Warren Buffett has spent decades showing investors that price and value are not always the same thing.

That idea feels especially relevant when good ASX shares fall out of favour.

Several well-known shares are trading far below their previous highs, and I think some could reward investors willing to look past the current pessimism.

Price creates the opportunity

Buffett once wrote: “Price is what you pay; value is what you get.”

A lower share price does not automatically create value. The business still needs attractive assets, a credible recovery path, and enough financial strength to work through its challenges.

But when the market becomes too focused on what is going wrong today, long-term investors can sometimes buy future earnings at a much better price.

Treasury Wine Estates Ltd (ASX: TWE) is one share I would examine closely.

The wine company has faced setbacks across its US operations and has struggled to convince investors that recent acquisitions will deliver the expected returns. Its Penfolds brand still has considerable global recognition, while China and other Asian markets could support growth over time.

The recovery needs better execution, but the lower share price gives investors a more forgiving starting point than they had near the highs.

Back businesses that can regain momentum

Temple & Webster Group Ltd (ASX: TPW) is another fallen ASX share I would consider.

Furniture demand can move with consumer confidence, housing activity, and interest rates, which means the company’s growth will rarely arrive evenly.

I still like its long-term position as spending continues moving online. Temple & Webster can offer a wide range without carrying the same store network as traditional retailers, while data and technology can improve merchandising, marketing, and the customer experience.

WiseTech Global Ltd (ASX: WTC) has endured an even more dramatic loss of confidence.

Governance concerns, leadership questions, and uncertainty around the e2open acquisition have weighed heavily on the shares. Yet CargoWise remains deeply embedded in the operations of major logistics companies.

Global trade is full of paperwork, customs requirements, freight movements, warehouses, and regulatory complexity. WiseTech has an opportunity to bring more of those processes into one platform and automate more work through artificial intelligence.

I would keep the position measured, but the long-term opportunity looks far more attractive after the share price decline.

Quality can become cheap too

Some of the best opportunities can appear when the market loses patience with companies that were once considered untouchable.

CSL Ltd (ASX: CSL) and Cochlear Ltd (ASX: COH) both fit that description in my opinion.

CSL needs to improve execution across plasma, vaccines, and Vifor, while Cochlear has faced softer implant demand and hospital capacity constraints. I think those concerns deserve attention, but both companies have spent decades building global healthcare capabilities that would be difficult to reproduce.

REA Group Ltd (ASX: REA) also looks more appealing after its fall.

Property listings can weaken when housing activity slows, yet REA Group’s position at the centre of the Australian property search remains strong. Its audience, data, agent relationships, and network effects give the company several ways to keep developing its platform.

Foolish takeaway

I would not try to predict exactly when sentiment will recover for any of these companies.

Instead, I would focus on whether the business can produce meaningfully higher earnings over the next five or 10 years than the market currently expects.

They all have problems to solve, which is why their share prices have fallen so heavily. But they also retain brands, technology, market positions, or specialist capabilities that could support a recovery.

Following Buffett’s approach requires patience and discipline. For investors prepared to provide both, I think today’s market offers several cheap ASX shares worth buying.

The post I’d listen to Warren Buffett and buy cheap ASX shares appeared first on The Motley Fool Australia.

More reading

• 4 ASX share tips from 4 brokers, for returns better than 40%
• When will WiseTech shares bottom out?
• Down 50%+: Are these ASX healthcare shares finally worth buying?
• Buy, hold, sell: Sigma Healthcare, Wisetech Global, CBA shares
• Could CSL shares double from here? Here’s what the experts think

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, Cochlear, Temple & Webster Group, Treasury Wine Estates, and WiseTech Global. The Motley Fool Australia has positions in and has recommended Treasury Wine Estates and WiseTech Global. The Motley Fool Australia has recommended CSL, Cochlear, and Temple & Webster Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

I’ve cast my net wide this week, looking for share tips from the brokers which will deliver outsized returns.

The companies profiled are from across the spectrum of listed companies, and in the case of the highest profile company, it’s from overseas.

Let’s check that one out first.

Space Exploration Technologies Corp (NASDAQ: SPCX) 

Shares in SpaceX plunged 5.4% over the weekend to be changing hands for US$123.99, well below the company’s initial public offer price of US$135 and a far cry from levels higher than US$200 the stock visited in the days following its listing.

Despite the recent share price weakness, analysts are almost ubiquitous in their belief that the shares will trade higher, and UBS is one of those, with a share price target of $US210.

The investment thesis is based on the fact that SpaceX is an early and dominant player in the space sector, and that it has the chance to use that dominance to advance its other business units.

Currently the company’s space and AI divisions are not turning a profit, while its Starlink connectivity division is.

Fot its part, UBS believes SpaceX has, “an unparalleled set of assets with a multifaceted return profile and multiple drivers of upside for long term, risk tolerant investors”.

Hub24 Ltd (ASX: HUB)

Morgan Stanley has included Hub24 in its small-mid cap ideas list, saying in a note to clients that a broader sell off in Australian technology growth stocks has pushed its share price lower.

Morgan Stanley says Hub24 has “delivered industry leading net flows and funds under administration growth as well as operating leverage in recent periods, yet has underperformed its closest peers”, which are Netwealth Ltd (ASX: NWL), Praemium Ltd (ASX: PPS) and AMP Ltd (ASX: AMP) on a year to date basis.

The broker said they believed the federal budget created more demand for financial advice and increased relative tax advantages for superannuation, which would benefit Hub24.

Morgan Stanley has a price target of $120 on Hub24 shares compared to $84.95 currently.

Wisetech Global Ltd (ASX: WTC)

Bell Potter says while there has been a tech rally “of sorts” on the ASX over the past couple of months, Wisetech did not gain during this time.

This was possibly due to negative press around the company’s founder Richard White, they said, “and risk around both the FY26 result and FY27 guidance and whether each meets market expectations”.

They added:

In our view, however, these negatives will start to dissipate over the coming months and indeed have already commenced with the appointment earlier this month of Raelene Murphy to Chair which we regard as a positive move. We also believe the company will achieve its FY26 guidance when it reports next month – albeit with some risk around revenue but this should be made up by the margin – and the FY27 guidance will meet expectations following downgrades by the sell-side (ourselves included) over the past few months.

Bell Potter has a price target of $71.75 on Wisetech shares compared to $33.88 currently.

Light & Wonder Inc (ASX: LNW)

Jarden has released a research note on Light & Wonder ahead of its results release, and says they expect the result to be broadly in line with consensus estimates.

The broker says customer demand has remained resilient in the US, and despite ongoing macroeconomic uncertainty this should continue.

Jarden says they like both Light & Wonder and Aristocrat Leisure Ltd (ASX: ALL), but they have a “strong preference” for Light & Wonder on valuation grounds.

The broker has a price target of $182 on the company’s shares compared to $112.34 currently.

The post 4 ASX share tips from 4 brokers, for returns better than 40% appeared first on The Motley Fool Australia.

More reading

• I’d listen to Warren Buffett and buy cheap ASX shares
• When will WiseTech shares bottom out?
• Here are the top 10 ASX 200 shares today
• Buy, hold, sell: Sigma Healthcare, Wisetech Global, CBA shares
• Why WiseTech shares could rocket 100%

Motley Fool contributor Cameron England has positions in Hub24 and WiseTech Global. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Hub24, Light & Wonder Inc, Netwealth Group, Praemium, and WiseTech Global. The Motley Fool Australia has positions in and has recommended Netwealth Group and WiseTech Global. The Motley Fool Australia has recommended Hub24 and Light & Wonder Inc. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Choosing one mining share to own through an entire commodity cycle is never easy.

Prices move, projects disappoint, and yesterday’s market favourite can quickly lose its shine.

Even with those uncertainties, one ASX miner stands above the rest for me. That is BHP Group Ltd (ASX: BHP).

A strong foundation in iron ore

BHP still earns substantial cash from its Western Australian iron ore operations.

Iron ore may lack the excitement attached to newer commodities, yet it provides BHP with a huge production base, established infrastructure, and assets capable of generating strong margins when market conditions are favourable.

That cash flow supports dividends, funds new projects, and gives management more flexibility during weaker commodity markets.

Scale alone does not guarantee good returns, especially when mining companies become too enthusiastic with capital. However, BHP can invest through cycles that may force smaller competitors to slow down or abandon projects.

I think that financial strength provides a solid foundation for everything else the company is building.

Copper is changing the business

The most exciting part of BHP’s portfolio in my opinion is copper.

During the first half of FY26, copper contributed 51% of underlying earnings before interest, tax, depreciation, and amortisation, making it the group’s largest earnings contributor.

That is a significant change for a company traditionally associated with iron ore.

Copper demand could keep rising as electricity networks expand and investment flows into renewable energy, data centres, transport, manufacturing, and urban infrastructure. Bringing new supply online can also take many years, which may support attractive economics for established producers with large, low-cost assets.

BHP already owns interests in major operations such as Escondida, Spence, and its South Australian copper assets. It is also working on expansion pathways and future options that could increase production through the 2030s.

I prefer that position to betting on a junior miner that still needs to finance, permit, construct, and successfully ramp up its first major project.

BHP gives investors copper growth from a much stronger starting point.

Potash adds another direction

The Jansen project in Canada will move BHP into potash, a fertiliser ingredient linked to crop yields and global food production.

First production from Stage 1 is expected in mid-2027.

Jansen could eventually become a large, long-life operation, giving BHP an earnings stream driven by different forces from iron ore and copper.

The project has also reminded investors that large mining developments rarely follow a perfect plan. Costs have increased, while Stage 2 has been delayed and become more expensive.

Management will need to show that the finished operation can justify the amount of shareholder capital being committed.

Even with those concerns, I like the strategic logic. A successful potash business would broaden BHP’s portfolio and give it another area where scale could become a lasting advantage.

Why BHP shares are my pick

Every mining investment comes with commodity, operational, political, and project risks.

For me, BHP offers the best balance. It has iron ore assets generating cash today, copper operations becoming increasingly central to earnings, and a potash business that could support growth for decades.

The company also has the balance sheet, technical expertise, infrastructure, and global relationships needed to develop large projects that would be beyond the reach of many competitors.

Foolish takeaway

I would choose BHP shares because its future is becoming broader at the same time as its existing assets continue supporting the business.

Iron ore gives the company financial strength, copper provides an attractive growth runway, and potash could open another substantial source of earnings.

There will be disappointing projects and weaker commodity markets along the way. That comes with owning any miner.

Across a full cycle, I think BHP has the strongest collection of assets and growth options available to ASX investors. That is why it remains my preferred ASX mining share.

The post Why I think BHP is the best ASX mining share appeared first on The Motley Fool Australia.

More reading

• How to build an ASX dividend portfolio that keeps paying you for decades
• What is Morgan’s updated view on Rio Tinto and BHP shares?
• 5 things to watch on the ASX 200 on Monday
• Buy, hold, sell: BHP, CBA, and Rio Tinto shares
• Does Macquarie rate BHP shares a buy, hold or sell right now?

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 BHP Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.