Tag: Stock pick

If I had $5,000 to invest across ASX tech stocks today, I would want a mix of proven quality, recurring revenue, and long-term upside.

Technology shares can move around sharply, especially when investors are worried about valuations, interest rates, or artificial intelligence (AI). But I still think the right companies can be excellent long-term investments.

Rather than putting the full amount into one stock, I would spread it across three different ASX tech names: Pro Medicus Ltd (ASX: PME), SiteMinder Ltd (ASX: SDR), and Megaport Ltd (ASX: MP1).

Pro Medicus shares: $2,000

I would put the largest slice into Pro Medicus.

This is the quality anchor of the group, in my opinion. The company provides medical imaging software used by hospitals, radiologists, and healthcare networks. That might sound niche, but it is a critical part of modern healthcare.

What I like is how deeply embedded Pro Medicus can become once it wins a customer. Medical imaging systems need to be fast, reliable, and able to handle huge volumes of data. Hospitals cannot afford disruption in that part of the workflow.

That gives the business a strong position.

I also think Pro Medicus still has a significant runway in the US healthcare market. It has already won major customers, but the opportunity remains much larger than its current footprint.

The risk is valuation. Pro Medicus often trades on a premium PE ratio, so I would not expect it to be immune from pullbacks. But if I were investing with a 5-to-10-year mindset, I would still want exposure to this type of high-margin healthcare technology business.

SiteMinder shares: $1,500

I would then put $1,500 into SiteMinder.

This is a different kind of software story. SiteMinder helps hotels manage bookings, distribution, and revenue across multiple channels.

I think the appeal here is the size and fragmentation of the hotel industry.

Many hotels still need better digital tools to compete. They need to manage direct bookings, online travel agents, pricing, availability, and customer demand across different markets. SiteMinder sits inside that process.

What makes the business interesting to me is that it does not need to dominate one country to win. Its opportunity is global.

If SiteMinder can keep adding properties, increasing revenue per customer, and improving its platform, I think earnings could grow meaningfully over time.

It is still a developing business, so execution risk is higher than with Pro Medicus. But I like the combination of recurring revenue, global reach, and a large addressable market.

Megaport shares: $1,500

The final $1,500 would go into Megaport.

Megaport gives this mini portfolio exposure to digital infrastructure. The company provides network-as-a-service technology, allowing customers to connect quickly and flexibly to cloud providers, data centres, and other digital services.

I think this is becoming more relevant as businesses use multiple clouds, move data between environments, and build more complex digital systems.

Megaport is not simply selling connectivity. It is selling flexibility.

That could become increasingly valuable as cloud adoption, artificial intelligence workloads, and global data usage continue to expand.

The company’s Latitude.sh acquisition also adds an interesting layer. It gives Megaport exposure to bare metal cloud infrastructure, which could broaden its role in helping customers manage demanding workloads.

This is the more speculative pick of the three, but I think the upside is attractive if adoption continues to build.

Foolish takeaway

If I were investing $5,000 across ASX tech stocks, I would split it between quality, global software, and digital infrastructure.

Pro Medicus would be my largest position because of its profitability and strong niche in healthcare technology. SiteMinder would give me exposure to the global hotel software market. Megaport would add a higher-upside infrastructure angle.

Together, I think they offer a useful blend of resilience and growth potential for patient investors.

The post How I’d invest $5,000 across ASX tech stocks appeared first on The Motley Fool Australia.

More reading

• 3 super ASX tech stocks I’d buy in May with $3,000
• 3 ASX shares to buy for magnificent long-term growth
• Down 60%, why I’d invest $3,000 in this ASX tech share now
• Here are the top 10 ASX 200 shares today
• Why Megaport shares are rocketing 40% in a month

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 Megaport and SiteMinder. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Pro Medicus. The Motley Fool Australia has positions in and has recommended SiteMinder. The Motley Fool Australia has recommended Pro Medicus. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

It can be challenging to invest in ASX shares when interest rates are rising because it can lead to volatility across a variety of sectors.

I want to focus on two businesses that I think are likely to see their earnings largely unaffected during this difficult period.

If I were looking for long-term investment ideas, the two below are ones I’d heavily consider today.

Lovisa Holdings Ltd (ASX: LOV)

Lovisa is fast-growing jewellery business with a sizeable presence in numerous markets including Australia, New Zealand, Singapore, Malaysia, South Africa, the UK, France, Germany, the Netherlands, Poland, Italy, the US and Canada.

One of the main reasons I think Lovisa could perform strongly during this period is because of its target market, which is a relatively young demographic. Rising interest rates is a problem for borrowers, which is a significant chunk of Australians and in citizens Lovisa’s other important markets.

But, young shoppers don’t usually have a mortgage or other forms of debt, so Lovisa’s consumer base may not be as impacted during this period.

The company performed resiliently a few years ago and I’m expecting it to do well again during this period. Plus, the business continues to expand its global store network, giving it the potential to further grow its total sales, even if comparable sales growth for its existing stores may slow (or go negative) in the time being.

In the FY26 half-year result, the business reported its Lovisa store network increased 15.5% to 1,089, underlying revenue grew 22.7% to $498.1 million and net profit after tax (NPAT) rose 20.4% to $109.1 million.

In five years, I think this ASX share will have a much larger store network, stronger scale benefits and pleasingly higher revenue.

Washington H. Soul Pattinson and Co. Ltd (ASX: SOL)

Soul Patts is a diversified investment house, with a defensive portfolio, which positions it well for the current situation.

For starters, it has a large investment in ASX energy share New Hope Corporation Ltd (ASX: NHC), which could see higher earnings amid the disrupted energy supply situation in the Middle East.

Soul Patts is also invested in a number of other sectors that could see resilient or growing earnings such as industrial properties, swimming schools, agriculture, telecommunications and credit.

I was impressed by the company’s FY26 half-year result. Net cash flow from investments rose 15.4% year-over-year, the pre-tax net asset value (NAV) return was 9.7% and the interim dividend per share was hiked by 9.1%.

On top of that, remember that as an investment house, Soul Patts has the ability to buy (and sell) investments and take advantage of price changes.

Soul Patts has been an effective investment company for many decades and I’m expecting it to continue to perform for many years to come because of its smart investment strategy and its ability to adjust its portfolio.

The post 2 amazing ASX shares I’d buy amid rising interest rates appeared first on The Motley Fool Australia.

More reading

• 2 ASX shares I would buy for both growth and passive income today
• How much is needed in superannuation to target $10,000 of monthly passive income?
• A rare buying opportunity in 1 of Australia’s top shares?
• ASX 200 energy shares lead and market finally cracks 8-day losing streak
• How to invest $10,000 for passive income in superannuation

Motley Fool contributor Tristan Harrison has positions in Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Lovisa and Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia has positions in and has recommended Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia has recommended Lovisa. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

I’m always on the hunt for ASX share opportunities, and I’m going to highlight two stocks that brokers think are buys.

I can see why they’re attractive opportunities – their valuations are a lot lower and they have compelling growth plans that could power their earnings higher.

Experts rate the below businesses as a buy, and I’m excited by their potential.

Nick Scali Ltd (ASX: NCK)

Nick Scali is a furniture business with stores in Australia, New Zealand and the UK. It also operates Plush stores in Australia.

According to CMC Invest, of eight recent analyst ratings on the business, five of those were buys. The average price target of those ratings is $21.38, suggesting it could rise by around 45%, from the time of writing, over the next 12 months.

I do think the Nick Scali share price is significantly undervalued, considering it has fallen more than 40% since its 2026 high in January. If there’s a ‘right’ time to buy a retailer, it’s when market is worried about consumer spending for the foreseeable future.

Nick Scali is a great business, with a solid return on equity (ROE), an impressive gross profit margin and significant growth plans across its existing markets. It plans to add dozens of stores in the coming years in Australia and the UK, which should significantly help its gross profit margin and other margins.

Just like earlier this decade, I don’t think this high inflation period is going to last forever, so I’d use this period of temporary share price weakness with the ASX share to buy. It may take longer than a year to deliver a 40% return, but I’m optimistic it will regain that lost ground when interest rates are heading down rather than upwards.

Collins Foods Ltd (ASX: CKF)

Collins Foods is a large franchisee of KFC outlets in Australia, Germany and the Netherlands.

According to CMC Invest, of 11 recent analyst ratings on the business, eight of those were buys. The average price target of those ratings is $12. That suggests a possible rise of 43%, at the time of writing, over the next year.

Collins Foods is another ASX share that’s suffered a decline – it’s down around 30% from the height in November 2025.

I think the business has significant room to expand its European and Australian networks, particularly in Europe, through both a mixture of acquisitions and new locations.

The business is continuing to grow at a pleasing pace. In mid-March, the company gave a trading update. In the second half of FY26, Australian total sales increased by 6.2%, German sales increased 9.1% and Dutch sales grew 4.1%.

It said it’s expecting its FY26 underlying net profit after tax (NPAT) to grow in the “mid-to-high teens”.

According to the projections on Commsec, the Collins Foods share price is valued at 16x FY26’s estimated earnings and it could grow earnings by another 31% in FY27.

The post Brokers say these 2 ASX shares are highly undervalued — here’s why I agree 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 no position in any of the stocks mentioned. The Motley Fool Australia has recommended Collins Foods and Nick Scali. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

There are plenty of wonderful S&P/ASX 200 Index (ASX: XJO) shares that could be excellent investments in May thanks to their quality and valuation.

Some blue chips have an incredible ability to regularly deliver profit growth, unlocking long-term capital growth and rising dividends.

Let’s look at two of the highest-quality blue chips that experts have rated as buys.

Macquarie Group Ltd (ASX: MQG)

Macquarie is a global investment bank that is rapidly becoming a major player in Australia’s banking scene, too.

It has four divisions that help generate earnings for the business in different economic conditions. There’s the banking and financial services (BFS) segment, the global investment bank division, Macquarie Asset Management (MAM), and the commodities and global markets (CGM) division.

The global investment bank and CGM segments can see significant volatility, depending on what’s happening in the global economy, while BFS and MAM typically don’t see large declines in their profitability.

Excitingly, FY26 profit growth was very strong for the ASX 200 share and showed it’s able to perform even during difficult economic conditions.

FY26 net profit jumped 30% year over year, to $4.85 billion, with the FY26 second half net profit rising by 93% to $3.2 billion. It decided to pay a final ordinary dividend per share of $4.20, while the FY26 final dividend came to $7 per share.

The CGM business saw net profit soar 49% to $4.2 billion, MAM net profit increased 27% to $2.6 billion, BFS net profit rose 17% to $1.6 billion, and Macquarie Capital net profit soared 43% to $1 billion.

At the time of writing, according to CMC Markets, there are currently five buy ratings on the business, with the highest price target being $270, suggesting a 14% rise (at the time of writing) within the next year.

Transurban Group (ASX: TCL)

Transurban is one of the world’s largest listed toll road operators, with roads in NSW, Queensland, Victoria, and North America.

Australia’s major cities’ populations continue growing, increasing the number of vehicles on the road. This makes Transurban’s roads increasingly valuable, particularly for its ability to offer significant time-saving routes for drivers, making the tolls worthwhile where that time is valuable.

In the three months to March 2026, the ASX 200 share reported total average daily traffic (ADT) of 3% across its roads, including 0.7% growth in Sydney and 1.4% growth in Melbourne during the month of March, despite the impacts of the Middle East conflict.

I’m expecting revenue to grow strongly in FY27 if inflation remains elevated during the rest of 2026. Additionally, the occasional expansion of Transurban’s toll road portfolio can further grow earnings and cash flow.

With rising cash flow, the business can deliver rising payouts, which could be attractive during this uncertain period.

According to CMC Invest, there are three buy ratings on the business, with the highest price target at $16.10, suggesting (at the time of writing) a possible 11% rise within a year.

The post 2 high-quality ASX 200 shares experts rate as buys appeared first on The Motley Fool Australia.

More reading

• Money to invest? I’d follow Warren Buffett to get rich
• How to build a $1,000 a month passive income from the ASX
• 3 key takeaways from the Macquarie results
• Why Macquarie, QBE, Tabcorp, and Westpac shares are dropping today
• New Macquarie dividend: Here’s everything you need to know

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 Macquarie Group and Transurban Group. The Motley Fool Australia has positions in and has recommended Macquarie 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.

Term deposits can be appealing to savers wanting to protect their capital while generating a bit of passive income. However, there are a few reasons why ASX dividend shares appeal to me more.

Currently, it seems like an appealing time for term deposits since RBA has raised interest rates several times this year. This has lifted the potential interest rate that Aussies can get from their financial institution. It’s quite easy to find a term deposit offering a 5.5% interest rate these days.

However, I don’t think term deposits are the right choice for me to build wealth.

Capital growth

While a term deposit may protect money from volatility and declines, it also means there’s no chance of delivering long-term capital growth either.

When we invest in growing (ASX) shares that are increasing their underlying value, the investment can appreciate over time.

As someone in their 30s, if I’m investing for passive income, I’d rather invest $10,000 in an ASX share that could rise to $11,000 in value over a year (and more in the longer-term) compared to putting $10,000 into a term deposit which is guaranteed to stay valued at $10,000 after the term, excluding the generated passive income.

Compounding is a very powerful tool and I plan to utilise that as much as I can in the years ahead. But, I’ll note that I do have a separate cash amount as an emergency fund in a high interest savings account.

One of the ASX dividend shares I’m very optimistic of capital growth is the exchange-traded fund (ETF) WCM Quality Global Growth Fund – Active ETF (ASX: WCMQ). It targets a 5% distribution yield and aims for businesses with strengthening economic moats and a corporate culture that fosters the strengthening of those competitive culture.

WCMQ ETF’s long-term investment returns have been compelling, enabling for capital growth of the fund value while still paying its 5% distribution yield.

Dividend growth

The other great reason to own ASX dividend shares is because they can offer growth of the passive income without needing to retain the money to earn mor.

Let’s run through why term deposits aren’t attractive to me on the income side. Let’s say there’s a $10,000 term deposit with a 5% interest rate, it would make $500 of annual passive income. If the saver wanted to spend that $500, the $10,000 could only generate another $500 over the next year. Term deposit holders can re-invest the interest, but then there’s no useable cash for spending.

With an ASX dividend share, a business can pay its dividend and organically grow its payout because of business growth. With $10,000 in an ASX dividend share with a 5% dividend yield, it would generate $500 of passive income and an investor could spend that. The business could hike its dividend by 10%, unlocking $550 of passive income, without any re-investment needed.

Of course, re-investing the dividends would mean supercharging wealth building and the annual dividend flow.

One of my favourite ideas for dividend growth is MFF Capital Investments Ltd (ASX: MFF), a listed investment company (LIC) that targets a global portfolio of high-quality, growing shares. Its guided FY26 dividend translates into a grossed-up dividend yield of 6.3%, including franking credits. Its FY26 payout is 23% higher than FY25 and I believe it could increase its annual dividend by another 19% in FY26.

But, there are plenty of ASX dividend shares out there offering the potential for both dividend growth and capital growth, of course.

The post Forget term deposits! I’d buy these ASX dividend shares instead appeared first on The Motley Fool Australia.

More reading

• How to invest $5,000 for passive income in superannuation?
• How much is needed in superannuation to target $10,000 of monthly passive income?
• How to become a millionaire on a $60,000 salary
• Why this ASX dividend share is a retiree’s dream
• How to boost your income with $50,000 of annual dividends

Motley Fool contributor Tristan Harrison has positions in Mff Capital Investments and Wcm Quality Global Growth Fund. 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.

Warren Buffett built his fortune by doing something that sounds simple, but is surprisingly hard to follow.

He bought high-quality businesses, paid sensible prices where possible, and then held them for a very long time.

That is the approach I would use if I had money to invest in ASX shares today.

I would not try to trade every market move or guess what happens next month. I would focus on owning businesses that can keep growing earnings, paying dividends, and becoming more valuable over time.

Warren Buffett buys businesses, not tickers

The first Buffett lesson I would follow is to think like a business owner.

A share is not just a code on a screen. It is a small ownership stake in a real company.

That changes how I look at the market.

Instead of asking whether a share price might rise next week, I would ask whether the company has a strong competitive position, good management, and a long runway for growth.

On the ASX, that could lead investors toward businesses such as Wesfarmers Ltd (ASX: WES), CSL Ltd (ASX: CSL), Commonwealth Bank of Australia (ASX: CBA), or ResMed Inc. (ASX: RMD).

These are very different companies, but I think they all have qualities Buffett would appreciate: strong brands, scale, cash generation, and positions that are difficult for competitors to copy.

Look for durability

The second lesson is durability.

Warren Buffett often talks about wanting businesses that can remain strong for many years. That is important because compounding needs time.

I think this is where investors can make a big mistake. They buy exciting shares, but the business model does not have enough staying power.

For me, the better approach is to look for companies that customers keep using and that competitors struggle to displace.

That could include toll road operator Transurban Group (ASX: TCL), supermarket giant Woolworths Group Ltd (ASX: WOW), or healthcare leaders like CSL and ResMed.

These businesses may not always look cheap, and they will still have difficult periods. But I think their essential nature gives them a better chance of producing solid long-term returns.

Let compounding do the work

The third part of the Buffett approach is patience.

This is where many investors fall short.

If I bought a quality ASX share, I would want to give it time to grow. That means allowing earnings to compound, dividends to build, and management to reinvest for the future.

A business that grows earnings by 8% to 10% a year can become far more valuable over a decade. Add dividends on top, and the total return can be powerful.

This is not guaranteed, of course. Some investments will disappoint.

But I think the overall strategy is sound: buy good businesses, reinvest dividends where possible, and avoid selling just because the share price has a weak year.

Do not overpay blindly

There is another part of Warren Buffett’s strategy that I think is important.

Quality is not enough on its own. Price still matters.

Even a great company can be a poor investment if investors pay too much for it.

That is why I would be especially interested in ASX shares where the market has become more cautious. When quality companies fall out of favour, investors may get a better entry point.

This is why beaten-down quality names such as CSL, Cochlear Ltd (ASX: COH), Xero Ltd (ASX: XRO), or WiseTech Global Ltd (ASX: WTC) have become particularly interesting in 2026.

Foolish takeaway

If I had money to invest today, I would follow the Buffett approach: buy quality ASX businesses, focus on the long term, be patient, and pay attention to valuation.

Getting rich from shares usually does not happen quickly. But with the right businesses and enough time, I think the ASX can still be a powerful place to build wealth.

The post Money to invest? I’d follow Warren Buffett to get rich appeared first on The Motley Fool Australia.

More reading

• How to build a $1,000 a month passive income from the ASX
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• 9,269 shares of this high-yield ASX dividend stock pays an income equal to the Age Pension
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• Here are the top 10 ASX 200 shares today

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

The average age for retirement in Australia is around 64 years old. At this point you can access your superannuation, and you’re only a few years away from receiving the Age Pension (if you’re eligible).

But you don’t want to wait until you retire to work out if you have enough money to fund the lifestyle you want. Your retirement planning needs to start a lot earlier than that.

By age 54, or around 10 years out from your intended retirement age, you need to be aware of exactly how much you have in your superannuation, how much you need to retire, and how to bridge that gap (if there is one).

Here’s a rundown of everything you need to know.

How much will retirement cost me?

The benchmark for a comfortable retirement recently increased off the back of higher inflation. 

According to Association of Superannuation Funds of Australia (ASFA) data, a comfortable retirement lifestyle will now cost individuals around $54,840 a year, or for couples, this can be closer to $77,375 a year. 

The cost of a modest retirement is a lot less. In order to live a modest retirement lifestyle at age 60, individual Australians can expect to need $35,503 per year, or for a couple this would be closer to $51,299 per year. 

What’s the difference between a comfortable and a modest retirement?

ASFA defines a comfortable retirement as one which allows Australians to maintain a good standard of living. It assumes you’ll keep top-level private health insurance, will own a reasonable car brand, undertake regular leisure activities, have funds for home repairs and renovations, go for an occasional meal out, and maybe even an annual domestic trip (or occasional overseas one).

A modest retirement is defined as one which allows Australians to cover expenses slightly above the full Age Pension payment. This assumes you’ll hold basic health insurance, a cheap car model (or none at all), a limited home repair budget, minimal utility expenses, limiting dining out, and infrequent travel. 

It goes without saying that nearly all Australians aspire for a comfortable retirement lifestyle.

So, how much should I have in my superannuation today?

To fund a comfortable retirement, ASFA has calculated that single Australians will need a superannuation balance of around $630,000, or couples would need $730,000.

In order to reach that goal, at around 10 years out from retirement you should have close to $439,000 in your superannuation.

Help! I’m 10 years out and my superannuation isn’t ready. What can I do right now to boost my balance?

Don’t panic.

The good news is that, with 10 years left to go, at age 54 you still have time to build up your superannuation balance to be able to live comfortably when you stop work.

First, you want to check that your superannuation fund is performing well, and that its risk profile matches your own.

Then you can look to make additional concessional or non-concessional contributions, whether this is salary sacrificing or after-tax payments (within your annual limits). 

If you don’t have the funds to add more money yourself, you can also look into government initiatives. There’s the downsizer contributions rule, the bring-forward rule, the government co-contribution rule, and many others. These can help boost your balance just a little bit further. 

The post 10 years until retirement: Is your superannuation ready? appeared first on The Motley Fool Australia.

More reading

• ASX share volatility is rising, are you making this mistake?
• Here are the top 10 ASX 200 shares today
• Why is this ASX financial stock dropping despite solid results?
• The ASX 200 just suffered its biggest fall in 7 weeks. Here’s what’s going on
• Alcoa announces June 2026 dividend

Motley Fool contributor Samantha Menzies has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

I’m a big fan of buy and hold investing and believe it is one of the best ways to grow your wealth.

To demonstrate just how successful this investment strategy can be with shares, I like to see how much a single $10,000 investment in certain ASX 200 shares 10 years ago would be worth today.

Let’s see how investments in these shares have fared during this time:

Breville Group Ltd (ASX: BRG)

The first ASX 200 share that has delivered the goods for investors is Breville.

It is one of the world’s leading appliance manufacturers and the owner of brands such as Breville, Sage, Kambrook, Baratza, and LELIT.

Breville has been growing its sales and earnings at a solid rate over the past decade thanks to its investment in research and development, global expansion, and acquisitions in the at-home coffee market.

This has led to Breville’s shares generating strong returns over the past decade.

They have achieved an average total return of 14.1% per annum since 2016, which means that a $10,000 investment would have grown to be worth over $37,000 today.

NextDC Ltd (ASX: NXT)

Another ASX 200 share that has achieved market-beating returns over the past decade is NextDC.

It is an Australian technology company with a focus on innovative data centre outsourcing solutions, connectivity services, and infrastructure management software.

The data centre market has been a great place to be. Thanks to the shift to the cloud and the artificial intelligence (AI) megatrend, demand for capacity in its centres has been insatiable. This has led to NextDC’s revenue and operating earnings growing at a rapid rate.

Since 2016, its shares have generated an average return of 17.6% per annum. This means that a $10,000 investment in NextDC shares back then would have grown to be worth over $50,000 today.

TechnologyOne Ltd (ASX: TNE)

Another ASX 200 share that has beaten the market over the past 10 years is enterprise software provider TechnologyOne.

Thanks to its successful transition to a software-as-a-service business model, TechnologyOne has been growing its annual recurring revenue (ARR) and earnings at a consistently strong rate for many years.

And with management confident it can double in size every five years, its shares have been popular with Aussie investors.

This has led to TechnologyOne shares delivering a total average return of 19.1% per annum. This would have turn a $10,000 investment in 2016 into over $57,000 today.

The post $10,000 invested in these ASX 200 shares 10 years ago is worth… appeared first on The Motley Fool Australia.

More reading

• Here are the top 10 ASX 200 shares today
• Brokers name 3 ASX shares to buy right now
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• ASX 200 tech stock upgraded by Bell Potter after AI contract win

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

If an ASX investor is after exposure to some of the United States’ best growth shares, the BetaShares Nasdaq 100 ETF (ASX: NDQ) is one of the easiest, simplest and most popular avenues to take.

This exchange-traded fund (ETF) allows Australian investors to own a piece of the 100 largest non-financial shares listed on the Nasdaq stock exchange. The Nasdaq is the exchange known for housing most of the popular tech shares that the US is famous for. You have the ‘Magnificent 7’ as the headliners, of course, with the likes of Apple, Amazon, NVIDIA and Alphabet dominating the top echelons of this index fund.

But NDQ also offers decent exposure to smaller tech stocks like Netflix, PayPal, Palantir, Qualcomm, Texas Instruments, and Shopify.

With all of these impressive names under one NDQ roof, many ASX investors have NDQ in their ASX portfolios. I used to be one of them, attracted by the easy exposure to what are undeniably some of the best businesses in the world. But not anymore.

I don’t have a problem with the BetaShares Nasdaq 100 ETF.

However, I simply found what I believed to be a superior alternative.

NDQ is a great ETF. But it does not come cheap. Unlike other ASX index funds, NDQ does not charge a cheap-as-chips management fee of under 0.1%. In fact, NDQ will cost investors 0.48% per annum, or $48 per year for every $10,000 invested. That’s a bit steep for my liking, so a few months ago, I sold my NDQ units and redeployed the capital into a similar ETF that charges a fraction of NDQ’s cost.

That ETF was the Schwab U.S. Large-Cap Growth ETF (NYSE: SCHG).

NDQ, but better?

Yes, this is a US-based ETF, meaning ASX investors will need to buy it on a platform that allows US trading. But aside from this hurdle, I see no reason to own NDQ over SCHG. For one, SCHG invests in a very similar basket of stocks to NDQ. You’ll find all of the names mentioned above in its portfolio, albeit with different weightings. You’ll even get some tech stocks that aren’t on the NASDAQ, and thus, the NDQ ETF. These include Visa, Uber Technologies, and Mastercard.

But the best part? SCHG charges an annual management fee of just 0.04%. That’s more than ten times cheaper than NDQ.

The difference between 0.48% and 0.04% might not look like a significant one. But it can make a real difference to investor returns over long periods of time. That’s why I switched to SCHG, and haven’t looked back since. Something to consider if you like having the US’s top growth stocks in your ASX share portfolio.

The post I love the BetaShares Nasdaq 100 ETF (NDQ). Here’s why I sold it. appeared first on The Motley Fool Australia.

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Motley Fool contributor Sebastian Bowen has positions in Alphabet, Amazon, Apple, Mastercard, Netflix, Schwab Strategic Trust – Schwab U.s. Large-Cap Growth ETF, and Visa. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Alphabet, Amazon, Apple, BetaShares Nasdaq 100 ETF, Mastercard, Netflix, Nvidia, Palantir Technologies, PayPal, Qualcomm, Shopify, Texas Instruments, Uber Technologies, and Visa. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended the following options: short June 2026 $50 calls on PayPal. The Motley Fool Australia has positions in and has recommended BetaShares Nasdaq 100 ETF. The Motley Fool Australia has recommended Alphabet, Amazon, Apple, Mastercard, Netflix, Nvidia, PayPal, Shopify, and Visa. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Last week, the Reserve Bank of Australia (RBA) delivered another blow to mortgage holders by increasing the cash rate for a third meeting in a row.

Is this where interest rates peak? Or are there more hikes to come? Let’s see what the economics team at Westpac Banking Corp (ASX: WBC) is expecting from the central bank.

The RBA’s decision

As mentioned above, on Tuesday of last week, the RBA decided to increase the cash rate target by 25 basis points to 4.35%.

Commenting on the decision, RBA governor, Michele Bullock, said:

As expected, developments in the Middle East are having an impact on inflation. Higher fuel prices are adding to inflation and there are indications that this is likely to have second-round effects on prices for goods and services more broadly. This inflation impulse is in addition to the high inflation recorded around the start of 2026, reflecting capacity pressures in the economy.

In light of these considerations, the Board assessed that inflation is likely to remain above target for some time and that the risks remain tilted to the upside, including to inflation expectations. It was therefore judged appropriate to increase the cash rate target.

Where next for interest rates?

Unfortunately for borrowers, Westpac believes that further interest rate hikes will be necessary to tame inflation.

However, Westpac’s chief economist, Luci Ellis, doesn’t believe that it will be another back-to-back hike. She thinks the RBA will want to pause in June to see how the Middle East conflict plays out. Ellis said:

We still expect two more RBA rate hikes after the one this week. However, as we flagged as a consideration on Tuesday, we now think that the Monetary Policy Board (MPB) will want to pause in June. In the post-meeting media conference, Governor Bullock characterised the three rate hikes so far as dealing with the high inflation issue that already existed before the conflict in the Middle East started, and that this “gives space” for the MPB to see how the conflict plays out.

Together with the dissenting vote, we read this as saying that another back-to-back hike in June is no longer a better-than-50% chance. It is not a zero chance, either, but it should not be the base case.

Westpac is forecasting the next interest rate hike in August, followed by another in September. This will take the cash rate to 4.85%.

For the sake of mortgage holders, here’s hoping the RBA won’t have to make these moves. But time will tell if that is the case.

The post Here’s what Westpac says the RBA will do with interest rates next appeared first on The Motley Fool Australia.

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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 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.