Author: openjargon

Investors, those buying ASX shares or exchange-traded funds (ETFs), would be forgiven for being a little nervous right now. The world of investing is never filled with certainty. But 2026 seems to be delivering more than your average year so far.

We have a war that has been dragging on for months now, the ongoing closure of one of the world’s most vital energy supply chains, rising inflation, and stagnating economic growth. Not exactly a recipe for confidence.

Now, investors have always faced uncertainty – no one knows what the future holds, after all. And the 21st century has already thrown up its fair share of curveballs. But those facts won’t exactly provide comfort to every investor. That’s why I thought it was a good opportunity to discuss an ASX ETF that I think is perfect for nervous investors in 2026.

That ASX ETF is none other than the iShares Global Consumer Staples ETF (ASX: IXI).

The perfect ASX ETF for nervous investors?

IXI is a fund that only holds the world’s leading manufacturers, suppliers, and retailers of consumer staples goods. Consumer staples are products we tend to need to buy, regardless of their cost. They include food, drinks, and household essentials. They also include alcohol and tobacco.

Demand for these goods tends to be highly inelastic, to borrow an economic term. Put another way, demand for these goods is typically immune to the health of the economy. That makes them highly reliable investments, particularly for nervous investors worried about inflation or a recession.

The majority of IXI’s holdings (about 60%) are US stocks. The United Kingdom, Japan, Switzerland, France, and Canada, amongst others, make up the rest.

Most of this ASX ETF’s largest holdings are well-known household names. They include Walmart, Costco, Procter & Gamble, Nestle, Coca-Cola, Phillip Morris International, PepsiCo, Altria, and Unilever. There’s also Cadbury-owner Mondelez International, Monster Beverage Corp, Colgate-Palmolive, as well as our own Coles Group Ltd (ASX: COL) and Woolworths Group Ltd (ASX: WOW).

These are all mature, established, and financially sound companies that are leaders in the consumer staples space.

Thanks to this ASX ETF’s diversification, wide exposure, and inherent defensiveness, I think this investment is perfect for a nervous investor in 2026.

The iShares Global Consumer Staples ETF has returned an average of 7.72% per annum since its inception in 2006 (that’s as of 30 April). It charges a management fee of 0.49% per annum.

The post This ASX ETF is perfect for nervous investors appeared first on The Motley Fool Australia.

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• 3 strong ASX ETFs to buy and hold for a decade or more

Motley Fool contributor Sebastian Bowen has positions in Altria Group, Coca-Cola, Costco Wholesale, Mondelez International, PepsiCo, Philip Morris International, Procter & Gamble, and Unilever. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Colgate-Palmolive, Costco Wholesale, Monster Beverage, and Walmart. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Nestlé, Philip Morris International, and Unilever. The Motley Fool Australia has positions in and has recommended Woolworths Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

ASX 200 consumer discretionary shares led the 11 market sectors last week with a 4.38% gain.

The S&P/ASX 200 Index (ASX: XJO) rose 0.86% amid volatile trading to 8,731.7 points by Friday’s close.

There was a strong 1.62% rally on Friday on fresh hopes of an imminent deal between the US and Iran.

Meanwhile, softer-than-expected inflation data on Wednesday quelled fears of further interest rate hikes ahead.

Annual headline inflation fell to 4.2% in April, down from 4.6% in March, according to the Australian Bureau of Statistics.

That’s why consumer discretionary shares outperformed their peers last week.

Let’s take a look at some individual stock price movements.

Consumer discretionary shares led the ASX sectors last week

The Wesfarmers Ltd (ASX: WES) share price lifted 6.84% over the week to finish at $79.79.

The Lottery Corporation Ltd (ASX: TLC) share price rose 4.43% to $5.42.

The Light & Wonder Inc (ASX: LNW) share price ascended 1.68% to $116.73.

JB Hi-Fi Ltd (ASX: JBH) shares rose by 2.45% to finish the week at $74.49.

Shares in furniture retailer Harvey Norman Holdings Ltd (ASX: HVN) lifted 5.01% to $4.61.

Super Retail Group Ltd (ASX: SUL) shares rose 5.77% to $11.73 apiece.

Lovisa Holdings Ltd (ASX: LOV) shares increased 6.08% to close at $23.22.

ASX 200 travel stock Flight Centre Travel Group Ltd (ASX: FLT) ripped 9.08% to $10.93 per share.

Shares in Premier Investments Limited (ASX: PMV) zoomed 7% higher to $12.53.

Some ASX 200 retail shares did not follow the broader sector trend last week.

Eagers Automotive Ltd (ASX: APE) shares fell 2.61% to $20.89 apiece.

The Guzman Y Gomez Ltd (ASX: GYG) share price eased 0.76% to $19.66.

Shares in gaming technology company Aristocrat Leisure Ltd (ASX: ALL) dipped 0.63% to $50.10.

The Breville Group Ltd (ASX: BRG) share price moderated 0.21% to $28.94.

ASX 200 market sector snapshot

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

Over the five trading days:

S&P/ASX 200 market sector	Change last week
Consumer Discretionary (ASX: XDJ)	4.38%
Materials (ASX: XMJ)	3.34%
A-REIT (ASX: XPJ)	2.38%
Information Technology (ASX: XIJ)	2.28%
Industrials (ASX: XNJ)	1.95%
Consumer Staples (ASX: XSJ)	0.35%
Healthcare (ASX: XHJ)	0.21%
Financials (ASX: XFJ)	(1.18%)
Utilities (ASX: XUJ)	(1.56%)
Communication (ASX: XTJ)	(2.48%)
Energy (ASX: XEJ)	(3.28%)

The post Why did ASX 200 retail shares lead the market last week? appeared first on The Motley Fool Australia.

More reading

• Top brokers name 3 ASX shares to buy next week
• Down 17%: Why I’d buy and hold Wesfarmers shares
• With no savings at 40, I’d follow Warren Buffett’s approach to build wealth
• Why these ASX 200 shares could shoot 20% and 50% higher
• A rare buying opportunity in 1 of Australia’s top shares?

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 positions in and has recommended Light & Wonder Inc, Lovisa, Super Retail Group, The Lottery Corporation, and Wesfarmers. The Motley Fool Australia has positions in and has recommended Harvey Norman and Super Retail Group. The Motley Fool Australia has recommended Eagers Automotive Ltd, Flight Centre Travel Group, Light & Wonder Inc, Lovisa, Premier Investments, The Lottery Corporation, and Wesfarmers. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The Macquarie Group Ltd (ASX: MQG) share price has been a solid performer over the last several years, as the below chart shows. I believe the elements that have driven the Macquarie share price higher could make it a good investment to consider for years to come.

Macquarie is one of the largest ASX financial shares, though it’s smaller than the big four banks. I’d much prefer to buy Macquarie over Commonwealth Bank of Australia (ASX: CBA), Westpac Banking Corp (ASX: WBC), ANZ Group Holdings Ltd (ASX: ANZ) and National Australia Bank Ltd (ASX: NAB).

For starters, Macquarie’s banking and financial services (BFS) division is growing a lot faster than the majors.

Strong domestic banking performance

Macquarie is growing rapidly in Australia’s banking sector – I think it turn the group of big four ASX bank shares into a big five.

In FY26, the BFS segment grew operating income by 9% to $3.5 billion and its net profit contribution increasing by 17% to $1.6 billion.

The home loan portfolio rose by 28% year-over-year to $181.3 billion – it now represents 7.1% of the Australian market. Meanwhile, deposits rose by 25% year over year to $215.3 billion, representing 6.5% of the Australian market.

Business banking grew by 8% year-over-year to $18.1 billion.

If Macquarie continues delivering loan (and deposit) growth like that in the coming financial years, BFS could become one of the biggest competitors in the space. I think this division will become increasingly important for supporting the Macquarie share price.

International exposure

Less than a third of Macquarie’s total income comes from Australia and New Zealand. The business is one of the most successful blue-chips at delivering growth overseas.

The Americas represent 31% of total income, EMEA (Europe, the Middle East and Asia) represents 28% of total income and Asia represents 9% of total income.

Macquarie has done very well at investing in certain areas to help it generate good profit from different markets and different segments.

For example, Macquarie has worked hard to put its commodities and global markets (CGM) division into a good position to make great profits when conditions allow. In FY26, CGM’s operating income grew by 30% to $7.8 billion and the net profit contribution improved by 49% to $4.2 billion.

The CGM division saw increased risk management income, primarily driven by increased client hedging activity across global gas and power businesses and global oil. There was also strong client activity globally across foreign currency and interest rate markets.

Valuation of the Macquarie share price

The Macquarie share price is currently valued at under 18x FY27’s estimated earnings. It’s not the cheapest business on the ASX, but I think it’s well-positioned to grow earnings over the long-term. With how strongly the BFS division is growing, I think Macquarie is definitely one to watch.

But, there are a few other ASX shares then could be even better opportunities.

The post 3 reasons why the Macquarie share price is a buy appeared first on The Motley Fool Australia.

More reading

• With no savings at 40, I’d follow Warren Buffett’s approach to build wealth
• CBA shares vs Macquarie shares: Which ASX financial stock would I buy?
• I’d aim for $1 million in retirement buying just 10 ASX 200 shares
• Buy, hold, sell: ANZ, Macquarie, Westpac shares
• This ASX bank ETF has a 5.2% dividend yield right now

Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Macquarie Group. The Motley Fool Australia has positions in and has recommended Macquarie Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

There is a moment that arrives for many Australians as retirement gets closer.

For years, superannuation is just a number on a statement. Then, almost overnight, it becomes something much more practical. It becomes the money that may need to pay for groceries, insurance, electricity, medical bills, holidays, and the freedom to stop working.

That is why the question “how much super do I need?” matters so much. But the answer depends heavily on the kind of retirement you are imagining.

Comfortable does not mean luxurious

A comfortable retirement is not about private jets, five-star hotels, or unlimited spending. It is about having enough financial breathing room to enjoy life without constantly worrying about every bill.

According to the Association of Superannuation Funds of Australia (ASFA), a comfortable retirement allows for things such as private health insurance, a reasonable car, regular social and leisure activities, household goods, technology, domestic holidays, and the occasional overseas trip.

In other words, it is a retirement with options.

This is very different from a modest retirement, which sits slightly above the Age Pension. A modest lifestyle can cover the basics, but there is far less room for discretionary spending, travel, home repairs, or unexpected expenses.

So, what is the magic number?

ASFA’s latest estimates suggest that Australians who own their home outright need around $630,000 in superannuation as a single person to fund a comfortable retirement.

For couples, the figure is approximately $730,000 combined.

A couple does not need double the super of a single person because many retirement costs are shared. Housing, utilities, insurance, internet, and household goods do not simply double when two people live together.

This is one reason couples often have a significant advantage when it comes to retirement planning.

What if you have less?

The good news is that you do not necessarily need $630,000 or $730,000 to retire.

ASFA estimates that a modest retirement requires much less, at around $110,000 for a single person and $120,000 for a couple. This is because the Age Pension does much of the heavy lifting at that level.

But there is a trade-off. A modest retirement usually means fewer choices. Spending must be watched more carefully, holidays are less frequent, and unexpected bills can create pressure.

So the real question is not whether you can retire with less. Many Australians do. The better question is whether you would be happy with the lifestyle that a lower balance supports.

Your home matters enormously

These estimates assume that retirees own their home outright. That is a very important assumption.

Someone entering retirement with rent or a mortgage will generally need far more income than a homeowner. Housing is one of the biggest expenses in retirement, and it can quickly change the maths.

This is why two people with the same superannuation balance can have very different retirement outcomes. A homeowner with modest spending needs may feel comfortable on far less than someone renting in a major city.

Superannuation is only one part of the picture

It is also important to remember that superannuation does not work in isolation.

Many retirees use a combination of super, the Age Pension, savings, investments, and sometimes part-time work to fund their lifestyle. The Age Pension can provide a valuable safety net, particularly for those whose super balances fall short of the comfortable benchmark.

This means the target is useful, but it is not a pass-or-fail test.

Foolish takeaway

If you want a comfortable retirement in Australia, a useful target is around $630,000 in super for singles or $730,000 for couples.

But the number itself is only the starting point. What really matters is how much you spend, whether you own your home, your health, your lifestyle expectations, and how your money is invested once you retire.

A comfortable retirement is ultimately about choice. The more super you have, the more choices you tend to keep.

The post How much superannuation do I need to a comfortable retirement? appeared first on The Motley Fool Australia.

More reading

• Top brokers name 3 ASX shares to buy next week
• 2 ASX blue-chip shares offering big dividend yields
• Down 17%: Why I’d buy and hold Wesfarmers shares
• ASX shares to buy now: How I’d invest a $1,000 lump sum
• With no savings at 40, I’d follow Warren Buffett’s approach to build wealth

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 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.

It was another busy week for Australia’s top brokers. This has led to a number of broker notes being released.

Three broker buy ratings that you might want to know more about are summarised below. Here’s why brokers think these ASX shares are in the buy zone:

Guzman Y Gomez Ltd (ASX: GYG)

According to a note out of Bell Potter, its analysts have upgraded this Mexican-focused quick service restaurant operator’s shares to a buy rating with an improved price target of $24.50. Bell Potter was pleased with Guzman Y Gomez’s decision to close its struggling US business. The broker notes that it was a previous overhang on the stock, and sees the switch to focusing on the core Australia opportunity as more beneficial to shareholders. In addition, Bell Potter is confident in the medium-term Australia opportunity, backed by a pipeline of 108 restaurants, as well as the successful master franchising operation in Singapore and Japan. The Guzman Y Gomez share price ended the week at $19.66.

Life360 Inc. (ASX: 360)

A note out of Bell Potter reveals that its analysts have retained their buy rating on this family safety and location technology company’s shares with an improved price target of $33.00. After doing a deep dive into Life360’s quarterly update, the broker thinks the market was focusing on the wrong thing. Instead of negatively reacting to its soft monthly active user (MAU) growth, which it notes was explainable, Bell Potter thinks investors should have responded positively to its strong growth in paying circles (paid subscribers). The broker believes the latter has been driven by better quality MAUs due to management now using artificial intelligence in A/B testing to help optimise marketing and subscription plans. The Life360 share price was fetching $19.33 at Friday’s close.

Web Travel Group Ltd (ASX: WEB)

Analysts at Morgans have upgraded this travel technology company’s shares to a buy rating with a reduced price target of $3.75. According to the note, Morgans was pleased with Web Travel’s FY 2026 results this week. It highlights that the WebBeds owner delivered a resilient result that was ahead of consensus expectations. And while the broker wasn’t surprised to see that the Middle East conflict is impacting its performance early in FY 2027, it remains positive. Morgans is expecting the conflict to lead to a soft first half but expects a recovery in the second half. Furthermore, it points out that after past economic and geopolitical events, travel demand has rebounded. So, with its shares down heavily, it thinks now is a great time to snap them up. The Web Travel share price ended the week at $2.61.

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

More reading

• Why these ASX 200 shares could shoot 20% and 50% higher
• A rare buying opportunity in 1 of Australia’s top shares?
• 10 ASX shares given buy ratings this week
• 5 ASX shares set to soar 40% to 80% in 12 months: experts
• 4 ASX 200 shares tipped to rise 30% or more in the year ahead

Motley Fool contributor James Mickleboro has positions in Life360 and Web Travel Group Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Life360. The Motley Fool Australia has positions in and has recommended Life360. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The ASX blue-chip share space is a compelling hunting ground to find businesses with a very pleasing dividend yield.

The larger businesses on the ASX aren’t usually priced for a lot of growth, meaning they have a relatively lower price-earnings (P/E) ratio and this boosts the dividend yield.

Additionally, large businesses tend to have less reason to hang onto as much cash for growth as smaller, growing companies. A more generous dividend payout ratio can also lead to a higher dividend yield.

So, let’s dive into two businesses that offer investors significantly higher dividend yields than the market.

Medibank Private Ltd (ASX: MPL)

Medibank is the largest private health insurer in Australia, with the Medibank and ahm brands. It also has an expanding Medibank Health division, which includes primary care following acquisitions. Medibank Health also includes community-based services and acute home health.

Healthcare is a defensive sector that can provide investors with resilient earnings and that means it can provide a reliable dividend. The business noted in a recent update that it has proven growth through cycles, delivered customer and shareholder value, while navigating headwinds.

Medibank also noted that APRA’s quarterly private health insurance statistics showed industry growth of 2.1% in the 12 months to 31 December 2025. Increasing participation in younger cohorts is supporting ongoing affordability and long-term industry sustainability.

The ASX blue-chip share may also benefit from Australia’s ageing demographic and growing population.

Between the FY15 and FY26 half-year results, it increased its annual payout every year aside from FY20, which was impacted by COVID-19. It has a great track record of regular dividend growth.

According to the projection on CMC Invest, the business is forecast to pay an annual dividend per share of 19 cents for FY26. That translates into a grossed-up dividend yield of 5.6%. including franking credits, at the time of writing.

WAM Leaders Ltd (ASX: WLE)

This is a listed investment company (LIC) run by Wilson Asset Management (WAM). It aims to invest in the most attractive, larger businesses on the ASX.

By investing in ASX blue-chip shares, its portfolio can be more resilient than ASX growth shares.

Some of the largest 20 positions in the WAM Leaders portfolio includes ANZ Group Holdings Ltd (ASX: ANZ), BHP Group Ltd (ASX: BHP), Commonwealth Bank of Australia (ASX: CBA), Goodman Group (ASX: GMG), Macquarie Group Ltd (ASX: MQG), National Australia Bank Ltd (ASX: NAB), REA Group Ltd (ASX: REA), Rio Tinto Ltd (ASX: RIO), Westpac Banking Corp (ASX: WBC), Woodside Energy Group Ltd (ASX: WDS), and Wesfarmers Ltd (ASX: WES).

As you can see, the LIC’s portfolio has a significant focus on ASX blue-chip shares.

Its portfolio outperformed the S&P/ASX 200 Accumulation Index (ASX: XJOA) since inception in May 2016, with a gross return of 11.9% per year (before fees, expenses and taxes) compared to the index return of 9% per year. Of course, past outperformance is not a guarantee of future performance.

WAM Leaders has increased its annual dividend every year between FY17 and FY25. It expects to increase its FY26 annual payout by 2.1% to 9.6 cents per share. That translates into a potential grossed-up dividend yield of 10.4%, including franking credits, at the time of writing.

The post 2 ASX blue-chip shares offering big dividend yields appeared first on The Motley Fool Australia.

More reading

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• 2 ASX shares with dividend yields above 8%

Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Goodman Group, Macquarie Group, and Wesfarmers. The Motley Fool Australia has positions in and has recommended Macquarie Group. The Motley Fool Australia has recommended BHP Group, Goodman Group, and Wesfarmers. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Wesfarmers Ltd (ASX: WES) shares have pulled back around 17% from their 52-week high.

The retail and industrial conglomerate is trading around $78.48 at the time of writing, down from a high of $95.18.

That is still not what I would call a bargain price. Wesfarmers remains a high-quality ASX 200 share, and the market usually prices it accordingly.

But I think the pullback has made the risk/reward more attractive for long-term investors.

A collection of strong businesses

One of the main reasons I like Wesfarmers is that it is not dependent on just one business.

Bunnings remains the most important part of the group and continues to be one of the best retail businesses in Australia. Its scale, brand strength, trade exposure, and store network give it a powerful position in home improvement.

But I also think the wider group deserves attention.

Kmart has become a very strong value retailer, which is useful in an environment where households are watching their budgets amid rising interest rates. Officeworks gives Wesfarmers exposure to business, education, technology, and everyday office needs. Priceline adds a health and beauty angle, while the group’s digital investments, including OnePass, could help deepen customer relationships across several brands.

There is also the longer-term opportunity from Mt Holland lithium, though this part of the business carries commodity and execution risks.

What I like is that Wesfarmers has several ways to create value over time. Some will perform better than others at different points in the cycle, but the group has shown a long history of owning good businesses, improving them, and continuing to invest where it sees opportunity.

The numbers still support the case

According to CommSec, the consensus estimate is for Wesfarmers to generate earnings per share of $2.55 in FY26 and $2.74 in FY27.

Based on the current share price, that puts the stock on around 31 times FY26 earnings and 29 times FY27 earnings.

That is not cheap. However, I think Wesfarmers can justify a premium valuation because of the quality of its assets, the strength of its brands, and its long record of disciplined management.

The dividend outlook also adds to the appeal.

CommSec’s consensus estimates suggest Wesfarmers could pay fully-franked dividends per share of $2.16 in FY26 and $2.33 in FY27.

Based on the current share price, that would imply forward dividend yields of roughly 2.8% and 3%, respectively.

Those yields are not huge, but the franking credits improve the income story for eligible investors. More importantly, I think the dividend is backed by a business with durable earnings and a long-term growth mindset.

Why I’d buy after the pullback

I would not buy Wesfarmers expecting a quick rebound just because the share price has fallen.

The stock can still come under pressure if consumer spending weakens, margins disappoint, or the market becomes less willing to pay premium multiples.

But I do think the recent fall provides a better entry point into one of the ASX’s highest-quality companies.

For me, the attraction is the combination of resilience and optionality. Wesfarmers has defensive qualities through everyday retail demand, but it also has growth avenues through Kmart, digital initiatives, healthcare, productivity improvements, and selective industrial exposure.

That mix is hard to find.

Foolish Takeaway

A 17% pullback does not suddenly make Wesfarmers a cheap ASX share.

But it does make a great business more interesting.

I think investors often do well when they buy high-quality companies during periods when expectations have cooled a little. Wesfarmers still has the brands, balance sheet strength, management discipline, and growth options that I want in a long-term holding.

At around $78, I would be happy to buy Wesfarmers shares and hold them for the years ahead.

The post Down 17%: Why I’d buy and hold Wesfarmers shares appeared first on The Motley Fool Australia.

More reading

• With no savings at 40, I’d follow Warren Buffett’s approach to build wealth
• I’d aim for $1 million in retirement buying just 10 ASX 200 shares
• 5 steps to bring in $1,000 per month in passive income
• 6 ASX 200 shares just upgraded by the experts
• Why Wesfarmers shares remain the gold standard of ASX retail investing

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

A $1,000 lump sum can be invested in a few different ways.

I do not think there is one perfect answer for every investor. The best choice depends on what someone wants from their portfolio.

Some investors may want income. Others may want long-term growth. Some may prefer the simplicity of an exchange-traded fund (ETF) instead of choosing an individual company.

With that in mind, here are three ASX options I would consider today.

Transurban Group (ASX: TCL)

If I were investing for passive income, Transurban would be one ASX share I would look at closely.

The company owns and operates toll road assets in major cities across Australia and North America. These are long-life infrastructure assets that can generate cash flows over many years.

I like Transurban because its roads are hard to replicate. Building major urban toll roads is expensive, politically difficult, and usually takes many years. That gives the company a strong position in the markets where it operates.

It also has some inflation-linked qualities through its tolling arrangements. That can be useful for investors looking for income that has the potential to grow over time.

WiseTech Global Ltd (ASX: WTC)

If I were investing for growth, I would consider WiseTech.

The logistics software company has had a painful share price fall from its highs, but I still think the long-term business is very attractive.

WiseTech’s CargoWise platform is used by freight forwarders and logistics providers to manage complex global trade workflows. This is not a simple app that customers can casually replace. It sits inside important daily processes involving customs, documentation, compliance, shipments, and supply chains.

That is one reason I like the business. Global trade is complicated, and I do not think that complexity is going away. If anything, global trade could get more complex in the future.

I also think artificial intelligence (AI) could become useful for WiseTech. Logistics still involves a lot of repetitive data entry, document handling, and exception management. If AI helps customers save time and reduce errors, WiseTech’s platform could become even more important.

VanEck Morningstar Wide Moat AUD ETF (ASX: MOAT)

If I wanted an ETF, I would consider the VanEck Morningstar Wide Moat AUD ETF.

The MOAT ETF gives investors exposure to US companies that have sustainable competitive advantages and are trading at attractive valuations.

I like that combination. It is not just buying the biggest companies. It is trying to own businesses with durable advantages, such as strong brands, cost advantages, network effects, or high switching costs.

That can be a useful way to invest for the long term without needing to pick individual US shares and mirrors the style of investing used by Warren Buffett.

Foolish takeaway

A $1,000 lump sum can be used in different ways depending on the job an investor wants it to do.

That is the key point for me. I would start by asking whether I want income, growth, or a diversified ETF.

Once that is clear, the choice becomes much easier. For my money, these three options each offer a sensible way to put fresh capital to work today.

The post ASX shares to buy now: How I’d invest a $1,000 lump sum appeared first on The Motley Fool Australia.

More reading

• I’d aim for $1 million in retirement buying just 10 ASX 200 shares
• 3 defensive ASX dividend shares I’d buy and hold
• 3 of the best ASX dividend shares to buy in June
• MOAT vs QUAL: Which quality ASX ETF would I buy today?
• WiseTech shares crash 66% in 12 months. What’s next?

Motley Fool contributor Grace Alvino has positions in Transurban Group. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Transurban Group and WiseTech Global. The Motley Fool Australia has positions in and has recommended Transurban Group and WiseTech Global. The Motley Fool Australia has recommended 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.

Reaching 40 with no savings can feel confronting.

But it is not the end of the road. In fact, it can be the point where better habits, clearer priorities, and a long-term investment plan start to make a real difference.

If I were in that position, I would not try to get rich quickly. I would follow principles often associated with Warren Buffett: spend less than I earn, invest consistently, focus on quality, and let compounding work over time.

Start with the savings habit

The first step would be to create room for regular investing.

That might mean cutting unnecessary expenses, avoiding lifestyle creep, or directing pay rises and bonuses straight into investments. The amount does not need to be huge at the start.

What matters most is building the habit.

An investor who can put $500 a month into the share market is putting $6,000 a year to work. Over 20 years, that is $120,000 of contributions before any investment returns are included.

Once the habit is established, the numbers can become more powerful.

Invest like a business owner

Warren Buffett does not treat shares as flashing prices on a screen. He thinks like a business owner.

That is a useful mindset for anyone starting at 40. Instead of chasing hot tips, the focus should be on owning quality businesses with strong brands, durable earnings, and the ability to grow over many years.

On the ASX, that could mean looking at high-quality companies such as Wesfarmers Ltd (ASX: WES), REA Group Ltd (ASX: REA), or Macquarie Group Ltd (ASX: MQG).

It could also mean using broad-based ASX exchange traded funds (ETFs) to build instant diversification. This can reduce the risk of relying too heavily on one company or sector.

Let compounding do the heavy lifting

The real magic comes from staying invested.

If an investor put $500 a month into the share market and achieved an average annual return of 10%, they could build a portfolio worth more than $360,000 after 20 years.

That return is broadly in line with long-term share market averages, but it is not guaranteed. Some years will be strong, while others could disappoint.

The key is to keep going through the cycle. Selling in a panic after market falls can interrupt compounding just when future returns may become more attractive.

Foolish takeaway

Starting at 40 still leaves plenty of time.

An investor may have 20, 25, or even 30 years to build wealth before and during retirement. That is long enough for regular contributions and reinvested dividends to make a meaningful difference.

The Buffett approach is not exciting in the short term. It is built on patience, discipline, and sensible decisions repeated again and again.

For someone with no savings at 40, that may be just what is needed.

The post With no savings at 40, I’d follow Warren Buffett’s approach to build wealth appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro has positions in REA Group. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Macquarie Group and Wesfarmers. The Motley Fool Australia has positions in and has recommended Macquarie 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.

Some broker price targets are worth a closer look, especially when they point to material upside and the investment case makes sense.

That is how I see the two ASX 200 shares in this article.

Morgans has buy recommendations on both, and its price targets suggest one could rise by more than 20% and the other by more than 50% from current levels.

I also rate both as buys.

James Hardie Industries plc (ASX: JHX)

The first ASX 200 share is James Hardie.

The building products giant is trading around $31.80 at the time of writing, but Morgans has a buy rating and a $39 price target on the stock.

That implies potential upside of over 20%.

I think James Hardie is interesting because it gives investors exposure to a high-quality building materials business at a time when housing conditions are still subdued.

That might sound strange at first. Weak housing markets can put pressure on demand, volumes, and investor confidence. But I think this is where the long-term opportunity could be forming.

Morgans noted that James Hardie’s FY26 result was in line with consensus and slightly ahead of prior guidance. The broker also pointed out that management is not assuming a market recovery in FY27, with affordability pressures and lower builder activity still weighing on conditions.

That is important to me because it means the buy case is not built on a sudden housing rebound.

Instead, FY27 appears to be more about margin recovery, cash generation, and synergies. If James Hardie can improve the business while the broader market remains soft, it could be well placed when conditions eventually improve.

There are risks. Housing can stay weak for longer than expected, and integration or synergy delivery can disappoint. But I like the idea of buying a strong building products business before the cycle feels comfortable again.

Guzman Y Gomez Ltd (ASX: GYG)

The second ASX 200 share is Guzman Y Gomez.

The fast-food company is trading around $19.42 at the time of writing, and Morgans has upgraded its price target to $29.40 this month.

That suggests potential upside of approximately 50%.

This is a very different opportunity to James Hardie. Guzman Y Gomez is a growth stock, and investor sentiment can move quickly when expectations change.

But I think the latest development is a positive one.

Morgans highlighted the company’s decision to exit its US operations immediately. The broker viewed this as a positive catalyst because it removes a business that was expected to generate a significant underlying EBITDA loss in FY26 and require more capital than the potential returns could justify.

I think that makes sense.

The US may have offered long-term optionality, but optionality is not always valuable if it consumes too much money and management attention. By stepping away, Guzman Y Gomez can simplify the story and focus more clearly on the Australian business, where performance appears to be tracking well.

Morgans also noted that removing the US losses results in material upgrades to its EBITDA and NPAT forecasts.

That could be powerful for sentiment. Growth companies are often rewarded when the market gets more confidence in the quality of earnings, not just the size of the store rollout opportunity.

Guzman Y Gomez still needs to execute. Competition in quick-service restaurants is high, and the valuation will likely remain sensitive to growth expectations. But I like the cleaner focus and the potential for the Australian business to keep scaling.

Foolish Takeaway

A broker price target is not a guarantee, and investors should never treat one as certainty.

But I think these two buy calls are interesting because the logic is not just about hoping for better market conditions.

James Hardie could benefit from internal improvements while housing remains subdued. Guzman Y Gomez has made a decision that may improve earnings quality and simplify its growth story.

Both shares come with different risks, but I think each has a credible path to being worth more. If Morgans is right, the upside could be significant.

The post Why these ASX 200 shares could shoot 20% and 50% higher appeared first on The Motley Fool Australia.

More reading

• A rare buying opportunity in 1 of Australia’s top shares?
• 10 ASX shares given buy ratings this week
• 5 ASX shares set to soar 40% to 80% in 12 months: experts
• 9 ASX 200 shares with renewed buy ratings this week
• James Hardie shares rebound 19%: Is it time to buy?

Motley Fool contributor Grace Alvino has positions in Guzman Y Gomez. 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.