BHP Group Ltd (ASX: BHP) and Commonwealth Bank of Australia (ASX: CBA) are two of the most recognisable ASX shares, and I think they remain interesting for very different reasons.

One is connected to the materials required to build the next stage of the global economy. The other sits at the centre of how Australians save, borrow, and manage money.

Both businesses have already achieved enormous scale. The reason I would still consider buying them is that I think their advantages can continue evolving.

BHP shares

The investment case for BHP is often discussed through commodity prices, but I think the more interesting question is what role the company can play over the next decade.

BHP owns some of the world’s largest resource assets, but scale alone is not what attracts me. What I like is the company’s ability to invest in areas where long-term demand could become increasingly important.

Copper is the obvious example. The global economy is becoming more dependent on electricity, digital infrastructure, renewable energy, and new technologies. All of those trends require significant amounts of copper.

I think BHP’s opportunity is that it already has exposure to a commodity with a potentially important role in the future.

The company is also exploring growth through Jansen potash, which gives investors exposure to a different long-term theme. Food production and agricultural productivity are areas with their own structural demand drivers.

The recent challenges at Jansen have been disappointing, and investors are right to pay attention to capital discipline. Large projects need to generate attractive returns.

However, I think BHP’s size gives it options that many resource companies simply do not have. It can manage cycles, invest through uncertainty, and continue looking for opportunities that strengthen its long-term position.

That is why I would buy BHP shares in July.

CBA shares

CBA is a business I think investors sometimes underestimate because banking can appear simple from the outside.

A bank takes deposits, provides loans, and earns the difference. But the strongest banks are built around something deeper: customer relationships, trust, technology, and data.

That is where I think CBA stands out. The company has spent years building one of Australia’s strongest financial ecosystems. Its digital platform, customer base, and brand recognition create advantages that are difficult for competitors to replicate quickly.

I also think CBA’s scale gives it flexibility.

Technology investment is becoming increasingly important in banking. Fraud prevention, customer service, payments, and lending decisions are all becoming more digital. Large banks with significant resources can continue investing in these areas.

The valuation is always part of the discussion with CBA. Investors know it is a high-quality business, and that recognition is reflected in the share price.

But I think quality businesses often deserve a premium when they can consistently defend their position.

For long-term investors, I like the combination of a strong franchise, reliable earnings, and the ability to keep adapting as financial services change.

That is why I would buy CBA shares in July.

Foolish takeaway

I think BHP and CBA appeal for the same underlying reason: both have built positions that are difficult to recreate.

Their industries are different, but both companies have spent decades developing assets, relationships, and capabilities that can continue creating value.

I would expect periods where sentiment changes around both businesses. Commodity cycles move, banking conditions shift, and investors constantly reassess valuations.

But when I look beyond the next headline, I see two companies with the scale and resources to keep finding ways to remain relevant.

The post Why I’d buy BHP and CBA shares in July 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 no position in any of the stocks mentioned. The Motley Fool Australia has recommended BHP Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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.