests in US companies that have sustainable competitive advantages, or economic moats, while also trading below fair value.

Those advantages could come from strong brands, switching costs, network effects, or other characteristics that make it difficult for competitors to take customers and profits away.

I particularly like the valuation element. Owning a great company does not guarantee a great investment if the starting price is too high. The MOAT ETF regularly adjusts its portfolio towards businesses offering the most attractive combination of competitive strength and valuation.

That gives it a different process from an index that simply puts the most money into whichever companies have the largest market values.

Betashares Australian Quality ETF (ASX: AQLT)

I would also consider applying a quality filter closer to home.

The AQLT ETF invests in Australian shares selected using measures including profitability, earnings stability, and financial leverage.

I think this could be a good alternative to simply owning the entire Australian market.

Traditional market-cap-weighted funds can become heavily influenced by the largest companies and sectors on the ASX. The AQLT ETF instead asks whether a business demonstrates strong financial characteristics.

That can result in a portfolio focused on companies that have already demonstrated an ability to generate strong returns from their businesses.

There is no guarantee that those characteristics will lead to market-beating performance, but I think the process makes sense for investors willing to take a more selective approach.

Foolish takeaway

Trying to beat the market is difficult, and even professional investors regularly fall short.

That is why I would want a clear reason for moving away from a simple index fund.

For me, quality, sustainable competitive advantages, and sensible prices are three characteristics worth backing.

These ETFs package those ideas into diversified portfolios, giving investors a way to pursue outperformance without having to pick stocks themselves.

The post 3 strong ASX ETFs I’d buy to try and beat the market appeared first on The Motley Fool Australia.

More reading

• Why these ASX ETFs are on my watchlist
• 3 super ASX ETFs for beginner investors
• Here are 3 top Betashares ETFs I’d buy now
• 3 strong ASX ETFs for smart investors to buy and hold
• 3 Betashares ETFs I’d buy and hold for 10 years

Motley Fool contributor Grace Alvino 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 VanEck Morningstar Wide Moat ETF. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

CSL Ltd (ASX: CSL) has given investors plenty to think about this year.

The biotechnology giant has been through a difficult period, but the outlook now suggests earnings could move steadily higher over the next few years.

So, would I buy the shares before August is over?

The earnings outlook catches my attention

CSL shares are currently trading around $172.79.

According to CommSec, consensus earnings per share forecasts now stand at $9.08 in FY27, $9.53 in FY28, and $10.15 in FY29.

That implies earnings growth of around 5% in FY28 followed by another 7% in FY29.

For me, the direction is encouraging.

CSL has spent the past few years dealing with higher costs, operational challenges, and weaker investor confidence. A sustained return to earnings growth would suggest the business is moving beyond some of those problems.

At the current share price, CSL trades on a PE ratio of roughly 19 times forecast FY27 earnings, falling to around 17 times FY29 earnings.

I think that looks reasonable if the company can deliver the growth analysts currently expect.

There are still good businesses underneath

The long-term investment case still rests heavily on CSL Behring.

Its plasma-derived therapies are used to treat serious and often chronic conditions, creating demand that can continue regardless of what is happening in the wider economy.

CSL has spent decades building the plasma collection, manufacturing, and distribution network needed to compete at global scale. That is not something a new competitor could reproduce quickly.

There are also newer products that could contribute more over time, while continued investment in manufacturing should help CSL serve growing demand for immunoglobulin and other plasma therapies.

I think that combination gives CSL a credible path to increasing earnings for years rather than relying on a short-term rebound.

I would still expect some bumps

CSL has hardly provided investors with a smooth ride recently.

The company has gone through restructuring, impairments, changing expectations, and periods when parts of the business have disappointed.

There are still risks to consider. The recovery could take longer than expected, costs could remain elevated, new products may not grow as quickly as hoped, and currency movements can affect a business earning revenue around the world.

That makes the consensus forecasts important to monitor rather than something I would simply assume will happen.

I would also expect the share price to remain sensitive to any change in the recovery story.

Foolish takeaway

Yes, I would buy CSL shares before the end of August.

The business still has work to do, and recent performance is a reminder that even high-quality companies can go through difficult periods.

But I think the expected earnings trajectory is moving in the right direction, while the current valuation leaves room for that recovery to create value for shareholders.

If CSL can rebuild momentum over the next few years, I think buying at around $172.79 could prove worthwhile for patient investors.

The post Should I buy CSL shares before the end of August? appeared first on The Motley Fool Australia.

More reading

• Buy, hold, sell: CSL, BHP, Westpac shares
• Could CSL shares really hit $200? Experts reveal their 12-month targets
• ASX 200 healthcare shares soar 9% amid notable FY26 reports from CSL, Pro Medicus
• 3 ASX 200 stocks, including CSL, leaping 15% to 23% in this week’s sliding market
• 8 ASX shares just upgraded by the experts

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