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

Warren Buffett has become an investing legend, and that’s thanks to his ability to generate market-beating returns over time. The billionaire, leading Berkshire Hathaway for nearly 60 years, has over that time delivered a compounded annual gain of almost 20% — that’s compared to the S&P 500‘s compounded annual increase of about 10% over the period.

Buffett has done this by investing in the same manner throughout all market environments: identifying quality companies with strong competitive advantages and getting in on these players for the right price. The famous investor doesn’t follow market trends or get caught up in euphoria or despair; instead, he keeps his cool and searches for opportunity.

In recent years, though, opportunity hasn’t been as readily available as he would have liked. “Often, nothing looks compelling; very infrequently, we find ourselves knee-deep in opportunities,” he wrote in a recent letter to shareholders. And actions Buffett has taken in the quarters leading up to his retirement, set for the end of this year, may be seen as a warning for Wall Street. Let’s take a closer look — and see what history says may happen in 2026.

Buffett’s transition

So, first, a quick note about Buffett’s retirement. Don’t worry: The top investor isn’t completely disappearing from the investing scene. He will carry on as chairman of Berkshire Hathaway, but as of Jan. 1, he’s turning his role of chief executive officer over to Greg Abel, currently the holding company’s vice-chairman of non-insurance operations. Abel will then lead Berkshire Hathaway investment decisions.

In Buffett’s final few years as CEO, it doesn’t look like he’s been “knee-deep” in opportunities because he’s been a net seller of stocks for the past 12 consecutive quarters. This means that his stock sales surpassed his equity purchases during each three-month period.

And this brings me to the subject of Buffett’s warning to Wall Street. As Buffett favored selling stocks over buying them in recent years, he’s also built up a record cash position — and this continued in the third quarter, with Berkshire Hathaway’s cash level reaching $381 billion. So, Buffett has preferred setting aside cash for investing at a later time than allocating it to purchases today.

A trend that Buffett may not like

The investing giant hasn’t offered us exact reasons for his decision, but since we do know that he favors buying stocks for a good price, it’s fair to say that one key element may be holding him back. And this is valuation.

A look at the S&P 500 Shiller CAPE ratio shows us that stocks are at one of their most expensive levels ever. The metric, a measure of stock price in relation to earnings over a 10-year period, recently climbed to 40, a level it’s only reached once before since the S&P 500’s formation as a 500-company benchmark.

S&P 500 Shiller CAPE Ratio data by YCharts

Now, let’s consider what history has to say about what may happen in 2026. At times when Berkshire Hathaway’s cash levels have been on the rise and reached a peak, the S&P 500 then has taken a dip, as you can see in the chart below, particularly in early 2016 and then toward 2017. The S&P 500 Shiller CAPE ratio also has been on the rise prior to these stock market dips, suggesting valuation may play a role in this trend.

BRK.B Cash and Short Term Investments (Quarterly) data by YCharts

The most important point

This historical pattern suggests we may see a dip in stocks in 2026 — but this doesn’t necessarily mean that the year will finish in the negative. Stock market declines that have followed Buffett’s increases in cash levels generally have been short-lived, and most important of all, the S&P 500’s declines always have resulted in recovery and gains in the years to follow.

So, what does all of this mean for investors? Buffett’s actions imply opportunities aren’t overly abundant right now — and that could start weighing on demand for stocks. This “warning” means investors should pay close attention to valuations and avoid buying stocks that are overpriced or have questionable long-term prospects.

Fortunately, though, if stocks do slip in 2026, history shows us these periods aren’t long lasting — and that’s why investing for a number of years has been a winning strategy for Warren Buffett and could be a winning strategy for you too. 

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

The post Warren Buffett, weeks before his retirement, has a warning for Wall Street. History says this may happen 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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Adria Cimino 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 Berkshire Hathaway. The Motley Fool Australia has recommended Berkshire Hathaway. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Not many investors are acquainted with Many Peaks Minerals Ltd (ASX: MPK), despite the company’s remarkable share price performance in recent months.

At the start of the year, shares in this ASX mining stock were changing hands at $0.20 apiece.

As of Friday’s close, they had surged to $0.90 per share.

This represents a stunning 350% return in less than a year.

For context, the broader All Ordinaries Index (ASX: XAO) has risen by about 5.5% over the same period.

So, what’s behind the spectacular rally for this little-known ASX mining stock?

It appears much of the excitement is centred on the company’s promising gold exploration results in Côte d’Ivoire.

Let’s take a closer look at the latest developments.

High-grade gold hunt

In 2025, Many Peaks reported a series of broad and high-grade gold hits from exploration drilling at its Ferké gold project.

In particular, drilling at the Ouarigue prospect returned a swarm of notable intercepts, such as 84.8 metres at 3.01 grams per tonne gold.

Other significant hits included 45m at 8.58g/t gold and 230m at 1.20g/t gold.

These results seem to point to the potential of a significant mineralised system at Ferké.

And last week, Many Peaks kicked off a major new drilling campaign aimed at uncovering additional gold zones across the project.

New exploration blitz

The 2025-26 field season will comprise at least 15,000 metres of drilling.

Initially it will focus on extending known mineralisation near Ouarigue, with further drilling planned at other high-priority regional targets at Ferké.

In parallel, Many Peaks has also commenced a series of target definition works at both Ferké and its second gold project in Côte d’Ivoire known as Odienné.

These works are designed to generate new exploration targets for the ASX mining stock to test with follow-up drilling.

Many Peaks managing director, Travis Schwertfeger, stated:

Our company’s rapid success in Côte d’Ivoire has resulted from steady acceleration of exploration activity over the past year, yielding resource potential with multiple high-grade gold intercepts at Ferké and delineation of extensive trends of gold mineralisation ready for follow-up work at Odienné.

Initial assays from the drill programme are anticipated in January.

Results from further drilling and other field work is expected to follow in regular intervals over the following six months.

Many Peaks share price in focus

The renewed exploration momentum has not gone unnoticed by the market.

In the past week alone, shares in the ASX mining stock have climbed from $0.72 to $0.90 per share.

This equates to a 25% return for shareholders in just five trading sessions.

The post This ASX mining stock is up 350% in 2025 and its gold hunt just hit hyper speed appeared first on The Motley Fool Australia.

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Motley Fool contributor Bart Bogacz 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.

Lithium stocks have been on a tear over the past few months.

For instance, take leading ASX 200 lithium miner Pilbara Minerals Ltd (ASX: PLS).

Shares in the company have jumped by 181% since early June, climbing to $3.80 per share at Friday’s close.

And during the same period, fellow ASX 200 mining heavyweight Mineral Resources Ltd (ASX: MIN) has seen its share price more-than-double.

But a lesser-known lithium player has outperformed both mining behemoths.

That company is Global Lithium Resources Ltd (ASX: GL1), an exploration business aiming to bring its wholly owned Manna lithium project to production.

Global Lithium shares have surged by 300% over the past six months, reaching $0.60 apiece at the close of business on Friday.

And this week, the group took a major step to realising its goals of becoming Australia’s newest lithium miner.

Significant lithium project

Manna lies about 100 kilometres east of Kalgoorlie in the globally renowned and infrastructure-rich Goldfields region of Western Australia.

It boasts a mineral resource consisting of 51.6 million tonnes grading 1.0% lithium.

And management believes Manna to be the third largest lithium resource in the Kalgoorlie lithium province.

Earlier this year, Global Lithium notched up two key milestones in its efforts to move the project to production.

In August, it sealed a Native Title Mining Agreement whilst also securing a mining lease from the Western Australian government.

And just this week, the ASX lithium stock took another major step on its path to production.

What happened?

Over the past nine months, Global Lithium has been running a Definitive Feasibility Study (DFS) to gauge the merits of building a mine at Manna.

And on Thursday, it unveiled the results.

According to the company, the study confirmed Manna as a long-life and economically robust lithium asset.

It forecast an initial mining operation spanning 14.3 years, with a payback period of 3.5 years.

The study also envisaged a post-tax free cashflow of about $1.15 billion for the duration of the mine.

Global Lithium managing director, Dr Dianmin Chen, commented:

This DFS underscores the potential for Manna to both create shareholder value and contribute to the world’s lithium supply chain through its robust economics, significant long-life potential and Company’s commitment to invest in and develop projects in Western Australia.

What next for this ASX lithium stock?

Global Lithium will now focus on securing the funding required to build a mine.

Here, the DFS projected capital costs to total nearly $440 million.

It will also look to nail down remaining regulatory approvals ahead of a final investment decision planned for next year.

The post Up 300% in 6 months! This soaring ASX lithium stock just took a major step to production appeared first on The Motley Fool Australia.

More reading

• Warren Buffett, weeks before his retirement, has a warning for Wall Street. History says this may happen in 2026.
• This ASX mining stock is up 350% in 2025 and its gold hunt just hit hyper speed
• Forecast: Here’s what $10,000 invested in Wesfarmers shares could be worth next year
• 3 high-quality ASX ETFs to buy in December
• Prediction: This will be the world’s largest company by year-end 2026 (Hint: It’s not Nvidia)

Motley Fool contributor Bart Bogacz 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.

The Wesfarmers Ltd (ASX: WES) share price has risen by more than 60% in the past five years, which is a solid result for shareholders. It’s worthwhile asking what could happen over the next 12 months for the ASX blue-chip share.

The business has delivered excellent profitable growth at Kmart and Bunnings. Other businesses are also a slice of the Wesfarmers pie including Officeworks, Target, Priceline, InstantScripts, other healthcare businesses, Wesfarmers chemicals, energy and fertilisers (WesCEF), and an industrial and safety division.

Share price gains are not guaranteed, so let’s take a look at whether experts believe the business can deliver capital growth for investors if they invested $10,000.

Wesfarmers share price target

A number of different experts have views on where they think the Wesfarmers share price will go in the coming months.

A price target is where the analysts think the share price will be in 12 months from the time of the investment call.

The broker UBS currently has a price target of $90 on the business, implying a possible rise of just over 10%, at the time of writing. That would turn $10,000 into around $11,000.

According to CMC Markets, of six recent ratings on the business, the average analyst price target is $84.89, suggesting a possible rise of more than 4% in the next 12 months. That would add an extra $400 to a $10,000 investment, becoming $10,400.

There are a few ratings that imply a pleasing rise. For example, one Wesfarmers share price target is $92.6, implying a possible rise of 14% from where it is at the time of writing. However, there are a couple of recent ratings that suggest the business could drop by just over 10% in the next year, from where it is today.

What are experts seeing with the retail giant?

UBS recently commented on the company after it delivered its AGM update. The broker commented on the divisions of the business, each of which has a part to play for the Wesfarmers share price:

Consumer demand remains positive but cost of living pressures are a challenge for some consumers & businesses (weighing on demand & investment). WES divisions continue to invest in productivity initiatives to offset higher costs & maintain competitive prices. WES retail divisions well positioned given value credentials & broad ranges.

…Bunnings enjoys growth options across category, channel & customer, with these capital light and hence expanding ROC [return on capital].

Kmart expected to continue to benefit from rising customer numbers, transaction frequency & category participation. UBS [is] confident the Kmart value credentials and Anko product development capabilities can support sales in different consumer environments.

Officeworks: As part of a reset, WES announced A$15-25m in one-off costs due to lower operating margins and costs associated with an operating model reset & ERP replacement programme. This is expected to drive cost savings to help Officeworks better execute its EDLP offering and increase focus on the technology category.

WesCEF: Covalent Lithium refinery continues. As per FY25 results, Chemicals & Energy EBT to be impacted by higher natural gas costs and lower LPG content.

Health: Priceline is delivering strong network sales growth due to improved retail execution, network expansion, price reductions and new ranges. Wholesale improving yet competitive.

Ultimately, UBS is projecting a possible net profit of $2.79 billion from the company in FY26, with potential further profit growth in the coming years, which is a tailwind for the Wesfarmers share price in the longer-term.

The post Forecast: Here’s what $10,000 invested in Wesfarmers shares could be worth next year appeared first on The Motley Fool Australia.

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

Whether you’re preparing for 2026 or looking to position yourself ahead of the next market cycle, a focus on quality stocks remains one of the most reliable long-term strategies.

With that in mind, let’s take a look at three high-quality ASX exchange traded funds (ETFs) that analysts at Betashares have recommended to investors recently. Here’s what you need to know about them:

Betashares Global Quality Leaders ETF (ASX: QLTY)

The Betashares Global Quality Leaders ETF is designed to give investors exposure to some of the highest-quality companies in the world.

It screens global stocks for strong earnings stability, high returns on equity, and low financial leverage. Companies that boast these characteristics tend to hold up well during periods of market stress.

Inside this ASX ETF, you will find big names such as Johnson & Johnson (NYSE: JNJ), Microsoft (NASDAQ: MSFT), and ASML Holding (NASDAQ: ASML). These are businesses with long histories of consistent profitability, wide economic moats, and strong cash generation.

What makes the fund particularly attractive in December is the market’s renewed focus on financial strength and earnings durability. When volatility strikes, quality tends to outperform, and this ASX ETF provides a simple way to gain exposure to it.

Betashares Australian Quality ETF (ASX: AQLT)

While the Betashares Global Quality Leaders ETF looks globally, the Betashares Australian Quality ETF applies a similar quality-focused approach to the Australian share market.

It selects local stocks based on return on equity, earnings stability, and low debt levels. This means the ASX ETF tends to favour companies with strong competitive advantages.

Key holdings include Wesfarmers Ltd (ASX: WES), CSL Ltd (ASX: CSL), and ResMed Inc. (ASX: RMD), which are all businesses known for dependable earnings and world-class management.

One standout is CSL. It remains one of Australia’s strongest global healthcare businesses. Its plasma division, R&D pipeline, and expanding manufacturing footprint provide a long-term growth story that fits perfectly inside a quality-focused ETF.

For investors wanting exposure to strong Australian companies without trying to handpick winners, this fund could be an excellent choice.

BetaShares India Quality ETF (ASX: IIND)

India is one of the world’s fastest-growing major economies, and the BetaShares India Quality ETF gives investors targeted exposure to the highest-quality companies within that market.

As with the others, the fund screens Indian stocks for strong profitability, low debt, and consistent earnings. This creates a portfolio of businesses positioned to benefit from India’s structural economic expansion.

Holdings include Infosys (NYSE: INFY), Reliance Industries (NSEI: RELIANCE), and Tata Consultancy Services (NSEI: TCS). These companies are leaders in software services, telecommunications, and industrial growth, which are sectors that are expected to thrive as India’s middle class expands and digital adoption accelerates.

With global investors increasingly recognising India’s long-term potential, the BetaShares India Quality ETF offers a straightforward way to participate in what could be one of the strongest economic stories of the next decade.

The post 3 high-quality ASX ETFs to buy in December appeared first on The Motley Fool Australia.

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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 ASML, CSL, Microsoft, and Wesfarmers. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Johnson & Johnson 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 recommended ASML, CSL, Microsoft, and Wesfarmers. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.