Author: openjargon

CSL Ltd (ASX: CSL) is a harder share market story than it used to be.

For years, investors treated the biotechnology giant as a reliable compounder. Today, the market wants evidence of better execution, stronger margins, cleaner guidance, and a clearer path back to earnings momentum.

I think that shift has created an opportunity.

The buy case today is about improvement from a much lower level of confidence. CSL no longer needs to be viewed as flawless for investors to make money. It needs to show that the business can stabilise, tighten execution, and rebuild momentum over the next few years.

That is why I would buy the shares while sentiment remains weak.

A more practical investment case

I think CSL now needs to be judged differently.

The old story was built around consistent growth, high investor trust, and a premium valuation. The current story is more grounded. It is about self-help, operational improvement, and whether management can get more from a very large healthcare platform.

That may sound less exciting, but it can still be a powerful setup.

A business of CSL’s size does not need everything to change at once. Better collection efficiency, sharper commercial execution, improved productivity, and more disciplined spending could all make a meaningful difference over time.

When expectations are low, even steady progress can matter. That is the part I find attractive. The market is already cautious. Investors are no longer assuming the company will deliver smooth, year-over-year growth. If CSL can start rebuilding credibility, the share price could respond well before the recovery looks complete.

Plasma remains central

The plasma business is still the beating heart of CSL. Demand for plasma-derived therapies is tied to serious medical conditions and ongoing healthcare needs. Products such as immunoglobulins are used by patients who rely on treatment, which gives the business a very different demand profile from many consumer-facing companies.

The challenge for CSL is turning that demand into stronger returns.

That means managing collection costs, improving network productivity, making good commercial decisions, and rebuilding confidence in the earnings path. None of that is easy, but the prize is significant because the plasma market still has long-term growth potential.

I also think investors sometimes underestimate the value of scale in this industry.

CSL has a collection, manufacturing, regulatory, distribution, and scientific capability that cannot be replicated quickly. Those strengths do not remove the execution challenge, but they do give the company a strong base from which to improve.

More than one lever

CSL also has other parts of the business that could help over time.

Seqirus gives the group exposure to vaccines, while CSL Vifor adds specialist medicine exposure in areas such as iron deficiency and nephrology.

These businesses have not removed the pressure on the group, and investors still need to watch execution closely. But they do add breadth to CSL’s earnings base and give management more than one area to improve.

That is important because recovery does not have to come from a single perfect outcome.

If plasma execution improves, Seqirus remains resilient, and CSL Vifor contributes more consistently, the overall group could look much healthier in a few years.

Patience is needed

I would not expect sentiment to change overnight. Once the market loses confidence in a former favourite, it usually takes time and evidence before investors return in a meaningful way. That could mean several results, clearer guidance, and signs that margins are moving in the right direction.

There are risks to think about. Its recovery could take longer than expected, margins may stay under pressure, and management still needs to prove it can deliver a cleaner earnings story.

But I think the starting point is far more attractive than it was when CSL shares traded on a much richer valuation and investor expectations were much higher.

Foolish takeaway

CSL shares now look like a different kind of opportunity.

The company is no longer just a simple quality compounder that the market is willing to back almost automatically. It is a global healthcare business that needs to rebuild trust, improve execution, and show that its best years are not behind it.

I think that is a worthwhile risk at today’s lower level of confidence.

Patient investors may need to wait for sentiment to turn, but that is often how better entry points appear. If CSL can make steady operational progress and restore earnings momentum, I think today’s weak sentiment could eventually look too pessimistic.

The post Why I’d buy CSL shares while sentiment is weak appeared first on The Motley Fool Australia.

More reading

• Leading brokers name 3 ASX shares to buy today
• Has the CSL share price finally bottomed out?
• 3 cheap ASX shares I’d buy before sentiment turns
• Why Chalice Mining, CSL, Megaport, and Pro Medicus shares are racing higher
• 6 ASX 200 shares downgraded by analysts this week

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. 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.

ASX healthcare stock Vitrafy Life Sciences (ASX: VFY) continued its impressive run yesterday with a 16% jump. 

The company has now seen its share price rise almost 200% year to date. 

Company overview

Vitrafy is a biotechnology company focused on improving cryopreservation, which is the process of freezing and storing biological materials such as cells, tissues, reproductive material, and potentially other medical or veterinary products.

The company has developed its own Vitrafy Cryopreservation Technology (VCT), which combines:

• Smart freezing and thawing devices
• Quality management software
• Specialised packaging solutions

The goal of VCT is to better control temperature changes during freezing and thawing. This helps more cells survive and remain functional after they are thawed.

According to Vitrafy’s testing and independent validation studies, its technology has produced higher cell survival rates and better cell quality than many existing industry methods and standards.

Why is it hitting new highs?

There was no price-sensitive news out of this healthcare stock on Tuesday. 

However, last week, the company announced a partnership with Vitalant Innovation Center (“Vitalant”) to configure Vitrafy’s next-generation cryopreservation ecosystem to solve the looming crisis for red blood cell preservation. 

The partnership aims to address a pivotal industry transition: as existing frozen red blood cell (“RBC”) technologies reach the end of their operational life, with no replacement presently available.

Speaking on the partnership, Managing Director and CEO, Brent Owens, commented:

We are really excited to partner with Vitalant to actively address an issue of national significance with one of the leading blood market participants in the USA. 

The recognition of Vitrafy’s cryopreservation ecosystem as the next generation solution to this crisis reinforces our belief that we are securing meaningful market traction and creating a pathway to significant commercial scale. 

We see this partnership as the first of several potential civilian blood opportunities that have stemmed from the successful results in the U.S Army platelets study.

This new partnership, along with recent contract wins, has likely propelled the healthcare stock to new all-time highs. 

Can this healthcare stock keep rising?

This ASX healthcare stock is now at a new 52-week high following Tuesday’s gain. 

Holders of the stock may now be considering profit-taking, while prospective investors will be considering the future potential of this growth stock.

Earlier this year, Bell Potter placed a price target of $3.00 on this healthcare stock. 

Meanwhile, Morgans is optimistic about the company following recent contract wins. 

Despite the positive views, it is now trading above broker targets. 

However, it’s worth noting that growth stocks can remain attractive investments even when trading above broker price targets. 

Rapid earnings and revenue growth can cause a company’s intrinsic value and share price to increase faster than analysts can update their forecasts and rerate the stock.

The post Is this exciting healthcare stock a buy, hold or sell after rocketing 16% yesterday? appeared first on The Motley Fool Australia.

More reading

• Is this ASX materials stock a buy, hold or sell after sliding on earnings results?
• This ASX small-cap gold stock could surge 136% according to Bell Potter
• Why this ASX real estate stock is a compelling buy according to Bell Potter
• Are Nufarm shares a buy, hold or sell after jumping 13% on half-year results?
• This ASX industrials stock could be set to race 20% higher: Expert

Motley Fool contributor Aaron Bell 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.

Do you know how your superannuation balance compares to other Aussies the same age?

It’s important to keep on top of how much is in your superannuation at each life milestone. How else can you make sure you’re on track with your retirement goals?

The issue is that Australians aged 45 are at a very different stage of life from those aged 65.

At age 45, many Australians feel like they’re at a financial crossroads. They’re at the life stage between the superannuation they’ve built in their early careers and the stage when their superannuation begins to compound more rapidly.

At age 65, many Australians are in or very close to retirement. This age group should be closely examining what they need to retire and live the lifestyle of their dreams. 

Here’s a breakdown of the average superannuation balance for Australians aged 45 versus 65 in 2026.

What is the average superannuation balance of Australians aged 45 in 2026?

There isn’t an exact figure for Australians aged 45, but there is a bracket that can help provide a good starting point.

Data from the Association of Superannuation Funds of Australia (ASFA) shows that at age 45-49, the average male has $193,501 in their superannuation. Meanwhile, the average female has $147,146.

What is the average superannuation balance of Australians aged 65 in 2026?

At age 65, the figures are again vastly different between men and women.

ASFA data shows that males aged 65-69 have an average superannuation balance of $448,518. Meanwhile, women have an average of $392,274.

How do these balances compare to what I actually need to retire?

ASFA data also shows how much Australians actually need in their superannuation in order to live a comfortable retirement.

That’s one where retirees can expect to maintain a good standard of living. It assumes you’d own the top level of private health insurance, own a reasonable car brand and do regular leisure activities. It also includes funds for potential home repairs or renovations, the occasional meal out, and perhaps even an annual holiday.

According to ASFA, a comfortable retirement is expected to cost around $54,840 per year for single Aussies. It is expected to cost roughly $77,375 per year for a couple. This also assumes that you’d be entitled to receive a part Age Pension payment at age 67.

These figures indicate that by age 67, single Australians need a superannuation balance of approximately $640,000. And couples should have closer to $730,000.

As you can see, what you actually need for a comfortable retirement is a lot more than the average superannuation balance of Australians, even at age 65.

How does your superannuation balance compare now?

ASFA has crunched the numbers, and it turns out that in order to reach the total balance needed at age 67, you’d need a superannuation balance of around 239,000 at age 45. This would need to increase to around $604,500 by age 65.

The post Average superannuation balance in Australia in 2026: 45 vs 65 year olds appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Wednesday
• Here are the top 10 ASX 200 shares today
• Here’s why the ASX 200 is falling despite a sea of green
• 5 things to watch on the ASX 200 on Tuesday
• ASX 200 tech stocks led the market with big share price gains last week

Motley Fool contributor Samantha Menzies 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.

Growth shares can be powerful wealth builders when they are held for the long term.

The key is finding companies with large markets, improving business models, and the potential to become much bigger over time.

Not every growth share will deliver the goods for investors, but the best ones can reward those that are willing to be patient.

With that in mind, here are three ASX growth shares that could be worth buying and holding.

Catapult Sports Ltd (ASX: CAT)

The first ASX growth share to look at is sports technology company Catapult.

It provides performance technology used by sporting teams and athletes around the world. Its products help clubs track movement, workload, injury risk, training output, and match performance.

Professional sport is becoming more data-driven, and teams are under pressure to find small advantages wherever they can. While it makes money from selling wearable devices, the real value is in the data, software, and insights that help coaches and performance staff make better decisions.

If data keeps becoming more important in elite sport, Catapult could have a much larger role to play and be positioned for strong growth over the long-term.

Morgans is a fan and recently put a buy rating and $5.40 price target on its shares.

Temple & Webster Group Ltd (ASX: TPW)

Another ASX growth share that could be a top buy and hold option is online furniture and homewares retailer Temple & Webster.

The company has built a strong position in a category that has traditionally been dominated by physical stores.

Furniture shopping is not always easy. Products are bulky, ranges are fragmented, and customers want choice. Temple & Webster’s model gives shoppers access to a wide product range without the same store footprint required by traditional retailers.

This leaves it well-placed to benefit as online penetration continues to rise in the furniture and homewares market.

Bell Potter is positive on the company’s long-term outlook. It recently put a buy rating and $7.00 price target on its shares.

Zip Co Ltd (ASX: ZIP)

A third ASX growth share to consider as a buy and hold investment is Zip.

The buy now pay later company has been through a major reset in recent years. It has refocused its operations, improved its cost base, and concentrated on markets where it believes it can generate stronger returns.

Its US business remains an important part of the growth story, particularly if consumer demand and merchant adoption continue improving.

Importantly, Zip is no longer just a story about rapid user growth. If it can keep delivering profitable growth, the market may start viewing it very differently.

Ord Minnett already does. The broker is bullish and recently put a buy rating and $4.00 price target on its shares.

The post 3 amazing ASX growth shares to buy and hold forever appeared first on The Motley Fool Australia.

More reading

• Here are the top 10 ASX 200 shares today
• These shares are being dumped from the ASX 200 index
• ASX 200 tech stocks led the market with big share price gains last week
• Which are the best ASX shares to buy now for FY27?
• Why Catapult Sports, Harvey Norman, Inghams, and Opthea shares are sinking today

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

Owning Woodside Energy Group Ltd (ASX: WDS) shares over the last 12 months has been very rewarding, as the chart below shows. A recent rise in energy prices could lead to a significant dividend increase.

At the time of writing, the Woodside share price has climbed 36% over the last 12 months. Not many ASX blue-chip shares can point to a performance as strong as that over the last year.

It’s understandable why virtually all of the rise has happened this year. The business has benefited from the higher energy prices following the Middle East events, as well as (in my view) rising global energy demand (from areas like data centres).

Woodside’s dividend has been volatile over the years, but the next couple of years could be particularly attractive for investors.

FY26

Woodside’s financial year runs on the calendar year, so we’re close to halfway through it, rather than almost at the end of FY26 like many other Australian businesses.

The company has already revealed its production for the first quarter of 2026.

It reported that it produced US$3.26 billion of operating revenue, up 7% compared to the fourth quarter of 2025, with an average realised quarterly price of US$63 per barrel of oil equivalent (BOE) – that was 11% higher than the fourth quarter of 2025, reflecting the benefit from market prices.

While energy prices increased, production volumes decreased 8% to 45.2 million barrels of oil equivalent (MMboe). Sales volume also decreased by 1% to 51.7 MMboe.

The business is also making significant progress on its projects, with the Scarborough project reaching 96% completion. Scarborough remains on budget and on track for the first LNG cargo in the fourth quarter of 2026.

It noted that the Scarborough floating production unit completed hook-up and began topside commissioning upon arrival in Australia.

According to Commsec’s projection, the business could hike its annual dividend per Woodside share by almost 39% in FY26 and pay a grossed-up dividend yield of 10.75% at the time of writing, including franking credits.

FY27

The company’s performance in FY27 could largely depend on energy prices and the pace of resolution of the situation in the Middle East, including how long it takes for normal energy flows to resume through the Strait of Hormuz.

Based on Commsec forecasts, the business is projected to be even more profitable in the 2027 financial year than in FY26.

Woodside is forecast to deliver a 24% hike in its FY27 annual dividend, which would be very pleasing for owners of Woodside shares.

The projection implies that the payout could rise by 24% year over year. The grossed-up dividend yield, including franking credits, at the time of writing, could be 13.3% for FY27.

FY28

The last year of this series of projections suggests Woodside’s payout could return to a more normal level.

While the payout could be 23% lower than FY27’s dividend, it could still be 32% higher than the FY25 annual payment.

At the time of writing, the FY28 grossed-up dividend yield could be 10.25%, including franking credits.

Based on these projections, Woodside shares are expected to deliver double-digit passive income returns over the next few years.

However, it has already risen following the Middle East events, so it may not be the best opportunity out there. Other ASX share ideas could be more appealing.

The post Here’s the dividend forecast out to 2028 for Woodside shares appeared first on The Motley Fool Australia.

More reading

• Why Woodside shares just got a big buy call
• Why Coles and Woodside shares are being tipped as buys
• 5 things to watch on the ASX 200 on Friday
• 5 things to watch on the ASX 200 on Thursday
• Why DroneShield, Pro Medicus, SRG Global, and Woodside shares are charging higher today

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.

On Tuesday, the S&P/ASX 200 Index (ASX: XJO) fought back from a very poor start to end the day only slightly lower. The benchmark index dropped 0.25% to 8,604.2 points.

Will the market be able to bounce back from this on Wednesday? Here are five things to watch:

ASX 200 to edge higher

The Australian share market looks set for a better day on Wednesday despite a mixed night on Wall Street. According to the latest SPI futures, the ASX 200 is expected to open the day 9 points or 0.1% higher. In the United States, the Dow Jones rose 0.15%, but the S&P 500 fell 0.25% and the Nasdaq dropped 1%.

Oil prices tumble

ASX 200 energy shares Beach Energy Ltd (ASX: BPT) and Santos Ltd (ASX: STO) could have a difficult session after oil prices tumbled overnight. According to Bloomberg, the WTI crude oil price is down 3.2% to US$88.31 a barrel and the Brent crude oil price is down 2.85% to US$91.54 a barrel. This was driven by news that traffic is increasing in the Strait of Hormuz.

Wesfarmers update

All eyes will be on Wesfarmers Ltd (ASX: WES) shares on Wednesday when the conglomerate holds its strategy briefing day event in Sydney. Ahead of the event, Morgans recently upgraded the Bunnings owner’s shares to an accumulate rating. It said: “In our view, WES remains a high-quality business with a healthy balance sheet and a proven management team. Amid ongoing geopolitical uncertainty and cost-of-living pressures, its retail divisions (Bunnings, Kmart Group, Officeworks, Priceline) are well-placed to grow due to their strong value propositions. A sustained improvement in lithium prices should also support earnings over the medium term.”

Gold price drops

ASX 200 gold shares such as Newmont Corporation (ASX: NEM) and Northern Star Resources Ltd (ASX: NST) could have a poor session on Wednesday after the gold price dropped overnight. According to CNBC, the gold futures price is down 1.8% to US$4,282.9 an ounce. Traders were selling gold ahead of the release of US inflation data and on increasing rate hike bets.

TechnologyOne shares downgraded

Bell Potter is calling time on the TechnologyOne Ltd (ASX: TNE) share price rally. This morning, the broker has downgraded the enterprise software provider’s shares to a hold rating (from buy) with an improved price target of $34.25 (from $32.25). It said: “Our updated TP of $34.25 is <15% premium to the share price so we downgrade our recommendation to HOLD. We now see the stock as reasonable value on FY26 and FY27 PE ratios of 66x and 55x respectively. We do see Technology One as one of if not the best quality large cap SaaS company on the ASX but we note it is already trading at almost double the FY26 and FY27 PE ratios of WiseTech (ASX: WTC) on 35x and 28x.”

The post 5 things to watch on the ASX 200 on Wednesday appeared first on The Motley Fool Australia.

More reading

• Here are the top 10 ASX 200 shares today
• Here’s why the ASX 200 is falling despite a sea of green
• Why Aeris Resources, Northern Star, REA Group, and Weebit Nano shares are falling today
• Why are ASX 200 tech stocks like WiseTech, Life360 and Xero shares getting hammered on Tuesday?
• 3 ASX stocks I’d buy during a sharemarket crash

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

The recently announced Federal budget changes may make superannuation the best way for full-time working Australians to invest for passive income.

Superannuation has a low tax rate compared to many individuals, trusts, and companies. On top of that, it’s easy to invest for the long-term through the super structure.

One of the most important elements of passive income investing is to understand that the net income we receive from investments is an after-tax figure. Full-time working Aussies investing for passive income in their own name could lose a third of that passive income to tax each year, which is not ideal.

Superannuation is more appealing due to its lower tax rate in the accumulation phase than the usual individual’s tax rate for a full-time earner. In retirement, the tax rate could be 0%.

Every household’s tax situation is different, so we’ll look at a specific income level without mentioning tax from now on.

How much is needed in superannuation for $6,000 of monthly passive income?

Receiving $6,000 in dividends each month equates to an annual goal of $72,000 per year. Plenty of Australians would probably love receiving that amount of dividends each year without needing to do ongoing work for it.

Australian investors will need to consider what sort of investments they want to own and the yield that comes with that. I believe that ASX shares are the best choice for passive income, partly due to the potential for franking credits.

A portfolio with a dividend yield of 6% can be half the size of a portfolio with a dividend yield of 3% and generate the same level of dividend income.

For example, if a portfolio were $1.2 million in size, it would generate $72,000 of annual passive income with a 6% dividend yield. If a portfolio had a 3% dividend yield, it would need to be $2.4 million in size to generate the same level of annual payments.

Different dividend yields would require different-sized portfolios.

A 5% dividend yield would require a portfolio size of $1.44 million to make $72,000 annually.

A 4% dividend yield would require a portfolio size of $1.8 million.

The types of ASX dividend shares I’d want to buy

If an Australian superannuation investor wants to unlock mid-to-higher dividend yields, I’d consider quality companies with franking credits, good value, and reliable real estate investment trusts (REITs) and listed investment companies (LICs) with compelling passive-income track records.

Some of the ASX dividend shares I’d look at that offer a dividend yield of approximately 5% to 6% include farmland landlord Rural Funds Group (ASX: RFF), industrial property owner Centuria Industrial REIT (ASX: CIP), ASX blue-chip-focused LIC Australian Foundation Investment Co Ltd (ASX: AFI), the global quality share-focused fund WCM Quality Global Growth Fund (ASX: WCMQ), ASX share and global LIC investor L1 Long Short Fund Ltd (ASX: LSF), and Australia’s leading telco Telstra Group Ltd (ASX: TLS).

Names with a higher dividend yield that I’d suggest include diversified REIT Charter Hall Long WALE REIT (ASX: CLW) and various LICs, including WAM Leaders Ltd (ASX: WLE), Future Generation Global Ltd (ASX: FGG), Future Generation Australia Ltd (ASX: FGX), and Hearts and Minds Investments Ltd (ASX: HM1).

The post How much is needed in superannuation to target a $6,000 monthly passive income? appeared first on The Motley Fool Australia.

More reading

• 3 amazing ASX growth shares to buy and hold forever
• Here’s the dividend forecast out to 2028 for Woodside shares
• 5 things to watch on the ASX 200 on Wednesday
• 3 high-quality Australian shares I’d buy with $10,000
• How to stop wasting money and start building wealth with ASX shares

Motley Fool contributor Tristan Harrison has positions in Future Generation Australia, Future Generation Global, Hearts And Minds Investments, L1 Long Short Fund, Rural Funds Group, and Wcm Quality Global Growth Fund. 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 positions in and has recommended Rural Funds Group and Telstra Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

If I had $10,000 to invest in Australian shares today, I would put my money into companies that I believe can become more valuable over time.

With that said, here are three Australian shares I would consider in June.

Sigma Healthcare Ltd (ASX: SIG)

Sigma Healthcare is one Australian share I would be happy to buy with part of that $10,000.

The reason I like Sigma is that it now sits close to everyday health spending.

Customers do not only visit pharmacies when they are sick. They also buy vitamins, skincare and beauty products, personal care items, prescriptions, over-the-counter medicines, and everyday wellness products. That gives the business a level of repeat demand that I find attractive.

I also like the scale of the platform. A large pharmacy network can benefit from supplier relationships, distribution capability, brand recognition, customer data, and strong store traffic. In a cost-of-living environment, value still matters, and I think the Chemist Warehouse brand is well-positioned for shoppers seeking health and wellness products at competitive prices.

There are still risks to consider. Retail execution, pricing, competition, supplier terms, international expansion, and distribution performance all need to be managed well. But I think Sigma has the chance to become one of the most important healthcare retail businesses on the ASX over the next decade.

Goodman Group (ASX: GMG)

Goodman Group is another Australian share I would buy.

This is a property business, but I do not think it should be viewed as a simple landlord. Goodman owns, develops, and manages industrial and logistics assets in key global locations. Increasingly, it is also tied to the demand for data centre infrastructure.

That combination is powerful in my view. Modern supply chains need efficient logistics space close to consumers, ports, transport routes, and major cities. At the same time, cloud computing, artificial intelligence (AI), software, and digital services require more physical infrastructure.

Goodman is exposed to both.

What I like most is that the company has spent years building relationships, developing capability, and gaining access to locations where new supply can be hard to create. That can be a meaningful advantage when customers need high-quality space in the right places.

Interest rates, development costs, and data centre expectations can all affect sentiment. But I think Goodman has the type of asset base and management skill that can create value for many years.

Commonwealth Bank of Australia (ASX: CBA)

The third Australian share I would buy is the Commonwealth Bank of Australia.

CBA is not the cheapest major bank on the ASX. In fact, it often trades at a clear premium to its peers.

But I think that premium is understandable. The bank has one of the strongest deposit franchises in the country, deep customer relationships, and a digital offering that continues to set a high standard. Those things can be easy to underappreciate when investors focus only on the price-to-earnings (P/E) ratio.

Banking is a competitive industry, and margins, funding costs, bad debts, and regulation all need to be watched. But CBA has shown over many years that it can operate from a position of strength.

I also like the fully-franked dividends. They are not the only reason to own the stock, but they can add useful returns while the business continues to serve households, businesses, and investors across Australia.

For me, CBA remains the highest-quality major bank and a share I would be comfortable owning for the long term.

Foolish Takeaway

A $10,000 investment does not need to be built around one type of opportunity.

I like the idea of owning businesses that benefit from different parts of the economy: health and wellness spending, global logistics and digital infrastructure, and high-quality banking.

The share market will always offer plenty of distractions. But if I were investing $10,000 today, I would rather focus on companies with strong positions, clear demand, and the ability to stay relevant for years. That is what makes these three Australian shares stand out to me.

The post 3 high-quality Australian shares I’d buy with $10,000 appeared first on The Motley Fool Australia.

More reading

• Why these ASX blue-chip shares are strong buys right now
• Why Morgan Stanley expects CBA shares to plunge another 22%
• Buy, hold, sell: Coles, BHP, CBA shares
• How to start investing in ASX shares with just $500
• BHP, CBA, and Westpac shares are sells this week: experts

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

Building wealth does not always start with finding the next big ASX share winner.

In many cases, it starts by taking a closer look at where your money is going each month.

Most of us have expenses that creep into our budgets without much thought. Streaming services we rarely use, takeaway meals, impulse purchases, and subscriptions that seemed like a good idea at the time.

On their own, they do not look like much. But over a year, they can add up to thousands of dollars.

The good news is that you do not need to make drastic lifestyle changes to improve your financial future. Sometimes it’s simply a matter of redirecting a portion of that spending into investments.

Turn small savings into investments

The first step is identifying where you can free up some cash.

For example, if you can save just $50 a week by cutting back on unnecessary spending, that’s around $2,600 a year that could be invested instead.

While $50 a week may not sound life-changing, investing that money regularly can make a meaningful difference over time.

Rather than spending it on things you’ll barely remember a few months from now, you could use it to build a portfolio of quality ASX shares or exchange-traded funds (ETFs).

That might mean investing in companies such as Wesfarmers Ltd (ASX: WES), which owns businesses including Bunnings and Kmart, or Woolworths Group Ltd (ASX: WOW), Australia’s largest supermarket operator.

Alternatively, investors could choose an ETF and gain exposure to a broad range of companies through a single investment.

Automate the process

I think one of the easiest ways to stay on track is to make investing automatic.

If money remains in your everyday bank account, there’s always a chance it will get spent. But if a set amount is transferred into an investment account each payday, you’re far more likely to stick with the plan.

The amount does not need to be large. What’s important is consistency.

Many successful investors have built sizeable portfolios not through huge one-off investments, but by investing regularly into ASX shares over long periods and increasing their contributions as their income grows.

Give compounding time to work

One of the most powerful forces in investing is compounding. That may sound cliched, but it is true.

When your investments generate returns, and those returns remain invested, your wealth can begin to grow at an accelerating rate.

For example, investing $300 per month in ASX shares and earning an average annual return of 9% could see a portfolio grow to more than $500,000 over 30 years.

Of course, returns are never guaranteed. Markets go through ups and downs, and there will be periods when portfolios lose value.

However, the longer your investment horizon, the more opportunity compounding has to work in your favour.

Foolish Takeaway

A common mistake investors make is believing that building wealth needs to be complicated or exciting.

In reality, some of the best results come from doing the basics well.

Spend less than you earn. Invest the difference. Focus on quality businesses or diversified funds. Reinvest dividends where possible. And stay invested through market volatility.

It may not be the most exciting strategy, but it has worked for countless investors over the years.

And it all starts with taking money that would otherwise disappear and putting it to work in the share market instead.

The post How to stop wasting money and start building wealth with ASX shares appeared first on The Motley Fool Australia.

More reading

• Here are the top 10 ASX 200 shares today
• Don’t want to buy SpaceX shares? You may not have a choice
• 3 ASX small-cap shares to buy: Morgans
• Up 90% in a month, why did Megaport shares just get downgraded?
• Three ASX shares to buy right now according to Morgans

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

The post Here are the top 10 ASX 200 shares today appeared first on The Motley Fool Australia.

More reading

• Three ASX shares to buy right now according to Morgans
• Leading brokers name 3 ASX shares to buy today
• Here’s why the ASX 200 is falling despite a sea of green
• Why 4DMedical, Eagers Automotive, IDP Education, and oOh!Media shares are charging higher today
• Why this ASX 200 stock is climbing after a $2 million insider buy

Motley Fool contributor Sebastian Bowen 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 Temple & Webster Group. The Motley Fool Australia has recommended Eagers Automotive Ltd, Gqg Partners, Premier Investments, 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.