A new report from Global X has shed light on the shifting priorities and criteria investors are seeking in equities. 

Billy Leung, Senior Investment Strategist, said for much of the past decade, equity markets rewarded companies that required relatively little physical capital. 

This included software platforms and digital businesses.

These companies demonstrated how scale could be achieved without extensive infrastructure, allowing revenue growth to accelerate faster than investment.

Asset-light models became associated with high returns on capital, rapid scalability and structural market leadership.

However, Mr Leung contends there is a different set of economic forces is now drawing attention to industries built on physical capacity. 

Rising real interest rates increase the cost of capital and change how markets value long-duration growth. At the same time, geopolitical fragmentation and supply chain restructuring are forcing governments and corporations to reconsider how critical systems are built and maintained. Energy networks must expand, industrial production is being reshored across multiple regions, and infrastructure once taken for granted is being reassessed as strategically important.

This has brought attention to the HALO investing framework. 

What is HALO investing?

The HALO acronym stands for Heavy Assets, Low Obsolescence. 

According to Global X, the concept focuses on companies built around substantial physical infrastructure. It also focusses on long-lived capital assets that are difficult to replicate. 

Their advantage is not based on rapid innovation cycles but on scale, engineering complexity and the time required to build the systems they operate. These assets often sit at the centre of economic activity, quietly supporting the movement of energy, goods and materials across entire economies.

However, several structural forces are now shifting the balance in favour of these equities. 

Governments across major economies are investing heavily in energy security, domestic manufacturing capacity and strategic infrastructure. 

Supply chains once prioritised efficiency. They are now being redesigned with resilience and redundancy in mind.

This is prevalent in sectors linked to energy systems, transportation networks and advanced industrial production.

What are examples of HALO industries?

For investors interested in how this looks in the real world, some examples include: 

• Energy infrastructure (power grids, pipelines, generation) – requires huge investment and becomes foundational once built
• Transportation networks (rail, ports, freight corridors) – are long-term projects enabling regional and global trade
• Industrial manufacturing – depends on complex facilities and machinery that take years to develop and are hard to replicate.

According to Global X, viewing markets through the HALO framework highlights a different source of competitive advantage.

Instead of focusing exclusively on companies capable of scaling rapidly with minimal capital investment, the approach emphasises industries where value is embedded in infrastructure and physical capacity.

Assets such as power grids, pipelines, rail corridors and industrial facilities cannot be recreated quickly. Their value reflects decades of investment, regulatory frameworks and specialised engineering capabilities. These systems underpin the movement of energy, materials and goods that support broader economic activity.

How can investors gain exposure?

For investors looking for exposure to HALO investment opportunities, some ASX ETFs to consider include: 

• Global X Ai Infrastructure ETF (ASX: AINF) – Exposure to companies involved in the physical infrastructure supporting modern computing, including data centres, power systems and network capacity.
• Global X Uranium ETF (ASX: ATOM) – Provides exposure to companies across the uranium and nuclear fuel ecosystem supporting nuclear power generation.
• Global X Green Metal Miners ETF (ASX: GMTL) – Tracks producers of metals such as copper, nickel and lithium that are essential inputs for infrastructure, energy systems and industrial capacity. 

The post What is HALO investing and how do investors gain exposure to it? appeared first on The Motley Fool Australia.

More reading

• 3 ASX ETFs set to benefit from the AI revolution
• The ASX ETFs that have gotten off to the hottest starts in 2026
• 3 ASX shares riding the AI infrastructure buildout
• Niche ASX ETFs headed for massive growth

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

When I think about safe ASX 200 dividend stocks, I’m thinking about businesses that can keep rewarding shareholders year in and year out.

The kind with reliable cash flow, strong market positions, and services people continue to use regardless of what’s happening in the economy.

That said, here are three ASX 200 dividend stocks that I think fit that description.

Coles Group Ltd (ASX: COL)

Coles is about as close as you get to everyday reliability.

Supermarkets sit at the centre of household spending. People don’t stop buying groceries when conditions get tougher, which gives Coles a steady and defensive stream of revenue.

What I like is how that translates into cash flow and supports its ability to pay dividends year after year, even when other sectors are under pressure. This was evident during the COVID pandemic when many ASX 200 dividend stocks paused their payouts but Coles continued as normal.

It’s not a high-growth business, but that’s not really the goal here. It’s about dependability.

APA Group (ASX: APA)

APA Group offers a different type of stability. It owns and operates energy infrastructure, including gas pipelines and energy assets that are critical to Australia’s energy system.

A large portion of its revenue is contracted or regulated, which provides visibility over future cash flows.

That’s important for income investors. Because when you have predictable earnings, it becomes much easier to support consistent distributions over time.

Another positive is that its dividend yield is traditionally higher than average. This is the case right now, with the ASX 200 dividend stock guiding to a 58 cents per share distribution. At the current share price, APA offers a forward yield of 6%.

Telstra Group Ltd (ASX: TLS)

Telstra Group rounds out the list with a mix of infrastructure and recurring revenue.

Its telecommunications network underpins how Australians connect, work, and consume data. That creates a steady demand base, which in turn supports cash generation.

Telstra has also spent the past few years simplifying its business and focusing on returns, which has helped stabilise its dividend profile.

It may not offer the highest dividend yield on the market, but I think its reliability makes it a strong option for income-focused investors.

Foolish takeaway

Coles, APA Group, and Telstra share a common theme. They provide essential services and generate relatively stable cash flow.

For investors looking to build a more defensive income stream, I think these types of businesses are worth serious consideration as part of a broader portfolio.

The post 3 of the safest ASX 200 dividend stocks in Australia appeared first on The Motley Fool Australia.

More reading

• Can Telstra Group shares keep soaring after hitting a 10-year high?
• Grow your dividends alongside your job earnings with these Australian stocks
• I’d buy this ASX dividend stock in any market
• 3 of the best ASX dividend shares for income investors to buy
• 3 ASX dividend shares raising dividends like clockwork

Motley Fool contributor Grace Alvino 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 Apa Group and Telstra Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

When investing for the long term, quality tends to stand out.

Businesses with strong competitive advantages, consistent earnings, and the ability to reinvest for growth are often the ones that deliver the best returns over time.

While short-term market movements can be unpredictable, high-quality companies can continue compounding over many years.

Here are two ASX shares that could be worth buying and holding for the next decade.

REA Group Ltd (ASX: REA)

The first ASX share that fits the definition of quality is REA Group.

It operates Australia’s leading online property marketplace and has built a dominant position that is difficult for competitors to challenge. Its platform is deeply embedded in the real estate industry, making it the go-to destination for buyers, sellers, and agents.

This dominance gives REA Group significant pricing power. Even in softer property markets, the company has historically been able to grow revenue through premium listings and value-added services.

Over time, its digital platform has continued to evolve, with additional tools and data services enhancing its offering.

With a strong market position, high margins, and exposure to long-term housing activity, REA Group appears well placed to continue delivering growth over the next 10 years.

Bell Potter recently put a buy rating and $211.00 price target on its shares. Based on its current share price of $153.78, this implies potential upside of 37% for investors.

TechnologyOne Ltd (ASX: TNE)

Another ASX share that could be a strong long-term investment is TechnologyOne.

It is an enterprise software company that provides solutions to government agencies, universities, and large organisations. Its transition to a cloud-based software-as-a-service model has transformed the business, leading to more predictable and annual recurring revenue (ARR).

One of TechnologyOne’s key strengths is the stickiness of its customer relationships. Once its software is embedded into an organisation’s operations, switching providers can be costly and complex.

This creates a high level of customer retention and supports long-term revenue growth.

The company also has a growing international presence, particularly in the United Kingdom, which could provide an additional growth runway over time.

With strong margins, recurring revenue, and a scalable platform, TechnologyOne has the characteristics of a business that could continue compounding over the next decade.

Morgan Stanley is one of a number of brokers that is bullish on TechnologyOne. It has an overweight rating and $34.00 price target on its shares. Based on its current share price of $27.43, this suggests that upside of 24% is possible between now and this time next year.

The post 2 high-quality ASX shares to buy and hold for 10 years appeared first on The Motley Fool Australia.

More reading

• $0 in savings? I’d aim for $20k in annual passive income with 3 simple steps
• This could be a once-in-a-decade opportunity to buy cheap ASX tech stocks
• Up 11%: Why have these 2 ASX tech stocks surged in March?
• 2 top ASX shares I’d buy today amid falling prices
• Why buying ASX shares in March could supercharge your wealth

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

S&P/ASX 200 Index (ASX: XJO) shares have tumbled 8.9% since the war in Iran broke out on 28 February (US time).

ASX 200 energy shares have surged 17%, while materials stocks — incorporating mining shares– have been the worst hit, down 19%.

While the broader market has fallen heavily this month, many investors have responded in a surprising way.

Exclusive data from online investment platform Stake implies that some investors are buying the dip.

The data reveals the 10 most traded ASX 200 shares on the platform between 2 March and 18 March.

The strongest hint that a buying-the-dip trend is afoot is that only one ASX 200 energy share is among the 10 most traded stocks.

That’s despite energy shares being the clear momentum trade this month.

Another strong hint is that several of the 10 most traded stocks have experienced significant declines over the past 12 months.

Perhaps some investors see long-term opportunity in these downtrodden stocks, some of which are trading at multi-year lows.

Prime examples include CSL Ltd (ASX: CSL), Zip Co Ltd (ASX: ZIP), Xero Ltd (ASX: XRO), and Wisetech Global Ltd (ASX: WTC).

Yesterday, we looked at the first five of the top 10 most traded ASX 200 shares since the war began.

Here, we reveal the ASX 200 shares ranking six to 10 in that group, and ponder why they’re among the most traded this month.

CSL Ltd (ASX: CSL)

The CSL share price closed at $139.39 yesterday, down 0.3%.

The market’s largest healthcare stock has been the sixth most traded ASX 200 share on the Stake platform this month.

Long considered an ASX 200 blue chip, CSL has been in a downward spiral since mid-2024.

CSL shares have fallen 5% since the war in Iran began, and hit an eight-year low of $133.35 this month.

The CSL share price is down 45% over 12 months.

Multiple macro issues, such as falling global vaccination rates and company-specific challenges, have profoundly impacted CSL’s valuation.

Northern Star Resources Ltd (ASX: NST)

The Northern Star Resources share price closed at $17.57 yesterday, up 2.1% for the day and down 2% over 12 months.

The gold stock has been the seventh most traded ASX 200 share on the Stake platform this month.

Northern Star shares have fallen 42% since the war began, although a second guidance downgrade from the miner contributed to the fall.

The 16% 30-day decline in the gold price has also contributed, as investors deleverage and US Treasury yields reach a 10-month high.

Many experts maintain ambitious forecasts for the gold price amid structural long-term tailwinds, primarily central bank buying.

PLS Group (ASX: PLS)

Formerly known as Pilbara Minerals, PLS Group is the market’s largest ASX 200 pure-play lithium share.

PLS closed at $4.54 per share yesterday, up 6.6%, making it the second-fastest riser of the ASX 200 on Tuesday.

So far in March, PLS shares have tumbled 12.5% amid lithium prices holding up fairly well during the Iran conflict.

The lithium carbonate price has fallen by only 3.6% over 30 days.

Lithium has a bright outlook given the green energy transition and resurgent demand for electric vehicles (EVs).

There is no dip to buy this stock at, which has risen 141% over 12 months.

As the eighth most traded ASX 200 share on the Stake platform this month, it’s likely investors are cashing in their gains.

Lynas Rare Earths (ASX: LYC)

The Lynas Rare Earths share price closed at $19.56 on Tuesday, up 3.2%.

The ASX rare earths share is vastly outperforming its peers in the materials sector this month.

The Lynas share price has increased 3.1% since 28 February, and is up 172% over 12 months.

Strong interest in critical minerals and positive company news appear to have insulated Lynas shares from the broader market downturn.

Lynas announced the extension of a Japanese offtake agreement to 2038, and first production of samarium oxide at its Malaysia site.

Experts say the next mining boom will centre on critical materials with industrial applications tied to electrification and energy security.

Xero Ltd (ASX: XRO)

The Xero share price finished at $74.95 yesterday, down 2.2% for the day and down 54% over six months amid the broader tech downturn.

Xero shares have been smashed due to fears about AI’s potential impact on SaaS businesses.

However, many experts think the sell-off has been overdone, and perhaps many Stake investors agree.

This might be why Xero was the 10th-most-traded ASX 200 share on the platform between 2 and 18 March.

Xero shares have fallen 9.9% since 28 February.

Foolish takeaway

Here are some words of wisdom from Kylie Purcell, Senior Markets Analyst at Stake, regarding the ASX 200’s volatility this month:

For equity investors, this is another reminder of how unpredictable the markets can be during a geopolitical crisis.

Prices can swing sharply in both directions as more information emerges and these moments can become incredibly difficult to trade.

The key for investors is not to react to every headline or price swing and to remain diversified.

The post The war in Iran has inspired an unexpected ASX 200 market trend appeared first on The Motley Fool Australia.

More reading

• Region Group extends $100m securities buy-back – earnings update
• 5 things to watch on the ASX 200 on Wednesday
• Which ASX battered tech stock has the most upside according to brokers?
• ASX gold shares down 31% since war began: What should you do?
• ASX mining shares have slumped but long-term outlook is positive

Motley Fool contributor Bronwyn Allen has positions in Zip Co. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended CSL, WiseTech Global, and Xero. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Lynas Rare Earths Ltd. The Motley Fool Australia has positions in and has recommended WiseTech Global and Xero. 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.

On Tuesday, the S&P/ASX 200 Index (ASX: XJO) gave back the majority of its intraday gains and ended the session modestly higher. The benchmark index rose 0.15% to 8,379.4 points.

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

ASX 200 to rise

The Australian share market looks set to rise again on Wednesday despite a poor night on Wall Street. According to the latest SPI futures, the ASX 200 is expected to open the day 67 points or 0.8% higher. In late trade in the United States, the Dow Jones is down 0.1%, the S&P 500 is down 0.35% and the Nasdaq is 0.8% lower.

Buy Life360 shares

Bell Potter sees significant value in Life360 Inc. (ASX: 360) shares at current levels. According to the note, the broker has retained its buy rating on the family safety technology company’s shares with a trimmed price target of $37.75. This implies potential upside of 94% for investors. It said: “We see the release of the Q1 result on 12th May as a potential catalyst given the company has already lowered expectations and the potential of a small beat in adjusted EBITDA.”

Oil prices rebound

ASX 200 energy shares Beach Energy Ltd (ASX: BPT) and Santos Ltd (ASX: STO) could have a good session on Wednesday after oil prices rebounded overnight. According to Bloomberg, the WTI crude oil price is up 4% to US$91.68 a barrel and the Brent crude oil price is up 3.6% to US$103.53 a barrel. Traders were buying oil after optimism faded over a de-escalation in the US-Iran war.

Gold price eases

ASX 200 gold shares Newmont Corporation (ASX: NEM) and Northern Star Resources Ltd (ASX: NST) could have a subdued session on Wednesday after the gold price traded lower overnight. According to CNBC, the gold futures price is down 0.2% to US$4,399 an ounce. A stronger US dollar and rate hike concerns have weighed on the gold price.

ASX 200 shares going ex-dividend

A number of ASX 200 shares are going ex-dividend this morning and could trade lower. This includes diversified mining services company Perenti Ltd (ASX: PRN), toll road operator Atlas Arteria Group (ASX: ALX) and travel agent Flight Centre Travel Group Ltd (ASX: FLT). Perenti is paying shareholders a 3.3 cents per share dividend on 9 April, Atlas Arteria is paying 20 cents per share on the same day, and Flight Centre is paying 12 cents per share on 16 April.

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

More reading

• I’m listening to Warren Buffett and loading up on cheap ASX shares
• ASX gold shares down 31% since war began: What should you do?
• ASX mining shares have slumped but long-term outlook is positive
• 5 most traded ASX 200 shares since the war began
• Why ASX 200 gold stocks like Northern Star and Evolution Mining are storming higher today

Motley Fool contributor James Mickleboro has positions in Life360. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Life360. The Motley Fool Australia has positions in and has recommended Life360. The Motley Fool 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.

ASX technology shares are now one of the most undervalued corners of the market. 

These companies have faced plenty of headwinds so far in 2026, as we’ve seen some of Australia’s biggest tech companies heavily sold off. 

Just to name a few: 

• Xero Ltd (ASX: XRO) is down 33% YTD
• WiseTech Global Ltd (ASX: WTC) has dropped nearly 43%
• Megaport Ltd (ASX: MP1) has fallen 38%
• SiteMinder Ltd (ASX: SDR) is down 54%.

Why are tech stocks falling?

Investors appear to be firmly positioning themselves with a risk-off approach for a few reasons. 

Ongoing conflict in the Middle East has prompted investors to push away from riskier growth oriented companies like tech. 

Additionally, AI interruption fears have turned sentiment largely negative on Aussie tech stocks as investors consider which companies could be replaced. 

Finally, the RBA has raised interest rates amidst rising inflation, which negatively impacts tech valuations which depend on future earnings. 

Altogether, it’s a mix of macroeconomic pressure, shifting sentiment on AI, and a normal correction after a strong rally.

With so much downward pressure in recent months, it’s clear that some of these tech stocks present a relative value. 

The rebound won’t happen overnight. But let’s see which of these battered tech stocks are expected to recover. 

Megaport and SiteMinder could double according to Morgans

Megaport is a technology company that runs a global software-defined network platform, enabling businesses to connect directly to cloud providers and data centres. Its platform allows companies to build fast, flexible connections between their digital infrastructure without the need for traditional network contracts.

Morgans is optimistic its core product is set to benefit from AI growth, rather than be replaced by it. 

The broker has a $16 price target on this tech stock. 

From current levels, that indicates an upside of roughly 112%. 

Meanwhile for SiteMinder, the company provides an e-commerce platform for hotels and other accommodation businesses.

Morgans has a buy rating and $7.00 price target on the company’s shares, with the broker pointing to key business metrics remaining robust despite downward pressure. 

This target is 150% higher than yesterday’s closing price. 

WiseTech and Xero 

Xero shares have continued to tumble in 2026. 

The company offers cloud-based, accounting software for small to medium businesses.

It has been one of the tech stocks caught up in AI integration/replacement fears, as some argue its core business could be at risk. 

However, many brokers still maintain positive outlooks on the company. 

For example, analysts at Citi have retained their buy rating and $144.80 price target. This indicates 93% upside. 

Citi has a similarly positive outlook for WiseTech shares. 

A recent price target of $65.35 from the broker is roughly 67% higher than current levels. 

The post Which ASX battered tech stock has the most upside according to brokers? appeared first on The Motley Fool Australia.

More reading

• I’m listening to Warren Buffett and loading up on cheap ASX shares
• Could this beaten-down ASX 200 stock double in the next 12 months?
• 5 most traded ASX 200 shares since the war began
• This could be a once-in-a-decade opportunity to buy cheap ASX tech stocks
• 3 ASX shares now trading at crazy cheap prices!

Motley Fool contributor Aaron Bell has positions in WiseTech Global. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Megaport, SiteMinder, WiseTech Global, and Xero. The Motley Fool Australia has positions in and has recommended SiteMinder, WiseTech Global, and Xero. 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 on a roll.

The telco giant finished Tuesday at a 10-year high after a strong run following its FY26 half-year result.

Investors have been piling in. The numbers tell the story. Telstra shares are now up almost 10% year to date and around 28% over the past 12 months.

That’s well ahead of the S&P/ASX 200 Index (ASX: XJO), which has gained just 5.7% over the same period.

So, can Telstra shares keep soaring?

A standout in a shaky market

Telstra shares have quietly become one of the ASX’s most reliable performers in a volatile market.

While many sectors have struggled with uncertainty, Telstra has pushed higher. That comes down to one key factor: resilience.

Telecommunications isn’t optional. Mobile and broadband services are essential. Whether the economy is booming or slowing, demand stays relatively steady.

That gives Telstra a stable earnings base. Investors value that consistency, especially when markets get choppy.

Strong position, steady growth

Telstra’s dominance is another major strength.

It remains the largest telecom provider in Australia, with a premium network and a strong brand. Continued investment in infrastructure helps it maintain that edge.

This leadership position allows Telstra to hold pricing power and defend market share, even in a competitive landscape.

And then there’s the dividend

Income investors are always paying attention to Telstra shares. The telco offers fully franked dividends and has been growing them. Last month, it lifted its FY26 interim dividend by 10.5% to 10.5 cents per share.

If that trend continues, Telstra could deliver a fourth straight year of dividend growth.

At current prices, the stock offers a yield of around 4%. That’s a solid return in today’s market, especially from a defensive business.

Fierce competition, ongoing cost

Of course, it’s not all upside.

Competition remains fierce. Rivals are constantly pushing on pricing and trying to win customers. That can pressure margins.

Telstra also needs to keep spending. Maintaining a leading network requires ongoing capital expenditure. That’s a necessary cost, but it can weigh on free cash flow.

Then there’s valuation of Telstra shares.

After a strong run — up over 28% to $5.34 over the past year — the easy gains may already be behind it. Investors could become more cautious at higher price levels.

What next for Telstra shares?

Telstra has proven it can perform in tough conditions. Its combination of resilient earnings, market leadership, and growing dividends makes it a compelling defensive play.

But after hitting a 10-year high, expectations around Telstra shares are rising.

From here, further gains may be more measured. Continued earnings growth and dividend increases will be key to sustaining momentum.

The bottom line

Telstra shares have been a standout performer, delivering strong returns while the broader market has been more subdued.

The business remains solid. The dividend story is appealing. And the demand for its services isn’t going anywhere.

But after such a strong rally, investors should expect a steadier climb — not another sprint.

The post Can Telstra Group shares keep soaring after hitting a 10-year high? appeared first on The Motley Fool Australia.

More reading

• 3 ASX dividend shares raising dividends like clockwork
• 5 excellent ASX shares to buy for a retirement portfolio
• 3 ASX dividend shares with yields over 3% today
• Where to invest $2,000 in ASX dividend shares this week
• 3 blue-chip ASX shares to boost your retirement income

Motley Fool contributor Marc Van Dinther 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.

Starting with nothing in the share market can feel like a disadvantage, but it doesn’t have to be.

When it comes to building passive income, what matters most is consistency and a clear plan. Even from $0, it is possible to work towards a meaningful income stream over time with ASX shares.

Here is a simple three-step approach.

Step one: build the habit

The first step is to start investing regularly.

Even small amounts can make a difference when invested consistently. For example, setting aside $500 to $1,000 per month into ASX shares or exchange traded funds (ETFs) can begin to build momentum over time.

The goal at this stage is not income. It is building capital.

By investing regularly, you benefit from compounding and reduce the need to time the market. Over time, this discipline becomes far more important than trying to pick the perfect investments.

Step two: focus on growth first

In the early years, focusing on growth can accelerate your progress.

Targeting an average return of around 10% per annum is a reasonable and achievable long-term goal, though it is never guaranteed. This typically comes from owning high-quality businesses or diversified ETFs that can grow earnings over time.

ASX shares such as Goodman Group (ASX: GMG), REA Group Ltd (ASX: REA), or global ETFs tracking major markets are examples of assets that have historically delivered strong returns.

By reinvesting all returns during this phase, your portfolio can grow much faster than if you were taking income along the way.

Step three: turn capital into passive income

Once your portfolio reaches a meaningful size, you can begin shifting towards income.

If you assume an average dividend yield of 5%, generating $20,000 per year in passive income would require a portfolio of around $400,000.

Reaching this level could take time, but with consistent investing and compounding, it becomes achievable. For example, investing regularly and earning solid returns over a couple of decades can build a portfolio to this level.

In fact, with a 10% average annual return, $500 a month into ASX shares would turn into $400,000 in 21 years.

At that point, you can allocate more of your capital into dividend-paying shares across sectors such as infrastructure, real estate, and consumer staples.

Foolish takeaway

This approach does not rely on timing the market or taking unnecessary risks.

Instead, it focuses on three simple principles: invest consistently, prioritise growth early, and shift to income later.

Starting from $0 may feel like a long road, but with patience and discipline, it can lead to a reliable and growing passive income stream over time.

The post $0 in savings? I’d aim for $20k in annual passive income with 3 simple steps appeared first on The Motley Fool Australia.

More reading

• 5 ASX shares I’d buy with $5,000 today
• Goodman shares hit 52-week low. Can this ASX 200 stock make a comeback?
• 3 ASX shares I’d buy today and not check for a year
• How to survive an ASX share market crash
• How to build $100,000 a year in passive income from ASX shares

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

It’s been an incredible run for this ASX gold stock.

On Tuesday, Benz Mining Corp (ASX: BNZ) surged another almost 19% to $2.01. That’s just the latest move in a staggering rally. Over the past 12 months, Benz Mining shares have skyrocketed roughly 450%.

So, can the ASX gold stock keep going?

Here’s what’s driving the momentum and what investors need to watch next.

Why the Benz Mining share price is surging

Like many gold explorers and producers, the $550 million ASX gold stock has benefited from strong investor interest as gold prices surged until recently. Benz Mining’s rise hasn’t come out of nowhere. It’s been fueled by a steady stream of strong exploration results and capital backing.

The company’s flagship Glenburgh Gold Project in Western Australia is the key story. Recent drilling has delivered strong results, including 13 metres of rock with very high gold content.

That’s the kind of result that grabs attention.

On top of that, Benz recently raised $75 million in fresh capital. This has strengthened its balance sheet and gives the ASX gold stock the firepower to accelerate drilling and resource expansion.

Strengths investors are backing

The ASX gold stock ticks several boxes that growth-focused investors love.

First, exploration momentum. The company is consistently delivering strong drill results. That builds confidence in the size and quality of its resource.

Second, scalability. Glenburgh isn’t just a small deposit story. Early signs point to a large system with expansion potential.

Third, funding strength. With around $94 million in pro-forma cash after its recent raise, the ASX gold stock is well funded to push ahead aggressively.

Put simply, this is a company in growth mode.

What about earnings and production?

Here’s the catch: Benz Mining isn’t a producer yet.

It’s still in the exploration and development phase. That means no meaningful revenue or profits at this stage. In fact, like many early-stage miners, the ASX gold stock is currently loss-making as it invests heavily in growth.

The upside? If it successfully defines a large resource and moves toward production, the valuation could shift dramatically.

The downside? There’s still a long road ahead.

Risks to watch

After a 450% run, risks matter more than ever.

Exploration risk is the big one. Not every drill result will be a winner. Sentiment can turn quickly if results disappoint.

There’s also dilution risk. The company has already raised capital, and future funding rounds could dilute existing shareholders.

And finally, volatility. Small-cap miners are known for big swings — both up and down.

What do analysts think?

Coverage is still relatively limited, but there are some bullish signals. All 4 brokers covering the ASX gold stock rate it a strong buy, with an average 12-month price target of $3.83. That points to a potential gain of 86%.

Canaccord Genuity has maintained a speculative buy rating on Benz Mining, with a price target of $3.10. This implies a 49% upside at current levels.

That suggests brokers still see upside — even after the massive run.

The post Up 450% in a year — why this ASX gold stock could soar further appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Wednesday
• Which ASX battered tech stock has the most upside according to brokers?
• Can Telstra Group shares keep soaring after hitting a 10-year high?
• $0 in savings? I’d aim for $20k in annual passive income with 3 simple steps
• I’m listening to Warren Buffett and loading up on cheap ASX shares

Motley Fool contributor Marc Van Dinther 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.

Warren Buffett has always had a simple philosophy.

Be greedy when others are fearful.

Right now, there’s definitely a lot of fear in the market.

A number of high-quality ASX shares have been pushed down to 52-week lows or worse, not necessarily because their long-term outlook has changed, but because sentiment has shifted.

That doesn’t guarantee anything. But it does create an environment where buying quality at a more-than-fair price becomes possible.

Here are four ASX shares I’m seriously considering adding to my portfolio at current levels.

Sigma Healthcare Ltd (ASX: SIG)

Sigma is a very different business today than it was a few years ago.

The Chemist Warehouse merger has transformed its position, giving it exposure to one of Australia’s most recognisable pharmacy brands.

What I find interesting is that the market is still assessing the combined business’s earnings power.

There’s potential for improved margins, better scale, and stronger earnings, but that story may take time to fully play out.

With the share price under pressure, I think this is one where patience could be rewarded.

Cochlear Ltd (ASX: COH)

Cochlear isn’t usually a stock you see trading at such low levels.

It’s a global leader in hearing implants, backed by decades of innovation and a strong reputation in healthcare.

The long-term drivers here haven’t changed. Demand for hearing solutions continues to grow, supported by ageing populations and increasing awareness. A new product launch also looks likely to underpin growth and cement its leadership position.

Short-term weakness in the share price doesn’t alter that.

For me, this looks like a high-quality business that could catch the eye of Warren Buffett. 

WiseTech Global Ltd (ASX: WTC)

WiseTech has been one of the biggest fallers, with its share price down sharply over the past year.

A lot of that seems tied to concerns around artificial intelligence (AI) and how it could impact software companies.

But I see it differently. WiseTech is embedding AI into its platform to automate workflows and improve customer outcomes. That could actually strengthen its position rather than weaken it.

The business still has a global footprint, strong annual recurring revenue (ARR), and a deeply embedded logistics platform.

At current prices, I think the risk-reward is looking compelling for buyers.

Flight Centre Travel Group Ltd (ASX: FLT)

Flight Centre is another cheap ASX share I’d consider buying.

Travel demand can move with economic conditions, but it’s also a business that has shown it can adapt and recover.

What I like is that the company has streamlined its operations and is now operating more efficiently than it did in the past.

If travel demand remains resilient, there could be meaningful upside from here.

It’s not without risk, but after a meaningful pullback, I think it’s worth considering.

Foolish takeaway

Markets don’t often give you the chance to buy multiple high-quality ASX shares at low prices.

But it has done exactly that with Sigma, Cochlear, WiseTech, and Flight Centre shares.

For me, this is one of those moments where Warren Buffett’s advice feels especially relevant. When quality shares are trading at prices above fair value, I think it can pay to lean in rather than step back.

The post I’m listening to Warren Buffett and loading up on cheap ASX shares appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Wednesday
• Which ASX battered tech stock has the most upside according to brokers?
• Could this beaten-down ASX 200 stock double in the next 12 months?
• 5 most traded ASX 200 shares since the war began
• One ASX growth stock down over 50% to buy and hold

Motley Fool contributor Grace Alvino 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 Cochlear and WiseTech Global. The Motley Fool Australia has positions in and has recommended WiseTech Global. The Motley Fool Australia has recommended Cochlear and 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.