If I had $5,000 to invest in ASX shares, I would want to own businesses that will still be important in 10 years.

That is why I like ResMed Inc. (ASX: RMD) and TechnologyOne Ltd (ASX: TNE).

They operate in different markets, but both solve problems that are not likely to fade. One is helping people manage sleep and breathing disorders. The other helps important organisations run essential systems more efficiently.

I think that gives both companies a strong starting point for long-term investors.

ResMed shares

ResMed is an ASX healthcare share I would happily buy with part of that $5,000.

The company is best known for sleep apnoea devices, masks, accessories, software, and connected health technology.

This is a great place to be. Sleep and breathing disorders remain a large, underpenetrated healthcare market. Many people are still undiagnosed or undertreated, which gives ResMed a long runway if awareness and access continue improving.

Its recent numbers also show that demand has not disappeared. In the third quarter of FY26, ResMed reported revenue growth of 11% to US$1.4 billion. It also delivered 18% growth in non-GAAP income from operations.

I would not buy ResMed just because one quarter looked solid. I would buy it because those numbers support the broader point: the company is still growing while investing in a market with significant long-term need.

There are risks, including competition, GLP-1 drugs, and healthcare sentiment. But I think the market may be underestimating the durability and size of the opportunity.

TechnologyOne shares

TechnologyOne is another ASX share I would buy for the long term.

The company provides enterprise software to customers such as councils, government departments, universities, and large organisations. These customers need dependable systems for finance, payroll, property, student management, compliance, and reporting.

That type of software may not sound exciting, but I think it can be extremely valuable.

Once these systems are embedded, replacing them can be disruptive. That gives TechnologyOne a strong customer relationship if it keeps delivering.

The shift to software-as-a-service has also strengthened the business model and supported strong annual recurring revenue growth. In the first half of FY26, TechnologyOne reported annual recurring revenue of $598 million, up 17%. SaaS and recurring revenue increased 13% to $299.2 million.

I also like the ambition. Management says the company is on track to surpass $1 billion in annual recurring revenue by FY30 and continues to talk about doubling the business every five years.

That is not guaranteed, but I like businesses that have clear targets, recurring revenue, and multiple ways to grow.

TechnologyOne is also investing heavily in artificial intelligence and its SaaS+ model. If those tools help customers simplify complex operations, the company could become even harder to replace.

Foolish takeaway

I think ResMed and TechnologyOne are two ASX shares worth buying with $5,000.

What I like most is that both companies are building around real customer needs. ResMed is helping address a large healthcare problem that remains underpenetrated, while TechnologyOne is becoming more deeply embedded in organisations that need reliable software to function properly.

Neither share is risk-free. But I think both businesses have enough growth, relevance, and ambition to reward patient investors over time.

The post Why I’d buy and hold ResMed and TechnologyOne shares with $5,000 appeared first on The Motley Fool Australia.

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• Buy, hold, sell: Goodman Group, Endeavour, Resmed shares
• ResMed’s $490m MatrixCare sale: What it means
• Why these ASX shares could rise 20% to 30%
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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 ResMed and Technology One. The Motley Fool Australia has positions in and has recommended ResMed. The Motley Fool Australia has recommended Technology One. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Building a $50,000 ASX share portfolio from scratch is a goal for many investors.

I think it is achievable, especially when investors stop thinking about one big lump sum and start thinking about a repeatable monthly habit.

The share market rewards consistency over time, especially when investors use diversified exchange-traded funds (ETFs), quality ASX shares, and the power of compounding.

Here is how I think an investor could start from zero and work toward that first $50,000 milestone.

Start with simple building blocks

I think one of the easiest ways to begin is with diversified ASX-listed ETFs.

An ETF such as the Vanguard Australian Shares Index ETF (ASX: VAS) can give investors exposure to a broad basket of local companies. Another option, the Vanguard MSCI Index International Shares ETF (ASX: VGS), can provide access to global shares through one investment.

That kind of simplicity can be useful when starting from zero.

Investors do not need to know every company perfectly on day one. They can start by owning a broad slice of the market, then learn more as the portfolio grows.

For someone who wants exposure to the US market, the iShares S&P 500 ETF (ASX: IVV) could also be worth considering. It gives investors access to many of the largest companies in the United States.

Add quality ASX shares over time

ETFs can make a strong foundation, but some investors may also want to add individual ASX shares as they gain confidence.

That could mean looking for high-quality businesses with strong brands, lasting demand, and the ability to keep growing over time.

For example, Commonwealth Bank of Australia (ASX: CBA) has one of the strongest banking franchises in the country, Wesfarmers Ltd (ASX: WES) has a long history of managing different businesses and allocating capital carefully, and CSL Ltd (ASX: CSL) gives investors exposure to global healthcare demand.

Those are not automatic buys at any price. Valuation is always important.

But I think they show the type of businesses investors could consider as their knowledge improves: companies with real earnings, strong market positions, and long-term relevance.

How to get to $50,000

If an investor started with nothing and invested $500 a month into ASX shares, the portfolio could build faster than many people expect.

Assuming an average return of 9% per annum, it would take around six and a half years to reach $50,000.

I think that is a realistic example of how regular investing, time, and compounding can work together.

Keep going when markets move around

It is always best to remember that a 9% annual return is only an assumption. The share market will not deliver that return neatly each year. Some years will be strong. Others will be flat, frustrating, or negative.

That is why I think the monthly habit is so important.

Investing $500 a month removes some of the pressure of trying to pick the perfect moment. If prices fall, investors buy at lower levels. If markets rise, the portfolio keeps participating.

The real advantage comes from staying consistent.

Foolish takeaway

Going from zero to $50,000 with ASX shares requires a plan that can be repeated through different market conditions.

With $500 a month, a sensible mix of ETFs and quality ASX shares, and enough time for compounding to work, I think investors can turn a blank starting point into a meaningful portfolio.

The post How to go from zero to $50,000 with ASX shares appeared first on The Motley Fool Australia.

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• Your FY27 tax return will look different. Here’s what changed and how to prepare
• Forget CBA shares! I’d rather buy these ASX dividend shares
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• Expert warns: These ASX bank shares could disappoint in FY27
• The bull and bear case for CBA and BHP shares

Motley Fool contributor Grace Alvino has positions in CSL, Commonwealth Bank Of Australia, Vanguard Australian Shares Index ETF, and Wesfarmers. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended CSL, Wesfarmers, and iShares S&P 500 ETF. The Motley Fool Australia has recommended CSL, Vanguard Msci Index International Shares ETF, Wesfarmers, and iShares S&P 500 ETF. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Commonwealth Bank of Australia (ASX: CBA) shares have been a great option for passive income over the years, but I think there are plenty of better ASX dividend share options today.

CBA faces a more difficult operating environment these days following the Federal budget changes.

It’s possible the ASX bank share may not see as much loan demand for the foreseeable future, following changes to negative gearing and capital gains tax (CGT) discounts announced in the most recent Federal Budget.

CBA’s annual dividend per share is only expected to increase by 1% year-over-year in FY27 to $5.15 per share. That translates to a grossed-up dividend yield of 4.4%, including franking credits.

In my view, the following two businesses are better picks for passive income.

Medibank Private Ltd (ASX: MPL)

Medibank is the largest private health insurer in Australia, with its main brands of Medibank and ahm.

Private health insurance is an industry with useful tailwinds, including ageing demographics and a rising population. This helps support Medibank’s policyholder numbers and underlying net profit, which are key drivers of the dividend.

The FY26 half-year result was a great example of its ability to pay attractive and growing dividends.

In HY26, the business revealed that revenue grew 5.5%, segment operating profit grew 5.9%, and group operating profit increased 6%. This helped the business fund a 6.4% increase of the interim dividend per share to 8.3 cents.

The ASX dividend share’s expansion into other areas of healthcare can also help grow and diversify its earnings, giving further support for the dividend. Medibank Health segment profit increased by 28.5%, which includes community and acute healthcare. One recent initiative included increased ownership of Amplar Health Home Hospital.

According to the projection on Commsec, the business is forecast to pay an annual dividend per share of 22 cents in FY27. That translates into a potential grossed-up dividend yield of 6.2%, including franking credits, at the time of writing. That’s a noticeably better yield than what CBA shares offer.  

Dexus Industria REIT (ASX: DXI)

Dexus has a very large exposure to Australia’s real estate market, so why not just invest in a compelling passive income option from the real estate space?

Dexus Industria is a real estate investment trust (REIT) that is invested in high-quality industrial warehouses. Its real estate portfolio is located across major Australian cities, with a goal to provide securityholders with sustainable income and capital growth.

There is strong demand for industrial properties as a result of growing e-commerce usage, data centres and so on. This is helping drive pleasing rental growth for the business. In the first six months of FY26, the ASX dividend share saw like-for-like income growth of 7.4%, with rental escalations, strong re-leasing spreads and higher average occupancy.

The business is paying an annual distribution per security of 16.6 cents in FY26, translating into a distribution yield of 6.8%, which is much stronger than what’s on offer from CBA shares.

The post Forget CBA shares! I’d rather buy these ASX dividend shares appeared first on The Motley Fool Australia.

More reading

• Expert warns: These ASX bank shares could disappoint in FY27
• The bull and bear case for CBA and BHP shares
• How much do I need in my superannuation to get $52,000 per year in passive income?
• Dump ’em! Morgan Stanley slaps sell ratings on 5 ASX 200 shares
• I’d buy these 5 ASX dividend investments for retirement income

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 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.