Warren Buffett didn’t become one of the world’s greatest investors by chasing the latest trends or reacting to short-term market noise.

Instead, the Oracle of Omaha built his fortune by owning high-quality businesses, buying them at sensible prices, and then letting time and compounding do the heavy lifting.

That approach translates surprisingly well to the Australian share market.

While the ASX doesn’t have as many global giants as the US, it does offer a handful of businesses with strong competitive advantages, resilient earnings, and the ability to grow shareholder value steadily over decades.

If I were building an ASX portfolio today with a 20-year horizon, Buffett’s playbook would be front and centre.

Start with businesses that have competitive advantages

One of Buffett’s most famous principles is the idea of an economic moat. He looks for stocks that competitors struggle to displace, whether through brand strength, scale, regulation, or switching costs.

On the ASX, REA Group Ltd (ASX: REA) stands out as a textbook example. Its dominant position in property listings is extremely difficult to replicate, gives it strong pricing power, and allows it to grow earnings year after year.

Buffett favours companies that can raise prices without losing customers.

Woolworths Group Ltd (ASX: WOW) also fits neatly into this category. Supermarkets aren’t exciting, but they are vital. Woolworths benefits from scale advantages, strong supplier relationships, and a brand Australians trust. Over time, those qualities translate into reliable cash flows and steady compounding, even through economic cycles.

Don’t ignore financial strength

Another quality that Buffett looks for is balance sheet strength and sensible capital allocation. Companies that manage debt carefully and reinvest profits wisely tend to survive downturns and emerge stronger.

Macquarie Group Ltd (ASX: MQG) ticks this box. Its diversified global operations, disciplined risk management, and ability to generate earnings across market environments give it a resilience few financials can match. While its profits can fluctuate year to year, its long-term growth record aligns closely with Buffett’s preference for well-run financial businesses.

Think in decades

Perhaps the most important part of Buffett’s strategy is patience. He famously says his favourite holding period is forever.

Building an ASX share portfolio for the next 20 years means accepting volatility along the way while staying focused on business quality rather than share price movements.

By owning stocks with strong moats, pricing power, and talented management, investors give themselves the best chance of letting compounding work its magic. And history shows it is one of the most reliable ways to build lasting wealth.

Foolish takeaway

You don’t need to reinvent the wheel to succeed in the share market. By borrowing Warren Buffett’s principles and applying them thoughtfully to high-quality ASX shares, investors can build a portfolio designed to grow for decades to come.

The post How to build significant wealth like Warren Buffett with ASX shares appeared first on The Motley Fool Australia.

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• 3 of the best Australian shares to buy and hold until 2035
• 4% yield: Is NAB’s dividend safe?
• Top picks! Macquarie says these ASX stocks can rise 20% to 30%
• Buy, hold, sell: Flight Centre, Suncorp, and Zip shares
• 5 top ASX dividend shares I would buy with $5,000

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

History shows that some of the best returns are generated when investors are willing to buy quality businesses during periods of pessimism.

But it is also true that not every beaten-down share is a bargain. Some deserve to be cheap, and many never recover. That is why selectivity matters.

I would avoid companies with stretched balance sheets, structurally declining industries, or business models that could be made obsolete over time.

Instead, I would focus on ASX shares with financial resilience, strong brands, and clear long-term growth drivers, even if the short term outlook looks uncomfortable.

Here are a couple of ASX shares that fit that bill, in my view.

Accent Group Ltd (ASX: AX1)

Accent Group is a good example of a business that looks cheap because sentiment has turned against the retailer due to temporary headwinds, rather than because the company itself is broken.

As the owner of major footwear brands such as Platypus, Skechers, Stylerunner, Hype DC, and The Athlete’s Foot,, Accent Group has scale advantages, strong supplier relationships, and a proven ability to execute across both physical stores and online channels. While discretionary spending pressure has weighed on sales in the short term, footwear remains a non-negotiable category, and Accent’s exposure to global brands helps it stay relevant through economic cycles. And with interest rates easing in recent months, consumer spending could soon improve.

When it returns to consistent growth over the coming years, today’s low valuation could look overly pessimistic in hindsight.

CSL Ltd (ASX: CSL)

CSL is another ASX share that has fallen sharply, but for reasons that look cyclical rather than structural.

The biotech giant has faced margin pressure, weak influenza vaccine rates, and uncertainty related to strategic changes within the business. That has been enough to knock the share price to below average earnings multiples.

However, CSL still owns a collection of globally significant plasma and vaccine businesses, operates in markets with high barriers to entry, and continues to invest heavily in research and development. It is also embarking on a bold cost cutting plan that could save it upwards of US$500 million.

In addition, demand for plasma therapies is growing long term, driven by ageing populations and expanding medical applications.

For patient investors, CSL’s current valuation looks far more attractive than it has been for several years.

The post Why I’d buy dirt-cheap ASX shares now and aim to hold them for a decade appeared first on The Motley Fool Australia.

More reading

• Where will CSL shares be in 5 years?
• Down 60% with a 6% yield and P/E of 13x – are Accent shares a generational bargain?
• 5 ASX shares I’m avoiding this week
• Why these 2 battered ASX 200 stocks could shine in 2026
• Looking for ideas before Christmas? These 2 ASX shares stand out to me

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

It was another busy week for Australia’s top brokers. This has led to the release of a number of broker notes.

Three broker buy ratings that you might want to know more about are summarised below. Here’s why brokers think these ASX shares are in the buy zone:

Flight Centre Travel Group Ltd (ASX: FLT)

According to a note out of Macquarie, its analysts have retained their outperform rating on this travel agent’s shares with an increased price target of $17.85. This follows news that Flight Centre has signed an agreement to acquire the UK’s leading online cruise agency, Iglu, for 100 million British pounds. Macquarie was pleased with the deal and highlights that Iglu has a 15% of the UK market and upwards of 75% of online bookings. The broker sees the cruise industry as attractive and believes there are further acquisition opportunities for Flight Centre in the future. Outside this, Macquarie is feeling positive on Flight Centre due to its belief that it will achieve its guidance in FY 2026, which is being supported by improving consumer trends. The Flight Centre share price ended the week trading at $15.41.

Lovisa Holdings Ltd (ASX: LOV)

A note out of Morgan Stanley reveals that its analysts have upgraded this fashion jewellery retailer’s shares to an overweight rating with a trimmed price target of $38.00. The broker believes that recent volatility in Lovisa’s growth is transitory rather than structural. In fact, the broker remains very positive on its outlook and sees earnings per share rising 83% by FY 2028. This is expected to be supported by its agility on product range and best-in-class supply chain execution. As a result, Morgan Stanley believes the recent de-rating of Lovisa’s shares is an opportunity for investors to build a position in a competitively advantaged Australian retailer. The Lovisa share price was fetching $30.50 at Friday’s close.

Zip Co Ltd (ASX: ZIP)

Analysts at Macquarie have also retained their outperform rating and $4.85 price target on this buy now pay later provider’s shares. According to the note, the broker believes that Zip will deliver on its net transaction margin guidance in FY 2026. This is despite elevating loss rates caused by its accelerating total transaction value (TTV) growth. Outside this, the broker is forecasting Zip to continue to deliver rapid growth, supported by increased product adoption, expansion of merchant network, increased customer engagement, and digital product innovation. The Zip share price ended the week at $3.11.

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

More reading

• These ASX 200 shares could rise 20% to 50%
• 2 great ASX shares to buy for 2026: experts
• Here are the top 10 ASX 200 shares today
• Brokers name 3 ASX shares to buy today
• Top picks! Macquarie says these ASX stocks can rise 20% to 30%

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

If you are new to investing and the stock market, getting started can be intimidating. There’s the jargon to get one’s head around to start with. And if you get past that, the sheer number of different companies to invest in can be overwhelming for a beginner who might just want to pick one, two or three to get started. That’s why I think any beginner investor should start with ASX exchange-traded funds (ETFs).

ETFs can be thought of as collections of different shares that trade under one overarching name (and ticker code). To illustrate, the most popular ETFs on the ASX are funds that hold the largest 200 or 300 companies on our stock market. That’s everything from Woolworths Group Ltd (ASX: WOW) and Telstra Group Ltd (ASX: TLS) to Ampol Ltd (ASX: ALD) and JB Hi-Fi Ltd (ASX: JBH).

If an investor just buys one ASX 200 ETF, they are really investing in the 200 companies that the ETF holds. These companies are updated periodically, meaning the beginner investor doesn’t ever have to worry about them again once they’ve bought the fund. If they don’t wish to, of course.

So today, I’ll discuss three ASX ETFs that are all a beginner investor needs to have a diversified portfolio of different stocks that will help to build real wealth over time. If an investor buys each fund, elects to reinvest all dividends received, and buys as many units (shares of ETFs) as they can, as often as they can, they are highly likely to increase their wealth dramatically over their lives. That’s if the past hundred years are anything to go off.

3 ASX ETFs that are perfect for a beginner investor

First off, we’ll start with an Australia-focused fund, the Vanguard Australian Shares Index ETF (ASX: VAS). This fund works as we discussed above. It holds the largest 300 shares listed on the Australian share market, with every name above included. Amongst many others. Australian shares have delivered healthy returns for decades, and this ETF is a great way to patriotically tap into that trend.

Next up, the iShares S&P 500 ETF (ASX: IVV) is a perfect addition to our portfolio. Instead of holding the largest 300 stocks on the Australian market, this fund holds the largest 500 listed over in the United States. The USA houses many, if not most of, the world’s best businesses, hands down. With this ETF, you’ll be indirectly buying companies ranging from Apple, Amazon and Microsoft to Coca-Cola Co, Mastercard and Ford Motor Company.

These are the companies that dominate global commerce, and, if legendary investor Warren Buffett is to be believed, will continue to do so. I think following Buffett’s advice is a sensible path for any beginner investor, so this ASX ETF joins our portfolio.

Finally, we have another Vanguard ETF, the Vanguard All-World ex-US ETF (ASX: VEU). This ETF plugs the giant gap in our portfolios’ diversification by branching out beyond just Australia and the US. And branch out it does. This ASX ETF holds thousands of underlying companies, hailing from dozens of different countries. These span from China, India, Brazil and Spain to Taiwan, Singapore, South Africa and Canada.

Over long periods of time, we sometimes see some markets thrive while others suffer. Holding this ETF mitigates some of that risk, as well as providing some potential protection if a country-specific issue affects the US or Australian economies.

Foolish takeaway

These three ASX ETFs together cover most corners of the global economy and form a well-diversified portfolio. All three are passive, hands-off investments that require little ongoing effort or even thought. That, in my view, makes them perfect choices for a beginner investor.

 

The post Simple, easy investing: These 3 ASX ETFs are all a beginner needs appeared first on The Motley Fool Australia.

More reading

• The ETF portfolio I’d build if I never wanted to watch markets again
• Is the Vanguard Australian Shares Index ETF (VAS) the best way to invest in ASX shares?
• Why these ASX ETFs could be better than buying CBA shares
• Where to invest $250 in ASX ETFs this month
• These are the ASX ETFs I would buy if the market crashed tomorrow

Motley Fool contributor Sebastian Bowen has positions in Amazon, Apple, Coca-Cola, Mastercard, Microsoft, and Vanguard Australian Shares Index ETF. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Amazon, Apple, Mastercard, Microsoft, Vanguard International Equity Index Funds – Vanguard Ftse All-World ex-US ETF, and iShares S&P 500 ETF. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool Australia has positions in and has recommended Telstra Group and Woolworths Group. The Motley Fool Australia has recommended Amazon, Apple, Mastercard, Microsoft, 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.

Are you on the hunt for some big returns for your investment portfolio? If you are, then it could be worth looking at the ASX 200 shares listed below.

That’s because they have been tipped to rise at least 20% over the next 12 months. Here’s what analysts are recommending:

Boss Energy Ltd (ASX: BOE)

Analysts at Bell Potter remain upbeat on this ASX 200 uranium share despite its bitterly disappointing update last week.

The broker believes there could be a way to make the Honeymoon project work in 2027 and beyond. And investors may not have to wait too long to find out if that is the case. It said:

Details as to the hypothesised strategy may be provided as early as 2QCY26, with a wide-spaced test scenario to be conducted initially on zones north of the Honeymoon domain. This should provide greater clarity around the potential success of the approach. Should this fail, the likely outcome would be a lower production profile over LOM with higher AISC (which if you’re bullish uranium pricing might not impact the thesis). The selloff has highlighted one possibility. If the market continues to value Honeymoon at a material discount (on our numbers current implied value is ~A$91m), BOE may become a target for groups ISR experience and a longer outlook on uranium pricing.

Bell Potter has put a buy rating and $2.00 price target on its shares. Based on its current share price of $1.32, this suggests that upside of 50% is possible between now and this time next year.

Lovisa Holdings Ltd (ASX: LOV)

The team at Macquarie Group Ltd (ASX: MQG) thinks that fashion jewellery retailer Lovisa could be an ASX 200 share to buy.

The broker believes that the market is undervaluing its shares based on its growth potential, which is being supported by its bold store rollout plan. It said:

We think LOV & UNI both have a strong outlook that isn’t reflected in their current valuations. Both stocks have de-rated over FY26 so far, and are now trading broadly in-line with their long-run average Relative P/Es to the ASX300 – despite the above data indicating relatively low macroeconomic risk, and our view that both stocks still have appealing store rollout stories (UNI: Australia, LOV: UK/US).

Macquarie currently has an outperform rating and $37.30 price target on its shares. Based on the current Lovisa share price of $30.50, this implies potential upside of 22% for investors over the next 12 months.

The post These ASX 200 shares could rise 20% to 50% appeared first on The Motley Fool Australia.

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• Here are the top 10 ASX 200 shares today
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Motley Fool contributor James Mickleboro has positions in Lovisa and Universal Store. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Lovisa and Macquarie Group. The Motley Fool Australia has positions in and has recommended Macquarie Group. The Motley Fool Australia has recommended Lovisa and Universal Store. 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.

Warren Buffett’s company, Berkshire Hathaway (NYSE: BRK.A)(NYSE: BRK.B), reminds me of Scrooge from The Christmas Carol. It’s a miserly company when it comes to returning cash to its shareholders. The conglomerate hasn’t paid a dividend since 1967 and hasn’t repurchased any of its stock in five straight quarters. As a result, it sat on a record cash position of $381.7 billion at the end of the third quarter.

However, Berkshire Hathaway‘s stinginess could end in 2026 when Buffett steps down as CEO and turns over the reins to Greg Abel. Here’s why initiating a dividend payment next year makes sense. 

Why Berkshire has been so stingy over the years

Berkshire Hathaway has opted against paying dividends for most of Warren Buffett’s tenure. He and his former business partner, Charlie Munger, preferred to retain 100% of the company’s earnings. That provided them with the cash to acquire additional operating businesses and invest in publicly traded stocks. They believed that they could earn a higher return for shareholders by reinvesting the company’s retained earnings.

Their strategy has certainly paid off over the years. Berkshire Hathaway has produced a staggering 6 million percent return since Buffett took over the company in 1965. That has far outpaced the S&P 500‘s 46,000% return during that time frame.

Buffett and his team have used the income generated by Berkshire’s operating businesses to buy some great companies over the years, including GEICO, BNSF, and See’s Candies. They’ve also made some terrific stock investments, such as Coca-Cola and Apple.

A waning appetite for new investments

While Buffett hasn’t had a problem finding opportunities to invest capital throughout most of his tenure, the value-focused investor has found fewer investments to his liking in recent years. Berkshire has sold more stocks than it bought for its equity portfolio in each of the last dozen quarters. These stock sales, which have included trimming its Apple position, have contributed to the rise in its cash position. Meanwhile, Buffett hasn’t found too many acquisition opportunities either. Berkshire’s recently announced $9.7 billion deal to buy Occidental Petroleum‘s chemicals subsidiary, OxyChem, is its largest since acquiring insurance company Alleghany Corporation for $11.6 billion in 2022.

Instead, Berkshire has let the cash pile up on its balance sheet, which has allowed it to capitalize on higher interest rates in recent years. The company held about $360 billion of T-bills at the end of the third quarter, which was more than the Federal Reserve’s $195 billion. With rates around 3.8%, Berkshire Hathaway is generating meaningful interest income from this investment. However, rates have fallen considerably over the past year, eating into the income Berkshire can generate from its cash.

Why 2026 could be the year of the dividend

With Buffett stepping down as CEO in 2026, Berkshire Hathaway might alter its capital allocation strategy. The company’s cash position has continued to build at a time when interest rates are falling, a trend that could persist into 2026. Meanwhile, the company isn’t finding enough new investment opportunities to put its growing cash pile to work.

That’s why initiating a dividend would make a lot of sense. The company generated an operating profit of $13.5 billion in the third quarter, up from $10 billion in the prior-year period. Meanwhile, its net income, which includes gains and losses on its stock portfolio, has risen from $26.3 billion to $30.8 billion.

Given the company’s earnings, it could easily pay over $20 billion in dividends annually, or less than a quarter of its operating profit. It could fund that payment level with its cash position alone for nearly two decades. In other words, it wouldn’t lose any of its capacity to capitalize on a future downturn.

It’s time for Berkshire to stop being a Scrooge

Berkshire’s strategy of retaining all of its earnings made sense when Buffett and Munger were able to find attractive opportunities to reinvest that cash. However, with Munger passing and Buffett passing the torch to Abel, it’s time for the company to change its capital allocation strategy, as it is no longer finding good investment opportunities. Paying a dividend makes a lot of sense. It wouldn’t consume much of the company’s cash and would provide shareholders with some income that they could reinvest or spend as they see fit.

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

The post Berkshire Hathaway is a Scrooge stock. Will it have a change of heart and start paying dividends in 2026? 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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Matt DiLallo has positions in Apple, Berkshire Hathaway, and Coca-Cola and has the following options: short January 2026 $265 calls on Apple. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Apple and Berkshire Hathaway. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Occidental Petroleum. The Motley Fool Australia has recommended Apple and Berkshire Hathaway. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Constantly checking markets, reacting to headlines, and second-guessing investment decisions is exhausting. And for most investors, it is unnecessary.

History shows that long-term wealth is rarely built by trading in and out of the market. It is built by owning quality assets, staying invested, and letting time do the heavy lifting.

The good news is that’s exactly where a simple exchanged traded fund (ETF) portfolio can shine.

If my goal was to invest once, add money when I could, and then largely ignore the day-to-day noise, this is the ASX ETF portfolio I would build.

A strong foundation in Australian shares

My first pick would be the Vanguard Australian Shares ETF (ASX: VAS).

This ETF gives exposure to the 300 largest shares listed on the ASX, including household names like BHP Group Ltd (ASX: BHP), Commonwealth Bank of Australia (ASX: CBA), CSL Ltd (ASX: CSL), Wesfarmers Ltd (ASX: WES), and Woolworths Group Ltd (ASX: WOW). These businesses collectively represent a huge portion of the Australian economy.

Importantly, given its vast number of holdings, it removes the need to guess which Australian shares will outperform. You simply own the market.

US exposure

Next, I would add the iShares S&P 500 ETF (ASX: IVV).

This ETF tracks the 500 largest stocks on Wall Street, giving instant exposure to global leaders across technology, healthcare, consumer goods, and industrials. Its holdings include stocks such as Microsoft Corp (NASDAQ: MSFT), Johnson & Johnson (NYSE: JNJ), Walmart (NYSE: WMT), and Nvidia Corp (NASDAQ: NVDA).

This means that by owning this fund, you are holding a slice of some of the world’s strongest businesses without needing to decide which individual stocks will win.

The US market has been one of the best performers in history. And given the quality on offer across the Pacific, it would not be a surprise if this trend continued.

Global diversification

To complete the portfolio, I would include the Vanguard MSCI Index International Shares ETF (ASX: VGS).

This ETF invests in developed markets outside Australia, spreading capital across Europe, Japan, and other major economies. Its holdings include well-known companies like Nestle (SWX: NESN), Roche Holding AG (SWX: ROG), Toyota Motor Corp, and LVMH Moët Hennessy Louis Vuitton (FRA: MO).

This ETF helps reduce reliance on any single country or economy. If Australia or the US underperforms for a period, other regions can help balance returns.

The post The ETF portfolio I’d build if I never wanted to watch markets again appeared first on The Motley Fool Australia.

More reading

• Is the Vanguard Australian Shares Index ETF (VAS) the best way to invest in ASX shares?
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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, Microsoft, Nvidia, Wesfarmers, and iShares S&P 500 ETF. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Johnson & Johnson, Nestlé, and Roche Holding AG and has recommended the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool Australia has positions in and has recommended Woolworths Group. The Motley Fool Australia has recommended BHP Group, CSL, Microsoft, Nvidia, Vanguard Msci Index International Shares ETF, Wesfarmers, 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.

CSL Ltd (ASX: CSL) shares are a popular option for Aussie investors and it isn’t hard to see why.

The biotech giant has long been regarded as one of the highest-quality businesses on the Australian share market.

However, after a difficult period marked by trade tariff pressures, plasma collection challenges, falling influenza vaccine rates, and cautious sentiment toward healthcare stocks, its share price has fallen a long way from its highs.

CSL shares ended last week trading at $175.08, down materially from their 52-week high of $290.32.

But while 2025 has been disappointing, what could lie ahead for shareholders over the next five years? Let’s take a look.

The near-term recovery case for CSL shares

According to analysts at UBS, CSL shares are materially undervalued at current levels. The broker recently put a buy rating and a $275.00 price target on them. That implies almost 60% upside over the next 12 months if the broker is on the money with its recommendation.

Short-term rebounds are one thing, but CSL’s real appeal has always been its ability to compound over long periods.

For much of the past two decades, the company delivered double-digit annual earnings growth, supported by rising global demand for plasma-derived therapies and a deep research pipeline.

Let’s assume that after its shares reach $275.00 again, CSL gets back to its more familiar rhythm and delivers a return of 10% per annum for the following four years.

That’s not heroic by CSL’s historical standards, but it reflects a mature, high-quality global healthcare leader delivering solid and steady earnings growth year after year.

If that were the case, a starting share price of $275 growing at 10% per year for four years would rise to roughly $400.

Putting it into perspective

From today’s share price of $175.08, a move to around $400 over five years would more than double an investor’s money. And that’s before dividends.

That equates to an annualised return comfortably above the long-term market average, driven by a mix of valuation recovery and steady compounding.

Of course, this outcome is far from guaranteed. CSL will still need to execute its strategy well, deliver on its cost reductions, and continue innovating in a competitive global healthcare landscape. But if it does what it has done many times before, the next five years could look far brighter than the last couple.

For patient investors, the current weakness may end up being remembered as an incredible opportunity to buy a high-quality stock at a dirt-cheap price. But time will tell if that is the case.

The post Where will CSL shares be in 5 years? appeared first on The Motley Fool Australia.

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• CSL and more blue-chip ASX 200 bargains I’d buy before 2026
• Forget CSL shares, I’d buy this booming biotech stock instead

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

It is fair to say that Accent Group Ltd (ASX: AX1) shares have had a brutal run.

The footwear and apparel retailer is now trading at just 93 cents, down 62% from its 52-week high of $2.46, and sentiment around the footwear retailer could hardly be worse.

But when a profitable, cash-generative business falls this far, the key question for investors becomes simple. Is this a value trap or a rare long-term buying opportunity hiding in plain sight?

What went wrong?

The company disappointed the market with a FY 2026 trading update last month that came in well below expectations.

For the first 20 weeks of the financial year, Accent reported group-owned sales tracking well below the market’s estimates. It also revealed that its gross margin had fallen 160 basis points year to date.

Management blamed this on challenging retail market conditions, including ongoing promotional activity.

As a result, its FY 2026 EBIT guidance was cut to between $85 million and $95 million, which was around 23% below market expectations at the time according to a note out of Bell Potter.

Attractive dividend yield

Despite its earnings downgrade, Accent remains profitable and cash generative.

Bell Potter is forecasting fully franked dividends of 5.3 cents per share in FY 2026, rising to 7 cents per share in FY 2027, and then 8.1 cents per share in FY 2028.

At today’s share price, this represents attractive dividend yields of 5.7%, 7.5%, and 8.7%, respectively.

For patient income investors, that kind of yield from a national retail leader is hard to ignore.

Cheap valuation

On Bell Potter’s numbers, Accent is trading on an FY 2026 price to earnings (P/E) ratio of roughly 13x. It then falls close to 10x on FY 2027 forecasts.

That multiple clearly reflects low confidence in near-term earnings, but it also assumes little value from any recovery in consumer spending or margin normalisation.

It also doesn’t appear to place much value on the roll out of the Sports Direct brand in Australia.

Accent has begun its roll out Sports Direct stores in Australia in partnership with Frasers Group, with the first store opening in November and at least three more planned in FY 2026.

Bell Potter notes a six-year target of around 50 stores, positioning Accent to increase exposure to a more resilient sportswear category.

While this initiative is unlikely to move the needle immediately, if executed well, it could reshape the earnings profile of the business over the next decade.

All in all, I think this could be a great time to make a patient investment in Accent shares while they are down in the dumps.

The post Down 60% with a 6% yield and P/E of 13x – are Accent shares a generational bargain? appeared first on The Motley Fool Australia.

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

The Vanguard Australian Shares Index ETF (ASX: VAS) is the most popular exchange-traded fund (ETF) for accessing ASX shares. The fund has around $22 billion of investor money allocated to it.  

But, being the biggest doesn’t necessarily mean it’s the best choice for Aussie investors.

Vanguard is one of the world’s best ETF providers, in my opinion. It wants to offer investors investment funds that give exposure to shares (and bonds) with very low fees.

There are a number of good reasons to want to invest in the VAS ETF, such as its low fees, the diversification on offer and a solid dividend yield. But, depending on why Aussies are picking the Vanguard offering, there are other options that could fit the bill even better.

Fees

Arguably, the most appealing aspect of the Vanguard Australian Shares Index ETF is that its annual management fee is just 0.07% per year. That’s close to nothing!

Low costs are great because it means more of the returns and fund value are left in the hands of the investor. There are no performance fees either.

While the VAS ETF is one of the cheapest options on the ASX, there is an even cheaper option: BetaShares Australia 200 ETF (ASX: A200). The BetaShares offering has an annual fee of just 0.04%, which is even closer to nothing.

Interestingly, at the time of writing, the A200 ETF’s return has slightly outperformed the VAS ETF over the last three years and five years. Of course, past outperformance doesn’t mean it’ll continue.

Diversification

Another positive characteristic of the VAS ETF is its diversification.

The Vanguard fund owns 300 businesses because it tracks the S&P/ASX 300 Index (ASX: XKO), an index of 300 of the largest companies on the ASX. That’s seemingly a good level of diversification.

It owns names like Commonwealth Bank of Australia (ASX: CBA), BHP Group Ltd (ASX: BHP), Westpac Banking Corp (ASX: WBC), National Australia Bank Ltd (ASX: NAB), ANZ Group Holdings Ltd (ASX: ANZ), Wesfarmers Ltd (ASX: WES), CSL Ltd (ASX: CSL), Macquarie Group Ltd (ASX: MQG), Goodman Group (ASX: GMG) and Telstra Group Ltd (ASX: TLS).

However, the largest businesses have a very big weighting on the ASX, making it seem less diversified than it looks.

Those ten names I mentioned above account for around 44% of the VAS ETF portfolio and the other 290 names make up the other 56%.

Additionally, around 54% of VAS ETF is invested in just ASX financial shares and ASX mining shares. Ideally, it’d be useful if other sectors had a larger allocation.

VanEck Australian Equal Weight ETF (ASX: MVW), as the name of suggests, owns a portfolio of names that it aims to provide investors with an equal weighting to. It’s not strongly exposed to any single ASX share or sector.

The MVW is currently invested in 72 names such as Evolution Mining Ltd (ASX: EVN), Northern Star Resources Ltd (ASX: NST), South32 Ltd (ASX: S32), Whitehaven Coal Ltd (ASX: WHC), Reece Ltd (ASX: REH) and Orica Ltd (ASX: ORI).

The VAS ETF is not as diversified as it could be. I’m not suggesting to replace the VAS ETF with the MVW ETF, but they could work well together to reduce the exposure to a few large businesses.

Dividend yield

One advantage of ASX blue-chip shares over international shares is their typically higher dividend yield. According to Vanguard, the VAS ETF has a dividend yield of 3.1%, with franking credits a bonus on top of that yield.

But, there’s a Vanguard offering that tries to provide investors with an even higher dividend yield. The Vanguard Australian Shares High Yield ETF (ASX: VHY) invests in businesses that have higher forecast dividends compared to other ASX shares.

The VHY ETF has a dividend yield of 4.3% excluding franking credits and 5.8% including franking credits, which is noticeably stronger than the VAS ETF. So, the high-yield option could be a better idea for income-focused investors.

Overall, the VAS ETF is still a very effective option for Australians and has positive aspects. But, I think it’s useful to assess whether there’s an even more appealing option, depending on someone’s objectives.

The post Is the Vanguard Australian Shares Index ETF (VAS) the best way to invest in ASX shares? appeared first on The Motley Fool Australia.

More reading

• Why these ASX ETFs could be better than buying CBA shares
• These are the ASX ETFs I would buy if the market crashed tomorrow
• 3 ASX ETFs to generate passive income in retirement
• Why Australian small-cap shares are shining
• Forget Westpac shares, these ASX ETFs could be better buys

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 CSL, Goodman Group, Macquarie Group, and Wesfarmers. The Motley Fool Australia has positions in and has recommended Macquarie Group and Telstra Group. The Motley Fool Australia has recommended BHP Group, CSL, Goodman Group, Vanguard Australian Shares High Yield ETF, and Wesfarmers. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.