The Treasury Wine Estates Ltd (ASX: TWE) share price has had a brutal year.

Once trading above $11, the stock is now changing hands around $5.20. That puts it down roughly 54% in 2025, making it one of the worst performers in the S&P/ASX 200 Index (ASX: XJO).

For a company behind some of the world’s best-known wine brands, including Penfolds, that kind of fall is hard to ignore.

So, let’s take a closer look and see whether the market has gone too far and if a recovery could be on the cards in 2026.

What went wrong?

Several challenges have come together this year, putting pressure on both the business and the share price.

In October, Treasury Wine withdrew its full-year earnings guidance after sales came in weaker than expected in China and distribution issues emerged in the US. The company also paused its share buyback. Without clear earnings guidance, investor confidence weakened and the share price fell about 14%.

Soon after, the company announced a large non-cash write-down of around $687 million on its US assets. This reflected weaker demand and lower long-term growth expectations in America’s wine market. Management also pointed to challenges integrating past acquisitions, including Frank Family and DAOU.

More recently, Treasury Wine said trading conditions across the global wine category have softened in its two biggest export markets, China and the US. Distributor inventory levels remain higher than ideal, which has weighed on near-term demand. In China, parallel imports have added further pressure, particularly across parts of the premium Penfolds range, making it harder for prices to hold up.

Why a recovery might be brewing

Treasury Wine is not a small or struggling business. It is one of the world’s largest wine companies, with brands ranging from everyday labels through to high-end wines. While demand has softened in the short term, premium wines, particularly Penfolds, have continued to hold up better than lower-priced products in some markets.

The company has also launched a program called TWE Ascent, which is focused on cutting costs, improving efficiency, and sharpening the mix of brands it sells. Management expects this to deliver meaningful savings over time and help lift profitability as conditions improve.

A change in leadership could also play a role. Sam Fischer, who previously held senior roles at Lion and Diageo, took over as CEO during a difficult period.

And there has also been renewed interest from large investors. French billionaire Olivier Goudet recently bought a 5% stake in Treasury Wine. Given his background in consumer brands and wine, his investment suggests he sees value at current prices and believes the business can recover.

Is it a ‘buy’ for 2026?

At current prices, the market appears to be assuming Treasury Wine’s earnings will stay below past levels for a while. However, if conditions begin to improve, with stronger growth returning in China and US operations settling, its shares could lift quickly.

The share price looks weak today, but that low starting point supports the recovery case for 2026. If management can improve inventory levels, cut costs and make better use of its global brands, this heavily sold-off stock could surprise on the upside as confidence returns.

There are still risks and a turnaround is not guaranteed. Even so, Treasury Wine’s well-known global brands give it a stronger base than many struggling companies. If trading conditions stabilise, the share price could regain interest among investors.

The post Down over 50%, is this the ASX 200’s greatest recovery share for 2026? appeared first on The Motley Fool Australia.

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• This ASX healthcare stock just changed its debt. Here’s why it matters
• Origin Energy retains 22.7% stake in Kraken after equity raise and Australian exclusivity waiver
• 5 things to watch on the ASX 200 on Tuesday
• Treasury Wine shares pile on the gains after French billionaire buys in

Motley Fool contributor Aaron Teboneras 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 Treasury Wine Estates. The Motley Fool Australia has positions in and has recommended Treasury Wine Estates. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Vanguard is the ASX ETF provider with the most funds under management.

Many Vanguard funds make up important parts of investors’ portfolios. In fact, the two largest ASX ETFs by market capitalisation are Vanguard funds. 

As today marks the last day of trading for 2025, here are the Vanguard ASX ETFs that brought the best returns this year. 

Vanguard Ftse Europe Shares ETF (ASX: VEQ)

As the name suggests, this fund offers exposure to companies in major European markets. 

It aims to track the return of the FTSE Developed Europe All Cap Index. 

This includes more than 1,200 holdings (mainly large-cap) from approximately 16 countries

Its largest geographical exposure is to: 

• United Kingdom (23.2%)
• France (14.4%)
• Switzerland (14.1%)
• Germany (13.8%)

No individual holding makes up more than 3% of the fund. 

In 2025, diversification into the European market proved a great decision for investors. 

This ASX ETF rose by approximately 23% this calendar year. 

Vanguard FTSE Asia ex Japan Shares Index ETF (ASX: VAE)

Finishing the year in second place was the Vanguard FTSE Asia ex Japan Shares Index ETF. 

This fund provides investors exposure to securities listed in Asia excluding Japan, Australia and New Zealand.

It tracks the return of the FTSE Asia Pacific ex Japan, Australia and New Zealand Index. 

At the time of writing, it is made up of more than 1,700 holdings, with its largest exposure being an 11.5% holding in Taiwan Semiconductor Manufacturing Co Ltd. 

Roughly half of the fund is weighted towards companies in China and Taiwan. 

Investors who held this fund through the year enjoyed a rise of approximately 20%. 

Vanguard International Equity Index Funds – Vanguard FTSE All-World ex-US ETF (ASX: VEU)

In third place was the Vanguard FTSE All-World ex-US ETF. 

The ETF provides exposure to many of the world’s largest companies listed in major developed and emerging countries outside the US.

It seeks to track the return of the FTSE All-World ex US Index. 

At the time of writing, it is made up of more than 3,800 holdings. 

Its largest exposure geographically is towards: 

• Japan (15.3%)
• China (9.9%)
• United Kingdom (8.9%)

This fund could be ideal for an investor looking to diversify away from a US heavy portfolio. 

This strategy was worthwhile in 2025, as this fund rose approximately 19%. 

The post The best performing Vanguard ASX ETFs of 2025 appeared first on The Motley Fool Australia.

More reading

• Simple, easy investing: These 3 ASX ETFs are all a beginner needs

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 positions in and has recommended Vanguard International Equity Index Funds – Vanguard Ftse All-World ex-US ETF. 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.

Many investors dream of earning a reliable monthly income from the share market, but far fewer think carefully about how to get there.

The mistake most people make is focusing on income too early, before their capital base is large enough to do the heavy lifting.

If I were starting with $40,000 today and wanted to build a meaningful monthly income stream with ASX shares, my approach would be simple, patient, and staged.

Build your portfolio

The first phase wouldn’t be about income at all. Instead, it would be about growth.

With $40,000 invested into a diversified mix of high-quality ASX shares and ETFs, the goal would be to compound that capital at an average rate of around 10% per annum. That return isn’t guaranteed, but history shows it is achievable over long periods when investors stay disciplined and reinvest returns.

Popular ASX shares like ResMed Inc. (ASX: RMD), Goodman Group (ASX: GMG), and Wesfarmers Ltd (ASX: WES) could potentially form part of a winning long-term focused ASX portfolio.

At 10% per year, $40,000 grows to roughly $104,000 after 10 years. Stretch that timeframe to 20 years and the same capital becomes closer to $270,000. This assumes dividends are reinvested rather than spent, which accelerates compounding without requiring extra effort.

Overall, I think this demonstrates that time in the market, not clever trading, is the real engine of wealth.

The switch to income

Once the portfolio reaches a meaningful size, let’s say between $200,000 and $300,000, the focus can gradually shift from growth to income.

With a target dividend yield of 5% across my portfolio, a $240,000 portfolio could generate $12,000 per year in passive income. This is the equivalent of $1,000 per month.

While there are some ASX shares that pay monthly dividends, building a diversified portfolio with them could be difficult. As a result, I would take my quarterly or semi-annual payouts and distribute them accordingly if I wanted a monthly paycheck.

Be patient

Starting with $40,000 may not feel life-changing, but when paired with time and compounding, it can become the foundation of a serious income stream.

The real breakthrough doesn’t come from finding the perfect income stock, but from allowing capital to grow large enough that income becomes effortless.

Foolish takeaway

This blueprint isn’t an exciting one, but it can work.

Investors just need to grow their capital first and then they can harvest. I think that investors who respect that sequence give themselves a far better chance of building sustainable monthly income from ASX shares over the long term.

The post My blueprint for monthly income starting with $40,000 appeared first on The Motley Fool Australia.

More reading

• The best ASX 200 stocks to own in 2026
• 2 ASX giants to buy and hold for the next 20 years
• 5 things to watch on the ASX 200 on Tuesday
• The forever portfolio: 3 ASX stocks to buy in 2025 and hold forever
• The pros and cons of buying Wesfarmers shares in 2026

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

On Tuesday, the S&P/ASX 200 Index (ASX: XJO) fought hard but was unable to finish in positive territory. The benchmark index edged 0.1% lower to 8,717.1 points.

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

ASX 200 expected to edge higher

The Australian share market looks set to edge higher on Wednesday despite a mixed night of trade on Wall Street. According to the latest SPI futures, the ASX 200 is expected to open the day 5 points higher this morning. In late trade in the United States, the Dow Jones is down 0.1%, and the S&P 500 and Nasdaq are both trading flat.

Oil prices mixed

ASX 200 energy shares Beach Energy Ltd (ASX: BPT) and Santos Ltd (ASX: STO) will be on watch after a mixed night for oil prices. According to Bloomberg, the WTI crude oil price is down 0.1% to US$58.02 a barrel and the Brent crude oil price is up 0.1% to US$61.97 a barrel. This was driven by fading Russia-Ukraine peace hopes and rising tensions in Yemen.

ASX 200 to close early

Today is of course New Year’s Eve, which means an early finish for Aussie investors and the ASX 200 index. The Australian share market will close two hours earlier than normal at 14.10 Sydney time. It will then be closed for the New Year’s Day public holiday before reopening on Friday morning as normal.

Gold price rebounds

ASX 200 gold shares including Newmont Corporation (ASX: NEM) and Northern Star Resources Ltd (ASX: NST) could have a good session on Wednesday after the gold price rebounded overnight. According to CNBC, the gold futures price is up 0.85% to US$4,379.9 an ounce. Both gold and silver rebounded after a selloff a day earlier caused by profit-taking.

BHP and Rio Tinto expected to rise

It looks set to be a decent finish to the year for BHP Group Ltd (ASX: BHP) and Rio Tinto Ltd (ASX: RIO) shares. Both mining giants’ NYSE listed shares are pushing higher during late trade in the United States. This will bring to an end a successful year for shareholders of both miners. BHP shares are on course to record a 13% gain in 2025 and Rio Tinto shares are heading for a 24% gain for the year.

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

More reading

• Down over 50%, is this the ASX 200’s greatest recovery share for 2026?
• 4 ASX mining shares with buy ratings for 2026
• What on earth is going on with ASX 200 gold stocks like Northern Star today?
• This ASX healthcare stock just changed its debt. Here’s why it matters
• Why I’m bullish on the BHP share price as copper prices surge

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

Betashares Australian Quality ETF (ASX: AQLT) has returned an average 12.5% per year to investors since its inception in April 2022.

AQLT does things a little differently to standard index-tracking exchange-traded funds (ETFs).

Instead of tracking an index of stocks ranked by market capitalisation, AQLT ranks them according to the quality of the underlying businesses.

AQLT tracks the performance of the Solactive Australia Quality Select Index.

Solactive defines quality stocks as those with high return on equity (ROE), low debt, and stable earnings.

The biggest benefit here is that Solactive is regularly assessing ASX shares to decide which companies make the grade for its index.

For ordinary retail investors, this is like having a professional portfolio manager without the high fees.

This is very different to ETFs tracking market-cap indexes, which are heavily influenced by investor sentiment.

Which ASX shares make the grade for this ETF?

The AQLT ETF provides concentrated exposure to 40 ASX shares.

Its top holdings today are Wesfarmers Ltd (ASX: WES) shares at 6% of funds, Telstra Group Ltd (ASX: TLS) at 5.9%, BHP Group Ltd (ASX: BHP) at 5.9%, Australia and New Zealand Banking Group Ltd (ASX: ANZ) at 5.2%, and National Australia Bank Ltd (ASX: NAB) at 5%.

The ETF also holds a bunch of ASX mid-cap shares.

These include Neuren Pharmaceuticals Ltd (ASX: NEU), ARB Corporation Ltd (ASX: ARB), HUB24 Ltd (ASX: HUB), Breville Group Ltd (ASX: BRG), NIB Holdings Limited (ASX: NHF), Codan Ltd (ASX: CDA), and Ramelius Resources Ltd (ASX: RMS).

AQLT’s small-cap holdings include Data#3 Ltd (ASX: DTL), Monadelphous Group Ltd (ASX: MND), Magellan Financial Group Ltd (ASX: MFG), NRW Holdings Limited (ASX: NWH), and Smartgroup Corporation Ltd (ASX: SIQ).

The top sector allocations are financials (36%), materials (14%), consumer discretionary (13%), healthcare (10%), and industrials (8.5%).

AQLT ETF distributes dividends twice per year. The management fee is 0.35% per annum.

On Tuesday, AQLT ETF closed at $34 per unit.

The ETF has risen 10.1% in the year to date (YTD) compared to a 6.3% bump for the S&P/ASX 200 Index (ASX: XJO).

AQLT typically has an annual distribution yield of 3.4%, which is similar to the average ASX 200 dividend these days.

This means AQLT is on track to deliver total returns of 13.5% in calendar year 2025.

It looks like it will also meet its mandate, as explained by Betashares:

The Fund’s focus on quality aims to produce long-term performance superior to that of the benchmark S&P/ASX 200 Index.

Andrew Wielandt from DP Wealth Advisory recommends AQLT to retail investors.

On The Bull in September, Wielandt revealed that he holds this ASX ETF in his self-managed super fund (SMSF).

The post This ASX ETF has returned 12.5% annually since inception appeared first on The Motley Fool Australia.

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Motley Fool contributor Bronwyn Allen has positions in BHP Group, BetaShares Australian Quality ETF, and Magellan Financial Group. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended ARB Corporation, Hub24, and Wesfarmers. The Motley Fool Australia has positions in and has recommended NIB Holdings, Smartgroup, and Telstra Group. The Motley Fool Australia has recommended ARB Corporation, BHP Group, Hub24, and Wesfarmers. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Stronger prices for commodities such as gold, silver, copper, and lithium have sent many ASX mining shares soaring this year.

Some experts say their run isn’t over.

Here is a sample of ASX mining shares with buy ratings for 2026.

4 ASX mining shares buy-rated by experts

BHP Group Ltd (ASX: BHP)

Despite BHP shares hitting a 52-week high of $46.03 this month, Ord Minnett thinks the ASX iron ore mining giant has further to go.

The broker has an accumulate rating on BHP shares and recently raised its 12-month price target from $45 to $48.

In a note following a UK court decision that BHP was liable for the Samarco disaster, Ord Minnett said:

Vale and BHP are nearly halfway through the US$32 billion [Samarco] settlement, leaving BHP’s remaining share to pay at circa US$9 billion, which the company marks down to an aggregate provision of US$5.5 billion …

Ord Minnett already incorporates a provision of US$6.1 billion for Samarco in our model, so we have made no changes to our earnings estimates or valuations post the UK court decision.

BHP shares closed at $45.10 on Tuesday, down 0.77% for the day and up 12.86% in the year to date (YTD).

The iron ore price is US$107.08 per tonne, up 3.35% YTD.

Resolute Mining Ltd (ASX: RSG)

Gold had another ripper year in 2025, with the commodity price surging 67% YTD.

Experts say there’s more room to run, with a Goldman Sachs poll showing almost 70% of institutional investors expect the gold price to keep lifting in 2026.

ASX gold mining share, Resolute Mining, has soared in value, rising 200% in 2025 to close at $1.23 yesterday.

This stock received an extra tailwind after joining the S&P/ASX 200 Index (ASX: XJO) in the December rebalance.

Macquarie has an outperform rating on Resolute Mining shares with a price target of $1.45.

The broker raised its price target after Resolute issued a major update on its Doropo Gold Project.

IGO Ltd (ASX: IGO)

After three years of dramatic falls then stagnation, lithium prices began rebounding in the second half of 2025.

The lithium carbonate price is now up 57% YTD.

This has provided a welcome kick-along for ASX lithium mining shares.

The IGO share price closed at $8.03 yesterday, down 0.12% for the day and up 65% YTD.

Ord Minnett has a buy rating on IGO shares with a price target of $8.25.

Capstone Copper Corp CDI (ASX: CSC)

The copper price is up 43% YTD at US$5.68 per pound.

The Capstone Copper share price closed at $15.15 yesterday, down 2.38% for the day and up 50% YTD.

Macquarie has a buy rating on Capstone Copper shares with a 12-month price target of $17.

In a recent note, the broker said:

We increase CSC EPS 9%/18% in CY25/26e due to Cu price upgrades, remaining our preference in the Cu space due to its strong organic growth profile and attractive relative value.

The post 4 ASX mining shares with buy ratings for 2026 appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Wednesday
• Why I’m bullish on the BHP share price as copper prices surge
• Did Fortescue, Rio Tinto or BHP shares perform better this year?
• Can the sizzling rally in ASX 200 copper stocks boost BHP shares in 2026? 
• 5 top ASX dividend shares to buy now

Motley Fool contributor Bronwyn Allen has positions in BHP Group. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Goldman Sachs Group and Macquarie Group. The Motley Fool Australia has positions in and has recommended Macquarie Group. 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.

Buying ASX shares and keeping one eye on the Reserve Bank of Australia and interest rates?

You’re not alone.

But like it or not (I’m guessing not), interest rates are now looking more likely to increase than decrease in 2026.

At the RBA’s 9 December meeting, when the central bank opted to keep the benchmark Aussie interest rate on hold at 3.60%, the board noted, “The recent data suggest the risks to inflation have tilted to the upside.”

The board added that, “The data do suggest some signs of a more broadly based pick-up in inflation, part of which may be persistent and will bear close monitoring.”

While the future is inherently unknown, an increasing number of economics analysts, including The Australian Financial Review‘s John Kehoe, are expecting at least one if not two interest rate increases in 2026.

We’ll look at how that might impact ASX shares in various sectors below.

But first…

Why Aussie interest rates are likely heading higher in 2026?

“Reserve Bank of Australia governor Michele Bullock will be forced to increase the 3.6% cash rate, likely more than once,” Kehoe said (quoted by the AFR).

Kehoe noted:

Inflation is well above the midpoint of the Reserve Bank of Australia’s 2% to 3% target band. Headline inflation was 3.8% and underlying inflation 3.3% in annual terms in October.

The economy appears to be hitting its speed limit and running into capacity constraints. Growth is rebounding, consumers are spending more and business investment is picking up as new data centres are built. The unemployment rate is low at 4.3%. Credit is flowing to borrowers and house prices are rising strongly.

ASX share investors should get some greater insight on potential 2026 RBA interest rate hikes on 28 January. That’s when the ABS reports the December quarterly inflation data.

Kehoe concluded:

The RBA hopes some of the recent price pressures are temporary. But the bank is worried about persistent price pressures in labour-intensive market services such as restaurants, home building and consumer durable goods. Bullock and her nine-member board will need to act.

Buying ASX shares amid rising rates

Every company has its own unique strengths and weaknesses.

But if you’re buying ASX shares amid rising interest rates, you may want to avoid companies with high debt levels, as the cost of servicing that debt will increase.

In general, consumer discretionary stocks also tend to catch headwinds if rates go up.

As do growth stocks, like many ASX tech shares, which are priced with future earnings in mind. When interest rates go up, so too does the present cost of investing in those future earnings.

And ASX REITs could come under pressure if the RBA begins to tighten, as real estate stocks are also historically sensitive to cash rate moves.

So, if you’re buying ASX shares with higher rates in mind, you might want to run your slide rule over some of the leading consumer staples stocks. These companies sell items we all have to have, regardless of rate moves.

You may also want to consider buying ASX bank shares.

In a recent report, Macquarie Group Ltd (ASX: MQG) revealed that ANZ Group Holdings Ltd (ASX: ANZ), National Australia Bank Ltd (ASX: NAB), Westpac Banking Corp (ASX: WBC), and Commonwealth Bank of Australia (ASX: CBA) shares could all deliver higher earnings per share (EPS) if the RBA hikes interest rates twice in 2026, rather than cutting once.

“This shift in both cash rate expectations and swaps suggest material upside to bank margins if it’s sustained,” Macquarie noted.

The post Buying ASX shares? Why, and how, you should prepare for higher interest rates in 2026 appeared first on The Motley Fool Australia.

More reading

• The pros and cons of buying CBA shares in 2026
• The best ASX 200 stocks to own in 2026
• The ASX blue chip shares I’d buy during the next correction
• Why I’m not selling my CBA shares in 2026
• The best Australian stocks to buy in 2026

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

Whenever a blue-chip falls heavily, I get excited because of how much better value it may be after the valuation decline. At the time of writing, the Commonwealth Bank of Australia (ASX: CBA) share price has dropped by more than 10% in the last six months, as the chart below shows.

For a business the size of CBA, we’re talking about a decline of the market capitalisation that’s in the tens of billions of dollars.

This is a good time to ask whether it’s a good time to invest in the ASX bank share for 2026 and beyond.

Positives about the CBA share price

There are two main inputs that decide what a valuation is for a blue-chip. There’s how much earnings per share (EPS) it generates and what price/earnings (P/E) ratio it trades at.

Analysts are usually fairly good at estimating what earnings a business is going to achieve in the next financial year, but it’s much harder to know what the P/E ratio the market will be willing to pay. Market confidence about a business or the whole market can change quite substantially.

From an outside perspective, the CBA share price reduction has moved the bank’s valuation towards a healthier and more sustainable footing.

The loan growth of the bank is impressive, considering the huge loan balance CBA already has. In the three months to 30 September 2025, the ASX bank share reported year-over-year balance growth of 10.4% for business lending, 9.5% growth for household deposits and 6.1% growth for home lending.

I think it’s impressive that the bank reported proprietary home loans accounted for 68% of new business flows for the quarter. That’s stronger than its main banking competitors, giving the bank a competitive advantage (economic moat) of winning new loans rather than just competing on price via brokers.

The final positive I’ll highlight is the bank’s payout, CBA’s dividend has been resilient since 2020 and it’s widely predicted by analysts to continue seeing payout growth in FY26.

Negatives

While the bank has noticeably fallen, it’s still trading on a forward P/E ratio that’s in the mid-20s. That seems high considering its quarterly cash profit in the first quarter of FY26 was around $2.6 billion, only 1% higher than the quarterly average of the second half of FY25.

While lending growth was strong, as I mentioned above, there were headwinds that limited profit growth, including wages and IT vendor inflation. Additionally, lending margins came under pressure from deposit switching, competition and the lower cash rate environment, with three RBA rate cuts in 2025.

Also, competition is a strong headwind against faster profit growth. Businesses like Macquarie Group Ltd (ASX: MQG) and ANZ Group Holdings Ltd (ASX: ANZ) would love to grow their market share at the expense of CBA.

The final negative I’ll note is that CBA’s dividend yield is not exactly huge. Its FY25 payout translates into a grossed-up dividend yield of 4.3%, including franking credits, at the time of writing. There are plenty of other names with a better yield.

Is the CBA share price a buy?

Analysts are not convinced about the bank right now. According to CMC Markets, out of nine ratings on the ASX bank share, all nine are a sell. The average price target suggests a possible fall of more than 20% over the next year, which doesn’t bode well.

It’s a strong bank, but it doesn’t have the earnings growth potential to justify investing for capital growth, while the passive income isn’t groundbreaking. Other ASX shares may be capable of stronger returns, in my view.

The post The pros and cons of buying CBA shares in 2026 appeared first on The Motley Fool Australia.

More reading

• Buying ASX shares? Why, and how, you should prepare for higher interest rates in 2026
• The best ASX 200 stocks to own in 2026
• Why I’m not selling my CBA shares in 2026
• Guess which ASX 200 stock has the highest dividend yield?
• Was it a good idea to invest $10,000 in CBA shares in 2025?

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

I’m a big fan of buy and hold investing and believe it is one of the best ways to grow wealth.

But which ASX shares could be worth buying and holding for the long term? Let’s take a look at three that I think could be wealth generators over the next decade. They are as follows:

Lovisa Holdings Ltd (ASX: LOV)

Lovisa is a great example of how powerful a simple concept can become when executed well. What began as a fast-fashion jewellery retailer in Australia has evolved into a global roll-out machine, with over a thousand stores now operating across the world.

The real attraction here is its scalability. Lovisa’s store economics have proven repeatable across geographies, allowing it to expand aggressively while still generating strong returns on capital. Unlike many retailers, it carries limited fashion risk due to its low price point and fast inventory turnover, which keeps customers coming back regularly.

If Lovisa can continue executing its international expansion strategy over the next decade, today’s footprint could look very small in hindsight.

Telix Pharmaceuticals Ltd (ASX: TLX)

Another ASX share that could be a top option for buy and hold investors is Telix Pharmaceuticals.

It offers exposure to a completely different growth driver. That is the global healthcare and diagnostics market. Telix specialises in radiopharmaceuticals, which are used to detect and treat cancer with far greater precision than traditional methods.

What makes Telix attractive is that it has already crossed an important threshold. It has moved beyond being a purely speculative biotech and into a commercial phase, with approved products generating growing revenue, while a broader pipeline continues to advance.

Unfortunately, it has not been plain sailing this year, with the US FDA knocking back applications. However, management appears confident it will be able to gain approval next year after responding to the regulator’s concerns.

In light of this, with demand for cancer diagnostics and targeted therapies is only expected to grow, now could be an opportune time to buy Telix shares while they are trading down near their 52-week low.

Temple & Webster Group Ltd (ASX: TPW)

Finally, Temple & Webster is a classic long-term digital disruption story. It operates in a category that has been slow to move online, giving it a significant opportunity to keep taking market share as consumer behaviour evolves.

Unlike traditional furniture retailers, Temple & Webster benefits from a capital-light, online-only model. This gives it flexibility and operating leverage as volumes grow.

And with online penetration in the Australian furniture market still much lower than in other Western markets, the next 10 years could be very fruitful for Temple & Webster and materially change the scale of the business.

The post In 2036, you will be glad you bought these ASX shares today appeared first on The Motley Fool Australia.

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

Buying and holding great ASX shares could be one of the best financial decisions an Australian can make in 2026 due to the powerful effects of compounding.

It’s easier to stick with an investment for the long-term if it has communicated its long-term expansion plans to investors. This provides a good tailwind for earnings growth over time.

The two companies I’m about to highlight both want to become much larger, which could give them significant economies of scale (boosting margins) and increase revenue. Excitingly, both are tapping into international markets to unlock further growth.

Guzman Y Gomez Ltd (ASX: GYG)

GYG is a leading quick service restaurant company, offering higher-quality/healthier food than competitors but with the same rapid order fulfilment.

It already has more than 225 locations in Australia with plans to reach 1,000 in two decades. In a decade from now, the company should be well on its way to that Australian target.

When a business has significant location expansion plans, I think it’s important to see that sales growth at each individual store/restaurant is still positive, or else the expansion may be impacting the profitability of the individual locations. In the first quarter of FY26, the ASX share saw 4% comparable sales growth in the Australia segment (including Singapore and Japan).

As GYG becomes larger, I’m expecting its operating profit (EBITDA) to network sales margin to increase, which could help the bottom line substantially.

I also think the market is underestimating how much profit the international division could contribute in five or ten years. At the latest count, it had 22 restaurants in Singapore, five in Japan and seven in the US.

GYG’s network sales are growing rapidly – in the first quarter of FY26, total network sales increased 18.6% to $330.6 million. That included 29% Asian network sales growth to $20.8 million and 65% US network sales growth to $4.3 million.

Broker UBS forecasts the ASX share could generate $22 million of net profit in FY26 and $125 million of net profit by FY30, with company revenue potentially doubling during that period.

Lovisa Holdings Ltd (ASX: LOV)

Lovisa is a leading retailer of affordable jewellery, with a focus on younger shoppers. It has more than 200 stores across Australia and New Zealand.

But, more impressively, the business has more than 1,075 stores across more than 50 markets. The ASX share has more than 15 stores in countries like the US, Australia, France, South Africa, the UK, Germany, Malaysia, New Zealand, Canada and Poland.  

At the AGM update in November, Lovisa reported that its store count had increased 148 year-over-year. Global total sales for the first 20 weeks of FY26 were up 26.2% year-over-year, with global comparable store sales growth of 3.5%.

If Lovisa’s margins stay consistent (or grow) then its net profit could scale at a pleasing pace and help deliver a satisfactory share price and dividend performance in the coming years.

Broker UBS forecasts Lovisa could achieve $942 million of revenue and $102 million of net profit in FY26, which could grow to $1.35 billion of revenue and $168 million of net profit in FY30. That suggests approximately 65% net profit growth in four years.

If the ASX share can continue opening profitable stores in international markets over the next decade, then I’d say the Lovisa share price is substantially undervalued.

The post 2 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 Guzman Y Gomez. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Lovisa. The Motley Fool Australia has recommended Lovisa. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.