Author: openjargon

ASX 200 energy shares outperformed the 10 other market sectors last week, rising 1.5%.

Meantime, the S&P/ASX 200 Index (ASX: XJO) lost 0.35% over the short trading week to close at 8,727.8 points.

Just four of the 11 market sectors finished the week in the green.

Let’s review.

Energy shares led the ASX sectors last week

Brent crude oil futures rose by 0.66% to US$61.25 per barrel on Friday, the first day of trading for the new year.

The Brent oil price experienced its biggest annual fall in five years last year due to ongoing geopolitical uncertainty.

On Friday, Trading Economics analysts said:

Geopolitical developments remained a backdrop, as Washington stepped up pressure on Venezuela’s energy sector by targeting China and Hong Kong based firms and vessels allegedly involved in bypassing export restrictions.

Separately, tensions between Russia and Ukraine flared over the New Year period, with reciprocal strikes hitting Black Sea port facilities and damaging key energy infrastructure.

Meanwhile, OPEC+ will meet today (Australian time) to decide whether to maintain its November agreement to pause output increases.

Let’s take a look at how some of the ASX 200 energy shares performed last week.

The Woodside Energy Group Ltd (ASX: WDS) share price rose 2.24% to close the week at $23.66.

The Santos Ltd (ASX: STO) share price lifted 1.15% to $6.15.

The Beach Energy Ltd (ASX: BPT) share price ascended 1.29% to $1.17.

Ampol Ltd (ASX: ALD) shares fell 0.14% to $32.12 apiece.

The Viva Energy Group Ltd (ASX: VEA) share price eased 0.24% to $2.09 on Friday.

The Karoon Energy Ltd (ASX: KAR) share price finished the week steady at $1.56.

ASX 200 uranium share Paladin Energy Ltd (ASX: PDN) jumped 4.09% to close the week at $10.13.

The Deep Yellow Ltd (ASX: DYL) share price lifted 3.99% to $1.95.

ASX 200 coal share Yancoal Australia Ltd (ASX: YAL) rose 0.81% to $5.01.

Whitehaven Coal Ltd (ASX: WHC) shares fell 0.89% to $7.81 apiece.

The New Hope Corporation Ltd (ASX: NHC) share price rose 0.25% to $4.05.

ASX 200 market sector snapshot

Here’s how the 11 market sectors stacked up last week, according to CommSec data.

Over the four trading days of last week:

The post ASX 200 energy sector leads the market ahead of OPEC+ meeting 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.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

Over the last three years, artificial intelligence (AI) has become a theme so influential that the broader market seems to ebb and flow based on this singular narrative. The S&P 500 and Nasdaq Composite indices are both hovering near record highs, with megacap technology stocks being some of the largest contributors to the market’s ongoing rally.

While just about every major investment fund on Wall Street can’t seem to get enough of AI, Berkshire Hathaway‘s Warren Buffett — who just retired as CEO — has primarily stuck to his contrarian methods. Throughout the AI revolution, Berkshire has been a net seller of stocks — hoarding cash on its balance sheet and collecting passive income through Treasury bills.

Last quarter, Berkshire finally put some of its excess capital to use and made a significant addition to its portfolio. Let’s dig into some of the fund’s moves in recent years and try to make sense of what drove these decisions. From there, we’ll take a look at valuation and assess if now is a good opportunity to follow in Buffett’s footsteps. 

No longer the apple of Buffett’s eye

Berkshire Hathaway has long been a fan of consumer businesses and financial services. For decades, many of the firm’s largest positions have included insurance companies and banks, as well as a mix of consumer staples and discretionary brands.

Back in 2016, Buffett made headlines following Berkshire’s purchase of Apple (NASDAQ: AAPL) stock. Many investors viewed this as a rare instance of Buffett investing in the technology sector. However, given Apple’s brand moat, consumer loyalty, robust hardware ecosystem, and steady cash flow generation, the company actually checks off many of Buffett’s investment criteria.

A combination of meaningful price appreciation and subsequent buying over the last decade ultimately turned Apple into Berkshire’s largest position. Throughout the AI revolution, however, Buffett has been trimming exposure to the iPhone maker.

Data Source: 13f.info

Since the end of 2023, Berkshire has reduced its exposure to Apple by roughly 73%. Many pundits on Wall Street have criticized Apple for being late to the AI market. While I personally agree, I do not think this necessarily played much of a role in Buffett’s decision to sell the stock.

To me, the rationale behind these sales was more macro-oriented. Since October 2023, both the S&P 500 and Apple stock have risen by about 60% — an abnormally high return in a rather short period. Buffett has always exercised prudent judgment. I think taking advantage of a frothy market and rotating capital into more passive vehicles seemed like a better deal in the eyes of Buffett.

Billionaires are plowing into Alphabet stock

For much of the AI revolution, companies such as Nvidia and Palantir Technologies have been the main attractions. When it comes to legacy internet companies, both Amazon and Microsoft have also become heavily featured in the broader AI discussion.

One company that has been relatively quiet for the last few years, however, is Alphabet (NASDAQ: GOOGL) (NASDAQ: GOOG). For a while, the rise of large language models (LLMs) such as ChatGPT were viewed as a knockout punch for traditional search engines — namely, Google.

But over the last few years, Alphabet quietly trudged along and built out its AI roadmap. Now, billionaires are finally catching on. During the third quarter, notable investors, including Stanley Druckenmiller, Israel Englander, Ken Griffin, Philippe Laffont, and now Warren Buffett, all poured into Alphabet stock.

Is Alphabet stock a good buy right now?

Alphabet currently boasts a forward price-to-earnings (P/E) multiple of 29. While the time to buy the stock at bargain prices may have passed, there are still plenty of upsides.

GOOGL PE Ratio (Forward) data by YCharts

Today, Alphabet has integrated its own LLM, Gemini, into core aspects of its business — from an overhauled Google search landing page to the company’s Android consumer electronics devices.

In addition, Alphabet has also invested heavily into its own hardware in the form of custom application-specific integrated circuits (ASICs) called Tensor Processing Units (TPUs) — integrating this technology into its budding cloud computing platform. Most recently, Alphabet announced a $4.7 billion acquisition of Intersect — a provider of clean energy power sources for data centers.

By vertically integrating all aspects of the AI value chain across its ecosystem, Alphabet is positioning itself to emerge as a durable leader of the next technological supercycle. Against this backdrop, I think Alphabet is poised for meaningful valuation expansion over the next several years and see the company as a compelling opportunity to buy and hold for patient investors with a long-term time horizon — just like Berkshire Hathaway. 

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

The post Berkshire is selling Apple stock and buying this other magnificent artificial intelligence (AI) stock instead appeared first on The Motley Fool Australia.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

More reading

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• Berkshire without Buffett? It starts now.
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• Ranking the best “Magnificent Seven” stocks to buy for 2026. Here’s my no. 1.
• Warren Buffett has 23% of Berkshire Hathaway’s portfolio invested in 3 artificial intelligence (AI) stocks heading into 2026

Adam Spatacco has positions in Alphabet, Amazon, Apple, Microsoft, Nvidia, and Palantir Technologies. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Alphabet, Amazon, Apple, Berkshire Hathaway, Microsoft, Nvidia, and Palantir Technologies. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool Australia has recommended Alphabet, Amazon, Apple, Berkshire Hathaway, Microsoft, and Nvidia. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

A new year often brings fresh optimism for investors, and January can be a great time to revisit an investment portfolio.

But which ASX 200 shares could be great picks for investors right now?

Let’s take a look at three that I think are among the best to buy this month and for 2026:

CSL Ltd (ASX: CSL)

It may have disappointed in 2025, but CSL remains one of the highest-quality companies on the Australian share market. The global biotech leader dominates the blood plasma market and has a deep pipeline of therapies that should be supportive of long-term earnings growth.

Short-term issues, including margin pressures, albumin demand, and weak influenza vaccine sales, have weighed on sentiment. But these factors don’t change the core investment case. Demand for plasma therapies continues to grow globally, barriers to entry are extremely high, and CSL’s scale gives it a significant competitive advantage.

For patient investors, January could be an attractive time to accumulate shares while the market remains cautious, rather than chasing the stock once momentum returns.

Macquarie Group Ltd (ASX: MQG)

Macquarie is Australia’s leading global investment bank. Its earnings are diversified across asset management, infrastructure, commodities, and capital markets. This helps smooth returns across economic cycles.

While there has been underperformance in parts of its business in FY 2026, I don’t expect this to be for long. Macquarie has a long history of adapting to changing conditions. Its asset management division continues to grow funds under management, while its infrastructure expertise positions it well for long-term global investment trends.

For investors looking for an ASX 200 share with exposure well beyond the domestic economy, Macquarie remains a high-quality option to consider early in the year.

Woolworths Group Ltd (ASX: WOW)

Woolworths may not be the most exciting stock on the market, but its reliability is exactly what makes it appealing. As one of Australia’s dominant supermarket operators, it generates steady cash flow regardless of economic conditions.

Margin pressure and increased competition have been weighing on its performance over the past 12 months, but there are signs that the worst is now behind it. In addition, during this time Woolworths has continued to invest heavily in automation, supply chain efficiency, and digital capability. Over time, I believe these investments will bear fruit and position it for the future.

For investors building a balanced ASX 200 portfolio, Woolworths offers defensive characteristics that can complement higher-growth holdings. And with its shares down meaningfully from their highs, now could be an opportune time to load up on them.

The post My best ASX 200 shares to buy in January appeared first on The Motley Fool Australia.

More reading

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• What I look for in ASX shares when uncertainty is everywhere
• Brokers name 3 ASX shares to buy today
• 5 fantastic ASX ETFs for beginners in 2026
• How to retire with a $1 million ASX share portfolio

Motley Fool contributor James Mickleboro has positions in CSL and Woolworths Group. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended CSL and Macquarie Group. The Motley Fool Australia has positions in and has recommended Macquarie Group and Woolworths Group. The Motley Fool Australia has recommended CSL. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

With most brokers taking a break over the holiday period, there haven’t been many notes hitting the wires.

But don’t worry because summarised below are three recent recommendations that remain very relevant today. Here’s what brokers are recommending to clients:

Breville Group Ltd (ASX: BRG)

According to a note out of Macquarie, its analysts retained their outperform rating and $39.20 price target on this appliance manufacturer’s shares. The broker highlighted that the Macquarie Kitchen Benchmark and De’Longhi Revenue Index have shown strong growth so far in the third quarter. And given how Breville has outperformed the benchmark by 11% per annum between 2018 and 2024, Macquarie believes this supports its forecast for 10%+ per annum revenue growth between FY 2025 and FY 2028. Key drivers of this are expected to be its coffee segment, new market development, and its investment in new product development. The Breville share price was trading at $29.94 on Friday.

Collins Foods Ltd (ASX: CKF)

A note out of Citi revealed that its analysts retained their buy rating on this KFC restaurant operator’s shares with a trimmed price target of $12.85. This followed the release of a half year result for FY 2026 which came in ahead of the broker’s expectations. In addition, Citi highlighted that management upgraded its profit guidance for the full year. It is now expecting profit growth of mid-to-high teens. This is up from low-to-mid teens previously. And while its sales growth rate is a touch behind expectations, the broker has only reduced its estimates by a touch. The Collins Foods share price was fetching $10.44 at Friday’s close.

WiseTech Global Ltd (ASX: WTC)

Analysts at Macquarie upgraded this logistics solutions technology company’s shares to an outperform rating with a $108.50 price target. According to the note, while Macquarie sees limited risk with its upcoming half year results, it remains cautious on full year results and FY 2027 guidance. Nevertheless, the broker is feeling more confident about WiseTech Global’s business model transition and is bullish on the long term. It believes that the company can and will fundamentally reshape the logistics industry. It also notes that execution risks are commensurate with the size and deliverability of a massive market opportunity, and that its current share price doesn’t reflect this delivery. The WiseTech Global share price ended the week at $68.55.

The post Top brokers name 3 ASX shares to buy next week appeared first on The Motley Fool Australia.

More reading

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Motley Fool contributor James Mickleboro has positions in Collins Foods and WiseTech Global. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Macquarie Group and WiseTech Global. The Motley Fool Australia has positions in and has recommended Macquarie Group and WiseTech Global. The Motley Fool Australia has recommended Collins Foods. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The ASX passive income stock Washington H. Soul Pattinson and Co. Ltd (ASX: SOL) is my leading pick for dividends in 2026.

Regular readers will know I’m a big fan of this business, but I think this is a particularly good time to look at investing in it for passive income.

For starters, the Soul Patts share price has dropped by 16% since September 2025. I get excited when my favourites trade at a discounted price.

The investment conglomerate is already the largest position in my portfolio, and I’m planning to buy more for a few different reasons.

Solid starting dividend yield

If I’m investing in an ASX passive income stock, I’m choosing it with a good initial dividend yield.

I would much rather own Soul Patts shares than have cash in the bank because of the size of the payout and the ability to grow that payment over time.

Based on the FY25 payout, Soul Patts has a grossed-up dividend yield 4%, including franking credits.

Impressively, the business has hiked its annual ordinary dividend every year since 1998, the longest record on the ASX.

I estimate that Soul Patts will pay an annual dividend per share of $1.08, which translates into a potential grossed-up dividend yield of 4%, including franking credits.

I’m very pleased to own an ASX passive income stock that has a clear desire to regularly increase the payout for investors.

Expanding investment portfolio

I like that Soul Patts is an ever-evolving business because of its flexible investment mandate, allowing it to buy and sell assets as it sees new opportunities. This helps it remain future-proof.

Additionally, Soul Patts pays out a majority of the cash flow it receives each year, but it can invest the remainder into new opportunities.

With how Soul Patts is set up, I think it’s a good option for steady compounding as it builds up its portfolio value through new and existing investments.

In recent times, it has allocated money towards areas like electrification, agriculture, swimming schools and more. It has also invested internationally, which I think is a positive development because of the numerous opportunities overseas.

Defensive positioning

Soul Patts has deliberately built its portfolio to be defensive and largely uncorrelated.

Its portfolio being spread across numerous sectors means the company receives cash flow from a variety of sources. This defensive cash flow is integral for paying the consistent and growing passive income.

I like the industries it’s invested in, including telecommunications, resources, building products, industrial properties, financial services, healthcare and more.

I don’t know what’s going to happen in 2026 and beyond, but I think the company’s portfolio has good prospects of delivering good returns in the long-term and it should be able to generate good earnings, even if there’s a downturn, thanks to its defensive portfolio.

The post Here’s my number 1 passive income stock for 2026 appeared first on The Motley Fool Australia.

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Motley Fool contributor Tristan Harrison has positions in Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia has positions in and has recommended Washington H. Soul Pattinson and Company Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

If you are in the market for some blue chip additions to your portfolio, then it could be worth hearing what Morgans is saying about the three listed below.

Let’s see if the broker is bullish on bearish on these big names right now:

Amcor (ASX: AMC)

This packaging giant could be undervalued according to Morgans. Its analysts have put a buy rating and $15.20 price target on its shares.

The broker highlights the low multiples its shares trade on, its positive growth outlook, and its generous dividend yield as reasons to buy. Morgans said:

Our target price is maintained at $15.20 and with a 12-month forecast TSR of 25%, we upgrade our rating to BUY (from ACCUMULATE). Following AMC’s solid 1Q26 result, management’s increased confidence in delivering FY26 synergy targets, and the reaffirmation of FY26 guidance, we believe the outlook remains positive. Trading on 10.4x FY26F PE with a 6.1% yield, we view the valuation as attractive. Potential positive catalysts include meeting or exceeding expectations in upcoming quarterly results and the successful completion of additional asset sales.

ANZ Group Holdings Ltd (ASX: ANZ)

This banking giant’s recent second half results disappointed Morgans.

The broker responded by retaining its trim rating (between hold and sell) on ANZ’s shares with a $33.09 price target. It feels that its shares are expensive after a strong gain. Morgans explains:

Ex $1.1bn of significant items, 2H25 profit declined 7% vs 1H25, with a -3% decline in pre-provision profit (revenue +2%, costs +6%) and a doubling of credit impairment charges. Earnings were materially below market expectations, albeit consensus may not have fully adjusted for the significant items. We have downgraded our FY26-28F cash earnings by 1-2%. However, 12 month target price lifts 29 cps to $33.09/sh due to CET1 capital outperformance in 2H25. We recommend clients TRIM into share price strength, with the share price and implied valuation multiples trading at or around all-time highs.

Macquarie Group Ltd (ASX: MQG)

Finally, Morgans has been looking at this investment bank. It was a little disappointed with its performance in the first half of FY 2026.

In light of this and its fair valuation, the broker has put a hold rating and $215.00 price target on its shares. It commented:

MQG’s 1H26 NPAT (A$1.65bn) was +3% on the pcp, but -9% below company-compiled consensus ($1.81bn). Whilst acknowledging there were some explainable items driving this miss, e.g. increased investment spend in CGM, factors like green asset impairments and non-repeated prior year gains also came into play. Purely on face value, it was another headline result miss for MQG, albeit full year guidance commentary appears relatively unchanged. We make mild downgrades to our MQG FY26 earnings of -2%, with future year earnings slightly lifted (+2% to 4%) on a broad review of our earnings assumptions. Our PT is reduced to ~A$215 (previously ~A$223). We maintain our HOLD recommendation on MQG, believing the stock is currently fair value trading on 19x PE.

The post Buy, hold, sell: Amcor, ANZ, and Macquarie shares appeared first on The Motley Fool Australia.

More reading

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Motley Fool contributor James Mickleboro 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 Macquarie Group. The Motley Fool Australia has positions in and has recommended Amcor Plc and Macquarie Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

When markets are rising and confidence is high, investing can feel easy.

Almost any decision looks like a good one. It is when uncertainty creeps in, when headlines turn negative, and sentiment becomes fragile that the real work begins.

Economic slowdowns, geopolitical tensions, shifting interest rate expectations, and rapid technological change can all make investors second-guess themselves. In moments like these, the temptation is either to do nothing or to chase whatever feels safest at the time.

Over the years, I’ve found that uncertain periods aren’t a reason to step away from investing. They’re a reason to tighten my focus.

Here’s what I look for in ASX shares when the outlook feels murky.

Businesses that remain relevant

During uncertain times, I’m drawn to ASX shares that people continue to rely on regardless of how the economy is tracking.

These are businesses tied to everyday needs, such as food, healthcare, utilities, infrastructure, and essential services. This might mean ASX shares like CSL Ltd (ASX: CSL) and Woolworths Group Ltd (ASX: WOW). While spending patterns may shift, demand for their products rarely disappears completely.

That resilience makes it far easier to stay invested when markets become volatile.

Strong balance sheets

Uncertainty has a habit of exposing weak balance sheets.

I prefer ASX shares that consistently generate cash and aren’t dependent on constant refinancing or favourable market conditions to survive. Businesses with manageable debt levels, long-term contracts, or recurring revenue streams tend to cope far better when conditions tighten.  An ASX share like Pro Medicus Ltd (ASX: PME) springs to mind immediately.

Importantly, strong balance sheets don’t just reduce risk. They allow companies to keep investing, or even take advantage of opportunities, while competitors are forced to retrench.

Leadership with a long-term mindset

Volatile markets can push management teams into short-term decisions that hurt long-term value.

I pay close attention to how leaders talk about strategy, capital allocation, and growth priorities during tougher periods. The best management teams stay disciplined, even when the market demands quick fixes or aggressive cost-cutting.

When management demonstrates patience and consistency, it gives me confidence the business can navigate uncertainty without undermining its future.

Competitive advantages

Market conditions can change quickly, but genuine competitive advantages tend to persist.

I look for companies with scale, network effects, switching costs, or regulatory protection. These are advantages that aren’t easily eroded when growth slows. These moats help protect margins and market position, even when competition intensifies.

If a company’s success depends entirely on favourable conditions, I would be concerned about holding it for the long term.

Foolish takeaway

Uncertain times don’t demand bold predictions or perfect timing. They demand discipline.

By focusing on essential businesses, financial strength, durable competitive advantages, and realistic valuations, I give myself the best chance of staying invested when it matters most. Rather than reacting to every headline, I aim to own companies I’m comfortable holding, even when the future feels unclear.

The post What I look for in ASX shares when uncertainty is everywhere appeared first on The Motley Fool Australia.

More reading

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Motley Fool contributor James Mickleboro has positions in CSL, Pro Medicus, and Woolworths Group. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended CSL. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Pro Medicus. The Motley Fool Australia has positions in and has recommended Woolworths Group. The Motley Fool Australia has recommended CSL and Pro Medicus. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

This is the perfect time to evaluate where the best opportunities are to invest $1,000, $10,000 or even more into ASX shares.

There are a number of great businesses Aussies can buy that could deliver strong long-term returns such as Guzman Y Gomez Ltd (ASX: GYG), Tuas Ltd (ASX: TUA) and Breville Group Ltd (ASX: BRG). I own shares in each of those names because of my optimistic view of their outlooks.

But, if I had to pick four ideas to invest $10,000 today based on their growth potential and the underlying valuation, I’d spread the money across these names.

Washington H. Soul Pattinson and Co. Ltd (ASX: SOL)

There a few businesses on the ASX that have a long-term track record of delivering good compounding returns over very long stretches of time. Soul Patts is an investment conglomerate, but, unlike Berkshire Hathaway, its success has not been reliant on the investment decisions of just one or two individuals.

Soul Patts has built a diversified portfolio across a variety of sectors including industrial properties, building products, resources, telecommunications, financial services, credit and plenty more.

With the Soul Patts share price down 18% since September 2025, at the time of writing, it looks better value to me. Its portfolio defensive positioning means it doesn’t often fall more than 10%, so this could be an appealing trigger point.

I’m expecting long-term compounding from this ASX share as its existing and future investments grow and deliver value for the company. Expansion of its international investing efforts could be a very pleasing development if that happens in 2026 and beyond – the company has a small part of its portfolio dedicated to international investments.

Temple & Webster Group Ltd (ASX: TPW)

This online retailer of furniture, homewares and home improvements took a big dive towards the end of 2025 after its revenue growth of 18% in FY26 to 20 November 2025 disappointed investors.

But, I think it’s a potential mistake to think the company’s growth prospects have been permanently reduced, so the sell-off could be overdone.

I believe the transition to online shopping will continue, with Australia’s online penetration homewares and furniture at 20% of the overall sector, compared to 29% for the UK and 35% for the US. I think that bodes well for the ASX share as a leader in the e-commerce space.

Pleasingly, certain segments of the business are growing revenue at a faster pace. In the AGM update, it revealed home improvement revenue was up 40% year-over-year, while trade and commercial revenue increased 23% year-over-year.

With revenue continuing to climb at a solid double-digit pace and good prospects for margin improvements in the years ahead, I think this is an underrated ASX share.

VanEck Morningstar Wide Moat ETF (ASX: MOAT)

The US share market has a lot of great businesses and some Australians may be missing out on investment exposure if they don’t have any money allocated to that market.

The MOAT exchange-traded fund (ETF) allows Aussies to invest in a portfolio of around 50 US businesses that are judged to have economic moats, or competitive advantages, that are expected to (probably) endure for at least 20 years.

There are always good investments out there, but with the local and global share market trading at near all-time highs, it could be prudent to be more selective with what we by.

This exchange-traded fund only invests in the great businesses once Morningstar analysts think the businesses are trading at good value.

TechnologyOne Ltd (ASX: TNE)

TechnologyOne provides enterprise software to local councils, governments, businesses, universities and other education providers.

The TechnologyOne share price has dropped around 30% in the last six months, making this investment an appealing opportunity right now, in my view.

The ASX share is targeting $1 billion of annual recurring revenue (ARR) by FY30, with this being driven by providing better software options for existing clients (and generating more revenue from them) and winning new subscribers. For example, it recently won two London councils, which bodes well for future wins in the UK.

With expectations of growing profit margins and geographic expansion, I think the ASX share has a very promising future and is well worth a buy today with revenue and profit regularly rising at a mid-teen growth rate in percentage terms.

The post Where I’d invest $10,000 in 2026 in ASX shares aiming to beat the market appeared first on The Motley Fool Australia.

More reading

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Motley Fool contributor Tristan Harrison has positions in Breville, Guzman Y Gomez, Technology One, Temple & Webster Group, Tuas, VanEck Morningstar Wide Moat ETF, and Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Berkshire Hathaway, Technology One, Temple & Webster Group, and Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia has positions in and has recommended Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia has recommended Berkshire Hathaway, Technology One, Temple & Webster Group, and VanEck Morningstar Wide Moat ETF. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Westpac Banking Corp (ASX: WBC) shares have a reputation for dividends. Shareholders or prospective investors may be wondering how much passive income the ASX bank share could pay in 2026 with a sizeable investment.

ASX bank shares tend to trade on a relatively low price/earnings (P/E) ratio and have a fairly generous dividend payout ratio, resulting in a compelling dividend yield for investors.

While banks do have significant capital requirements and may need money to invest in initiatives every so often, it’s not a surprise to me when banks deliver a large dividend payout for investors.

Let’s look at how large the payout could be in 2026.

Analyst forecasts for owners of Westpac shares

The broker UBS currently projects that the ASX bank share could pay a dividend yield of 4.4% in FY26. That projected yield excludes the potential franking credits.

Including franking credits, Westpac could deliver a grossed-up dividend yield of around 6.25%, which is a decent yield and better than what Australians could get from one of its term deposits.

If an investor had $10,000 in Westpac shares today, it could see $440 of cash passive dividend income from the ASX bank share in FY26, or $625 of overall income, including the franking credits.

Is this a good time to invest in the ASX bank share?

Last month, the bank held its AGM and there were two main themes that UBS highlighted.

Firstly, the broker noted that Westpac CEO Anthony Miller is targeting a cost to income (CTI) ratio below the average of its pears and a return on tangible equity (ROTE) above the average of peers by FY29.

Before the AGM, the goal of Westpac was to “improve” those metrics compared to peers. UBS suggested this reveals “improving confidence in UNITE’s implementation”. UNITE is a key, significant initiative by Westpac to improve performance and profitability. This could play an important role for the passive income in the coming years.

UBS wrote about Westpac’s view on UNITE:

UNITE [is] expected to be completed in FY29 and has finalised the scope of 10 work packages with the majority of initiatives on track (8 complete, 51 underway). Current guidance for UNITE spend is expected to increase ~36% to $850-950M in FY26E (~40% of total investment spend FY27-28 and lower in FY29), expensing ~75%.

Questions from the floor were focused on themes that have been discussed in other bank AGMs this year: digital scams, branch closures, sustainability initiatives and efforts as well as AI and job stability were all discussed. Q1 26 update is scheduled to be released on the 13th Feb 2026.

In our view, to achieve these two objectives, strict discipline and consistent progress on Project UNITE are essential.

However, achieving some of the goals could be challenging because UBS expects higher lending growth and higher operating expenditure, primarily due to increased IT costs.

UBS expects owners of Westpac shares to see net profit of $7.26 billion, putting the bank valuation at more than 18x FY26’s estimated earnings.

The post If I invest $10,000 in Westpac shares, how much passive income will I receive in 2026? 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 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.

Building wealth through the share market doesn’t require perfect timing or complex strategies. Some of the most successful investors follow a fairly straightforward process and adhere to it through both good times and bad.

As we arrive in 2026, there’s no shortage of uncertainty. But that doesn’t mean the opportunity to build long-term wealth has disappeared. It just means having a clear plan matters more than ever.

Here are five steps I believe are key to building wealth with ASX shares in 2026.

1. Focus on quality

I don’t spend much time trying to forecast where the market is headed next month or even next year. Instead, I focus on owning high-quality businesses like CSL Ltd (ASX: CSL), Commonwealth Bank of Australia (ASX: CBA), and Wesfarmers Ltd (ASX: WES).

These are companies with competitive advantages, strong balance sheets, and products or services that remain relevant regardless of economic conditions. Over time, quality tends to assert itself, even if the journey is volatile.

Trying to predict macro events is hard. Owning great businesses is simpler.

2. Invest regularly

One of the most effective habits for building wealth is consistency.

Rather than waiting for the perfect moment to invest, I prefer to invest regularly. This approach smooths out market volatility and reduces the risk of letting emotions drive decisions.

Markets will fluctuate in 2026. They always do. Consistent investing helps turn that volatility from a source of stress into a long-term advantage.

3. Harness the power of compounding

Compounding is powerful, but it requires patience.

Building meaningful wealth with ASX shares usually happens gradually, then suddenly. Small gains reinvested over long periods can lead to outcomes that surprise even disciplined investors.

The key is giving your investments time, resisting the urge to constantly trade, tinker, or chase short-term trends. The longer quality businesses are allowed to compound, the more powerful the results tend to be.

4. Manage risk

In uncertain markets, risk management matters just as much as return potential.

I pay close attention to balance sheets, diversification, and position sizing. Avoiding permanent capital loss is far more important than maximising returns in any single year.

That also means being honest about risk tolerance. If a portfolio keeps you awake at night, it’s probably taking on too much risk, regardless of potential upside.

5. Stay invested

Finally, building wealth with ASX shares requires staying the course.

Every year brings reasons to be cautious. There will always be headlines predicting crashes, recessions, or bubbles. One day, those warnings will be right. But stepping out of the market too often can be far more damaging than riding through volatility.

I’ve found that staying invested, while continuing to add to high-quality holdings, has been far more effective than trying to sidestep every potential risk.

Foolish Takeaway

Building wealth with ASX shares in 2026 doesn’t require bold forecasts or constant action. It requires discipline, patience, and a focus on quality.

By investing consistently, managing risk, and allowing compounding to work over time, investors give themselves the best chance of achieving long-term success, even in uncertain markets.

The post 5 steps to building wealth with ASX shares in 2026 appeared first on The Motley Fool Australia.

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Motley Fool contributor Grace Alvino has positions in CSL, Commonwealth Bank Of Australia, and Wesfarmers. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended CSL and Wesfarmers. The Motley Fool Australia has recommended CSL and Wesfarmers. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.