Warren Buffett has been one of the world’s greatest investors over the last several decades, helping Berkshire Hathaway (NYSE: BRK.B) become of the largest businesses in the world. Would such a great investor be interested in CSL Ltd (ASX: CSL) shares today?

Berkshire Hathaway has invested in a variety of industries over the years, including railroads, banks, Apple (NASDAQ: AAPL), insurance, oil and gas, soft drink, and so on. There’s nothing to say that Berkshire Hathaway wouldn’t be open to buying shares in a biotech company.

Let’s look at what Warren Buffett might think of CSL shares.

Is CSL a wonderful company?

There have been few businesses on the ASX that have expanded as much internationally as CSL over the last 20 years. It has been a great Australian success story.

However, the CSL share price has suffered a big decline in the past year, falling by around 50%. The market doesn’t seem to think as much of the business as before.

Are the current difficult conditions CSL is facing temporary or is this now a permanent, lower growth environment for the company? You’d need a crystal ball to truly know the answer to that question.

But, when it comes to market confidence, Warren Buffett has said some potentially very useful advice in the past. For example, he has said generally about markets:

Be fearful when others are greedy, and greedy when others are fearful.

By that logic, investors may have been too fearful about the CSL share price earlier this year. But the CSL share price has risen by around 33% since the 2026 low in June – it’s not as cheap as it was, even though it has fallen heavily over the longer term.

Warren Buffett has also suggested that it’s better to buy a wonderful company at a fair price than a fair company at a wonderful price.

Before 2025, I think most investors would have been happy to describe CSL as a wonderful company with its ability to grow its core business, create new products with research and development (R&D), and deliver rising profit.

Is CSL still a wonderful company? The market doesn’t seem convinced.

Warren Buffett’s Circle of competence

For me, what could be the deciding factor in whether Warren Buffett would buy CSL shares is what he likes to call a circle of competence.

In other words, he only invests in businesses that he understands. That’s why he famously avoided various technology businesses over the years. It’s important to understand the potential gains, the competitive pressures and risks.

I think that same investment thought process would mean Buffett would be hesitant to invest in CSL – biotechnology is a difficult industry to understand, and it may be challenging to get to grips with how the research and development (R&D) pipeline could play out and what the financial rewards could be. Therefore, there are other ASX shares that I think Warren Buffett would be more interested in.

The post Would Warren Buffett buy CSL shares? appeared first on The Motley Fool Australia.

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Motley Fool contributor Tristan Harrison 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 Apple, Berkshire Hathaway, and CSL. The Motley Fool Australia has recommended Apple, Berkshire Hathaway, and CSL. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Rio Tinto Ltd (ASX: RIO) shares have been climbing again in 2026.

But after a strong move from their lows, investors may be wondering whether the ASX mining giant is still worth buying today.

For a $5,000 investment, I think the answer is yes.

Here’s why.

The valuation looks reasonable

Based on the current share price, a $5,000 investment would buy about 30 Rio Tinto shares, before brokerage.

According to consensus estimates, Rio Tinto is expected to generate earnings per share of $11.88 in FY26 and $12.39 in FY27.

That puts the stock on a price-to-earnings ratio of around 13.8 times FY26 earnings and 13.3 times FY27 earnings.

For a large global miner, I think that looks reasonable. Rio Tinto is still exposed to commodity cycles, so investors should not treat those earnings forecasts as guaranteed. But the valuation does not look stretched to me, especially if copper demand remains strong.

The dividend profile also adds to the appeal. Rio Tinto is expected to pay fully franked dividends per share of $6.54 in FY26 and $6.81 in FY27. That implies forward dividend yields of around 4% and 4.1%.

On a $5,000 investment, that would mean roughly $199 in FY26 dividends and $207 in FY27 dividends, before franking credits.

Why I like Rio Tinto shares

My answer is yes, I would invest $5,000 into Rio Tinto shares for resources sector exposure.

The main reason is copper. Rio Tinto is still heavily associated with iron ore, and that remains a major part of the business. But I think the company’s long-term appeal increasingly comes from its exposure to commodities needed for electrification, energy infrastructure, data centres, and industrial development.

In its May presentation, Rio Tinto pointed to energy transition and artificial intelligence as dual demand drivers across its portfolio. The company also highlighted expected copper demand growth of 30% between 2025 and 2035.

That is where Rio Tinto looks attractive to me. Its copper operations include major low-cost assets such as Oyu Tolgoi, Kennecott, and Escondida. The company’s Oyu Tolgoi underground project is complete and Rio Tinto expects the mine to become the world’s fourth-largest copper mine around the end of the decade.

It is also targeting 40% to 50% production growth at Kennecott from 2025 to 2028.

Low-cost operations are valuable in mining because commodity prices can move sharply. A producer with strong assets and lower costs has a better chance of generating cash through weaker periods and benefiting strongly when prices are favourable.

What to watch

There are still risks to consider. Rio Tinto remains exposed to iron ore, China, commodity prices, project execution, cost inflation, and currency movements.

The share price is also much closer to its yearly high than its yearly low. Investors who bought near $109 have already captured a much more attractive entry point.

That is why I would treat a $5,000 investment as a long-term resources position rather than a short-term trade.

Foolish takeaway

I think Rio Tinto shares are a buy for investors who want exposure to high-quality mining assets and long-term copper demand.

The valuation looks reasonable, the forecast dividend yield is attractive, and the company has several ways to benefit from demand linked to electrification, energy infrastructure, and AI-related investment.

The share price could easily be volatile because this is still a cyclical resources business.

But if I were looking to invest $5,000 into the sector today, Rio Tinto would be one of the ASX mining shares I would be happy to buy.

The post Should I invest $5,000 into Rio Tinto shares? appeared first on The Motley Fool Australia.

More reading

• 9 ASX 200 shares downgraded by analysts this week
• China’s CPI and PPI data drops today. Here is the potential impact for these ASX shares
• How Rio Tinto, Fortescue and BHP shares stacked up in June
• 6 ASX 200 large-cap shares that rose 60% to 275% in FY26
• How to get started with a portfolio delivering $500 a week in passive income

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 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.

Who doesn’t want their superannuation working harder than they do?

For many Australians, super is the most tax-effective way to build long-term passive income. While you generally can’t access it until retirement, the payoff is generous tax concessions while you’re accumulating wealth and, potentially, tax-free income in retirement.

So, how much superannuation do you actually need to generate $5,000 a month in passive income?

The answer might be simpler than you think.

It all comes down to dividend yield

A monthly passive income of $5,000 equals $60,000 a year.

From there, it’s just a numbers game. Divide your desired annual income by the dividend yield of your portfolio, and you’ll have a rough estimate of the super balance required.

For example, a superannuation portfolio yielding 3% would require around $2 million to generate $60,000 in annual dividend income. Lift that yield to 4%, and the required balance falls to roughly $1.5 million.

At a 5% yield, you’d need around $1.2 million, while a portfolio generating 6% income could potentially produce the same annual passive income with approximately $1 million invested.

The lesson? The higher your portfolio’s dividend yield, the less capital you need to generate the same income.

Of course, there’s a catch.

Yield isn’t everything

A sky-high dividend yield might look attractive, but it can sometimes signal trouble ahead. If a company’s earnings weaken, today’s generous dividend could become tomorrow’s dividend cut.

That’s why many experienced investors focus on companies that can consistently grow their superannuation, profits and dividends over time, rather than simply chasing the highest yield available.

For investors seeking lower but dependable yields, companies like Wesfarmers Ltd (ASX: WES), Macquarie Group Ltd (ASX: MQG), and Washington H. Soul Pattinson and Co Ltd (ASX: SOL) have historically offered yields of around 2% to 3%, alongside solid long-term growth.

Those wanting a balance between income and stability could consider businesses such as Telstra Group Ltd (ASX: TLS), Transurban Group (ASX: TCL), or ASX blue-chip BHP Group Ltd (ASX: BHP), which have typically provided dividend yields in the 3% to 4% range, although payouts naturally fluctuate.

For investors primarily focused on maximising income, options such as BetaShares Australian Top 20 Equities Yield Maximiser Complex ETF (ASX: YMAX), MFF Capital Investments Ltd  (ASX: MFF), WCM Global Ltd (ASX: WQG) may be worth exploring.

Foolish takeaway

There isn’t one magic super balance that guarantees $5,000 a month in passive income. It all depends on the investments you own, the income they produce, and whether those dividends remain sustainable.

As a general guide, though, investors are likely to need somewhere between $1 million and $2 million invested in quality income-producing assets to generate $60,000 a year, depending on the average dividend yield of their portfolio.

The earlier you start building your superannuation, the more time compounding has to do the heavy lifting. That’s one advantage no investor should overlook.

The post How much superannuation do you need to earn $5,000 a month in passive income? appeared first on The Motley Fool Australia.

More reading

• Here are the top 10 ASX 200 shares today
• Up 12% in 2026! Are Wesfarmers shares now too expensive?
• How much could a $500,000 ASX share portfolio pay in dividends?
• Should you buy BHP shares FY27? Here’s what experts are saying
• Do you want to earn passive income from your superannuation? Here’s a guide to get you started

Motley Fool contributor Marc Van Dinther has positions in BHP Group. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Macquarie Group, Transurban Group, Washington H. Soul Pattinson and Company Limited, and Wesfarmers. The Motley Fool Australia has positions in and has recommended Mff Capital Investments, Telstra Group, Transurban Group, and Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia has recommended BHP Group, Macquarie Group, and Wesfarmers. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.