ASX finance stock Moneyme Ltd (ASX: MME) jumped earlier this week after the ASX finance company said it had hit profitability during the quarter on growth in its loan book.

Strong growth figures

The company said in a statement to the ASX that it had generated new loan originations of $325 million in the third quarter of the financial year, which was up 43% on the previous corresponding period and up 18% on the second quarter of FY26.

The company’s loan book grew by $150 million to $1.9 billion, up 29% on the previous corresponding period, “reaching the scale required to achieve normalised net profit after tax profitability”, the company said.

Revenue for the quarter came in at $62 million, up 17% on the previous corresponding period, with net credit losses reducing to 2.6%.

Moneyme Managing Director Clayton Howes said it was a key milestone for the company, and added:

The third quarter marked a step-change in performance, with originations increasing by $50m quarter-on quarter and the loan book reaching $1.90bn. This represents an inflection point, delivering a positive Normalised NPAT in the quarter, with revenue growth outpacing costs and driving operating leverage. Despite interest rate and inflation pressures, our credit performance remains strong with loss rates declining as we continue to focus on secured vehicle finance and high credit quality segments. This, alongside a predominantly variable interest rate loan book enables us to absorb these market pressures, maintain risk adjusted NIM, and price effectively for capital preservationWe continue to capture market share in under-served segments through fast, innovative and well-priced products and outstanding customer service. At the same time, our multi-product strategy is gaining traction, with momentum building in credit cards. The launch of our Cashback Rewards Credit Card and upcoming white-label partnership with Luxury Escapes will expand access to millions of potential customers. While credit card growth may have a near-term impact on profitability, it is expected to deliver meaningful margin expansion as the portfolio scales.

Mr Howes said the company’s funding structure was a key strength, “with a robust corporate facility and strategic partnership with iPartners delivering favourable terms, including a 75-basis point reduction in funding costs that further supports growth and margin outcomes”.

Moneyme also during the quarter launched its own new credit card and entered into a white label credit card partnership with Luxury Escapes.

Shares looking cheap

Moneyme shares traded as high as 9.9 cents higher on Wednesday (up more than 16%) when its quarterly results were announced, before settling back over the week to be changing hands for 8.8 cents apiece on Friday.

Morgans has a price target of 21 cents on Moneyme shares.

The company is valued at $71.5 million.

The post Morgans sees 2x upside in ASX finance stock after hitting key milestone appeared first on The Motley Fool Australia.

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Motley Fool contributor Cameron England has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has 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.

Building wealth for retirement doesn’t have to mean picking individual stocks or timing the market perfectly. For many investors, ASX exchange-traded funds (ETFs) offer a simpler path, broad diversification, low fees, and exposure to long-term growth trends.

If the goal is to bring retirement a little closer, a well-chosen mix of ASX-listed ETFs can do much of the heavy lifting.

SPDR S&P/ASX 200 ETF (ASX: STW)

A core holding to consider is the SPDR S&P/ASX 200 ETF. This ASX ETF tracks the Australian share market, giving investors exposure to leading companies across sectors like banking, mining, and healthcare.

The main holdings of this fund are currently Commonwealth Bank of Australia (ASX: CBA) and BHP Group Ltd (ASX: BHP), which account for almost 11% each. It also offers income through dividends, making it a solid foundation for long-term investors.

iShares S&P 500 ETF (ASX: IVV)

To complement that, global diversification is essential. The iShares S&P 500 ETF provides exposure to the 500 largest US companies, including major technology and consumer giants.

This adds a powerful growth engine, tapping into innovation trends that aren’t as prominent locally.

Vanguard MSCI Index International Shares ETF (ASX: VGS)

For broader international exposure beyond the US, the Vanguard MSCI Index International Shares ETF spreads investments across developed markets like Europe and Japan. This reduces reliance on any single economy and helps smooth returns over time.

Investors looking to tilt further toward growth could also consider the BetaShares Nasdaq 100 ETF (ASX: NDQ). This ASX ETF focuses on leading technology companies listed on the Nasdaq. Shares like NVIDIA Corp (NASDAQ: NVDA) offer higher growth potential, though with more volatility along the way.

SPDR S&P/ASX 200 Listed Property Fund (ASX: SLF)

Income still plays an important role in retirement planning. The SPDR S&P/ASX 200 Listed Property Fund provides exposure to Australian real estate investment trusts (REITs), which can generate regular income while offering long-term capital growth.

So how does this mix work together?

It creates balance. Australian equities provide income and stability. Global ASX ETFs add diversification and growth. Property introduces another income stream and asset class. Together, they help manage risk while keeping the portfolio positioned for long-term returns.

Over time, consistency matters more than short-term market movements. Regular investing, reinvesting dividends, and staying invested through volatility can significantly improve outcomes.

The key advantage of ETFs is simplicity. Instead of trying to pick winners, investors gain exposure to entire markets in a single trade. That makes it easier to stay disciplined and focused on the bigger picture.

No strategy guarantees early retirement. But a diversified ASX ETF portfolio like this can provide a strong foundation, one that steadily builds wealth and helps bring financial independence within reach.

The post Want to fast-track retirement? These ASX ETFs could get you there appeared first on The Motley Fool Australia.

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• Why I think investors should buy and hold CBA shares for 10 years

Motley Fool contributor Marc Van Dinther has positions in BHP Group. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended BetaShares Nasdaq 100 ETF, Nvidia, and iShares S&P 500 ETF. The Motley Fool Australia has positions in and has recommended BetaShares Nasdaq 100 ETF. The Motley Fool Australia has recommended BHP Group, Nvidia, Vanguard Msci Index International Shares ETF, and iShares S&P 500 ETF. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Given that interest rates are rising in Australia again, it could be a good time to look at ASX shares with higher dividend yields.

If we’re going to invest in ASX shares for passive income, I’d want to ensure we’re getting an attractive payout. We don’t necessarily need a dividend yield of more than 7% to call it an appealing investment.

But, the two ASX shares below are ones that I believe can offer large dividend yields in the short-term and payout growth in the long-term.

Charter Hall Long WALE REIT (ASX: CLW)

This is one of the most appealing real estate investment trusts (REITs) in my opinion because it offers a combination of yield, security and diversification.

The ASX share is invested across a variety of areas including service stations, pubs and hotels, telecommunication exchanges, data centres, distribution centres and plenty more. I don’t think there’s a better REIT for sector diversification on the ASX.

This business can provide pleasing security within its portfolio because it’s looking to maintain a portfolio of investments that have long rental contracts. In other words, the REIT has a long weighted average lease expiry (WALE). The WALE currently stands at around nine years.

That high-quality rental income is steadily growing, with the income benefiting from fixed annual indexation or rental increases linked to inflation. That’s a pleasing, natural tailwind for the business.

In FY26, the ASX share has guided that it expects to increase its annual distribution per unit by 2% to 25.5 cents. Any growth in the current environment is good, in my view. That forward distribution translates into a dividend yield of 7.2%, at the time of writing.  

WCM Global Growth Ltd (ASX: WQG)

The other ASX share I want to highlight is a listed investment company (LIC) that is one of the most effective choices, in my view, for both passive income and some capital growth.

Excitingly, WCM pulls its ideas from across the global share market, which gives the LIC great diversification and helps it unlock strong returns. The global economy has a much larger addressable market than Australia and New Zealand, so it’s pleasing when a business is targeting international growth.

Many of the businesses inside the WCM Global Growth portfolio have multinational/global ambitions, giving them a longer growth runway and the potential to earn stronger returns than ASX blue-chip shares.

The ASX share aims to find businesses with strengthening competitive advantages, which is supported by a corporate culture that can help those businesses grow their profitability and market position.

WCM Global Growth now pays a dividend every quarter to shareholders and that payment has been increasing each quarter. Its annual dividend has increased each year since 2019.

The next four guided quarterly dividends are expected to come to a total of 9.3 cents per share, which translates into a grossed-up dividend yield of 7.5%, including franking credits.

The post 2 ASX shares with dividend yields above 7% appeared first on The Motley Fool Australia.

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Motley Fool contributor Tristan Harrison has positions in Wcm Global Growth. 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.

Treasury Wine Estates Ltd (ASX: TWE) shares have had a tough year.

At the current share price, they are down roughly 50% from a 52-week high of $9.18.

While there is still a lot of work to be done, when I look at where things stand today, I think this is one worth considering.

A business going through a reset

There is no getting around the fact that the last year has been difficult for the wine giant.

Earnings pressure, weaker demand in some markets, and broader industry challenges have all weighed on performance. That has also impacted dividends, with the market currently expecting no payout in FY26.

That may understandably put some income investors off in the short term.

However, I think it is important to separate what is happening now from where the business could be heading.

An update this week points to improving momentum in some key markets. Depletions have returned to growth in the US and remain strong in China, while the company is also rolling out changes to improve execution.

If that continues, the earnings profile could begin to rebuild from here.

Income potential returning over time

Looking ahead, dividend expectations start to recover.

According to CommSec, consensus estimates point to partially franked dividends of 15 cents per share in FY27 and 24 cents per share in FY28.

At the current share price, that would imply a forward dividend yield of around 3.3% in FY27, rising to over 5.3% in FY28, before considering franking credits.

That is where I think the opportunity starts to become more interesting.

You are not buying this for immediate income. You are buying it with the expectation that income returns as the business recovers.

There is more than just income here

I also do not think this is purely an income story.

Treasury Wine Estates still owns a portfolio of premium brands, with Penfolds remaining a key driver. There are also signs of improving demand in markets like China, alongside better momentum in the US.

At the same time, the company is restructuring its operations, which could support margins and efficiency over time.

There is also the balance sheet to consider. Recent refinancing activity has strengthened liquidity, giving the company greater flexibility as it navigates this period.

When I put that together, I see an ASX dividend stock trying to reset rather than one in decline.

Foolish takeaway

Treasury Wine Estates is not the simplest ASX dividend stock to buy right now.

There may be no income in FY26, and it may take time for earnings to rebuild.

But looking further ahead, dividends are expected to return and grow, and the share price is already reflecting a lot of the recent challenges.

For investors who are willing to be patient, I think this could be a dividend stock worth considering after a 50% sell-off.

The post 1 ASX dividend stock down 50% I’d buy appeared first on The Motley Fool Australia.

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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 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.

There are plenty of options for investors on the Australian share market.

To narrow things down, let’s see what analysts are saying about three very popular ASX 200 shares.

Here’s what you need to know:

Cochlear Ltd (ASX: COH)

The team at Morgans has responded negatively to this hearing solutions company’s disappointing trading update.

So much so, it has retained its hold rating but cut its price target in half to $107.17 (from $214.93). It said:

COH has delivered a material downgrade to FY26 earnings, cutting guidance by c30% at the midpoint. While FX, geopolitics and cost actions contributed, the key takeaway is more fundamental, with CI demand, especially in developed markets, proving to be more cyclical and macro-sensitive than previously assumed.

This challenges the market’s long-held view as a structural, volume-driven growth story largely insulated from economic cycles. While we view long-term fundamentals as intact, near-term earnings visibility has deteriorated materially, so we wait for demand stabilisation before re-engaging. We adjust our FY26-28 estimates and lower our target price to A$107.17 HOLD.

CSL Ltd (ASX: CSL)

Bell Potter notes that CSL shares have de-rated to lower than normal earnings multiples.

However, it feels this is justified at present given its soft outlook. As a result, it has a hold rating and $155.00 price target on its shares. It explains:

The current share price reflects a materially de-rated PE multiple of ~15x our FY27 NPAT forecast, bringing CSL in line with the global biopharma peer set which also trades at an avg PE of 15x. While CSL doesn’t face the same extent of generic/biosimilar competition as these biopharma peers, it does have a lower growth outlook of ~2.5% revenue CAGR (3yr) per our forecast compared to >4% avg for global peers.

Considering the low-growth outlook in the near-term, risk to FY26 guidance, and our below-consensus FY27 forecasts, we maintain our HOLD recommendation notwithstanding the historically low trading multiple. We don’t think CSL is out of the woods just yet. PT is lowered to $155.

DroneShield Ltd (ASX: DRO)

Bell Potter is much more positive on this counter-drone technology company’s shares.

In response to a strong quarterly update, the broker retained its buy rating and $4.80 price target.

The broker believes DroneShield is well-placed for growth thanks to favourable industry tailwinds. It said:

We believe DRO has a market leading RF detect/defeat C-UAS offering and a strengthening competitive advantage owing to its years of battlefield experience and large and focused R&D team. We expect 2026 will be an inflection point for the global C-UAS industry with countries poised to unleash a wave of spending on RF detect and defeat solutions.

Consequently, we believe DRO should see material contracts flowing from its $2.3b potential sales pipeline over the next 3-6 months as defence budgets roll over to FY26e. At 43x CY26e EV / EBITDA, DRO trades at a discount to the global drone peer group. Further, we see upside risk to our revenue forecasts in CY26/27e, given the opportunities observed in the C-UAS industry.

The post Buy, hold, sell: Cochlear, CSL, and DroneShield shares appeared first on The Motley Fool Australia.

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Passive income is a powerful strategy to earn money with minimal effort.

Earning a passive income from ASX dividend shares is a straightforward way to make money to supplement your main income.

Not only that, but it gives you some more financial freedom, helps create a buffer against volatility and also helps you to build wealth over time.

The question investors always ask is: How much do I need to invest in ASX shares to earn the passive income I want?

A simple calculation

Say you want to earn $500 per month in passive income by investing in ASX shares.

It sounds like a lot, but it’s perfectly doable.

Your $500 per month totals $6,000 per year in dividend payments.

The easy calculation to work out how much money you need to invest is to divide your annual dividend income by the dividend yield of the ASX stock you’re considering.

In other words, $6,000 divided by an average dividend yield of, say, 3.5% equals $171,428.

That $171,428 figure is what you’d need to invest in order to earn your $500 monthly dividend payout.

The problem is that the figure will vary wildly depending on the dividend yield of the ASX shares you’d be buying. 

For example, if you’re buying ASX shares with a 4% dividend yield, you’d need to invest $150,000 to receive the same passive income.

For ASX shares with a 5% dividend yield, you’d need to invest $120,000.

Then for ASX shares yielding 6% or 7% you’d need to invest $100,000 or $85,714 respectively.

As the dividend yield increases, your upfront investment decreases.

Can’t I just invest in high-yield shares?

Technically, yes, but it wouldn’t be a good idea from an investment perspective.

Generally, the higher the yield, the higher the risk associated with that ASX stock. Rather than trying to get rich quickly, your focus should always be on earning sustainable passive income over the long term.

The key is consistency and lots of patience. 

And remember, you don’t need to invest the whole sum in one go. Start with a monthly investment and let compound growth do some of the hard work for you.

A regular contribution of $500 per month is a great start and could take around 17 years to reach a $171,000 portfolio. If you can make additional payments, or even hike that to $1000 per month, it’ll easily cut 7-8 years off your timeline. 

The post How much do I need to invest in ASX shares to earn a $500 monthly passive income? appeared first on The Motley Fool Australia.

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Motley Fool contributor Samantha Menzies 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.

Every veteran investor knows markets crash. The question is never whether it will happen. It is whether there is a plan ready for when it does.

History is clear on this point. The share market’s biggest single-day and weekly gains have almost always followed its worst periods. Investors who panic-sold in March 2020, in the 2022 rate shock, or during the GFC did not just lock in losses — they missed the recoveries that followed. Those recoveries have been among the greatest wealth-creation events of a lifetime.

So if the S&P/ASX 200 Index (ASX: XJO) fell 20% from here, what might a prepared investor actually do?

Buy. Deliberately. With a list already prepared.

Save like a pessimist, invest like an optimist

One framework worth considering starts well before a crash arrives. Keeping a cash buffer — not out of fear, but out of preparation — creates “dry powder”. It is what allows an investor to lean into fear when others are running from it.

When the drop comes, the goal is not to pick the exact bottom. That is a fool’s (small “f”!) errand. The aim is simply to be in the market when it recovers. Perfect positioning is not required. Participation is.

The core of a sensible crash-buying approach is broad, low-cost index exposure to the two most important share markets in the world.

For Australia, the Vanguard Australian Shares Index ETF (ASX: VAS) tracks the 300 largest companies on the ASX. Banks, miners, healthcare, consumer staples — all in one basket. When the market is down 20%, the case for owning the whole market rather than trying to pick survivors becomes even stronger.

For the United States, the iShares S&P 500 ETF (ASX: IVV) offers unhedged S&P 500 exposure, while the iShares S&P 500 AUD Hedged ETF (ASX: IHVV) removes currency noise for investors who prefer not to carry AUD/USD risk.

Together, VAS and either the IVV or IHVV ETF can form the core of a portfolio: stable, diversified, and built to survive almost anything.

The satellite: growth where it matters most

A core-only portfolio is robust, but not particularly positioned for growth. That is where a satellite allocation can earn its place.

The focus here is not on chasing every trend. The more compelling case is for two structural shifts that look likely to reshape the global economy over the next decade: robotics and AI infrastructure.

The Betashares Global Robotics and Artificial Intelligence ETF (ASX: RBTZ) provides exposure to companies developing and deploying robotics and AI — from industrial automation to unmanned systems. When markets fall broadly, quality companies in transformational sectors often fall just as hard as everything else. That is the potential entry point.

The other satellite worth watching is the Global X Artificial Intelligence Infrastructure ETF (ASX: AINF). While most attention focuses on the software and chip layer of AI, AINF sits beneath all of that — in the energy systems, data infrastructure, and materials that make AI physically possible. Global data centre spending is expected to exceed US$2 trillion over the next five years. That is not a trend. That is a building site.

A core-satellite approach does not mean splitting things equally. The core should represent the bulk of any position — perhaps 70–80% — with satellite ETFs taking a smaller, higher-conviction slice.

The Foolish takeaway

A 20% market crash would be uncomfortable. It always is. But discomfort and danger are not the same thing for a long-term investor with a prepared portfolio and cash ready to deploy.

The investors who tend to build real wealth are rarely the ones with the cleverest trades. They are the ones who stayed calm, kept buying, and let the market do its work over time. Having a watchlist of ETFs ready before the market falls is how that patience gets put to work.

The post All-weather ASX ETFs to buy if the market crashes 20% appeared first on The Motley Fool Australia.

More reading

• 3 ASX ETFs with market-beating potential over the next 10 years
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Motley Fool contributor Leigh Gant 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 iShares S&P 500 ETF. The Motley Fool Australia has recommended 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.

If you are hunting for big returns for your portfolio, then read on.

That’s because the ASX 200 shares in this article have been tipped to rise strongly from current levels by a couple of leading brokers.

Here’s what they are saying about these shares:

Northern Star Resources Ltd (ASX: NST)

This gold giant could be an ASX 200 share to buy according to Morgans.

It was pleased with its quarterly update and its decision to return funds to shareholders through an on-market share buy-back.

Overall, Morgans sees plenty of value in the gold miner’s shares at current levels and has put a buy rating and $30.00 price target on them. Based on its current share price, this implies potential upside of almost 40% for investors. It also expects a 2.5% dividend yield in FY 2026, boosting the total potential return further.

Commenting on its quarterly update, the broker said:

Gold sold of 381koz at AISC of A$2,709/oz beat our revised expectations, with sequential improvement across all three production centres following ongoing production issues. KCGM Mill Expansion on track for commissioning in early FY27; FY26 guidance has been provided and is above 1,500koz at AISC of A$2,600–2,800/oz. Net cash of A$320m; A$500m on-market buy-back announced, commencing ~23 April. We maintain our BUY rating, price target A$30.00ps (unchanged).

WiseTech Global Ltd (ASX: WTC)

The team at Bell Potter has trimmed its valuation of this logistics solutions technology company. However, even after this revision, it sees potential for WiseTech Global’s shares to rise very strongly over the next 12 months.

The broker has put a buy rating and $78.75 price target on them. Based on its current share price of $44.44, this implies potential upside of almost 80% for investors over the next 12 months.

Bell Potter believes the current discount that the ASX 200 share is trading on is excessive, especially given its strong competitive moat. It explains:

We note that WiseTech is currently trading at >30% discount to Technology One on an EV/EBITDA basis in both FY26 and FY27. While we believe some sort of discount is now warranted, we believe the current discount is excessive given WiseTech has greater forecast earnings growth over the medium term and also a similar strong competitive moat due to 30 years of proprietary data, deeply embedded software and high switching costs.

The post These ASX 200 shares could rise ~40% to 80% appeared first on The Motley Fool Australia.

More reading

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

In times of uncertainty, S&P/ASX 200 Index (ASX: XJO) blue-chip shares could be a strong choice for reliability.

I’d want to look at businesses that offer products and services customers consider essential. Additionally, it seems inflation may pick up in the near term, so it may be useful to look at businesses that protect profitability during this period.

I’m going to highlight Australia’s leading telecommunications business and a major retailer because of the defensive earnings they can provide. Let’s get into it.

Telstra Group Ltd (ASX: TLS)

Telstra offers the largest network coverage, has the most subscribers and the most valuable spectrum assets.

These advantages have enabled the business to invest more in its network compared to its competitors, thereby maintaining its economic moat.

The ASX 200 blue-chip shares’ market position has given it confidence to regularly increase prices over the last few years, which is a strong tailwind for average revenue per user (ARPU) and profit margins.

If elevated inflation does persist, I expect the ASX 200 blue-chip share will continue to raise prices. Its perception of having a superior network is likely to help it retain most of its customer base and benefit from the higher mobile prices.

I’m expecting Telstra’s bottom line to continue improving for the foreseeable future, due to how essential an internet connection is to households and businesses.

As a bonus, the business is regularly increasing its dividend for investors. According to the Commsec projection, the Telstra share price is valued at 27x FY26’s estimated earnings, with a possible grossed-up dividend yield of 5.6%, including franking credits, at the time of writing.

Wesfarmers Ltd (ASX: WES)

Wesfarmers is the other high-quality ASX 200 blue-chip share I strongly believe has a compelling future in the years ahead.

As the owner of Bunnings and Kmart, Wesfarmers looks like it’s well-positioned to be one of the most important businesses in helping households access good-value products.

I’m regularly impressed by the financial metrics the business achieves. In the FY26 half-year result, Bunnings Group reported a return on capital (ROC) of 70.8%, and Kmart Group achieved a ROC of 69.8%.

Those ROC figures show how profitably Wesfarmers’ money has been put to work in these two businesses. I think it bodes well for future profit growth if they can continue to earn returns of that sort.

I also want to point out that the business achieved a return on equity (ROE) of 32.7% in the first half of FY26, which I think is very impressive for a business like Wesfarmers.

I like the ASX 200 blue chip shares’ initiative to expand into new areas to unlock further earnings growth. Ideas such as lithium mining, healthcare, and Anko’s expansion in the Philippines each have a large growth runway and offer something quite different to Wesfarmers’ earnings base.

In my view, earnings diversification and adjusting its business portfolio over time are among the best things that have helped future-proof the business. I also include WesCEF and Officeworks as useful profit contributors in the overall picture.

In 10 years, Wesfarmers’ business could change noticeably, but I think that will help strengthen the business through management’s long-term focus.

According to Commsec’s projections, the Wesfarmers share price is valued at 29x FY26’s estimated earnings, with a potential grossed-up dividend yield of 4.1% (including franking credits) at the time of writing.

The post 2 great ASX 200 blue-chip shares I’d buy right now appeared first on The Motley Fool Australia.

More reading

• The Warren Buffett rule I keep coming back to with ASX shares
• 3 ASX dividend shares I’d hold through anything
• Almost ready to retire? I’d buy cheap ASX dividend shares for passive income
• Where I’d invest my first $500 into ASX shares
• 1 ASX dividend stock up 20% that I’d hold through any market

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

Warren Buffett has shared a lot of investing advice over the years, but one quote always sticks with me:

It’s far better to buy a wonderful company at a fair price than a fair company at a wonderful price.

I think this captures something simple but powerful.

It shifts the focus away from trying to find the cheapest ASX share and toward finding the right business.

Quality comes first

It is easy to get drawn to shares that have fallen a long way or trade on ultra-low PE ratios.

Sometimes that works out. Other times, there is a reason the share price has dropped and it never really recovers.

Warren Buffett’s approach is a reminder to start with the business itself.

I try to focus on ASX shares that have strong positions, consistent demand, and the ability to keep performing over time. If those pieces are in place, I am much more comfortable investing, even if the price is not at its lowest point.

Price still matters, just not in the same way

That quote does not ignore valuation. It just puts it in the right place.

I still want to buy at a reasonable price. A pullback can make a high-quality ASX share more attractive, and that is often where opportunities come from.

For example, when a company like CSL Ltd (ASX: CSL) trades well below its previous highs, I think about whether the underlying business has changed or whether the price has simply moved.

That is where this rule becomes useful.

The businesses I keep coming back to

On the ASX, I find myself drawn to companies that can keep delivering over time.

Businesses like Wesfarmers Ltd (ASX: WES) have shown they can grow across different cycles, while others like Transurban Group (ASX: TCL) benefit from steady demand and long-term assets.

They are very different, but they share one thing. They are built to last.

Why I keep using this rule

This way of thinking helps filter out a lot of noise.

Instead of asking which share is cheapest or which one has fallen the most, I focus on which businesses I would be comfortable holding for years.

That tends to lead me toward the same types of ASX shares again and again.

Foolish takeaway

The Warren Buffett rule I keep coming back to is focusing on quality first, then price.

Finding a strong business and buying it at a reasonable level is not complicated, but it works.

It keeps the process clear and helps me stay focused on what actually matters when investing in ASX shares.

The post The Warren Buffett rule I keep coming back to with ASX shares appeared first on The Motley Fool Australia.

More reading

• 2 great ASX 200 blue-chip shares I’d buy right now
• Down 50%, why I’d invest $20,000 into CSL shares
• 3 ASX dividend shares I’d hold through anything
• Almost ready to retire? I’d buy cheap ASX dividend shares for passive income
• 3 ASX shares I’d buy if the market dropped again

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