Tag: Stock pick

For more than a decade, the Vanguard Australian Shares Index ETF (ASX: VAS) was the only choice for an investor looking for a cheap, established, reputable, and efficient ASX index fund that went beyond the scope of the S&P/ASX 200 Index (ASX: XJO).

There are many ASX index funds that cover the ASX 200 Index and meet the criteria listed above. One popular example is the iShares Core S&P/ASX 200 ETF (ASX: IOZ).

However, if an investor wanted to add some small-cap diversification by expanding into the S&P/ASX 300 Index (ASX: XKO), then Vanguard’s VAS was the only spot in town.

That all changed when provider Global X launched the Global X Australia 300 ETF (ASX: A300) last year. The admission of this ASX 300 index fund means that Australian index fund investors set on the ASX 300 index now have a genuine competition for their investing dollars.

So today, let’s dive into the pros and cons of both the VAS and A300 ETFs.

VAS vs. A300: Which SASX ETF comes out on top?

On the surface, these products seem almost identical. An investment in either index fund is effectively an investment in the same 300 shares, the largest 300 shares listed on the ASX, weighted by market capitalisation. Technically, VAS tracks the S&P/ASX 300 Index, while A300 follows the FTSE Australia 300 Index. But this is a ‘tomato, tomato’ situation in practicality.

Your money is essentially going towards the same 30 companies, with the lion’s share ending up with the likes of Commonwealth Bank of Australia (ASX: CBA), BHP Group Ltd (ASX: BHP) and the other large-caps of the ASX.

The only real point of differentiation between VAS and A300 is the fee. Both index funds charge relatively cheap and competitive fees by ASX standards. VAS is the more expensive of the two, asking 0.07% per annum. That’s $7 a year for every $10,000 invested. A300 undercuts this, charging 0.04% per annum ($4 per year for every $10,000 invested). Although that is a small difference, it is not negligible, and may sway some investors to pick A300.

There is one more caveat to mention, though. VAS is the established player here, with more than $24 billion in funds under management. In contrast, A300 is an upstart and currently only has a little over $12 million in its bank.

That’s typical of an ETF that is less than a year old. However, it still might give some investors pause. There’s never a risk to existing investors if a fund has low investment. However, it does indicate that the fund is probably running at a loss for its provider, given that ultra-low fee. The risk is that A300 doesn’t end up attracting enough capital to make itself economically viable and closes after a time.

If that does happen, investors will not lose their capital. However, they may be forced to liquidate their ETF units.

Aside from this risk, there is little reason to opt for the lower fee A300 offers. Plenty of investors may just choose to stick to the beloved Vanguard brand regardless, though.

The post ASX index funds: Is VAS or A300 the better choice? appeared first on The Motley Fool Australia.

More reading

• Is it time to buy the Vanguard Australian Shares ETF?
• 3 amazing ASX ETFs that could be perfect for beginners
• This ASX bank ETF has a 5.2% dividend yield right now
• These are the cheapest ASX ETFs on the Australian market
• How to build a $150,000 ASX share portfolio from scratch

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

Picking winners in the clean energy sector is a difficult thing to do.

Solar panel manufacturers, wind turbine developers, electric vehicle companies, and battery storage businesses all move in different cycles and carry very different risk profiles.

For investors who want broad exposure to the clean energy transition without the risk of backing the wrong horse, the Betashares Climate Change Innovation ETF (ASX: ERTH) offers a simple and diversified solution.

What ERTH actually holds

ERTH tracks an index of up to 100 leading global companies that derive at least 50% of their revenues from products and services that reduce or avoid carbon emissions.

That definition is broad, capturing clean energy providers, green transport companies, energy efficiency businesses, waste management innovators, sustainable food producers, and energy storage specialists.

Top holdings include Vertiv Holdings, Bloom Energy, ABB, and ASML.

Investors therefore have exposure to companies operating across the entire clean energy value chain rather than any single technology.

The fund charges a management fee of 0.65% per annum and pays distributions annually.

Why the investment case is strengthening

The macro backdrop behind ERTH has rarely been more supportive.

The International Energy Agency estimates that global energy investment exceeded US$3 trillion in 2024, with roughly two-thirds directed towards clean energy, electrification, grids, and storage.

In its own research, Betashares has stated:

Climate technology should no longer be viewed as a discretionary or thematic allocation. The physical impacts of climate change are increasingly being felt and have material economic consequences, and the transition is increasingly underpinned by energy system economics rather than environmental policy alone.

The performance picture

ERTH had a difficult 2025, falling alongside the broader clean energy sector as higher interest rates weighed on growth-oriented and capital-intensive businesses.

That pullback has created a more attractive entry point for long-term investors.

ERTH’s one-year return is approximately 24%, recovering strongly from its late 2025 lows as rate cut expectations returned to global markets and clean energy sentiment improved.

The risks worth knowing

ERTH is not a defensive investment.

The fund carries meaningful volatility, and the clean energy sector remains sensitive to interest rate movements, government policy changes, and commodity price fluctuations.

The US’ rollback of several US clean energy incentives in 2025 weighed on parts of the portfolio, and investors should factor in the possibility of further policy headwinds in the United States.

Currency risk is also present, as the fund’s underlying holdings are denominated in US dollars and other foreign currencies.

Foolish takeaway

The clean energy transition is a multi-decade investment theme, and ERTH gives Australian investors a diversified, low-friction way to participate in it from a single ASX trade.

For investors who believe the energy system is being permanently rewired toward cleaner sources and want broad exposure to that shift without picking individual companies, ERTH is worth serious consideration.

The post Why this ASX ETF could be the simplest way to play the global clean energy boom appeared first on The Motley Fool Australia.

More reading

• 3 of the hottest thematic ASX ETFs for investors to target this week 
• These ASX ETFs are smashing record highs 

Motley Fool contributor Mark Verhoeven 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 ASML, Abb, Bloom Energy, and Vertiv. The Motley Fool Australia has recommended ASML. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

This week, ASX energy stock Amplitude Energy Ltd (ASX: AEL) announced a major acquisition of a project from Beach Energy Ltd (ASX: BPT) causing brokers to review their expectations for the company’s shares.

The analyst teams at both Macquarie and Bell Potter have upgraded their price targets for the company on the back of the deal, which we’ll look at shortly.

First, let’s have a closer look at the deal.

Major gas resource purchased

Amplitude announced that it would acquire 50% of the Artisan gas resource in the Offshore Otway Basin, with the project to feed into Amplitude’s East Coast Supply Project (ECSP).

The company will pay Beach Energy $58.3 million plus a royalty of $3.75 per gigajoule of gas produced, capped at 62 petajoules.

Amplitude Managing Director Jane Norman said the deal would accelerate the production of Artisan’s resource and improve the economics of the ECSP.

She added:

Producing Artisan through Amplitude Energy’s existing infrastructure allows faster and lower-cost development of this gas for the east coast domestic market. Artisan development costs will significantly benefit from leveraging the existing ECSP program and our readily-available infrastructure. This is a win-win for Amplitude, O.G. Energy and Beach with respect to optimising our respective Otway Basin positions.   

O.G. Energy will acquire another 10% of Artisan as part of the deal to become a 50% holder in the resource.

Ms Norman said Amplitude expected to move rapidly to a final investment decision on the development phase of the ECSP over the next few months while the drilling of the Annie and Juliet wells is conducted.

She added:

Annie and Artisan together provide the base resource for the ECSP, with project economics potentially further improved by Juliet and/or Nestor discoveries. This transaction provides significant value and optionality for the ECSP and provides customers with certainty in an uncertain market

Shares looking cheap

Bell Potter said in a research note to clients this week that the deal derisks the ECSP through adding scale and reducing the reliance on exploration success at Juliet and Nestor.

They said:

Artisan more than doubles ECSP gas reserves, enabling 60TJ/day gross production over an initial 5-year period. With the ECSP expected to produce from 2H 2028, there are no changes to our earnings estimates. Our valuation is upgraded on lower risking assumptions.

Bell Potter has upgraded its price target for Amplitude shares from $2.70 to $2.90. This materially above Wednesday’s close price of $1.76.

Macquarie also ran the ruler over the deal, and said they now had greater confidence in Amplitude being able to produce 90 terajoules per day through its Athena gas plant in 2028.

They added:

We continue to believe AEL is oversold following disappointing drilling outcomes; adding Artisan to the ECSP increases project certainty (irrespective of drilling outcomes at Juliet & Nestor), strengthening the pathway to CY28 growth.

Macquarie increased its price target to $3 per share.

The post 2 brokers have tipped this ASX energy stock to jump by more than 60% appeared first on The Motley Fool Australia.

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• AGL Energy shares tumble 19% from their peak: Buy, sell or hold?
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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 positions in and has recommended Macquarie Group. The Motley Fool Australia has positions in and has recommended Macquarie Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Defensive ASX dividend shares can be useful when the market feels uncertain.

I do not expect them to be exciting every year. I want businesses with strong market positions, reliable demand, and the ability to keep paying income through different parts of the cycle.

Three ASX dividend shares I would buy and hold are named in this article.

Telstra Group Ltd (ASX: TLS)

The first defensive ASX dividend share I like is Telstra.

Telstra owns essential telecommunications infrastructure and provides mobile, internet, and connectivity services to millions of Australians.

That gives it a defensive quality I find attractive. People may cut back on some discretionary spending when budgets are tight, but mobile and internet access are close to essential for households and businesses.

I also like Telstra’s mobile network position. The company has invested heavily in its network over many years, and that remains a key competitive advantage.

This does not mean Telstra is risk-free. Competition, regulation, capital spending, and technology shifts can all affect the business. But I think its earnings base is more resilient than many other ASX shares.

For income investors, Telstra’s fully franked dividends are a major attraction. The dividend yield may not always be the highest on the market, but I think the combination of income, franking, and defensive demand makes it a strong dividend holding.

Coles Group Ltd (ASX: COL)

Another ASX dividend share I would buy and hold is Coles.

Supermarkets are not immune from pressure. Costs can rise, competition can be intense, and shoppers are always looking for value.

But food and household essentials are still repeat-purchase categories. That gives Coles a level of demand resilience that many businesses do not have.

I also think Coles has several ways to keep improving over time. Private label, loyalty, online grocery, supply chain investment, and store productivity can all help the business defend margins and serve customers more efficiently.

In an uncertain economy, I think value becomes even more important. Coles has the scale and brand strength to compete for household spending while still generating cash flow.

Transurban Group (ASX: TCL)

The third ASX dividend share I would consider is Transurban.

Transurban owns toll road assets in major urban areas. These are long-life infrastructure assets that can generate cash flow over many years.

I like the toll road model because it is linked to transport demand, population growth, and urban congestion. Traffic can move around in the short term, but over long periods, well-located road networks can remain highly valuable and support growing distributions.

There are risks. The company carries debt, and higher interest rates can affect infrastructure valuations. Traffic levels, regulation, project costs, and political pressure can also influence returns.

But I think Transurban still has attractive defensive qualities. Its assets are difficult to replicate, and its income profile can appeal to investors looking beyond traditional bank dividends.

Foolish takeaway

Defensive dividend shares do not need to be exciting to be useful.

For a long-term income portfolio, I think the key is owning businesses that can keep generating cash even when the economic backdrop becomes less friendly. These three ASX shares are exposed to different parts of everyday life, which is what makes the mix appealing to me.

They will not remove risk from a portfolio, and dividends are never guaranteed. But for investors wanting income, resilience, and a little more balance, I think they could be shares worth holding for years.

The post 3 defensive ASX dividend shares I’d buy and hold appeared first on The Motley Fool Australia.

More reading

• Passive income investors: Term deposits or ASX dividend stocks in 2026?
• 3 of the best ASX dividend shares to buy in June
• Why are Telstra shares falling and should investors be concerned?
• 2 ASX dividend shares I’d buy for reliable passive income
• Why Telstra and these ASX dividend shares could be top buys for income

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

I think exchange-traded funds (ETFs) can be a great way to build a portfolio from scratch, especially on a budget.

With just a few ASX ETFs, investors can gain exposure to different countries, sectors, and investment styles without needing to pick every company individually.

Three ASX ETFs I think could work well in a fresh portfolio are named in this article.

iShares S&P 500 AUD ETF (ASX: IVV)

The first ASX ETF I would consider is the iShares S&P 500 AUD ETF.

The IVV ETF gives investors exposure to 500 of the largest companies listed in the United States. These are businesses with global brands, large customer bases, strong balance sheets, and the ability to reinvest heavily in growth.

What I like about this fund is that it adds exposure to areas that are less represented locally, including mega-cap technology, software, digital advertising, semiconductors, and global healthcare.

The S&P 500 will still have weak years. It can fall sharply when markets become nervous. But for a long-term portfolio, I think low-cost exposure to America’s biggest companies is a very strong starting point.

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

The second ASX ETF I would look at is the Vanguard FTSE Asia Ex-Japan Shares Index ETF.

The VAE ETF adds something different. It gives investors exposure to Asian markets outside Japan, including economies that can offer a different growth profile to Australia and the United States.

I think this is useful because a portfolio built only around Australia and the US can still miss some important parts of the global economy.

Asia is home to large consumer markets, rising middle-class wealth, technology platforms, manufacturing strength, and long-term economic development.

This ETF is not without risk. Asian markets can be volatile, currency movements can affect returns, and some markets carry higher political and regulatory risk. But I think the risk/reward here is attractive and makes it a great option for a balanced portfolio.

Betashares Australian Quality ETF (ASX: AQLT)

The third ASX ETF I like is the Betashares Australian Quality ETF.

The AQLT ETF gives investors exposure to Australian shares with quality characteristics. Instead of simply owning the broad market, it tilts towards businesses with stronger financial metrics.

A quality-focused ETF can help investors own a more selective slice of the local market. This could include companies with stronger profitability, more resilient earnings, or better balance sheet characteristics than the average ASX share.

It is not a guarantee of outperformance, but I think it could stack the odds in your favour.

Overall, I believe the AQLT ETF could sit alongside broader global exposure and provide a more disciplined way to own Australian shares.

Foolish takeaway

A fresh portfolio does not need dozens of holdings to be sensible. I think the priority is getting broad exposure, keeping costs reasonable, and avoiding too much reliance on one market.

These three ETFs would not be perfect every year, but together they could give investors a simple foundation across global leaders, Asian growth, and quality Australian shares.

The post 3 ASX ETFs I’d buy to build a portfolio from scratch appeared first on The Motley Fool Australia.

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• This ASX bank ETF has a 5.2% dividend yield right now
• How I’d invest $20,000 in ASX shares before the end of FY26
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• 5 years ago, $10,000 bought 274 iShares S&P 500 ETF (IVV) units. But how many would it buy now?
• Got $50k of savings? Here’s how I’d turn that into passive income of $10k a year

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 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.

The investing landscape looks quite different in 2026 than what ASX investors have become used to in recent years. Sure, we have seen the markets hit new all-time highs as recently as February. But that doesn’t mean it is plain sailing going forward, particularly for passive income investors.

Dividends have always been a major drawcard for investing in the Australian stock market. However, the run that the S&P/ASX 200 Index (ASX: XJO) has been on over the past two years or so has had the less desirable effect of lowering the dividend yields available from many popular ASX dividend stocks. Before 2020, for example, it would have been rare to see Commonwealth Bank of Australia (ASX: CBA) shares on a yield under 4%. Ditto with Telstra Group Ltd (ASX: TLS) or even Coles Group Ltd (ASX: COL). These days, it’s rare to see these stocks get close to 4%.

At the same time, interest rates have climbed to levels Australians haven’t seen for 15 years. The zero-rate world of COVID is most certainly behind us.

So dividend yields are down, and ‘safe’ cash investment interest rates are up. That leaves the passive income investors on the ASX in quite the pickle.

Where to invest for passive income in 2026?

Well, that’s the $64,000 question. There are a few factors investors need to contemplate before finding the solution that works for them.

The first, and arguably most important, of these factors is risk tolerance. Many passive income investors, particularly retirees, wish to preserve their capital as a priority. If that is the case, then having the majority of one’s investable capital invested in safe cash assets like term deposits is arguably a sound strategy. A few years ago, term deposits would get you 1% or 2% if you were lucky. But with the cash rate now at 4.35% (and perhaps set to rise even further), term deposits, or even savings accounts, with interest rates approaching 5.5%, are not uncommon.

Getting a 5.5% yield that comes with a government guarantee of capital protection (there are conditions to that) is certainly not something to turn one’s nose up at. Particularly if capital protection is a major concern.

Saying that, term deposits are still term deposits. For one, they don’t come with that added bonus of franking credits. The value of a fully franked dividend can push the grossed-up yield of a dividend stock from 3.5% to 5%. For another, just as they allow no downside risk, there’s no potential for capital returns either. Despite inevitable volatility, a good ASX dividend stock can be expected to appreciate in value over time, while spinning off dividend income. A term deposit’s capital, in contrast, will never appreciate.

The price of safety

That’s the other factor passive income investors need to accommodate. ASX shares have always outperformed cash investments over long periods of time, as the data has always shown. Investors need to accept that the price of capital protection is lower returns, even if interest rates are relatively high.

Of course, for some passive income investors, that protection is worth forgoing the potential of higher returns. But that won’t be optimal for all investors. At the end of the day, each passive income seeker needs to weigh up their own goals and tolerances, and decide which investment (or combination) is the right fit for them and their personal circumstances.

The post Passive income investors: Term deposits or ASX dividend stocks in 2026? appeared first on The Motley Fool Australia.

More reading

• 3 of the best ASX dividend shares to buy in June
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Motley Fool contributor Sebastian Bowen has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has positions in and has recommended Telstra Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

A new month means new investment opportunities. Here are four ASX 200 shares I think are good buys for June, and they’re all tipped to climb higher over the next 12 months. 

Virgin Australia Holdings Ltd (ASX: VGN)

The ASX 200 airline stock crashed in March as conflict in the Middle East and rising fuel prices put its shares under pressure. More recently, Virgin Australia recently told Webjet Group Ltd (ASX: WJL) that it will substantially reduce its commission streams and commercial arrangements from the 1st of July 2026. It also looks like investors are slowly rotating back into airlines and travel companies after fears around Middle East fuel disruptions have started to ease. The company also recently confirmed its FY26 guidance, which has helped gather more confidence from investors. I like the look of this ASX 200 travel stock, and analysts are also very bullish. Brokers rate the shares as a strong buy. They tip an upside of 45% to $3.72 over the next 12 months. 

Light & Wonder Inc (ASX: LNW)

The tech-based gaming company’s shares surged to an all-time high in January but then crashed 44% to a three-year low of $102.66 in early May after the company posted its first-quarter FY26 earnings results. The result was mixed, with a 2% increase in revenue and 5% increase in adjusted EBITDA. Meanwhile net income fell a huge 37%. Investors quickly sold up shares and while there has been a small rebound since, at the time of writing, sentiment hasn’t yet returned. Light & Wonder has been reshaping its business in recent years, focusing on recurring revenue and higher-quality earnings. If execution continues improving, it could continue to build value over the long term. Brokers are bullish and rate the ASX 200 shares as a strong buy. They expect a 77% upside to $198.50 over the next 12 months, at the time of writing.

Zip Co Ltd (ASX: ZIP)

Zip shares have been volatile this year after the stock was caught up in a sector-wide tech sell-off. Investors have also been taking their gains off the table after the stock rallied strongly last year. Technology and growth shares have also come under renewed pressure again recently as investors reassess valuations and risk appetite. The ASX 200 tech shares continued softening through May as investor sentiment struggled to rebound. But I think the stock is now oversold and trading far below fair value. Brokers rate the shares as a strong buy and tip a 72% upside to $3.83, at the time of writing.

Catalyst Metals Ltd (ASX: CYL)

Western Australian gold producer’s shares stormed higher earlier this year after it announced a significant new high-grade discovery at its Plutonic Gold Belt in January. The miner posted another positive drilling update earlier this month. The results included visibility of a potential mine life of more than 10 years at approximately 60,000 ounces per annum. The ASX 200 gold stock has been subject to a few ups and downs over the past couple of months. Although this was mostly in line with a fluctuating gold price. But it has shown a long period of operational consistency and organic growth. The miner expects production to increase towards the latter half of FY26 too. Analysts rate the stock as a strong buy and tip a maximum target price of $14.63. That implies a potential 169% upside at the time of writing.

The post 4 ASX 200 shares I’d buy with $5,000 in June appeared first on The Motley Fool Australia.

More reading

• 3 key reasons to buy Zip Co shares now
• After yesterday’s crash these ASX shares could rebound up to 200%
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• 3 quality ASX stocks I’d buy under $5 a share
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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 positions in and has recommended Light & Wonder Inc. The Motley Fool Australia has recommended Light & Wonder Inc. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

June is almost here, and income investors may be looking for ASX dividend shares that can provide reliable income through different market conditions.

But which shares could be top buys?

Three that could be among the best for income investors to buy in June are named below. Here’s what you need to know about them:

APA Group (ASX: APA)

The first ASX dividend share to look at is APA Group.

It is one of Australia’s most important energy infrastructure businesses. Its network of gas pipelines, processing facilities, storage assets, and energy infrastructure helps move energy around the country.

This gives the company a very different profile from many traditional dividend shares. APA is not relying on shoppers spending more or miners enjoying high commodity prices. A large part of its business is linked to the need for reliable energy infrastructure.

That can make its cash flows more resilient than those of many cyclical companies. It also helps explain why APA has long been popular with income investors.

The market is forecasting a 5.7% dividend yield from APA Group shares in FY 2027.

Telstra Group Ltd (ASX: TLS)

Another ASX dividend share that could be a best buy is Telstra.

The telco giant has become a cleaner and more focused business in recent years. It still owns the country’s largest mobile network, and that remains a very powerful asset.

Mobile connectivity is not a discretionary luxury for most households or businesses. Phones, data, networks, and digital services are now essential parts of everyday life.

This gives Telstra an earnings base that can be more defensive than many other sectors. The company also has room to benefit from ongoing demand for mobile data, business connectivity, and network quality.

Brokers are expecting Telstra to pay a 21.5 cents per share fully franked dividend in FY 2027. This represents a forward dividend yield of 4.1%.

Transurban Group (ASX: TCL)

A third ASX dividend share to consider is Transurban.

Transurban owns and operates toll road assets in major cities across Australia and North America. These roads are difficult to replicate and often sit on critical transport corridors.

That matters because traffic volumes can recover over time as populations grow, cities expand, and commuters return to key routes. Toll increases linked to contracts or inflation can also support revenue growth.

The market expects this to underpin a 4.1% dividend yield in FY 2027.

The post 3 of the best ASX dividend shares to buy in June appeared first on The Motley Fool Australia.

More reading

• 3 ASX dividend shares raising dividends like clockwork
• Why are Telstra shares falling and should investors be concerned?
• 2 ASX dividend shares I’d buy for reliable passive income
• Why Telstra and these ASX dividend shares could be top buys for income
• Telstra shares fall 6% from a multi-year high: What happened, and is it time to sell up?

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

The Australian market has been turbulent through the first few months of 2026, suffering a series of crashes and surges. And many might be turning to the Oracle of Omaha, Warren Buffett, for advice on how to invest wisely and still come out ahead.

After all, Warren Buffett spent more than 60 years navigating crashes, recessions, and market volatility to become one of the world’s richest people. And all while also building Berkshire Hathaway into an investing powerhouse. 

He’s doing something right. And with his advice, many other investors could build their wealth too.

Over the years, Warren Buffett has shared several pieces of investing wisdom. But I think these are five of the most important rules when it comes to sharemarket investing.

1. Keep it simple

Warren Buffett isn’t a fan of complexity; instead, he has always recommended that investors keep it simple and straightforward.

That means using broad, low-cost index funds rather than investors trying to pick individual stocks. The funds give investors exposure to multiple companies at once. This diversity reduces the risk of significant losses from putting all your eggs into one basket. 

2. Stay calm

One of Warren Buffett’s most famous philosophies is to “be fearful when others are greedy and greedy when others are fearful”.

This means that investors should focus on the long term, rather than the latest news cycle. 

Ideally, investors should look to buy high-quality assets at a discount when other investors panic and sell, and pull back or sell when market overconfidence drives share prices to unrealistic heights.

3. Prepare, don’t predict

It’s not possible to reliably time the market. That’s because there are too many moving parts, and even the smartest investors can get it horribly wrong.

Instead of trying to predict how the market will act, Warren Buffett urges investors to be prepared. That means being patient, avoiding being caught up in the fear of missing out, and keeping some cash at hand so you have options if the share price of a business you like suddenly drops.

Taking a step back and focusing on preparing takes the edge off volatility. It lets investors differentiate between opportunities and catastrophes. 

4. Pick the business, not the stock

However the sharemarket is tracking, Warren Buffett says he will always look around at his options. And he’ll never pick a business that he doesn’t understand.

He once famously said in a letter to Berkshire Hathaway shareholders that “Charlie and I are not stock-pickers; we are business-pickers”. 

He sees ownership as a way to make a meaningful investment in businesses that look to have long-lasting, favourable economic characteristics and are run by trustworthy managers. 

The rule applies to investing when the market is storming higher, and also when it is turbulent. The problem is that, often, when a market shifts, investors start to panic and act irrationally. This is when we see low-quality shares bought at above-reasonable prices or good-quality stocks sold off out of fear. 

Rather than focusing on the share price, focus on the business itself.

5. Reinvest your dividends

According to Warren Buffett, you should always reinvest dividends if the company is growing and can generate high returns on that capital. 

Those extra shares you buy with dividends then start earning their own dividends. Over time, this compounds into much larger returns than if you’d taken the cash.

His logic is simply another way of letting your money make you even more money over time.

The post Want to invest like Warren Buffett? These 5 golden rules can help you build wealth fast 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 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.

The ASX 200 has been strong in parts, but not every share has enjoyed the ride.

In fact, some of the market’s highest-quality names have been sold down heavily over the past 12 months, potentially creating a buying opportunity for investors.

With that in mind, here are three oversold ASX 200 shares that could be in the buy zone in June:

Cochlear Ltd (ASX: COH)

The first ASX 200 share to look at is Cochlear.

The hearing solutions leader’s shares have fallen more than 60% over the past 12 months following a disappointing performance in FY 2026.

This is a big move for a company with a long history of innovation, global market leadership, and exposure to a large medical need. Cochlear’s products can make a meaningful difference to patients with severe hearing loss, and demand for hearing solutions should continue to grow as populations age.

For patient investors, this could be a chance to look again at a high-quality healthcare business after a major reset.

CSL Ltd (ASX: CSL)

Another ASX 200 share that looks oversold is CSL. The biotherapeutics giant has also fallen around 60% over the past 12 months, which is a remarkable decline for one of the ASX’s traditional blue-chip shares.

CSL has faced a difficult period as investors reassessed both its growth outlook and valuation. Weak earnings updates, restructuring plans, and softer medium-term guidance all weighed heavily on sentiment, particularly after management lowered expectations around growth in key areas such as flu vaccines and China albumin sales.

Despite these challenges, CSL’s core business remains exposed to important areas of healthcare, including immunology, haematology, vaccines, and iron deficiency. Healthcare demand is not driven by short-term consumer sentiment. That gives CSL a more defensive foundation than many cyclical businesses.

If management can restore confidence in the earnings outlook, this fallen giant could have plenty of recovery potential.

Xero Ltd (ASX: XRO)

A final ASX 200 share to consider is Xero. The cloud accounting software provider has fallen approximately 60% over the past 12 months, reflecting the broader pressure on software valuations.

Xero’s share price may be under pressure, but its platform remains deeply embedded in small business finance. Once customers connect invoicing, payroll, payments, bank feeds, reporting, and advisers to the platform, switching can be difficult.

The company also has room to keep expanding its role beyond accounting, helping small businesses manage more of their financial operations.

The road back may not be smooth. But after such a heavy fall, Xero could be a top ASX 200 recovery idea for June.

The post Down 60%: 3 oversold ASX 200 shares to buy in June appeared first on The Motley Fool Australia.

More reading

• Historic: Here’s why CSL shares are looking very interesting right now
• These 3 ASX healthcare stocks have been crushed in 2026. They could be set for a comeback
• Should I buy CSL shares in June?
• After CSL’s 60% share price crash, insiders are starting to buy
• How I’d invest $20,000 in ASX shares before the end of FY26

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