Category: Stock Market

If I were building an ASX share portfolio for the next 10 years, I would focus on companies with strong competitive advantages and plenty of opportunities to grow.

After all, I believe some of the best investment returns come from owning quality businesses and giving them time to compound their earnings.

With that in mind, here are three ASX shares I would happily buy and hold until 2036.

ResMed Inc. (ASX: RMD)

The first ASX share I would consider is ResMed.

ResMed has spent decades improving the treatment of sleep apnoea, building a business that extends well beyond simply selling medical devices.

Its ongoing investment in product development has made treatment more comfortable and convenient for patients, while its software helps healthcare providers monitor how effectively that treatment is working.

I believe this focus on innovation has been instrumental in establishing ResMed’s market-leading position, and there is still considerable room for growth.

After all, an estimated 1 billion people around the world suffer from sleep apnoea, with the vast majority undiagnosed.

With its financial strength, established market position, and commitment to innovation, I think ResMed has an excellent chance of becoming a significantly larger business over the next decade.

TechnologyOne Ltd (ASX: TNE)

Another ASX share I would buy and hold for a decade is TechnologyOne.

The enterprise software provider supplies essential systems to universities, councils, government organisations, and businesses.

Once customers adopt its software, switching to a competitor can be expensive and disruptive, helping TechnologyOne retain customers and generate recurring revenue.

And with organisations continuing to move their operations to the cloud, I believe there is plenty more growth to come.

At the end of March, TechnologyOne reported annual recurring revenue of $598 million. Management is now targeting more than $1 billion by FY 2030.

In light of this, I think TechnologyOne has the potential to continue growing strongly well beyond that target.

Wesfarmers Ltd (ASX: WES)

A final ASX share I would be happy to own for the next decade is Wesfarmers.

One of the reasons I have so much confidence in this company is its ability to adapt to changing consumer habits while continuing to grow its businesses.

Kmart is a good example. It has established itself as a destination for affordable everyday products, which has helped it win customers and grow its market share.

Meanwhile, Bunnings continues to strengthen its position in the home improvement market, with opportunities to grow sales among both DIY customers and professional tradespeople.

And with its healthcare division expanding, Wesfarmers is developing another business that could make a meaningful contribution to earnings in the years ahead.

Overall, I believe Wesfarmers has the financial strength, experience, and growth opportunities to keep delivering for shareholders well beyond 2036.

The post 3 ASX shares I'd buy and hold for the next 10 years appeared first on The Motley Fool Australia.

More reading

• How much do I need to retire on $90,000 a year at 57?
• ASX 200 utilities and healthcare shares win the week again
• If I could only buy 5 ASX shares for retirement, these would make my shortlist
• I look for 3 things in a retirement stock. These 5 shares have them all
• These are the best 3 ASX growth shares I own and I’d buy more of today

Motley Fool contributor James Mickleboro has positions in ResMed and Technology One. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended ResMed and Wesfarmers. The Motley Fool Australia has positions in and has recommended ResMed. 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 BHP Group Ltd (ASX: BHP) share price is in focus today after the mining giant released its operational review for the September 2026 quarter, highlighting steady iron ore production and stronger realised prices, despite a drop in copper output.

What did BHP report?

• Copper production fell 19% to 401 kt, while guidance for FY27 remains unchanged at 1,650–1,800 kt.
• Iron ore production increased by 4% to 66.5 Mt, with FY27 guidance at 260–272 Mt unchanged.
• WA Iron Ore (WAIO) set new mine and port records, achieving a 4% lift during significant planned maintenance.
• Steelmaking coal output edged up 1% to 4.9 Mt, and energy coal from NSW Energy Coal rose 26% to 4.4 Mt.
• Average realised prices were up for copper (US$7.01/lb, +53% YoY) and steelmaking coal (US$242.82/t, +34% YoY).
• No change to FY27 production or unit cost guidance across core divisions.

What else do investors need to know?

Two tragic fatalities were recorded at Escondida and Peak Downs during the quarter, prompting company-wide safety reviews and temporary operational pauses at affected sites. These events underscore BHP’s ongoing focus on safety, with senior management reaffirming the company’s goal of a fatality-free workplace.

BHP continues to advance its copper growth strategy, including progress at its South Australian Copper assets and pre-commitment funding for the Escondida New Concentrator in Chile. The company also updated Olympic Dam’s mineral resource base and announced its Oak Dam project will now be known as ‘Ankata’ following community consultation.

On the sustainability front, BHP’s BMA mines achieved 100% renewable electricity supply and the company completed a pilot with Amazon Web Services to sell credits for lower-emission copper.

What did BHP management say?

BHP Chief Executive Officer Brandon Craig said:

Our bulk commodities delivered a strong start to FY27 through a maintenance-intensive quarter. WAIO set records at both the mine and port, while BMA and NSW Energy Coal both delivered higher production than the same period last year. Stronger commodity prices provided a tailwind for earnings, particularly in copper where prices were around 50% higher than a year ago. We are building the next phase of growth in copper and potash. We continued to strengthen one of the world’s largest copper portfolios, from funding the Escondida New Concentrator in Chile to growing our resource base and long-term production potential at Copper South Australia, while also expanding our copper growth pipeline across the Americas. Jansen is rapidly taking shape, with Stage 1 now 87 per cent complete and on track for first production in mid-2027, adding a new and important commodity to our portfolio.

What’s next for BHP?

Looking ahead, BHP is maintaining guidance across all major commodities for FY27 with copper production expected to ramp up in the second half. Major growth projects, including the Jansen potash development in Canada, are progressing, with Stage 1 forecast for first production in mid-2027.

The group remains committed to advancing its decarbonisation agenda, deepening strategic partnerships, and supporting long-term demand trends, especially as demand for copper is buoyed by global electrification, Chinese and Indian infrastructure spending, and the burgeoning data centre market.

BHP share price snapshot

Over the past 12 months, BHP shares have risen 60%, outperforming the S&P/ASX 200 Index (ASX: XJO), which has fallen 2% over the same period.

View Original Announcement

The post BHP Q1 update: steady guidance, stronger prices, focus on safety appeared first on The Motley Fool Australia.

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Motley Fool contributor Laura Stewart 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. This article was prepared with the assistance of Large Language Model (LLM) tools for the initial summary of the company announcement. Any content assisted by AI is subject to our robust human-in-the-loop quality control framework, involving thorough review, substantial editing, and fact-checking by our experienced writers and editors holding appropriate credentials. The Motley Fool Australia stands behind the work of our editorial team and takes ultimate responsibility for the content published by The Motley Fool Australia.

The HUB24 Ltd (ASX: HUB) share price is in focus after the company delivered a strong start to FY27, posting net inflows of $4.0 billion for the September quarter and lifting total Funds Under Administration (FUA) to $168.6 billion, up 15% on the prior corresponding period.

What did HUB24 report?

• Total FUA grew to $168.6 billion as of 30 September 2026, up 15% year on year
• Platform FUA rose 18% to $143.7 billion
• Platform net inflows were $4.0 billion, down 23% on the previous corresponding period
• 45 new licensee agreements were signed in the quarter
• The number of active advisers increased by 211 to 5,860, up 12% on pcp
• HUB24 Platform ranked first for quarterly and annual net inflows for the eleventh straight quarter

What else do investors need to know?

HUB24 saw robust growth in its adviser base and continues to lead the market in platform net inflows and adviser satisfaction. The business signed 45 new licensee agreements and expanded the number of active advisers by 211, benefiting from strong demand for wealthtech solutions. The company also maintained its leading Net Promoter Score (NPS) in the Adviser Ratings 2026 Report, ranking first in nine out of eleven platform capability categories.

In its Class division, account numbers grew to 229,651 (up 6%), while NowInfinity document orders rose 9%. HUB24 also enhanced its private investment offerings and digital tools, including AI-powered features and expanded integrations, to support adviser productivity and client outcomes.

What’s next for HUB24?

HUB24 expects ongoing growth opportunities driven by demographic shifts, strong demand for financial advice, and transformation within the advice industry. The company will continue rolling out enhancements to its platform, such as myhub’s AI-driven features for advisers, and progress the acquisition of HTFS Nominees, pending regulatory approval. Management highlights ongoing product and service innovation as a strategic priority.

Looking ahead, HUB24 intends to broaden client access to private markets and further invest in technology to streamline adviser workflows and improve experiences. The company believes these initiatives position it well for the evolving wealth management landscape.

HUB24 share price snapshot

Over the past 12 months, Hub24 shares have declined 40%, trailing the S&P/ASX 200 Index (ASX: XJO), which has declined 2% over the same period.

View Original Announcement

The post HUB24 Q1 earnings: $4bn net inflows appeared first on The Motley Fool Australia.

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Motley Fool contributor Laura Stewart 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 Hub24. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips. This article was prepared with the assistance of Large Language Model (LLM) tools for the initial summary of the company announcement. Any content assisted by AI is subject to our robust human-in-the-loop quality control framework, involving thorough review, substantial editing, and fact-checking by our experienced writers and editors holding appropriate credentials. The Motley Fool Australia stands behind the work of our editorial team and takes ultimate responsibility for the content published by The Motley Fool Australia.

Sigma Healthcare Ltd (ASX: SIG) shares have been on a strong run recently.

Since the middle of September, the Chemist Warehouse owner’s shares have outperformed the S&P/ASX 200 index (ASX: XJO) with a gain of around 13%.

However, one leading broker is calling time on the rally on the belief that its shares are about fair value now.

What’s happening?

According to a note out of Bell Potter, its analysts are expecting a good update from the company at this month’s annual general meeting. This is thanks largely to strong demand for GLP-1s. It said:

SIG will conduct is AGM in Melbourne on 21 October when it is expected to provide a 3 month trading update. LFL network sales growth is the key performance measure. The group reported 14.7% growth for this metric in 1Q FY26 aided by store refurbishments and GLP-1 tailwinds. 

In FY27 the bar is raised higher by virtue of the larger revenue base, nevertheless, the global GLP-1 phenomena continues with demand for private prescriptions likely to continue to increase. The downstream benefits will also flow, i.e. GLP-1 customer basket size is on average 40% larger than other customers, being mostly sales of protein and other dietary supplements. We expect 1Q27 network LFL network sales growth in the range of 12-13%.

Looking ahead, Bell Potter believes the launch of new GLP-1s will be supportive of growth for the ASX 200 share. It adds:

The next chapter of the GLP-1 growth is about to commence with the upcoming registration in Australia of the oral formulation of Lilly’s blockbuster GLP-1 medication – Mounjaro. The oral formulation (branded Foundayo) is expected to gain TGA approval in late CY26. The drug gained FDA approval in the US in April 202[6] with the US DTC launch in June 2026. June qtr 2026 global revenues reached US$98m. 

Elsewhere sales of Mounjaro (being the original injectable formulation) continue to grow rapidly. Lilly’s 2Q global sales increased 90% vs pcp to $US9.9bn. The read through to the Australian market is similarly positive where we believe private prescriptions for GLP-1 medications represent at least 44% of total prescriptions sold. All of this is a tailwind for SIG which is a major beneficiary of foot traffic into pharmacies for the purpose of prescription medicines.

ASX 200 share downgraded

In response to recent share price strength, Bell Potter has downgraded Sigma Healthcare’s shares to a hold rating (from buy) with an unchanged price target of $3.00.

Based on its current share price of $2.83, this implies modest potential upside of 6% for investors over the next 12 months.

Commenting on the downgrade, Bell Potter said:

The recent flight to safety away from tech is probably responsible for the rally in the SIG market price over recent weeks, nevertheless the stock remains expensive relative to growth outlook. In the absence of a significant upgrade, our recommendation is adjusted to Hold from Buy. PT is unchanged at $3.00.

The post Guess which ASX 200 share was just hit with a broker downgrade 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 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.

Australians can use the power of the ASX share market to help them retire wealthy at age 57, or even earlier. It’s possible to create a lot of passive income from investments.

Superannuation is a great tool to save towards retirement. But what if someone wants to retire earlier than that? I think it’d be a good idea to invest outside of superannuation too.

Taxation can be an important factor, but every household has a different income and different tax situation, so I won’t talk about that side of things. I’m just going to look at how Australian investors can unlock gross passive income of $90,000 a year and retire by 57.

Regularly save and invest

Having cash to invest doesn’t just appear out of nowhere. Australians need to set some money aside, assuming their budget has the room to do so after paying for the essentials.

Essentially, we need to spend less than we earn and invest the difference. Of course, it’s a good idea to make sure we enjoy life during that period of wealth accumulation – life is not just about the money.

Every household has different finances, so it’s up to each Australian adult to figure out what they can save.

Investing those savings makes a big difference to how much the wealth grows to. For example, putting $1,000 per month under the mattress will turn into $120,000 after ten years.

If someone else invested $1,000 per month in the share market and it returned an average of 10% per year, it’d be worth $191,249 after a decade. After two decades of doing that, the balance would become $687,300. After three decades, it becomes an incredible $1.97 million.

Therefore, someone who’s 27 could start today and potentially have $1.97 million by 57 and retire.

Figure out what sort of investments to make

There are a number of ways for Australians and invest to build their wealth.

One of the simplest ways to build wealth is to invest in exchange-traded funds (ETFs) that give investors exposure to quality businesses from around the world, which I believe have a higher chance of delivering solid compounding earnings growth.

Some of my top choices for that investment exposure include Vanguard MSCI Index International Shares ETF (ASX: VGS), VanEck MSCI International Quality ETF (ASX: QUAL), Betashares Global Quality Leaders ETF (ASX: QLTY) and Global X S&P World EX Australia Garp ETF (ASX: GARP).

There are certain Australian companies that I also think could be excellent contenders to grow wealth over the long-term including Washington H. Soul Pattinson and Co. Ltd (ASX: SOL), Wesfarmers Ltd (ASX: WES) and L1 Global Long Short Fund Ltd (ASX: GLS).

The yield influences the portfolio size needed

The portfolio balance required to generate $90,000 per year depends on the dividend yield of the portfolio.

For example, if someone had a $2 million portfolio, it’d require a dividend yield of 4.5% to make $90,000 of annual passive income.

If the dividend yield was 3%, the portfolio would need to be $3 million in size.

With a dividend yield of 6%, the Aussie investor would need $1.5 million.

By choosing the right investments and regularly saving, an average Aussie can build a good amount of wealth and retire.

The post How much do I need to retire on $90,000 a year at 57? appeared first on The Motley Fool Australia.

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Motley Fool contributor Tristan Harrison has positions in L1 Global Long Short Fund Ltd, VanEck Msci International Quality ETF, and Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Washington H. Soul Pattinson and Company Limited and Wesfarmers. The Motley Fool Australia has positions in and has recommended Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia has recommended Vanguard Msci Index International Shares ETF and Wesfarmers. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

For investors looking to generate passive income from the share market, there are plenty of opportunities among ASX dividend shares right now.

Here are three shares that income investors may want to consider.

Cedar Woods Properties Ltd (ASX: CWP)

The first ASX dividend share that could be worth considering is Cedar Woods Properties. This property developer has a growing portfolio of residential communities, townhouses, and apartments across Australia.

The company appears well positioned to benefit from Australia’s ongoing housing shortage and growing population, which could support demand for its developments. And with Cedar Woods reporting record presales of $830 million at the end of FY 2026, it has excellent visibility over future earnings.

Bell Potter is positive on the company and has a buy rating and $9.80 price target on its shares. As for income, it is forecasting fully franked dividends of 44 cents per share in FY 2027 and 47 cents in FY 2028. Based on its current share price of $5.90, this would mean dividend yields of approximately 7.5% and 8%, respectively.

Eagers Automotive Ltd (ASX: APE)

Another ASX dividend share that could appeal to income investors is Eagers Automotive.

It is Australia’s largest automotive retailer, operating an extensive network of dealerships selling new and used vehicles, alongside servicing, parts, and finance products.

Its scale and diversified operations provide opportunities to improve efficiency and support long-term earnings growth.

Eagers is also expanding internationally, with its recent investment in Canada’s automotive retail market providing another potential growth opportunity.

Bell Potter is bullish on Eagers Automotive and has a buy rating and $27.50 price target on its shares.

With respect to income, the broker estimates that it will pay dividends of 76 cents per share in FY 2026 and 82 cents in FY 2027. Based on its current share price of $18.08, this would mean dividend yields of 4.2% and 4.5%, respectively.

Rural Funds Group (ASX: RFF)

A final ASX dividend share worth considering is Rural Funds Group.

This agricultural property company owns a diversified portfolio of farmland across Australia, including cattle properties, vineyards, and orchards.

Rather than relying on agricultural production, Rural Funds generates the majority of its income by leasing its properties to farming businesses. These long-term leases provide relatively predictable rental income, which helps support regular dividends to investors.

Bell Potter currently has a buy rating and $2.55 price target on Rural Funds units.

As for income, the broker expects annual dividends of 11.7 cents per unit in FY 2027, FY 2028, and FY 2029. Based on its current share price of $1.92, this represents dividend yields of approximately 6.1% for each of those years.

The post 3 of the best ASX dividend shares for income investors 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 no position in any of the stocks mentioned. The Motley Fool Australia has positions in and has recommended Rural Funds Group. The Motley Fool Australia has recommended Cedar Woods Properties and Eagers Automotive Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Shares in Deep Yellow Ltd (ASX: DYL) have crashed to a 12-month low after the company decided not to go ahead with its flagship Tumas uranium project this quarter.

The company said Tumas remained a world-class, greenfields uranium project, but that it had determined that current equity market conditions did not support going ahead with a final investment decision.

The analyst teams at both Macquarie and Morgans have since issued new research notes on the uranium company, with both expecting significant share price upside.

Work to continue proving up the project

Management said it had made strong progress in areas such as concrete preparation, reinforcing steel installation and the award of key construction contracts.

Managing Director Greg Field said:

Despite the compelling global uranium market fundamentals, challenging equity market conditions continue to constrain funding options for uranium developers. Against this backdrop, we believe it is prudent to defer FID beyond Q4 2026 while maintaining construction momentum and progressing our funding strategy to ensure Tumas is well positioned to advance when market conditions improve. The commencement of civil works on schedule represents another significant milestone for Tumas, reflecting the considerable progress achieved across engineering, procurement and construction readiness as we systematically de-risk the project’s development.

Deep Yellow said work on an updated value model for the mine was nearing completion and would be released to the market once finished.

About 440 contractors and employees had also been inducted to work on the project.

Shares looking very cheap, brokers say

In a research note, Morgans said the withdrawal of the FID timeline was not altogether surprising given the weakness in the company’s share price.

They added:

In our view, raising equity at current levels would have represented an unattractive funding outcome for existing shareholders. Importantly, we view this as a delay rather than a change in strategy, with DYL remaining focused on advancing Tumas and positioning the project for a future FID.

Morgans is forecasting a 12-month delay to a final investment decision, “resulting in a corresponding reduction in our discounted cash flow valuation as future cash flows are delayed”.

The broker reduced its price target on Deep Yellow shares from $1.95 to $1.50, compared with 76 cents at the time of writing.

They added:

While financing, execution and uranium market risks remain, we believe the market is underappreciating the value of a development ready uranium asset with significant leverage to improving fundamentals. That said, the need to secure funding for Tumas, including a likely equity component, is expected to remain a key overhang on the stock.

Macquarie has a price target of $1.95 on Deep Yellow shares.

The post This ASX uranium company is set to surge: Brokers appeared first on The Motley Fool Australia.

More reading

• I think this ASX share is a bargain buy after hitting a 52-week low: Here’s why
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Motley Fool contributor Cameron England 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 recommended Macquarie Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Telstra Group Ltd (ASX: TLS) shares are one of the few ASX blue-chip stock options that aren’t about banking or commodities. For that reason alone, it could be a solid option to consider for passive income.

These days, telecommunications could be one of the most defensive industries, given how important an internet connection is for households and businesses.

There’s no certainty around how technology will evolve in the coming years. However, data will likely become increasingly important, and I believe Telstra is well suited to meet that demand.

I think 5G (and 6G in the future) could increasingly challenge in the home internet market space. Telstra’s position as the current market leader in mobile, and its financial firepower to invest the most, could mean capturing some of the dollars currently going to the NBN.

During FY26, the number of 5G fixed wireless subscribers increased by 20.7% to 146,000.

Turning to Telstra’s FY26 performance, statutory earnings per share (EPS) grew by 5.3% to 19.9 cents, and cash EPS increased 13.8% to 25.5 cents. This helped fund a 10.5% increase in the dividend per share to 21 cents

What could the 2027 dividend payout be?

According to the projection on CMC Invest, the ASX telco share could deliver a larger payout to shareholders in FY27.

The current forecast suggests the company could hike its dividend to 22 cents per share in the 2027 financial year. That would be a year-over-year increase of 4.75%, which would noticeably outpace current inflation.

At the time of writing, that possible payout translates into a forward dividend yield of 4.6% excluding franking credits and 6.6% including franking credits.

There are not many ASX blue-chip shares that offer a dividend yield that high, whilst also growing the payout at a solid pace.

How many Telstra shares are needed for $12,000 of annual passive income?

To earn that much dividend income, we’re talking about a large investment. But it depends on whether an investor wants to include or exclude franking credits as part of the dividend income total.

If an investor doesn’t include franking credits, then to earn $12,000 per year of dividend cash, it’d take 54,546 Telstra shares.

If we include the franking credits, it would take 39,358 Telstra shares, assuming the same level of franking as FY26.

Overall, I think the ASX telco share has a promising future as an ASX dividend share. The 274,000 increase in mobile handheld users in FY26 (including 235,000 wholesale subscribers) is a strong driver of ongoing dividend growth. The future looks positive to me.

The post How many Telstra shares do I need to buy for $12,000 of passive income in 2027? appeared first on The Motley Fool Australia.

More reading

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

On Monday, the S&P/ASX 200 Index (ASX: XJO) started the week in a positive fashion. The benchmark index rose 0.45% to 8,845.7 points.

Will the market be able to build on this on Tuesday? Here are five things to watch:

ASX 200 expected to sink

The Australian share market looks set for a tough session on Tuesday following a mixed start to the week in the United States. According to the latest SPI futures, the ASX 200 is expected to open the day 77 points or 0.85% lower. On Wall Street, the Dow Jones fell 0.1%, but the S&P 500 rose 0.4% and the Nasdaq jumped 1.1%.

Sell New Hope shares

Bell Potter thinks New Hope Corporation Ltd (ASX: NHC) shares are overvalued. This morning, the broker has retained its sell rating on the coal miner’s shares with an improved price target of $5.30. It said: “We maintain a Sell recommendation. Our $5.30/sh TP already incorporates a 15% premium to our sum-of-the-parts valuation, reflecting NHC’s leverage to global energy security themes amplified by recent geopolitical tensions. We expect energy markets will normalise over the near-term. While the Malabar acquisition will materially strengthen NHC’s long-term production outlook, Maxwell’s longwall ramp-up to 5Mtpa saleable production brings elevated operational complexity over the medium-term.”

Oil prices mixed

ASX 200 energy shares Beach Energy Ltd (ASX: BPT) and Santos Ltd (ASX: STO) will be on watch following a mixed night for oil prices. According to Bloomberg, the WTI crude oil price is up 2.25% to US$103.69 a barrel and the Brent crude oil price is down 0.45% to US$109.39 a barrel. Overnight there were more reports of Houthi attacks on Saudi infrastructure.

Sigma Healthcare shares downgraded

Sigma Healthcare Ltd (ASX: SIG) shares will be on watch on Tuesday after being hit with a broker downgrade. According to a note out of Bell Potter, it has downgraded the Chemist Warehouse owner’s shares to a hold rating (from buy) with a steady price target of $3.00. It said: “The recent flight to safety away from tech is probably responsible for the rally in the SIG market price over recent weeks, nevertheless the stock remains expensive relative to growth outlook. In the absence of a significant upgrade, our recommendation is adjusted to Hold from Buy. PT is unchanged at $3.00.”

Gold price falls

ASX 200 gold shares including Genesis Minerals Ltd (ASX: GMD) and Capricorn Metals Ltd (ASX: CMM) could have a subdued session on Tuesday after the gold price dropped overnight. According to CNBC, the gold futures price is down 0.5% to US$4,159.8 an ounce. Higher US Treasury yields weighed on the precious metal.

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

More reading

• Here are the top 10 ASX 200 shares today
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• How much could the Sigma Healthcare share price rise in the next year?

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.

I think long-term investing in ASX shares is the best chance of achieving positive returns and financial objectives.

Compounding is a very powerful financial force that can help grow our wealth over time, particularly if we don’t interrupt it unnecessarily by trading in and out of stocks and triggering capital gains tax.

We don’t need to own the absolute hottest ideas to achieve good results. I think the two ideas below are very strong options for long-term returns.

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

Soul Patts is an investment house that has operated for over 120 years. It already has a great track record of surviving (and thriving) through recessions, the world wars, pandemics and so on.

It’s able to look across a wide array of asset classes, sectors and geographic markets for opportunities. I think that’s compelling considering the main local and global share market indices are increasingly focused on just the 10 or so largest businesses.

Soul Patts is invested in areas like energy, resources, telecommunications, financial services, agriculture, swimming schools, electrification, retirement living, building products, industrial property, land and plenty more.

I like how the portfolio has evolved over time and now includes newer ideas that can unlock the next 10 years (or more) of returns. Soul Patts is not stuck being a bank or retailer, it can buy or sell assets wherever it sees opportunities.

For example, it recently decided to include a ‘fixed income’ segment in its portfolio because of how high bond yields have risen.

I also like that the company is considering expanding its portfolio to international opportunities. This could produce stronger returns and deliver more diversification of risk.

Not only is the value of Soul Patts’ investments rising over time, but it’s also retaining some of its cash flow each year to make new investments. Funded by the majority of its cash flow, the ASX share pays a steadily growing dividend that has increased every year since 1998.

Global X S&P World Ex Australia GARP ETF (ASX: GARP)

This exchange-traded fund (ETF) is about investing in great businesses at a good price.

‘GARP’ stands for growth at a reasonable price. This strategy can lead to investing in compelling companies that are compounding their earnings at a good pace.

It owns a portfolio of 250 companies spread across multiple countries and sectors. I’m calling this an ASX share because it’s about investing in shares, and we can buy it on the ASX.

All of those stocks need to tick three boxes.

First, the shares must have solid sales and earnings growth.

Second, the value must look appealing on a price/earnings (P/E) ratio basis.

Third, to measure quality, the GARP ETF looks for healthy financial leverage (debt levels) and a high return on equity (ROE).

I think that combination of factors can lead to strong long-term performance. Since its inception in September 2024, the fund has returned an average of 16.4% per year.

I don’t know whether future returns will be as good as past returns, but I think it’s a compelling investment for the next decade. 

The post 2 top ASX shares to buy and hold for the next decade appeared first on The Motley Fool Australia.

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