Tag: Stock pick

There are very few Australian passive income stocks that I think could challenge MFF Capital Investments Ltd (ASX: MFF) as one of the leading ASX dividend stalwarts.

MFF is a listed investment company (LIC), which is the core driver of shareholder returns. It also owns a separate funds management business (which was acquired) that is focused on providing international share funds to clients and gives MFF more research capabilities.

There are significant benefits for investors who want investment income, so let’s run through those advantages.

Large and growing dividend yield

I’m sure many passive income seekers want to know about the dividend, so let’s start there.

Impressively, its regular annual dividend has grown in consecutive years going back to 2018. Not many ASX dividend shares can point to a dividend record like that.

But, it’s not just the dividend growth that’s pleasing – the dividend yield is also very good.

The ASX dividend stalwart is expecting to pay an annual dividend per share of 21 cents in FY26.

At the time of writing, this translates into a forward grossed-up dividend yield of 6.5%, including franking credits.

If the business continues its growth pattern of increasing the payout by 1 cent per share every six months, that could translate into a forward grossed-up dividend yield of 7.2%, including franking credits in FY27.

Good investment process

MFF aims to take a “long-term view and focus on a select group of businesses that offer attractive combinations of quality and value, clear our high opportunity cost hurdle and create the potential for self-reinforcing growth.”

The ASX dividend stalwart wants to take an investment mindset that focuses on duration and enables the power of compounding.

Its portfolio has around 25 holdings in some of the world’s best listed businesses, ensuring that its portfolio can be fairly concentrated so that high-performing ideas can have a meaningful impact on the overall returns.

Diversification and strong total returns

MFF’s portfolio has been constructed to have great ideas, but I believe they are from a sufficient number of sectors and countries to mean that the portfolio is diversified enough to not be at risk from any particular issue.

Some of the ASX dividend stalwart’s biggest investments are across payment giants, US tech titans, retail, healthcare, banking and alternative asset and private equity fund managers.

MFF’s investment strategy has clearly performed well for investors because it has delivered an average total shareholder return (TSR) of 15% per year over the past five years.

It looks good value to me after falling in recent weeks amid the Middle East uncertainty.

The post An ASX dividend stalwart every Australian should consider buying appeared first on The Motley Fool Australia.

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• I invested thousands into these 2 ASX dividend shares this week
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• Why I’m betting big on these 2 ASX shares in the age of AI

Motley Fool contributor Tristan Harrison has positions in Mff Capital Investments. 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 Mff Capital Investments. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The Magellan Financial Group Ltd (ASX: MFG) share price is in focus today after the company announced its Share Purchase Plan (SPP) successfully raised $20 million, with strong support from shareholders and a participation rate of 17%.

What did Magellan Financial Group report?

• Raised the full $20 million target in its March 2026 Share Purchase Plan (SPP).
• Received valid applications totalling $129.4 million from 5,195 eligible shareholders.
• Participation rate of 17% in the SPP.
• Approximately 2,366,548 new shares to be issued at $8.45 per share.
• Scale-back applied to larger applications in line with SPP terms.
• New shares set to begin ASX trading on 2 April 2026.

What else do investors need to know?

The high demand for Magellan Financial Group’s SPP far exceeded the targeted amount, resulting in a scale-back of larger applications. Eligible shareholders applying for up to $997.10 worth of shares weren’t scaled back, while those seeking more faced a pro-rata allocation.

Refunds for surplus application amounts are expected to be processed by 1 April 2026. The new shares will rank equally with existing Magellan shares, and holding statements will be dispatched on or around 8 April 2026.

What’s next for Magellan Financial Group?

With the SPP completed and fresh capital raised, Magellan plans to put the proceed to work according to the strategy outlined in prior March 2026 announcements. The company remains focused on strengthening its investment management and specialist financial services pillars, which could further support its long-term growth ambitions.

Investors will be watching how these funds are deployed and any updates on potential investments or new partnerships as the company looks to deliver more value in the evolving financial services landscape.

Magellan Financial Group share price snapshot

Over the past 12 months, Magellan Financial Group shares have risen 25%, outperforming the S&P/ASX 200 Index (ASX: XJO) which has risen 8% over the same period.

View Original Announcement

The post Magellan Financial Group shares in focus after $20m share plan hits target appeared first on The Motley Fool Australia.

More reading

• West African Resources: 2026 production guidance forecasts record gold output
• Buy, hold, sell: Endeavour, Magellan, and Rio Tinto shares
• 5 things to watch on the ASX 200 on Tuesday
• ASX share market sell off: Buy in the dip or stay on the sidelines?
• Here are the top 10 ASX 200 shares today

Motley Fool contributor Laura Stewart 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. This article was prepared with the assistance of Large Language Model (LLM) tools for the initial summary of the company announcement. Any content assisted by AI is subject to our robust human-in-the-loop quality control framework, involving thorough review, substantial editing, and fact-checking by our experienced writers and editors holding appropriate credentials. The Motley Fool Australia stands behind the work of our editorial team and takes ultimate responsibility for the content published by The Motley Fool Australia.

The West African Resources Ltd (ASX: WAF) share price is in focus today as the company announced record 2026 gold production guidance, targeting up to 490,000 ounces at an all-in sustaining cost (AISC) under US$1,900 per ounce.

What did West African Resources report?

• 2026 group gold production guidance: 430,000–490,000 ounces (up from 300,000 ounces in 2025)
• Group AISC guidance: under US$1,900/oz
• Kiaka mine forecast: 240,000–280,000 ounces of gold
• Sanbrado mine forecast: 190,000–210,000 ounces of gold
• Planned exploration drilling: over 100,000 metres across key sites in 2026
• Potential dividend and/or share buybacks under consideration for H2 2026

What else do investors need to know?

West African Resources is forecasting 2026 to be its strongest year yet, following the first full year of Kiaka operations and ongoing strong output from Sanbrado. The company is planning significant investment in exploration, with more than US$15–$22 million allocated to expand resources and extend mine life across its sites.

Capital management is a focus, with the board considering options such as early debt repayments and returning capital to shareholders through dividends or share buybacks, depending on free cash flow generation. The company is also managing operating cost risks, including royalties linked to gold price and potentially higher fuel costs.

What did West African Resources management say?

Executive Chairman and CEO Richard Hyde said:

2026 is set to be a record production year for WAF as we will see a full year of operation from Kiaka for the first time, and another solid year of production from Sanbrado is expected. We are guiding WAF gold production from 430,000 to 490,000 ounces in 2026 at an AISC less than US$1,900/oz. WAF is on an exciting growth trajectory, and we continue to create value through the drill-bit with a US$20 million exploration budget and more than 100,000m of drilling planned at our Sanbrado and Kiaka production centres and surrounding exploration areas in 2026.

What’s next for West African Resources?

Looking ahead, West African Resources aims to grow annual gold production beyond 500,000 ounces, supported by active exploration and development at both Kiaka and Sanbrado. Key projects for 2026 include continued mine development, plant upgrades, and infrastructure investment to support reliable operations and long-term profitability.

The company is also reviewing its capital management approach, with the potential for dividends and/or share buybacks after its 2026 half-year result, as free cash flow permits.

West African Resources share price snapshot

Over the past 12 months, West African Resources shares have risen 31%, outperforming the S&P/ASX 200 Index (ASX: XJO) which has risen 8% over the same period.

View Original Announcement

The post West African Resources: 2026 production guidance forecasts record gold output appeared first on The Motley Fool Australia.

More reading

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Motley Fool contributor Laura Stewart 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. This article was prepared with the assistance of Large Language Model (LLM) tools for the initial summary of the company announcement. Any content assisted by AI is subject to our robust human-in-the-loop quality control framework, involving thorough review, substantial editing, and fact-checking by our experienced writers and editors holding appropriate credentials. The Motley Fool Australia stands behind the work of our editorial team and takes ultimate responsibility for the content published by The Motley Fool Australia.

Artificial intelligence (AI) has quickly shifted from being a future theme to something that is actively reshaping industries today.

What I find most interesting is that the opportunity is not limited to the obvious global tech giants. There are ASX shares quietly building the infrastructure that helps make AI possible.

If I were looking to lean into this trend, these are three ASX shares I would be paying close attention to.

NextDC Ltd (ASX: NXT)

When I think about AI, one of the first things that comes to mind is data.

Not just the algorithms or the models, but the physical infrastructure required to store, process, and move enormous amounts of information.

That is where NextDC fits in.

The company operates high-performance data centres, which are becoming increasingly critical as demand for cloud computing and AI workloads continues to grow.

What stands out to me is the scale of its expansion. The company has been investing heavily in new capacity, and its growing forward order book suggests that customers are already lining up for that infrastructure.

AI workloads are not lightweight. They require power, connectivity, and proximity. Data centres sit right at the centre of that ecosystem.

For me, NextDC is less about short-term profitability and more about positioning. If AI demand continues to rise, I think the importance of high-quality data centre operators only increases.

Megaport Ltd (ASX: MP1)

If NextDC is about where data lives, Megaport is about how it moves.

Megaport provides network-as-a-service, allowing businesses to connect quickly and flexibly to cloud providers, data centres, and other services.

In an AI-driven world, that connectivity becomes even more important.

Training models, running applications, and distributing results all rely on fast, scalable networks. The more complex and data-intensive the workloads become, the more valuable that connectivity layer is.

What I find interesting here is how the company is expanding its capabilities.

Its recent push into adjacent areas like compute and GPU-as-a-service suggests to me that it is trying to capture more of the AI value chain, not just the networking component.

It is still a business that is proving itself in some respects. But if it executes well, I think it has the potential to benefit meaningfully from the growth in AI-driven demand.

Goodman Group (ASX: GMG)

Industrial property company Goodman is not always the first name people think of when it comes to artificial intelligence.

But I think it arguably should be.

The company has been increasingly focused on developing data centres alongside its more traditional logistics assets. And those data centres are becoming a critical piece of AI infrastructure globally.

Something that stands out to me is the scale and positioning of its development pipeline.

With a significant portion of its work in progress now tied to data centres, Goodman is effectively building the physical backbone required for the digital economy.

It also has something that I think is underappreciated. Access to land, power, and capital in key global cities.

These are not easy assets to replicate. And as demand for data centre capacity grows, those constraints could become even more important.

For me, Goodman offers a slightly different way to play the AI theme. It is less about technology itself and more about the infrastructure that supports it.

Foolish takeaway

If you are bullish on artificial intelligence, I do not think you need to limit yourself to the obvious names overseas.

From data storage to connectivity to physical infrastructure, NextDC, Megaport, and Goodman Group each provide exposure to different parts of the AI ecosystem.

When I think about where the long-term demand is heading, these are the kinds of businesses I find myself drawn to.

The post Bullish on artificial intelligence? Here are 3 ASX shares I’d buy appeared first on The Motley Fool Australia.

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• 3 ASX tech stocks that belong in every long-term portfolio
• Got $5,000 to invest? Here are 2 ASX tech stocks to buy today
• How I’d aim to build a $100,000 ASX share portfolio starting at zero
• 3 ASX 200 shares that could beat the market over the next 10 years
• How to become a millionaire with a $5,000 investment in ASX 200 shares each 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 Goodman Group and Megaport. The Motley Fool Australia has recommended Goodman Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

There are a lot of ASX shares to choose from on the local bourse.

To narrow things down, let’s now take a look at three ASX shares that Morgans has recently given its verdict on.

Is it recommending them as buys, holds, or sells? Let’s find out:

Endeavour Group Ltd (ASX: EDV)

BWS and Dan Murphy’s owner Endeavour Group delivered a first-half result that was in line with expectations last month.

However, given that the company is still working its way through its refreshed strategy, it isn’t ready to recommend Endeavour shares as a buy. It has put a hold rating and $3.65 price target on them. It said:

There were no major surprises in EDV’s 1H26 result following the company’s trading update in January. While EDV continues to work on its refreshed strategy with further details to be provided at an investor day on 27 May, management confirmed that the combined Retail and Hotels portfolio will be retained.

Management also noted that they will continue investing in Dan Murphy’s to restore its price leadership, while accelerating hotel renewals and electronic gaming machine (EGM) replacements. We decrease FY26-28F underlying EBIT by between 0-1%. Our target price falls to $3.65 (from $3.70) and we retain our HOLD rating.

Magellan Financial Group Ltd (ASX: MFG)

Morgans is positive on this fund manager’s merger with Barrenjoey.

In response to the deal, which it believes makes strategic sense, the broker recently upgraded its shares to a buy rating with a significantly improved price target of $12.43.

Its analysts believe the merger could “reinvigorate” Magellan. It said:

MFG has entered into an arrangement to merge with Barrenjoey. We think the deal makes strategic sense and will reinvigorate the MFG story. Nevertheless, deal pricing appears tilted in Barrenjoey’s favour (in our view). We assume the merger closes at the end of FY26. Changes to our MFG FY26F/FY27F/FY28F EPS are -27%/+10%/~+25% reflecting the incorporation of the deal and upgrades to our assessment of Barrenjoey’s earnings profile (based on new disclosures).

Our price target is set at A$12.43 (previously A$9.80). We think the Barrenjoey merger fundamentally changes MFG’s overall outlook, strengthening the business and providing additional pathways to growth. MFG also retains a strong balance sheet (~A$690m of liquidity, post deal). Move to a BUY.

Rio Tinto Ltd (ASX: RIO)

Finally, Morgans recently became a bit more positive on mining giant Rio Tinto and its shares.

However, it is not quite enough for a buy rating. The broker has put a hold rating and $147.00 price target on its shares. It said:

We upgrade RIO from TRIM to HOLD with a revised target price of A$147 (prior A$146). The recent share price pullback closes the valuation stretch, while a lift in our medium-term iron ore assumption from US$80/t to US$85/t provides a firmer earnings floor. RIO remains a top-tier diversified miner.

Not cheap enough for a BUY, but the pullback removes the overshoot that justified TRIM. [With an] Iron ore earnings platform, copper and aluminium leverage, and lithium optionality, RIO represents an attractive mix with good execution in the Pilbara and Oyu Tolgoi.

The post Buy, hold, sell: Endeavour, Magellan, and Rio Tinto shares appeared first on The Motley Fool Australia.

More reading

• Here are the top 10 ASX 200 shares today
• Why are Australian aluminium shares charging higher today?
• Why I’d buy these 3 ASX income shares this week
• ASX 200 mining shares rebound after March sell-off creates opportunities
• Why is the Magellan share price down 6% today?

Motley Fool contributor James Mickleboro has positions in Endeavour Group. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has 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 ASX share market is a great place to find investments that we can buy and own for the long-term. Allowing compounding to work its magic over an extended period of time.

It’s during times like these that investors can find opportunities that are more likely to produce strong returns. The lower the price we pay for a good business, the stronger the return can be.

For example, a great business may be able to grow its share price from $10 to $20 over a five-year period – a return of 100%. But, if it fell to $8 (a 20% drop from $10) during that five-year period, the rise to $20 would be a gain of 150% (in a shorter timeframe) if someone managed to buy at $8.

Let’s look at two businesses that have compelling futures and look good value today.

Guzman Y Gomez Ltd (ASX: GYG)

Guzman Y Gomez is a Mexican food business with restaurants in Australia, Singapore, Japan and the US.

At the end of the FY26 half-year period, the business had 237 locations in Australia (with 87 of those being company-owned and 150 being franchised). It also had 27 franchise locations in Asia (22 in Singapore and five in Japan), as well as eight company-owned locations in the US.

The ASX share is looking to grow to 1,000 Guzman Y Gomez locations in Australia over the next two decades, which would mean a quadrupling of its current network.

Network sales are growing rapidly in Australia, which I think is a great sign of how the company’s financials could progress in the coming years because of how popular it is with consumers.

In HY26, Australian total network sales jumped 17.4% to $632.1 million and the Asian network sales increased 19.25% year-over-year.

While the US segment is currently struggling with profitability, the ongoing scaling of the business can help with certain profit measures. In HY26, US network sales jumped 67% to $8.2 million, while general and administrative expenses as a percentage of network sales improved from 78.1% in HY25 to 48.2% to HY26.

Despite investment in growth in the US, Guzman Y Gomez is seeing pleasing growth of its profit levels. Overall operating profit (EBITDA) grew by 29.6% to $40.9 million and net profit rose 44.9% to $10.6 million.

The ASX share is demonstrating operating leverage, strong double-digit revenue growth and it has big growth plans.

As long as the company’s comparable sales growth remains solid, I think the business has very exciting prospects, particularly at this lower price – it’s cheaper by around 25% in the year to date.   

Rivco Australia Ltd (ASX: RIV)

This business is a company that purely owns water entitlements in Australia and leases them out to agricultural operators on both long-term and short-term leases.

Rivco regularly agrees leases with farmers. For example, its February update included a 1,000 ML lease, taking its forward-committed position from 1 July 26 to around 66% of the portfolio.

The ASX share is seeing strong demand from irrigators and some dam storage levels have reduced.

In the long-term, I’m expecting water entitlement values to increase as a result of the Australian and global populations increasing, as well as more water-hungry crops being planted (such as almonds).

With the ASX share recently placing greater emphasis on paying a dividend based on its core operating earnings, I think it will be able to deliver stronger capital growth over the long term if it reinvests more of its capital gains in additional water entitlements or other shareholder-boosting initiatives, such as debt repayment or on-market share buybacks.

At February 2026, the ASX share reported a pre-tax net asset value (NAV) of $1.79 and post-tax NAV of $1.62. That means the current Rivco share price is at a discount of more than 10%, which looks appealing to me.

The post 2 top ASX shares to buy and hold for the next decade appeared first on The Motley Fool Australia.

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Motley Fool contributor Tristan Harrison has positions in Guzman Y Gomez. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has 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.

ASX-listed exchange-traded funds (ETFs) can be some of the most effective investments that Aussies can buy because of the investment exposure and instant diversification they can provide.

I don’t have a significant portion of my portfolio invested in ASX ETFs, but there’s a particular ASX ETF I’m expecting to build up my exposure to in the coming years: WCM Quality Global Growth Fund (ASX: WCMQ).

There are plenty of ways to invest in international shares, with some options enabling investors to follow an index for a very cheap fee.

For multiple reasons, I think this ASX ETF is an even more appealing investment.

High-quality shares

This fund aims to own a portfolio of between 20 to 40 stocks that primarily come from the high-growth consumer, technology and healthcare sectors.

WCM – the California-based fund manager of this ASX ETF – believes that corporate culture is the biggest influence on a company’s ability to grow its competitive advantages, which can also be called an economic moat.

I think it’s important to recognise that competitive advantages are key drivers for a business to protect and grow their profit.

For WCM, they want to see that the competitive advantages are improving, which I think is smart, as that suggests improving profitability as time goes on.

Over the long-term, I think high-quality shares are likely to deliver a better performance than the overall share market.

In the 10 years to February 2026, the strategy that this ASX ETF follows has delivered an average net return per year of 16.6%, outperforming the global share market benchmark by an average of approximately 3% per year. Of course, past performance is not a guarantee of future returns.

Global portfolio

One thing I think plenty of Aussie investors may be guilty of is not taking advantage of the great opportunities that are out there on the global share market.

The ASX only accounts for 2% of the global share market – there are lot of opportunities in the other 98% of the world.

But, instead of choosing a portfolio that’s weighted to just a few large US tech names, I like that the WCMQ ETF is invested in a variety of names across the world.

In terms of geographic exposure, only 55% of the portfolio was invested in the Americas at the end of February. Not just the US, but the whole of the Americas only had a 55% weighting. Europe with a 26% weighting and Asia Pacific with a 17% weighting are the other two main regions with a sizeable allocation.

Some of its current largest holdings include Siemens Energy, AppLovin, Taiwan Semiconductor, Western Digital and Rolls Royce.

Appealing dividend yield

Not only are the portfolio and returns impressive, but the fund also offers a very solid dividend yield.

The ASX ETF aims to give investors a minimum annualised cash yield of 5%, which I think is a great starting point.

Given how the portfolio has performed (a mid-teen net return), the ETF has been able to comfortably fund the yield and deliver good capital growth. With the investment strategy WCM employs, I’d optimistic the long-term returns can continue to be pleasing.

The post Why I’m planning to make this my biggest ASX ETF holding appeared first on The Motley Fool Australia.

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Motley Fool contributor Tristan Harrison has positions in Wcm Quality Global Growth Fund. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Taiwan Semiconductor Manufacturing and Western Digital. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Rolls-Royce Plc and Siemens Energy Ag. 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.

Is it too late to start investing? It is a question that can feel a little more confronting in your 40s.

You look back and wonder if you should have started earlier. Maybe life was busy with career, family, or other priorities. And now, with retirement starting to feel less abstract, the idea of investing can come with a sense of urgency.

But I do not think starting in your 40s is too late.

In fact, it can be one of the most practical and purposeful times to begin.

You may be more prepared than you realise

By your 40s, your financial position has often matured in ways that can support investing.

Income may be stronger or more stable. Expenses, while still significant, are usually better understood. There is often a clearer sense of long-term goals, whether that is retirement, supporting family, or building financial independence.

That clarity matters.

Because successful investing is not just about time. It is about making consistent decisions and sticking with a plan. Starting in your 40s with a defined strategy can be far more effective than starting earlier without direction.

You still have meaningful time to compound

One of the biggest misconceptions is that investing only works if you start very young.

Time certainly helps, but your 40s still offer a meaningful runway.

Even 15 to 25 years of compounding can have a significant impact, particularly if you are investing regularly and reinvesting returns along the way.

At this stage, the focus may shift slightly. Rather than relying purely on time, contributions and discipline can play a larger role in building wealth.

The key is not trying to catch up overnight.

It is about steadily building from where you are today.

A balanced ASX share portfolio

If I were starting in my 40s, I would likely think carefully about balance.

That might include a core allocation to a broad market exchange-traded fund (ETF) such as the iShares S&P 500 AUD ETF (ASX: IVV) or the Vanguard Australian Shares Index ETF (ASX: VAS), providing exposure to a wide range of US and Australian shares.

Around that, I would consider adding a handful of high-quality businesses with the potential to grow over time. Companies like CSL Ltd (ASX: CSL) or Wesfarmers Ltd (ASX: WES) could offer a mix of resilience and long-term growth, although the right mix will always depend on individual circumstances.

The goal is to build a portfolio you can stay invested in through different market conditions.

Avoid focusing on what you did not do

It is easy to dwell on the past. But investing is not about when you should have started. It is about what you do next.

Comparing yourself to others rarely helps. Everyone’s financial journey is different, shaped by different opportunities and responsibilities.

What matters now is putting a plan in place and following through.

Foolish takeaway

Starting to invest in ASX shares in your 40s is not too late. You may actually be in a strong position, with clearer goals, greater financial awareness, and the ability to invest with purpose.

There is still time to build wealth, generate income, and benefit from compounding. From my perspective, the most important step is not looking back. It is getting started today and staying consistent from here.

The post Is it too late to start investing in ASX shares in your 40s? appeared first on The Motley Fool Australia.

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• 5 of the best ASX ETFs to buy in April

Motley Fool contributor Grace Alvino has positions in CSL, Vanguard Australian Shares Index ETF, and Wesfarmers. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended CSL, Wesfarmers, and iShares S&P 500 ETF. The Motley Fool Australia has recommended CSL, Wesfarmers, and iShares S&P 500 ETF. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

It’s hard to ignore the headlines right now.

Geopolitical tensions are rife across multiple regions. Energy markets are under pressure. Inflation remains sticky. And here in Australia, cost-of-living pressures are front of mind for most households.

For younger investors, this environment can feel like the worst possible time to invest.

But history suggests something different.

Periods of uncertainty are not new. What is consistently powerful, however, is the maths of long-term investing — and the earlier it starts, the better.

Why uncertainty feels worse than it is

When markets are volatile and headlines are negative, it’s natural to focus on what could go wrong.

That often leads to hesitation — delaying investments, holding excess cash, or waiting for “certainty” to return. The challenge is that certainty rarely arrives in real time. Markets tend to move ahead of improving conditions, not after them.

This is where younger investors may have an advantage.

With a longer time horizon, short-term volatility becomes less of a risk and more of a feature of the journey.

The real driver: compounding over time

One of the most powerful concepts in investing is compounding — the ability for superannuation returns to generate their own returns over time.

It’s simple in theory, but incredibly powerful in practice.

A useful shortcut to understand this is the Rule of 72.

Take 72 and divide it by your expected annual return. That tells you roughly how long it takes for your money to double.

At a 9% return, your money doubles about every 8 years.

That means over a 30-year period, your investments could double roughly three to four times.

Put simply:

• Year 0: $100,000
• Year 8: ~$200,000
• Year 16: ~$400,000
• Year 24: ~$800,000
• Year 30: ~$1 million+

That’s the power of time doing the heavy lifting.

For many investors, this kind of long-term exposure can be achieved through diversified ETF options like the Vanguard Australian Shares Index ETF (ASX: VAS), which provides broad access to the Australian share market without needing to pick individual winners.

The key variable isn’t timing the perfect entry point.

It’s time in the market.

The $30,000 superannuation cap most investors overlook

For Australian investors, there is an often under-appreciated opportunity: the ability to invest up to $30,000 per year into tax-advantaged structures like superannuation (subject to current concessional contribution caps).

While this may not be achievable for everyone immediately, it provides a useful framework.

Let’s break it down:

• $30,000 per year invested consistently
• Over 30 years
• Compounding at a long-term rate like 9%

Even allowing for market cycles along the way, the end result can be substantial.

And importantly, a large portion of that outcome is driven not by how much you contribute, but how long your money is compounding.

It’s a drum worth banging repeatedly: what matters most is consistency, not perfection.

Building the habit early

The biggest risk for younger investors isn’t volatility.

It’s inaction.

Many people spend years waiting for the “right time” to begin, only to realise later that starting earlier would have made a far greater difference than any short-term market movement.

A disciplined approach might include:

• Investing regularly (monthly or quarterly)
• Focusing on broad market exposure through diversified assets
• Adding selective positions over time as knowledge and confidence grow

This approach aligns with what many long-term investors aim to do — build steadily, rather than chase short-term gains or headlines.

A mindset shift that changes everything

It’s easy to view today’s environment as risky.

And in the short term, it is.

But for long-term investors, uncertainty can also create opportunity — particularly when it encourages lower prices and higher future return potential.

The key is reframing the question.

Instead of asking:

“Is now the perfect time to invest?”

A more useful question may be:

“Will I wish I had started earlier?”

Foolish takeaway

Short-term uncertainty can feel overwhelming, especially for younger investors navigating their early years of wealth building.

But the combination of time, compounding, and consistent investing — particularly when taking advantage of structures like the $30,000 annual cap — can be incredibly powerful.

Markets will always face challenges.

The superannuation investors who tend to benefit most are those who start early, stay consistent, and allow time to do the heavy lifting.

The post How the average Aussie at 30 could reach over $1 million in superannuation appeared first on The Motley Fool Australia.

More reading

• Is it too late to start investing in ASX shares in your 40s?
• This simple ASX ETF strategy could quietly build serious wealth
• 5 of the best ASX ETFs to buy in April
• How I’d aim to build a $100,000 ASX share portfolio starting at zero
• Here are 5 ASX ETFs that I would buy with $50,000

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 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 S&P/ASX 200 Index (ASX: XJO) slumped a further 0.6% to start the week as ongoing conflict in The Middle East continued to weigh on sentiment. 

It’s important for investors not to panic, as history shows the market will recover. 

When markets fall, it does create buying opportunities for investors. 

For those looking to monitor small-caps or penny stocks, here are three that have drawn positive outlooks from brokers. 

Paragon Care Ltd (ASX: PGC)

Paragon Care conducts its business largely within the Australian healthcare sector and in 7 countries across Asia. The core business is distribution of pharmaceutical medicines, consumables and capital products. 

Following earnings results released last week, the team at Bell Potter released updated guidance on the healthcare stock.

The broker said it is cautiously optimistic on the full year EBITDA. 

It said the two cornerstones of long term earnings growth for Paragon are the expanding footprint in Medical Technology particularly in Asia and the expanding footprint in pharmacy distribution. 

At the recent half year result Asia Med Tech revenues grew 33% at gross profit margin of 45%. In the pharmacy wholesale business, the underlying growth rate (which excludes Infinity group trading from the prior period) was ~6%. The company estimates it has ~10% market share currently with aspirations to grow to 15%.

Included in the report from Bell Potter was a buy recommendation and price target of $0.30. 

This indicates a potential upside of 46% for this penny stock from yesterday’s closing price. 

EBR Systems Inc (ASX: EBR)

EBR systems is another penny stock drawing a positive outlook from Bell Potter. 

The company is primarily engaged in treatment for patients suffering from cardiac rhythm diseases by developing therapies using wireless cardiac stimulation. 

The Wise CRT System uses proprietary wireless technology to deliver pacing stimulation directly inside the left ventricle of the heart.

Following recent earnings results, Bell Potter adjusted its outlook on this penny stock, including a revised price target of $2.00. 

The broker maintained its buy recommendation. 

EBR systems closed trading yesterday at $0.58. 

Airtasker Ltd (ASX: ART)

This ASX penny stock is an online platform that connects people wanting to outsource tasks with people who are willing to do them for a fee. 

Typical tasks include home cleaning, removal services, handyman jobs, admin work, photography, graphic design, and collection services.

It closed trading yesterday at $0.22, however it has attracted a buy rating and $0.51 price target from Morgans after it posted healthy half-year results last month. 

The post 3 ASX penny stocks drawing positive ratings from experts appeared first on The Motley Fool Australia.

More reading

• Morgans says these small-cap ASX shares could rise 85%+
• Guess which ASX stock could more than triple in value according to Morgans!
• Bell Potter is tipping this ASX small-cap to double in the next year
• Why EBR, EOS, Racura, and Woodside shares are rising today

Motley Fool contributor Aaron Bell has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Airtasker. 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.