As the calendar flips toward a new year, I’m not necessarily looking to overhaul my portfolio.

Instead, I’m focusing on a few new additions, including exchange traded funds (ETFs) that offer long-term tailwinds, diversification, and quality.

With that in mind, here are three top ASX ETFs I’m thinking of buying in 2026:

Betashares Global Cybersecurity ETF (ASX: HACK)

Cybersecurity has become a mission-critical necessity for businesses and consumers across the world. Governments, corporations, and consumers are all more dependent on digital infrastructure than ever, and the threat landscape continues to expand alongside it.

The Betashares Global Cybersecurity ETF provides exposure to companies operating at the front line of this arms race. Its holdings include global leaders such as Palo Alto Networks (NASDAQ: PANW), CrowdStrike Holdings (NASDAQ: CRWD), Fortinet (NASDAQ: FTNT), and Zscaler (NASDAQ: ZS). These businesses are deeply embedded in enterprise systems, with recurring revenue models and high switching costs.

Rather than betting on a single winner, this fund spreads risk across the sector, giving investors diversified exposure to a structural growth theme that looks set to persist well beyond 2026.

iShares S&P 500 ETF (ASX: IVV)

When it comes to core portfolio holdings, it is hard to look beyond exposure to the US market. The iShares S&P 500 ETF tracks 500 of America’s largest listed companies. This offers instant diversification across industries, business models, and economic cycles.

While mega-cap technology stocks remain important components, the fund’s exposure extends well beyond them. Non-tech holdings include Warren Buffett’s Berkshire Hathaway (NYSE: BRK.B), UnitedHealth Group (NYSE: UNH), JPMorgan Chase (NYSE: JPM), Exxon Mobil (NYSE: XOM), and Procter & Gamble (NYSE: PG).

For investors who want reliable access to global innovation, strong earnings growth, and stocks with robust business models, the iShares S&P 500 ETF is a fund I would be happy to buy in 2026.

VanEck Morningstar Wide Moat ETF (ASX: MOAT)

The VanEck Morningstar Wide Moat ETF focuses on US stocks with sustainable competitive advantages and attractive valuations. This sort of focus is never a bad idea and has been championed by Warren Buffett for decades.

The ETF’s portfolio includes stocks such as Thermo Fisher Scientific (NYSE: TMO), Merck & Co. (NYSE: MRK), Danaher (NYSE: DHR), Nike (NYSE: NKE), and Adobe (NASDAQ: ADBE).

For long-term investors who value resilience as much as growth, the VanEck Morningstar Wide Moat ETF offers a compelling blend of both. I would be happy to buy this again in January.

The post 3 ASX ETFs I’m buying in January 2026 appeared first on The Motley Fool Australia.

More reading

• 5 amazing ASX ETFs for beginners to buy in 2026
• If Santa brought me one ETF this Christmas, it’d be this one
• I plan to invest $1,000s into these 2 ASX ETFs in 2026
• The smartest ASX ETFs to build wealth in the new year
• Did the ASX 200, NASDAQ 100, or S&P 500 perform better this year?

JPMorgan Chase is an advertising partner of Motley Fool Money. 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 Adobe, Berkshire Hathaway, BetaShares Global Cybersecurity ETF, CrowdStrike, Danaher, Fortinet, JPMorgan Chase, Merck, Nike, Thermo Fisher Scientific, Zscaler, and iShares S&P 500 ETF. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Palo Alto Networks and UnitedHealth Group and has recommended the following options: long January 2028 $330 calls on Adobe and short January 2028 $340 calls on Adobe. The Motley Fool Australia has recommended Adobe, Berkshire Hathaway, CrowdStrike, Nike, VanEck Morningstar Wide Moat ETF, and iShares S&P 500 ETF. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

You don’t need to chase speculative small caps or time the market perfectly to build wealth from shares.

Some of the most reliable returns over time have come from simply backing high-quality ASX 200 shares and letting them compound.

With $5,000 to invest, I would focus on companies with strong competitive positions, proven earnings power, and the ability to grow through different economic cycles.

Three ASX 200 shares that arguably tick these boxes and could be no-brainer buys are listed below. Here’s what you need to know about them:

CSL Ltd (ASX: CSL)

The first ASX 200 share that could be a no-brainer buy is CSL.

It is one of Australia’s true global champions. The biotech giant operates at the crossroads of healthcare innovation and essential medicine, supplying plasma therapies and vaccines to patients worldwide.

While its shares have been underperforming significantly this year due to short term headwinds, its long-term fundamentals remain compelling. Demand for plasma products continues to rise, its research pipeline remains deep, and its scale provides a powerful competitive moat. For patient investors, CSL offers exposure to global healthcare growth at an attractive price.

If you are looking for a cornerstone holding to anchor a $5,000 investment, CSL arguably fits the bill.

Woolworths Group Ltd (ASX: WOW)

Woolworths is about as defensive as it gets with ASX 200 shares. As Australia’s largest supermarket operator, it generates consistent cash flow regardless of economic conditions because people still need to buy groceries.

Beyond its core supermarket business, Woolworths has been investing in automation, digital retail, and supply chain efficiency, all of which will support its margins over time. It also has a long history of paying dividends, making it appealing to investors who want both stability and income from their investments.

Overall, for those seeking reliability and lower volatility in their ASX share portfolio, Woolworths could be a logical choice. Especially with its shares down materially from their highs.

Macquarie Group Ltd (ASX: MQG)

Finally, Macquarie is an ASX 200 share that adds a different flavour to a $5,000 portfolio. Unlike traditional banks, it operates as a global financial services group with strengths in asset management, infrastructure, commodities, and advisory services.

Its diversified earnings streams mean it can thrive in a range of market environments. Over the long term, Macquarie has demonstrated an ability to grow earnings, reinvest capital intelligently, and reward shareholders through dividends and capital growth.

For investors wanting exposure to global finance and infrastructure trends, Macquarie provides that opportunity within a well-established ASX 200 name.

The post 3 no-brainer ASX 200 shares to buy with $5,000 appeared first on The Motley Fool Australia.

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• BHP, Macquarie, and Westpac: Naughty or nice? 3 popular ASX shares examined
• These popular ASX 200 shares are in the Boxing Day sales
• 5 amazing ASX 200 shares I want Santa to bring me for Christmas
• Buy, hold, sell: Medibank, PLS, and Woolworths shares
• 3 reasons to buy Woolworths shares for Christmas

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

ASX dividend stocks are capable of producing excellent levels of cash flow for investors. In-fact, investing $3,500 across the three names I’m going to highlight could unlock $331 of annual passive income in 2026 and beyond.

Certain businesses are able to produce very big dividend yields thanks to a mixture of a generous dividend payout ratios and low valuations. While consistent dividends aren’t guaranteed, I think it looks like the following businesses can continue delivering large payouts.

Shaver Shop Group Ltd (ASX: SSG)

Shaver Shop is an underrated retailer, in my view. It wants to be the leader of male and female hair removal, selling products like electric shavers, clippers, trimmers and wet shave items. It also sells items from the oral care, hair care, massage, air treatment and beauty categories.

The ASX dividend stock has increased its payout in almost every year since 2017, aside from when it maintained the payout in 2024.

The Shaver Shop share price is trading at less than 13x FY25’s earnings, with a current grossed-up dividend yield of 10.2%, including franking credits, at the time of writing. I think the company’s moves to open more stores and grow its own brand called Transform-U will help its bottom line. I also believe the ASX dividend stock’s margins could rise in the coming years thanks to bigger scale and more private brand and exclusive product sales.

Bailador Technology Investments Ltd (ASX: BTI)

Bailador is an investment business that focuses on buying stakes in private technology businesses.

The company is invested across an array of software businesses including hotel management and room distribution, financial advice and investment management, digital healthcare and telehealth, tours and activities booking, volunteer management, AI-enabled property investment, and fitness and wellness.

Bailador looks for a number of characteristics with its targets, including being founder-led, having a proven business model with attractive unit economics, international revenue generation, having a huge market opportunity and the ability to generate repeat revenue.

It aims to provide investors with a dividend yield (excluding franking credits) of 4% of the net tangible assets (NTA). But, due to the fact that it’s trading at a discount of around 40% to the November 2025 pro-forma NTA of $1.98, at the time of writing, it has a dividend yield of 6.6% or 9.4% including the franking credits.

Centuria Office REIT (ASX: COF)

The office sector has struggled over the last few years because of the impacts of working from home and higher interest rates. To me, it’s not a surprise that the Centuria Office REIT unit price has dropped over 50% since September 2021.

However, I think there are signs that the business could be undervalued, while providing pleasing levels of passive income. For starters, it’s trading at a discount of more than 30% to the stated NTA of $1.67 at 30 June 2025.

The ASX dividend stock’s fund manager Belinda Cheung said in August:

COF continues to execute its strategy through active leasing as well as asset and capital management initiatives. Despite this, the office leasing momentum remains fragmented across Australian office markets and, accordingly, the FY26 FFO guidance range takes into consideration anticipated downtime and lease-up assumptions for existing vacancy and pending expiries across COF’s portfolio.

Looking ahead, higher replacement costs and office withdrawals for alternate-use conversion is expected to stem future supply and reduce the market size to rebalance office markets, reducing future vacancy rates. COF’s portfolio is well positioned to benefit from these future tailwinds.

It expects to pay a distribution of 10.1 cents per unit in FY26, translating into a potential distribution yield of 8.8%, at the time of writing.

Across the three businesses I’ve mentioned, they have an average yield of close to 9.5%. With investments totalling $3,500, that translates into annual passive income of $331, which is a rewarding starting point.

The post All it takes is $3,500 in these three ASX dividend stocks to help generate $331 in passive income in 2026 appeared first on The Motley Fool Australia.

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

I think virtually every Australian adult would love to be financially independent, where you don’t have to rely on your work earnings to sustain your life expenses. I believe dividends from ASX dividend shares could be the answer.

This is a great time of year to look at potential financial goals. What could be better than building enough wealth that pays tens of thousands of dollars in dividends?

But, a large nest egg doesn’t appear out of nowhere – it’ll take consistency and good financials choices. I believe it boils down to three steps.

Save money

Being able to put money into the ASX share market comes down to one simple equation: spending less than you earn.

If someone earns $10,000 and spends $11,000 per month then they won’t have anything to invest. Earning $6,000 and spending $5,000 per month would be a better monthly financial picture, in my view, because it would mean having $1,000 to put into wealth-growing assets.

It takes money to make money in the ASX share market, so for someone to unlock savings with a tight/negative budget, they may need to earn more, spend less or both. The extra earnings could come in the form of a side hustle/part-time job. Every household has different spending requirements, but finding value for money with the biggest categories (food, transportation and so on) is usually a useful strategy.

Invest for the long-term in ASX shares

Compounding is a very powerful financial force. Albert Einstein once supposedly said:

Compound interest is the most powerful force in the universe. Compound interest is the eighth wonder of the world. He who understands it, earns it; he who doesn’t pays it.

The longer we give our investments to grow, the more they can help our net wealth become a meaningful figure.

There are a number of appealing investments we could make for the long-term. I’d want to own ASX shares/investments that I think could grow nicely in value over the long-term.

For capital growth, I’m thinking of exchange-traded funds (ETFs) like Vanguard MSCI Index International Shares ETF (ASX: VGS), VanEck MSCI International Quality ETF (ASX: QUAL) and Betashares Global Quality Leaders ETF (ASX: QLTY).

For long-term dividends and growth, I’d look at names like Washington H. Soul Pattinson and Co. Ltd (ASX: SOL), MFF Capital Investments Ltd (ASX: MFF) and Wesfarmers Ltd (ASX: WES).

Replace your wage with dividends

By regularly investing, preferably monthly, Australians can steadily build up their portfolio enough to generate enough passive income to replace a wage with dividends through ASX shares.

Remember, the ASX share market has returned an average of close to 10% per year over the ultra-long-term. If an investment grows at 10% per year, it doubles in value in around eight years.

Trying to replace a wage could take time, but consistent effort will pay off. If someone can invest $1,500 per month into ASX shares (and never increasing that amount) and it grows at an average of 10% per year, it would turn into $1 million after 20 years and $1.5 million in less than 24 years.

If your portfolio had a 5% dividend yield, $1 million would unlock $50,000 of passive income, while $1.5 million would unlock $75,000 of dividends from ASX shares. That sounds good to me!

I think investing in ASX shares is the best way to build a river of passive dividend income, with franking credits being a major boost.

The post 3 steps to replace your wage with dividends from ASX shares appeared first on The Motley Fool Australia.

More reading

• 2 ASX dividend shares raising dividends like clockwork!
• I plan to invest $1,000s into these 2 ASX ETFs in 2026
• Is investing $5,000 enough to earn a $1,000 second income?
• Retirement wealth plan: Create $1 million with a single Australian stock
• Buy, hold, sell: DroneShield, Macquarie, and Wesfarmers shares

Motley Fool contributor Tristan Harrison has positions in Mff Capital Investments, 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 Mff Capital Investments, 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.

With most brokers taking a break over the Christmas and New Year holiday period, research notes are few and far between right now.

But don’t worry! Listed below are three recent broker buy recommendations that still have plenty of upside potential.

Here’s why brokers think these ASX shares are in the buy zone:

ResMed Inc. (ASX: RMD)

According to a note out of Ord Minnett, its analysts retained their buy rating and $48.80 price target on this sleep treatment disorder company’s shares. This followed the release of ResMed’s first quarter update which impressed the broker. Ord Minnett noted that its mask sales were strong and its focus on cost savings resulted in gross margin improvements ahead of consensus estimates. In response to the update, the broker increased its earnings per share estimates for FY 2026 and FY 2027. It now expects double-digit earnings per share growth for both years. And given ResMed’s growing cash balance, the broker highlights that ResMed has capital management optionality. The ResMed share price ended the week at $36.22.

TechnologyOne Ltd (ASX: TNE)

A note out of Morgan Stanley revealed that its analysts upgraded this enterprise software provider’s shares to an overweight rating with an increased price target of $36.50. This followed the release of the company’s full year results and a selloff that ensued. Although Morgan Stanley acknowledged that there was a slight slowdown in TechnologyOne’s growth outside the UK market, it continued to be highly profitable and generate significant free cash flow. As a result of this, its positive growth outlook, and defensive earnings, Morgan Stanley felt that an attractive entry point was created for investors. The TechnologyOne share price was fetching $28.56 at the Christmas break.

Xero Ltd (ASX: XRO)

Analysts at Macquarie retained their outperform rating on this cloud accounting platform provider’s shares with an increased price target of $230.30. According to the note, the broker was pleased with Xero’s performance in the first half of FY 2026. It highlighted that there was nothing in Xero’s result that breaks its thesis, despite what the market reaction to its release might have implied. In fact, Macquarie stated that it believes the US growth platform (Payments: Melio; Payroll: Gusto) is in place earlier than expected and management is executing. Overall, it feels that Xero has a great growth story that is on sale and only needing a catalyst. And at under 25x estimated FY 2027 earnings, the broker thinks that Xero shares are undervalued and sees scope for big returns over the next 12 months. The Xero share price ended the week at $112.78.

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

More reading

• 5 amazing ASX 200 shares I want Santa to bring me for Christmas
• What $100 invested in Australian shares each week starting this Christmas could become
• 3 incredible ASX 200 tech stocks for smart investors in 2026
• Prediction: Xero stock is going to double in 2026
• My 5 top stocks to buy in 2026

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

Are you wanting to supercharge your portfolio returns in 2026?

If you do, then it could be worth checking out the ASX 200 shares named below.

That’s because analysts have put buy ratings on them and are tipping potential upside of at least 30% over the next 12 months.

Here’s what they are recommending:

Flight Centre Travel Group Ltd (ASX: FLT)

The team at Morgans sees a lot of value in this travel agent giant’s shares. Particularly following the announcement of the acquisition of UK based online cruise agency Iglu.

It highlights that Iglu operates in a high growth and high margin segment of the travel industry. This bodes well for Flight Centre’s future growth. It said:

In our view, Iglu is a strategically sound acquisition for FLT’s Leisure business unit, given the cruise sector is a high growth and high margin segment within the travel industry. The acquisition multiple was reasonable for an online business and, importantly, is immediately EPS accretive.

FLT’s strong balance sheet can comfortably fund this acquisition and its capital management strategy. We have upgraded our forecasts to reflect the acquisition of Iglu. Despite recent share price appreciation, FLT’s fundamentals remain attractive and we retain a Buy recommendation with a new A$18.38 price target.

Morgans has a buy rating and $18.38 price target, which suggests that upside of 20% is possible from current levels.

WiseTech Global Ltd (ASX: WTC)

Bell Potter thinks that this beaten down ASX 200 tech share could be destined for a big rebound in 2026.

Especially with the broker expecting a significantly improved performance in the second half of FY 2026. It said:

WiseTech has also had a large pullback in its share price but this has been more driven by company specific issues like slowing growth in the core business, management and board upheaval and insider trading allegations against CEO and founder Richard White. These issues, however, are starting to subside and focus is returning to the outlook for the core business which is improving with the launch of new products, a new commercial model and the integration of a large acquisition (e2open).

These initiatives are all expected to help drive a much stronger 2HFY26 result relative to 1HFY26 and then the first full year of benefits will be evident in FY27. All of these changes/initiatives are not without risk and there is still some risk of a soft downgrade to revenue guidance in FY26 at the half year result but the 12-month outlook is positive in our view.

Bell Potter has a buy rating and $100.00 price target on its shares. This implies potential upside of 43% for investors over the next 12 months.

The post These ASX 200 shares could rise 20% to 40% appeared first on The Motley Fool Australia.

More reading

• 5 amazing ASX 200 shares I want Santa to bring me for Christmas
• Is WiseTech a buy, sell or hold in 2026?
• I think these ASX blue chips shares are primed for a major rebound in 2026
• 2 ASX 200 shares with massive upside potential according to brokers
• $5,000 to spare? I’d buy these 5 ASX 200 shares before the end of 2025

Motley Fool contributor James Mickleboro has positions in WiseTech Global. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended WiseTech Global. The Motley Fool Australia has positions in and has recommended WiseTech Global. 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.

For new investors, the hardest part of building wealth in the share market is often getting started. The fear of picking the wrong stock, buying at the wrong time, or needing to constantly monitor the market can be paralysing.

This is why exchange-traded funds (ETFs) are such a powerful tool for beginners. They provide instant diversification, low fees, and exposure to entire markets or themes in a single trade. With that in mind, here are five ASX ETFs that could form a strong foundation for beginner investors in 2026.

Vanguard Australian Shares ETF (ASX: VAS)

For most Australians, it makes sense to start close to home. The Vanguard Australian Shares ETF gives investors exposure to the largest companies listed on the ASX, spanning banks, miners, supermarkets, telcos, and healthcare leaders.

By owning this ASX ETF, beginners gain instant diversification across the Australian economy, as well as access to dividends that have historically grown over time. It is a simple, low-cost way to participate in the long-term growth of Australian businesses.

iShares S&P 500 ETF (ASX: IVV)

The iShares S&P 500 ETF offers exposure to the 500 largest listed stocks in the United States.

It is home to global leaders across technology, healthcare, consumer goods, and industrials. This includes Apple (NASDAQ: AAPL), Nvidia (NASDAQ: NVDA), and Walmart (NYSE: WMT).

For beginners, this fund provides an easy way to diversify internationally and gain exposure to stocks that drive much of global earnings growth.

Betashares Nasdaq 100 ETF (ASX: NDQ)

The Betashares Nasdaq 100 ETF adds a growth tilt to a beginner portfolio. It invests in 100 of the largest non-financial stocks that are listed on the Nasdaq exchange. Many of these are global giants and household names.

While the Betashares Nasdaq 100 ETF can be more volatile than broader market ETFs, it has historically delivered strong long-term returns. For younger investors or those with a long time horizon, this ASX ETF can play an important role in accelerating portfolio growth.

Betashares Global Robotics and Artificial Intelligence ETF (ASX: RBTZ)

For beginners who want exposure to the future, the Betashares Global Robotics and Artificial Intelligence ETF could be worth considering. It focuses on stocks that are leading the automation, robotics, and artificial intelligence revolution.

Rather than betting on a single AI stock, this ETF spreads risk across a global portfolio of businesses developing the hardware and software that power automation and intelligent systems. It offers thematic exposure while still maintaining diversification. It was recently recommended by analysts at Betashares.

Betashares Crypto Innovators ETF (ASX: CRYP)

Finally, the Betashares Crypto Innovators ETF is a higher-risk option, but one that can make sense as a small allocation for beginners with a long-term mindset.

Instead of holding cryptocurrencies directly, this ASX ETF invests in stocks that are building the infrastructure of the digital asset ecosystem. This includes exchanges, miners, and blockchain-focused businesses. For investors who believe digital assets will play a larger role in the global financial system, this fund provides a regulated and diversified entry point.

The post 5 amazing ASX ETFs for beginners to buy in 2026 appeared first on The Motley Fool Australia.

More reading

• The ASX ETFs to buy now and not look at until next Christmas
• Did the ASX 200, NASDAQ 100, or S&P 500 perform better this year?
• The ASX ETFs that have stood the test of time
• The ASX ETFs to buy if you got a Christmas bonus
• 3 excellent ASX ETFs to buy in January

Motley Fool contributor James Mickleboro has positions in BetaShares Nasdaq 100 ETF. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Apple, BetaShares Nasdaq 100 ETF, Nvidia, and iShares S&P 500 ETF. The Motley Fool Australia has positions in and has recommended BetaShares Nasdaq 100 ETF. The Motley Fool Australia has recommended Apple, Nvidia, and iShares S&P 500 ETF. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The Australian share market is a great place to generate passive income. But how would you go about pulling in a massive $50,000 a year?

Well, it depends firstly on how much capital you already have behind you to support your endeavours.

The quick way

If you are lucky enough to already be sitting on significant capital, you could make this a reality very quickly.

For example, with a target dividend yield of 5% across a portfolio of ASX shares, you would need a $1 million investment to generate the $50,000 of passive income.

Shares such as APA Group (ASX: APA), Accent Group Ltd (ASX: AX1), and Telstra Group Ltd (ASX: TLS) could be worthy candidates for this portfolio.

But very few people have that sort of balance to play with. So, this route is unlikely to be possible for the average investor. But don’t worry, because there is another way. You just need patience.

The slow and steady way

The most reliable way to reach a $1 million income-producing portfolio is to spend years prioritising growth with ASX shares, not income.

This means owning a mix of quality ASX shares, blue chips, and ETFs, reinvesting dividends, and letting compounding do the heavy lifting.

This stage is where many investors go wrong. Reinvesting dividends can feel counterintuitive when income is the goal, but putting them back into the market in the early and middle stages dramatically accelerates the end result.

A portfolio compounding at around 10% per annum doesn’t just grow steadily, it snowballs. The later years often do more work than the first decade combined.

A passive income plan

To build a $1 million ASX share portfolio with an average 10% per annum total return, you would need to consistently invest $1,000 a month for 23 years.

That might sound like a long time, but the end goal certainly would be worth it. The key is to be patient and disciplined.

Once you have grown your portfolio to the $1 million mark, it is time to switch your focus from growth to income.

As mentioned at the start, transitioning your portfolio so that it averages a dividend yield of 5%, would result in passive income of $50,000 a year.

Foolish takeaway

Making $50,000 of passive income isn’t about finding a magic stock or chasing yield. It is about years of patient compounding, followed by a careful transition to income-producing assets. Build the engine first. Then let it pay you.

The post How to make $50,000 of passive income in 2026 appeared first on The Motley Fool Australia.

More reading

• 3 strong ASX dividend shares I would buy and hold forever
• My 5 top stocks to buy in 2026
• I’d buy this ASX dividend stock in any market
• The ASX stocks I’d buy that nobody else wants
• $5,000 to spare? I’d buy these 5 ASX 200 shares before the end of 2025

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

Warren Buffett is one of the world’s wealthiest people, despite giving away billions of dollars for philanthropy. Together with the late Charlie Munger, Warren Buffett made numerous wise investment decisions that built Berkshire Hathaway into the powerhouse that it is today.

But, there’s much more to his long-term success than it may seem. We don’t need to make things complicated to do well over time.

By following the Warren Buffett method, I believe it’s possible for many Australians to accumulate a substantial amount of wealth by retirement, if they save and invest (even if they’re 50 with no savings).

Live a simple life

Warren Buffett does not live a luxurious, flashy lifestyle. There are many examples from his life where he has lived frugally compared to what he could have spent. In other words, he has spent less than he has earned.

He has lived in the same house for more than 60 years, and it’s not a mansion. If he were Australian, that would have saved a lot on stamp duty, selling agent fees, and moving costs.

Another frugal choice Buffett has reportedly made is the types of cars he buys. He supposedly usually buys second-hand cars and keeps them for a long time. New cars usually decline in value quite quickly – it could be better to buy a second-hand car and invest the saved money.

Spending less than you earn is a powerful financial strategy that creates financial flexibility in a household’s budget. Spending less also means requiring a smaller nest egg to sustain that level of spending in retirement.

Don’t just focus on money

There’s more to life than just making money, of course. It’s good to enjoy life between now and a financial target that takes years to reach. Also, being kind to people around you is important. He’s said a number of things on this topic, including these two:

Keep in mind that the cleaning lady is as much a human being as the chairman.

Decide what you would like your obituary to say and live the life to deserve it. Greatness does not come about through accumulating great amounts of money, great amounts of publicity or great power in government. When you help someone in any of thousands of ways, you help the world. Kindness is costless but also priceless. Whether you are religious or not, it’s hard to beat The Golden Rule as a guide to behaviour.

Invest in what you understand

I firmly believe that investing is a crucial component of building wealth over time. But, I believe it’s a good idea to only invest in assets that we can understand.

If you don’t know why you’re buying something, then how are you supposed to know when to sell? What are the signs that a business is doing well? How will you know an investment thesis is playing out as expected? Will you understand if a downturn is a temporary dip or a permanent decline?

Warren Buffett calls that type of investing staying in your circle of competence.

I think being able to stay invested for the long term is important. But, crashes and setbacks do come along sometimes. I only want to invest in businesses/investments that I’d want to buy more of if there were a large market correction (or worse). That way, crashes are exciting opportunities rather than worrying events. It’s good to be greedy when markets are fearful.

Choose investments that are likely to compound

Ultimately, investing is about growing our money to be worth more than it is today. If we’re not spending it on essentials/enjoyment today, then we want to see it’s doing well over time.

Compound interest is a very powerful financial tool, and we can utilise it by investing in growing businesses. Warren Buffett has shown the power of compound interest for Berkshire Hathaway over the decades.

Over the long term, I’m expecting investments like Vanguard MSCI Index International Shares ETF (ASX: VGS), Washington H. Soul Pattinson and Co. Ltd (ASX: SOL), and VanEck MSCI International Quality ETF (ASX: QUAL) to grow in value.

If a portfolio can grow by an average of (at least) 10% per year over the long term, then after 17 years (the pension age is 17 years away for a 50-year-old), someone who invests $1,000 per month could grow their nest egg to $486,500. Investing $2,000 per month would turn into $973,000!

The post With no savings at 50, I’d follow Warren Buffett’s method to build wealth appeared first on The Motley Fool Australia.

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Motley Fool contributor Tristan Harrison has positions in 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 Berkshire Hathaway and Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia has positions in and has recommended Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia has recommended Berkshire Hathaway and Vanguard Msci Index International Shares ETF. 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.

If you invest long enough, you’ll likely run into a “I wish I had invested in that sooner” scenario. Nowadays, many investors find themselves having that thought about Nvidia (NASDAQ: NVDA) — me included. And when you look at its performance over the past decade, it’s very easy to see why.

In the past 10 years, Nvidia’s stock is up an eye-popping 22,420%, meaning a $1,000 investment made a decade ago would be worth over $225,000. Talk about a return on investment.

NVDA data by YCharts

Nvidia has been on the stock market since January 1999, but the bulk of its gains since then have come in the past few years, thanks to the ongoing artificial intelligence (AI) boom. For a while, Nvidia’s main business was supplying graphics cards for video games. However, the company realized that the same technology was useful for processing massive amounts of data, and it’s now arguably the most important supplier of computing power.

If you’re interested in investing in Nvidia, it’s not too late. However, I wouldn’t expect its gains over the next decade to compare with those from this past decade. It still has long-term market-beating potential, but expecting the gains to replicate is asking a lot.

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

The post If you’d invested $1,000 in Nvidia 10 years ago, here’s how much you’d have today 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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• Will Nvidia stock crash in 2026?
• Which AI chip stock is the better buy for 2026: Nvidia or Alphabet?
• 1 prediction for Nvidia in 2026
• Where will Nvidia stock be in 5 years?

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