DroneShield Ltd (ASX: DRO) is one of the more exciting growth shares on the ASX.

The company operates in a market that barely existed as a major investment theme a decade ago, but the world has changed quickly.

Drones are becoming more accessible, more capable, and more widely used across defence, security, and critical infrastructure. That creates a growing need for technology that can detect, track, and respond to drone threats.

For investors willing to accept volatility, I think DroneShield shares could be worth buying and holding for the next 10 years.

A company solving a growing problem

The strongest investment ideas often begin with a simple question: what problem is becoming harder to ignore?

For DroneShield, that problem is protecting people, assets, and infrastructure from increasingly sophisticated drone activity.

The company develops counter-drone technology designed to identify and respond to threats across fixed locations, mobile operations, and defence environments.

What interests me is that this is not a consumer trend that could disappear when attention moves elsewhere. Defence forces, governments, airports, energy infrastructure operators, and other organisations have a genuine need to improve security.

As drone technology continues to develop, counter-drone technology may become a more important part of modern security systems.

I think that creates a long-term opportunity.

Why I think the next decade could be exciting

DroneShield is still a relatively young growth company, which means the investment case is very different from owning an established blue-chip business.

The company needs to keep winning contracts, scaling production, improving its technology, and turning demand into sustainable earnings.

But I think the opportunity comes from the size of the market it is entering. Defence technology has historically been dominated by large companies with decades of experience. DroneShield represents a different type of opportunity, where software, artificial intelligence, sensors, and electronic systems are becoming increasingly important.

Modern defence is changing. The companies that can provide practical solutions quickly may have significant opportunities as governments and organisations adapt to new threats.

The path will not be smooth

A 10-year investment in DroneShield would require patience.

Growth companies can experience sharp share price movements. Investor expectations can move quickly, contract timing can change, and the market may regularly question whether future opportunities are already reflected in the valuation.

Execution will be critical. DroneShield needs to continue proving that it can move from promising technology to a large, profitable global business.

That process will likely include setbacks. However, I think long-term investors should focus on the company’s ability to build a valuable position in an expanding market.

Foolish takeaway

The reason I find DroneShield shares interesting is that the company is targeting a problem with increasing importance.

It does not need every possible defence opportunity to succeed. It needs to become a trusted provider in a market where demand is likely to grow over many years.

If DroneShield can continue improving its technology, expanding its customer base, and executing well, I think the company has the potential to become a much larger defence technology business over the next 10 years.

The post Should I buy and hold DroneShield shares for 10 years? appeared first on The Motley Fool Australia.

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Motley Fool contributor Grace Alvino has positions in DroneShield. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended DroneShield. 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.

Listed investment companies (LICs) trade on the ASX just like ordinary shares.

LICs typically invest in a diversified portfolio of assets, including shares, bonds, property, and other securities.

ASX LICs are run by professional managers who make judgment calls on what assets to invest in, and when to buy and sell them.

Their investment strategy may focus on a particular market sector, or type of stock, like ASX growth shares or value shares.

The market’s largest LIC is Australian Foundation Investment Co Ltd (ASX: AFI).

AFIC’s investment style is to buy shares and hold them for the medium to long term.

Argo Investments Ltd (ASX: ARG) is Australia’s oldest LIC and invests in a diversified group of ASX shares.

Argo describes itself as a “value-style investor with a bottom-up approach to investment analysis”. 

On The Bull, James Bills from Shaw and Partners explains his buy rating on two other ASX LICs today.

Let’s take a look.

L1 Long Short Fund Ltd (ASX: LSF)

The L1 Long Short Fund share price is $4.66 as of market close on Tuesday and is up 57% over 12 months.

Bills says:

LSF provides exposure to global long and short strategies managed by a well regarded investment team with a strong long term track record.

The fund’s flexible approach enables it to capitalise on rising and falling markets, which is particularly effective in volatile macroeconomic conditions.

Management’s meaningful co-investment aligns interests with investors, while the portfolio’s global positioning offers diversification beyond Australian financial markets.

Recent performance has demonstrated resilience, with the fund continuing to offer an attractive blend of growth potential and income generation within a diversified portfolio.

Hearts and Minds Investments Ltd (ASX: HM1)

The Hearts and Minds Investments share price is $2.99 as of market close on Tuesday and is down 7% over 12 months.

Bills comments:

HM1 offers investors access to a concentrated portfolio of high conviction global equity ideas sourced from leading fund managers across the world.

The unique structure, combined with its philanthropic component, has attracted some of the industry’s top investors, enhancing the quality of stock selection.

The portfolio is tilted towards innovative, growth oriented companies with long term upside potential. It also pays a fully franked dividend. HM1 was recently trading at a discount to net tangible assets.

In our view, the company provides an appealing entry point for investors seeking exposure to global growth themes with strong management backing.

The post 2 ASX LICs to buy now: expert appeared first on The Motley Fool Australia.

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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.

The ResMed Inc (ASX: RMD) share price is in focus as the company announces the $490 million sale of its MatrixCare business and plans to return capital to shareholders.

What did ResMed report?

• Entered into a definitive agreement to sell MatrixCare business for US$490 million in cash
• MatrixCare contributed approximately US$220 million in revenue and US$55 million in non-GAAP operating profit for FY26
• Proceeds to be used for an accelerated share repurchase program and general corporate purposes
• ResMed reaffirmed its guidance for FY26 margins, spending ratios, and planned share buybacks
• Recent Noctrix acquisition expected to add US$30 million in revenue but dilute FY27 EPS by around US$0.20

What else do investors need to know?

The sale is aligned with ResMed’s strategy to sharpen its focus on high-growth sleep, breathing, and connected care markets. The MatrixCare business, which serves over 15,000 care providers, will be acquired by Frazier Healthcare Partners, a healthcare-focused private equity firm.

ResMed and Frazier Healthcare Partners will enter into transition service agreements to support a smooth handover and offset costs in the first year after closing. ResMed aims to fully eliminate any remaining stranded costs over time.

What did ResMed management say?

Chairman and CEO Mick Farrell said:

Today’s announcement is about our disciplined approach to portfolio management and our commitment to driving long-term growth.

By focusing on areas where we see the greatest opportunity for sleep health innovation and impact, we are strengthening our ability to deliver life-changing health technologies, improve patient outcomes, and create value for our stakeholders. We are confident MatrixCare and its affiliated businesses will continue to support team members and drive growth under new ownership with a dedicated focus on the long-term care market.

What’s next for ResMed?

The MatrixCare transaction is expected to close in the first quarter of ResMed’s 2027 financial year, pending regulatory approvals. Proceeds from the sale will go towards a share buyback and general company purposes.

Looking ahead, ResMed expects its Residential Care Software segment to accelerate growth to high single digits in FY27, with improved operating leverage. The company will provide a detailed FY27 outlook during its next quarterly results in August 2026.

ResMed share price snapshot

Over the past year, ResMed shares have declined 20%, trailing the S&P/ASX 200 Index (ASX: XJO), which has risen 2% over the same period.

View Original Announcement

The post ResMed’s $490m MatrixCare sale: What it means appeared first on The Motley Fool Australia.

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Motley Fool contributor Laura Stewart 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 ResMed. The Motley Fool Australia has positions in and has recommended ResMed. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips. This article was prepared with the assistance of Large Language Model (LLM) tools for the initial summary of the company announcement. Any content assisted by AI is subject to our robust human-in-the-loop quality control framework, involving thorough review, substantial editing, and fact-checking by our experienced writers and editors holding appropriate credentials. The Motley Fool Australia stands behind the work of our editorial team and takes ultimate responsibility for the content published by The Motley Fool Australia.