Category: Stock Market

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

Buffett is now approaching retirement, with plans to hand over his CEO role to Greg Abel, currently the company’s vice-chairman of non-insurance operations, at the end of the year. But this expert investor has remained active in his final months and quarters of leadership. And that means we can take a look at what Buffett’s latest portfolio moves say about the market…

Good news for Buffett fans

First, though, here’s some good news for all of you Buffett-watchers: Buffett still will be around as chairman, will go into the Berkshire Hathaway office to share ideas with the team, and he’s promised to continue communications through an annual Thanksgiving message. So we may hear about Buffett’s thoughts on key subjects well into the future.

Now, let’s consider Buffett’s general investment strategy over time and the moves he’s made in recent quarters. Buffett is known for choosing quality companies with solid competitive advantages, or moats, and investing in them for the long term. The billionaire won’t jump into the latest trend even if everyone else is doing so — and even if it’s delivering big returns fast. Buffett prefers companies he can count on over time, and this strategy has been a successful one.

One extremely important point is that Buffett favors value stocks, meaning he aims to buy stocks trading for less than what they truly are worth. The idea is that the rest of the investment community eventually will recognize the strengths of these particular companies and buy the shares — and these stocks then will rise.

So, what has Buffett been doing lately? The billionaire’s moves have been very clear: Over the past 12 quarters, he’s been a net seller of stocks, and he’s built up Berkshire Hathaway’s cash position to reach record levels.

BRK.B Cash and Short Term Investments (Quarterly) data by YCharts

Meanwhile, in his 2024 letter to shareholders, Buffett wrote that it’s rare to be “knee-deep” in buying opportunities.

Buffett’s moves suggest one thing…

This, along with Buffett’s focus on value, says something very clear about the market today — and a key market metric supports this. The S&P 500 Shiller CAPE ratio, a view of stock price in relation to earnings over 10 years, recently reached beyond 39, a level it’s only surpassed once before.

S&P 500 Shiller CAPE Ratio data by YCharts

Buffett’s actions, supported by this valuation metric, suggest the stock market is expensive and has been so for a while. But, before you make any abrupt investing decisions based on this, it’s important to take a deeper look into Buffett’s moves. The Oracle of Omaha, as he’s often called, hasn’t stopped investing. He’s still found opportunities — for example, he picked up shares of UnitedHealth Group in the second quarter and shares of Alphabet in the third quarter.

Both of these stocks were inexpensive at the time, and they continue to be reasonably priced. This shows us that, even if the overall stock market is pricey, investors still may find interesting opportunities.

UNH PE Ratio (Forward) data by YCharts

Now, looking specifically at the Alphabet purchase, we can draw an additional conclusion. Though technology and artificial intelligence (AI) stocks have climbed over the past few years, this doesn’t mean that every AI player is expensive. It’s important to consider each company individually — if you don’t, you might miss out on a deal today that may become a winner down the road.

So, Buffett’s moves over the past several quarters — from his selling activity to his accumulation of cash — suggest that today’s market is expensive. And the Shiller CAPE ratio confirms this. But Buffett doesn’t recommend staying away. Instead, his investing principles ring true in any market environment, including today’s: Look for value, and when you find it, buy and hold for the long term.

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

The post What Warren Buffett’s latest portfolio moves say about the market 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.

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Adria Cimino 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 Alphabet and Berkshire Hathaway. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended UnitedHealth Group. The Motley Fool Australia has recommended Alphabet and Berkshire Hathaway. 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.

It isn’t always obvious that a growth stock will take off and generate massive returns for your portfolio. However, that’s one of the reasons why sometimes taking a chance on an up-and-coming stock can be a worthwhile move, even if you’re not entirely confident that it’ll be successful. Taking on some risk can result in monstrous gains and rewards later on.

Three stocks that have made long-term investors rich over the past two decades include Nvidia (NASDAQ: NVDA), Netflix (NASDAQ: NFLX), and Booking Holdings (NASDAQ: BKNG). Here’s a look at just how much your investment would be worth if you bought $5,000 worth of shares in each of these companies 20 years ago.

1. Nvidia: $3 million

The least-surprising stock on this list is likely Nvidia. The chipmaker has made people rich over just the past five years, let alone 20. If you invested $5,000 into the tech stock back on Dec. 1, 2005, your investment would be worth a staggering $3 million right now.

Today, Nvidia has become the most valuable company in the world, with a market cap of $4.5 trillion. A couple of decades ago, it was primarily known for its graphics cards. Nowadays, its cutting-edge chips are used in the development of artificial intelligence (AI) models, which has led to game-changing results for the business.

Over the past four quarters, the company has generated $187 billion in revenue. Just a few years ago, the company’s annual revenue was less than $30 billion. Nvidia’s gains have come rapidly, and for investors who want exposure to artificial intelligence (AI), this can be one of the safer stocks to hang on to for the long haul.

2. Netflix: $1.2 million

Another stock that would have made you rich over the past 20 years is streaming giant Netflix. A $5,000 investment a couple of decades ago would now have ballooned to be worth $1.2 million. Its ascent has been more gradual than Nvidia’s, and there have been challenges along the way. However, Netflix has established itself as a leader in video streaming.

The company’s relentless pursuit of growth is evident with its recent acquisition attempt of Warner Bros. Discovery for $72 billion. Although the deal may not end up going through, as Paramount Skydance has announced a hostile bid, and there are concerns about whether this may hurt competition, it’s yet another example of Netflix looking for ways to grow and add value for its customers.

The streaming giant has gone from posting losses to now enjoying strong profit margins of 24%. Netflix is a household name and yet another good growth stock to hold for the long haul.

3. Booking Holdings: $1.1 million

Rounding out this list of impressive stocks is Booking Holdings. A $5,000 investment in the business 20 years ago would now be worth around $1.1 million. The growth in the travel industry, particularly in online bookings, has enabled it to grow at an incredible pace.

Last year, it reported $23.7 billion in sales and $5.9 billion in profit, a significant improvement from the $11 billion in sales it posted just three years earlier, when its bottom line was around $1.2 billion. Analysts from Grand View Research project that the online travel booking market is still growing at a compounded annual growth rate of roughly 10% until 2030, as there’s still more growth potential ahead for Booking Holdings.

Given the plentiful opportunities ahead, it may still not be too late to invest in Booking Holdings stock. It trades at a forward price-to-earnings multiple of 21, based on analyst expectations. That’s slightly below the S&P 500 average of 22. For long-term growth investors, this can be a fantastic investment to simply buy and hold. 

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

The post 3 stocks that in 20 years have turned $5,000 into more than $1 million 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.

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David Jagielski, CPA 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 Booking Holdings, Netflix, Nvidia, and Warner Bros. Discovery. The Motley Fool Australia has recommended Booking Holdings, Netflix, and Nvidia. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

It certainly has been an eventful year for the DroneShield Ltd (ASX: DRO) share price.

After starting it at 77 cents, the counter drone technology company’s shares reached as high as $6.71 before coming back down to Earth like Icarus.

At the end of last week, the company’s shares closed at $2.08.

Will the DroneShield share price double again in 2026?

Nobody can say for sure what will happen in 2026, but there’s certainly potential for the doubling of its share price again.

Firstly, the company is operating in a market that is experiencing incredible demand. If that continues and its sales and earnings continue to grow, its share price is likely to push higher again.

Though, this assumes it can avoid any more controversies like those that have weighed on investor sentiment in recent months.

Bullish broker tips big returns

Also supporting the case for a major re-rating is a recent broker note out of Bell Potter.

According to the note, the broker has a buy rating and $5.30 price target on DroneShield’s shares.

Based on its current share price of $2.08, this implies potential upside of over 150% for investors over the next 12 months.

Bell Potter highlights that DroneShield has a sales pipeline valued at $2.55 billion. To put that into context, its current market capitalisation is approximately $1.9 billion.

Commenting on its buy recommendation, the broker said:

We believe DRO has the market leading counter-drone offering and a strengthening competitive advantage owing to its years of experience and large R&D team, focused on detect and defeat capabilities. We expect 2026 will be an inflection point for the global counter-drone industry with countries poised to unleash a wave of spending on soft-kill detect and defeat solutions. Consequently, we believe DRO should see material contracts flowing from its $2,550m potential sales pipeline over the next 3-6 months as defence budgets roll over to FY26.

Though, there are risks to its thesis. The broker warns investors that:

Failure to retain existing customers or attract new customers will severely impact revenue growth and the overall financial performance of the company. […] DRO operates in a competitive market including large multi-national defence contractors who have extensive resources and scale.

Whatever happens, it certainly will be worth watching the DroneShield share price in 2026. And for shareholders (and prospective shareholders), hopefully it will be a very successful year for them.

The post Will the Droneshield share price double in 2026? appeared first on The Motley Fool Australia.

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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 DroneShield. 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 the release of a number of broker notes.

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:

Flight Centre Travel Group Ltd (ASX: FLT)

According to a note out of Citi, its analysts have retained their buy rating on this travel agent giant’s shares with an increased price target of $16.75. This follows news that the company is acquiring UK based online cruise platform Iglu for 122 million British pounds. Citi notes that this is the second cruise related acquisition the company has made in two years. It believes this indicates that management is making a strategic push into higher-value and less volatile leisure segments. In response to the news, Citi has boosted its earnings estimates and its valuation for the company accordingly. The Flight Centre share price ended the week at $14.81.

Megaport Ltd (ASX: MP1)

A note out of Macquarie reveals that its analysts have retained their outperform rating on this network as a service provider’s shares with an increased price target of $21.70. The broker has been looking at Megaport’s recent acquisition of Latitude. It highlights that it expands the immediate addressable share of customer wallet as customers already consume compute products, but Megaport has not historically sold compute. Furthermore, Latitude’s product offering is highly complementary to its existing product set and offers a direct position in a large and fast-growing end market according to Macquarie. It estimates that Bare Metal as a Service (BMaaS) is a large, end market currently worth US$15 billion, and growing rapidly. Combined with the stabilisation of core revenue, Macquarie believes this leaves Megaport is well-placed for long term growth. The Megaport share price was fetching $13.17 at Friday’s close.

NextDC Ltd (ASX: NXT)

Analysts at Ord Minnett have retained their buy rating on this data centre operator’s shares with an increased price target of $20.50. According to the note, the broker was pleased to see that NextDC has signed a memorandum of understanding with OpenAI. It is the owner of ChatGPT. The deal is for the proposed S7 data centre in Eastern Creek, Sydney, which will be a hyperscale AI campus and the largest in the southern hemisphere with 650MW capacity. Ord Minnett sees big positives from the arrangement and believes it could be a boost to its valuation if it goes ahead as expected. The NextDC share price ended last week at $13.51.

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

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Citigroup is an advertising partner of Motley Fool Money. Motley Fool contributor James Mickleboro has positions in Megaport and Nextdc. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Macquarie Group and Megaport. The Motley Fool Australia has positions in and has recommended Macquarie Group. The Motley Fool Australia has recommended Flight Centre Travel Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

There are some impressive businesses on the ASX that are growing rapidly in Australia, but they’re currently limited to the local market. I think the big opportunities are with ASX shares that have their sights on the global economy, where there’s a lot more growth potential.

Some of the ASX’s best long-term performers such as Pro Medicus Ltd (ASX: PME) and Aristocrat Leisure Ltd (ASX: ALL) have become as large as they are by successfully expanding overseas.  

The two ASX share investments below are ones to watch (and buy) in my book with $2,000.

Breville Group Ltd (ASX: BRG)

Breville is one of the world’s largest coffee machine businesses, owning a number of brands, including Breville, Safe, Lelit, Baratza, and its coffee bean business, Beanz.

I think the FY25 result demonstrated the company’s ability to deliver solid compounding growth. Revenue, net profit and the dividend all increased by more than 10%, which was solid in my view.

The 25% decline of the Breville share price since January makes it look like a much cheaper buy. There are tariff headwinds for the business in FY26, but it’s rapidly working to shift manufacturing for the American market to Mexico, which should lessen the headwind.

I don’t believe the tariffs will be a long-term headwind for the business, making it an appealing buy at this cheaper valuation, in my opinion. Management expects that US products (representing 80% of gross profits dollars) will be manufactured outside of China by the end of the FY26 first half.

On the purely positive side, Breville’s expansion into new geographic markets, such as the recent additions of China and the Middle East, gives the company more avenues for growth.

According to the forecast on CMC Markets, the ASX share is trading at less than 27x FY27’s estimated earnings, which I’m calling good value given its long-term growth potential.

Betashares Global Quality Leaders ETF (ASX: QLTY)

There are plenty of great businesses listed outside of the ASX share market. The ASX only accounts for around 2% of the global stock market, so I strongly believe it’s a good idea to get exposure to those companies too.

While there are many thousands of businesses we could invest in overseas, I’d only advocate for investing in the best or most exciting names.

The QLTY ETF looks to invest in the 150 highest-quality global stocks. Those names are chosen for the portfolio based on four factors: a high return on equity (ROE), good cash flow generation, stable earnings and low debt levels.

When you put those elements together, only the very best names will make it into the portfolio, in my view.

The investment process is clearly working well so far because the QLTY ETF has returned an average of 14.6% per year since it was started in November 2018. Past performance is not necessarily a reliable indicator of future performance, but I think this fund is capable of delivering average annual returns in excess of 10% per year over the long term because of its pure focus on quality holdings.

The post 2 incredible ASX shares I’d buy with $2,000 right now appeared first on The Motley Fool Australia.

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

ASX 200 materials shares outperformed the other 10 market sectors last week, lifting 2.75%.

Many ASX mining shares hit new 52-week highs last week amid stronger commodity prices.

They included the ASX 200 iron ore majors, led by BHP Group Ltd (ASX: BHP), and gold shares like Evolution Mining Ltd (ASX: EVN).

While the mining sector celebrated, the broader market had a sluggish week.

The S&P/ASX 200 Index (ASX: XJO) fell each day for the first three days before rallying on Thursday and Friday.

The ASX 200 closed out the week 0.73% higher at 8,697.3 points.

However, only three sectors increased in value.

Let’s review.

Interest rate decisions impact market momentum

ASX 200 shares fell after the Reserve Bank of Australia (RBA) confirmed what we all expected — a hold call on interest rates.

Worse, though, the RBA indicated a rate hike may be necessary next year.

RBA Governor Michele Bullock said:

I don’t think there are interest rate cuts in the horizon for the foreseeable future.

The question is, is it just an extended hold from here or is it possibility of a rate rise?

I couldn’t put a probability on those but I think they’re the two things that the Board will be looking closely at coming into the new year.

The market is now pricing in a 27% chance of a rate hike at the next RBA meeting in February.

Meanwhile, the US Federal Reserve cut interest rates by 0.25% last week.

That was the third cut in four months, designed to support the weakening US economy.

US interest rates are now at their lowest level since 2022.

The Australian cash rate is 3.6% while the US interest rate range is now 3.5% to 3.75%.

What happened with ASX 200 mining shares last week?

The BHP share price rose 1.67% to close at $45.59 after resetting its 52-week high at $45.98 on Friday.

Fortescue Ltd (ASX: FMG) shares lifted 3.93% to $22.98 after cracking a new 52-week high of $23.38 during the week.

Rio Tinto Ltd (ASX: RIO) closed 3.56% higher at $143.40 after resetting its 52-week high at $143.53 on Friday.

Pure-play ASX 200 copper share, Sandfire Resources Ltd (ASX: SFR) rose 1.36% to $17.11 on Friday.

The largest ASX 200 gold mining stock, Northern Star Resources Ltd (ASX: NST), rose 3.8% to $27.33 per share.

Newmont Corporation CDI (ASX: NEM) shares ripped 8.58% to $150.06.

The Evolution Mining share price closed at $12.76, up 6.33%, after resetting its 52-week high at $12.81 on Friday.

Gold and copper producer Greatland Resources Ltd (ASX: GGP) rose 12.65% to close at a 52-week high of $9.44 per share.

Alcoa Corporation CDI (ASX: AAI) shares lifted 6.14% to finish at $70.53 after hitting a 52-week high of $70.86 on Friday.

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
Materials (ASX: XMJ)	2.75%
Financials (ASX: XFJ)	1.69%
A-REIT (ASX: XPJ)	0.85%
Consumer Staples (ASX: XSJ)	(0.43%)
Utilities (ASX: XUJ)	(0.82%)
Healthcare (ASX: XHJ)	(0.97%)
Energy (ASX: XEJ)	(1.15%)
Industrials (ASX: XNJ)	(1.17%)
Communication (ASX: XTJ)	(1.27%)
Consumer Discretionary (ASX: XDJ)	(1.33%)
Information Technology (ASX: XIJ)	(4.69%)

The post ASX 200 mining shares lead the market for a second week appeared first on The Motley Fool Australia.

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

There are not many ASX dividend stocks that I’d be willing to buy in virtually any economic environment, whether the stock market is booming or crashing.

I firmly believe that investors should only invest in a share/fund they’d be excited to buy more of if it became cheaper.

The ASX dividend stock MFF Capital Investments Ltd (ASX: MFF) is one name that I’ve invested in heavily this year. In terms of my regular investing, it’s the one I’ve invested in the most in 2025.

The business is best known for its listed investment company (LIC) activities, targeting high-quality share investments. It also has funds management operations after acquiring the Montaka business.

There are a few reasons why I’m excited to buy into it regularly, regardless of what happens next.

Rising dividends

For me, one of the most important elements of a pleasing ASX dividend stock is a rising dividend.

A growing dividend can indicate so many things. It can mean more cash hitting my bank account each year, stronger profit generation by the business and potentially a higher share price.

MFF’s board of directors are aiming to provide investors with a rising dividend from the large profit reserves it has built over the years.

The business has indicated it intends to grow its half-yearly dividend to 10 cents per share in FY26, implying a potential grossed-up dividend yield of 5.9%, including franking credits, at the time of writing.

Excellent businesses delivering results

According to CMC Markets, MFF Capital has delivered total shareholder returns of an average of 15.9% per year over the prior five years.

Past performance is not a guarantee of future returns, but I’m optimistic the ASX dividend stock can deliver strong returns in the coming years because of its focus on quality, growing businesses.

MFF has built a global portfolio of some of the leading businesses around the world such as Alphabet, Mastercard, Visa, Meta Platforms, Amazon, Microsoft, Prosus and Home Depot.

One of the reasons I like owning this business is its investment flexibility to invest in huge companies or much smaller ones, in any market. For example, it recently invested in L1 Group Ltd (ASX: L1G), which is a compelling ASX business in the funds management space, but a lot smaller than the US tech giants.

Compelling discount

One of the reasons why I’m always willing to buy MFF shares is that the ASX dividend stock has a history of trading at a discount to its underlying value.

The MFF portfolio represents a basket of great stocks and that basket has an underlying value. The business regularly tells investors about its net tangible assets (NTA), which the MFF share price generally moves with (positively or negatively, as the portfolio value changes).

In recent times, the MFF share price has traded at a discount of around 10% to its pre-tax NTA, which I think is an appealing discount considering its long-term performance.

The post I’d buy this ASX dividend stock in any market appeared first on The Motley Fool Australia.

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Motley Fool contributor Tristan Harrison has positions in Mff Capital Investments. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Alphabet, Amazon, Home Depot, Mastercard, Meta Platforms, Microsoft, and Visa. 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, Mastercard, Meta Platforms, Mff Capital Investments, Microsoft, and Visa. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

When it comes to passive income on the Australian share market, few shares attract as much attention as BHP Group Ltd (ASX: BHP).

Often referred to as the Big Australian, BHP is one of the world’s largest mining companies, with tier-one assets spanning iron ore, copper, metallurgical coal, and potash.

This includes the Western Australian Iron Ore (WAIO), Olympic Dam, Escondida, and Spence operations, as well as the Jansen potash project.

Income investors tend to like BHP for a few key reasons. Its operations sit at the low end of global cost curves, it generates enormous free cash flow during normal commodity cycles, and management has a clear commitment to returning surplus capital to shareholders.

While its dividends can fluctuate with commodity prices, BHP has built a reputation as one of the market’s most generous large-cap dividend payers over the long term. In fact, over the last few years it has returned tens of billions of dollars to its shareholders.

That makes it a popular choice for investors looking to combine blue-chip stability with meaningful passive income.

What would 1,000 BHP shares cost?

BHP shares ended last week at $45.59. At that price, buying 1,000 shares would require an upfront investment of approximately $45,590. That’s clearly a sizeable outlay.

But Morgan Stanley thinks it would be worth doing. The broker currently has an overweight rating on the mining giant and a $48.00 price target, suggesting further upside from current levels, alongside potential passive income.

So, how much passive income could they generate?

According to Morgan Stanley’s forecasts, BHP is expected to pay fully franked dividends of approximately $1.90 per share in FY 2026, followed by around $1.70 per share in FY 2027.

Based on those estimates, an investor holding 1,000 BHP shares could expect:

• FY 2026 dividend income: approximately $1,900
• FY 2027 dividend income: approximately $1,700

That equates to a forward cash yield of roughly 4.2% in FY 2026 and 3.7% in FY 2027, based on the current BHP share price. Importantly for Australian investors, these dividends are forecast to be fully franked, which can significantly boost after-tax returns for those able to use franking credits.

The bigger picture

Of course, BHP’s dividends are not fixed. As a mining company, its payouts rise and fall with commodity prices, demand from China, and broader global economic conditions. In strong markets, its dividends can be exceptionally large, while weaker cycles can see them pull back.

However, for investors seeking long-term passive income from a high-quality, globally significant business, BHP remains a compelling option.

The post How much passive income could I earn with 1,000 BHP 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 no position in any of the stocks mentioned. The Motley Fool Australia has recommended BHP Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Warren Buffett didn’t build his fortune by constantly trading in and out of the market. Instead, he became one of the world’s most successful investors by buying high-quality stocks and holding them for long periods, letting time and compounding do the heavy lifting.

That approach isn’t reserved for billionaires. Everyday investors can follow the same philosophy, particularly by using exchange-traded funds (ETFs), which offer diversification, low costs, and exposure to long-term growth themes in a single investment.

With a decade-long time horizon, the focus shifts away from short-term noise and towards owning assets that can steadily compound in value.

With that in mind, here are three ASX-listed ETFs that could suit a buy-and-hold strategy over the next 10 years.

Betashares Global Cash Flow Kings ETF (ASX: CFLO)

The Betashares Global Cash Flow Kings ETF takes a Buffett-like approach by focusing on companies that generate strong, consistent free cash flow. Cash flow is the lifeblood of any business, and companies that produce it reliably tend to be more resilient, more profitable, and better positioned to invest in future growth.

This ASX ETF’s portfolio includes global heavyweights such as Alphabet (NASDAQ: GOOGL), ASML Holding (NASDAQL ASML), Palantir Technologies (NASDAQ: PLTR), Visa (NYSE: V), Nvidia (NASDAQ: NVDA), and Costco (NASDAQ: COST). These are businesses with dominant market positions and business models that consistently convert revenue into cold hard cash.

By targeting cash flow rather than hype, this fund aims to capture long-term compounding from quality companies across multiple sectors. It is no wonder then it was recommended by analysts at Betashares.

VanEck Morningstar Wide Moat ETF (ASX: MOAT)

The VanEck Morningstar Wide Moat ETF is inspired by Buffett’s investment philosophy. The fund invests in US stocks that have sustainable competitive advantages (aka wide moats) that protect profits from competitors over long periods.

But it doesn’t stop there. Buffett has always spoken about the importance of buying stocks at a good price. This fund offers that as well.

Current holdings include Applied Materials (NASDAQ: AMAT), Estee Lauder (NYSE: EL), Thermo Fisher Scientific (NYSE: TMO), Merck & Co (NYSE: MRK), Danaher Corp (NYSE: DHR), Salesforce (NYSE: CRM), and Nike (NYSE: NKE).

Betashares MSCI Emerging Markets Complex ETF (ASX: BEMG)

A third ASX ETF that could be a great buy and hold options is the Betashares MSCI Emerging Markets Complex ETF. It adds a different dimension to a long-term portfolio by targeting growth outside developed markets. Emerging economies are being shaped by powerful structural forces, including urbanisation, rising incomes, and accelerating digital adoption.

This ASX ETF provides exposure to more than 1,000 large and mid-cap stocks across 24 emerging market countries. Its largest holdings include Taiwan Semiconductor Manufacturing Company (NYSE: TSM), Tencent Holdings (SEHK: 700), Alibaba (NYSE: BABA), and SK Hynix Inc (KRX: 000660).

While emerging markets can be volatile in the short term, their long-term growth potential remains compelling. It is for that reason that Betashares recently recommended this fund to investors.

The post 3 strong ASX ETFs to buy and hold for 10 years appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro has positions in Nike and VanEck Morningstar Wide Moat ETF. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Alphabet, Applied Materials, Costco Wholesale, Danaher, Merck, Nike, Nvidia, Salesforce, Taiwan Semiconductor Manufacturing, Tencent, Thermo Fisher Scientific, and Visa. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Alibaba Group. The Motley Fool Australia has recommended Alphabet, Nike, Nvidia, Salesforce, VanEck Morningstar Wide Moat ETF, and Visa. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

If you’re looking for some retail sector exposure in 2026, then it could be worth considering the ASX stocks named below.

That’s because Bell Potter has just named them as its top picks in the sector. Here’s what it is recommending to clients:

Adore Beauty Group Ltd (ASX: ABY)

The beauty retailer has caught the eye of Bell Potter due to its strong rollout and private label expansion, which is supporting margin improvements. Overall, it believes this leaves the ASX retail stock well-placed in the Australian beauty category. It said:

Key drivers for business growth are its continued store-rollout targeting a network of 25+ stores, along with its private label brands and high-margin retail media arm contributing to margin expansion and thus a strong earnings trajectory. We view ABY as well positioned to take advantage of the high performing beauty category within the Australian market.

Bell Potter has a buy rating and $1.25 price target on its shares.

Harvey Norman Holdings Ltd (ASX: HVN)

This retail giant’s shares could be a buy according to Bell Potter despite rising strongly this year. It believes Harvey Norman’s shares are undervalued based on its positive growth outlook. The broker explains:

Despite the strong re-rate in the name, HVN trades at ~2.0x market capitalisation to freehold property value as Australia’s single largest owner in large format retail with a global portfolio surpassing $4.5b and collectively owning ~40% of their stores (franchised in Australia and company operated offshore). This sees our view that of the 1-year forward ~19x P/E multiple as justified considering the multiple catalysts near/mid-term.

Bell Potter currently has a buy rating and $8.30 price target on its shares.

Universal Store Holdings Ltd (ASX: UNI)

Finally, at just 18x estimated FY 2026 earnings, Bell Potter thinks that youth fashion retailer Universal Store could be an ASX retail stock to buy.

It believes the company is well-placed for growth given its store expansion plans and increasing private label penetration. The broker said:

At ~18x FY26e P/E (BPe), we see UNI trading at a discount to the ASX300 peer group and see the multiple justified by the distinctive growth traits supporting consistent outperformance in a challenging broader category, longer term opportunity with three brands, organic gross margin expansion via private label product penetration (currently ~55%) and management execution. We continue to see the youth customer prioritising on-trend streetwear and expect UNI to benefit with their leading position.

Bell Potter has a buy rating and $10.50 price target on its shares.

The post Bell Potter names the best ASX retail stocks to buy appeared first on The Motley Fool Australia.

More reading

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• Macquarie names its top ASX consumer staples and consumer discretionary stock picks
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• 2 of the best ASX dividend shares to buy in December
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Motley Fool contributor James Mickleboro has positions in Universal Store. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Adore Beauty Group. The Motley Fool Australia has positions in and has recommended Harvey Norman. The Motley Fool Australia has recommended Adore Beauty Group and Universal Store. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.