Tag: Stock pick

Trying to predict what the share market will do next week is almost impossible. But looking out 20 years? That’s where long-term investors have the advantage.

Instead of chasing short-term noise, you can focus on high-quality businesses with durable advantages, long growth runways, and the ability to keep compounding year after year.

If you’re building a portfolio designed to stand the test of time, these three Australian shares could be top buy and hold candidates.

Light & Wonder Inc. (ASX: LNW)

Light & Wonder has transformed itself into one of the world’s most diversified and innovation-driven gaming companies. Its business spans land-based gaming machines, digital games, and online real-money gaming.

What makes Light & Wonder so compelling for a 20-year horizon is its global footprint and deep library of intellectual property. The company continuously monetises successful franchises across physical casinos, mobile games, and digital platforms. As more jurisdictions legalise online gaming and digital entertainment continues to accelerate, Light & Wonder is positioned to capture a significant share of that shift.

REA Group Ltd (ASX: REA)

Another Australian share to buy and hold could be REA Group. It is one of the most dominant digital businesses in Australia. Its flagship platform, realestate.com.au, is effectively the default destination for property search, attracting enormous traffic that competitors have struggled to replicate. That dominance gives it significant pricing power, exceptional margins, and a strong moat built on network effects.

With Australia’s population set to grow, housing demand remaining structurally high, and the digitalisation of property services continuing, REA’s long-term runway looks very attractive. The company is also expanding offshore and into adjacent areas such as mortgages, data services, and financial products, which is creating new revenue streams on top of its core listings business.

For investors seeking a company that can keep compounding for decades, REA’s track record and market position make it one to consider.

Temple & Webster Group Ltd (ASX: TPW)

Finally, Temple & Webster could be an Australian share to buy and hold. Over the past decade, it has established itself as Australia’s leading online furniture and homewares retailer.

The good news is that it is still very early in its growth journey. Despite years of strong expansion, online penetration in the furniture category remains low compared to other developed markets. This means the company still has a huge opportunity as more consumers shift online.

So, with an enormous total addressable market, leadership position, and a proven ability to execute, Temple & Webster could look far larger in 20 years than it does today.

The post 3 Australian shares to buy and hold for 20 more years appeared first on The Motley Fool Australia.

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

It’s a long-term dream of mine to be able to reach $1 million with my portfolio. There’s a few ASX stocks I’m backing significantly to help me reach millionaire status.

Long-time readers already know that I’m a big fan of names like Washington H. Soul Pattinson and Co. Ltd (ASX: SOL) and MFF Capital Investments Ltd (ASX: MFF).

But, there’s one ASX stock I’ve started investing in that I think could also help me reach my goal. I’d be happy if it were already my biggest holding because of everything it offers: VanEck Morningstar Wide Moat ETF (ASX: MOAT).

Great moat investment strategy

This investment is an exchange-traded fund (ETF) that employs a strategy from Morningstar where analysts aim to identify US businesses that have strong economic moats. Moats can also be called competitive advantages.

There are a number of different advantages that businesses can have over rivals such as brand power, cost advantages, intellectual property, regulatory/license advantages, network effects and so on.

Those competitive advantages allow the business in question to earn stronger profits than it otherwise would have, making it a compelling business.

What Morningstar is particularly looking for are US businesses with wide economic moats. That means the competitive advantage is expected to almost certainly endure for a decade and more likely than not for two decades. I’m calling this an ASX stock because we can buy it on the ASX and it’s about stocks.

The MOAT ETF isn’t necessarily going to own a business for a full 20 years because there’s another element to the strategy.

Undervalued ASX stock

The reason why the MOAT ETF can be called undervalued is because the analysts only to decide to invest in/own one of these competitively-advantaged companies if the target companies are “trading at attractive prices relative to Morningstar’s estimate of fair value”.

In other words, these businesses must be trading cheaper than the analysts think they’re worth.

Buying undervalued, great businesses sounds like a winning strategy to me.

Returns and diversification

The MOAT ETF has done very well for investors over the long-term. In the past decade it has returned an average of 15.3% per year. That’s not guaranteed to continue of course, but I like its chances of delivering a long-term return that’s in the mid-teens in percentage terms.

The diversification of the fund is also appealing.

An investor doesn’t necessarily need to own a large portfolio of ASX stocks to be diversified – this fund usually owns around 50 names from a variety of sectors. That’s good diversification, in my view, but not too much where it might lower returns.

Compounding to millionaire status

Impressively, the MOAT ETF has delivered even stronger returns over the past three years and five years. If something compounds at an average of 15% per year, it doubles in five years.

If someone could invest $1,000 every month for the long-term and it grows at 15% per year, it’d become $1 million in less than 19 years, according to the MoneySmart compound interest calculator. That would be an incredible result.

I’ll be very happy to buy more of the MOAT ETF for my portfolio in the coming months, with a good mix of top ASX stocks too.

The post Could this undervalued ASX stock be your ticket to millionaire status? appeared first on The Motley Fool Australia.

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

Having $20,000 saved is more powerful than most people realise. Not because $20,000 can produce an income today, but because it can become the foundation of a portfolio that eventually pays you thousands of dollars a year without lifting a finger.

If your goal is to build a second income of around $8,000 annually, let’s see how you could get there with the help of the share market.

Focus on compounding

If you were to receive a 5% dividend yield from a $20,000 ASX share portfolio, you would be pulling in $1,000 a year in income.

While this is certainly very welcome, it is well short of our target.

So, we first need to think about compounding before we start to focus on a second income.

Compounding is what happens when you earn returns on your returns. It is like a snowball rolling down a hill. At the beginning, it feels slow. You put in money, you reinvest dividends, and your portfolio barely seems to move. But with time, the snowball grows, and the larger it becomes, the faster it accelerates.

For example, if you were starting with $20,000 and were able to grow it at 10% per annum, which is largely in line with historical returns, your portfolio would grow to roughly $52,000 in 10 years, $84,000 in 15 years, $135,000 in 20 years, and $160,000 in 22 years. That’s even without adding anything more along the way.

Add a regular contribution, even something modest like $250 or $500 a month, and the numbers rise far more quickly.

In fact, by adding $500 a month to your portfolio, it would grow to $160,000 after just over 10 years.

At that point, you now have enough to start pulling in meaningful second income from your portfolio.

Second income

With a $160,000 ASX share portfolio, you would need to average a 5% dividend yield to generate an $8,000 second income.

Thankfully, the Australian share market is one of the most generous markets in the world. So, building a portfolio that averages a 5% dividend yield is much easier than you think.

Examples include APA Group (ASX: APA), GQG Partners Inc (ASX: GQG), and Rural Funds Group (ASX: RFF), along with the Vanguard Australian Shares High Yield ETF (ASX: VHY). The latter includes a range of high yield ASX shares from different sectors.

Foolish takeaway

With a combination of compounding and additional capital, it is easier than you think to generate a second income from the share market.

You just need to be patient and consistent, and compounding will do the rest.

The post $20,000 in savings? Here’s how you can use that to target an $8,000 yearly second income appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro has positions in Gqg Partners. 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 Apa Group and Rural Funds Group. The Motley Fool Australia has recommended Gqg Partners and Vanguard Australian Shares High Yield ETF. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Should you buy Woodside Energy Group Ltd (ASX: WDS) shares, Santos Ltd (ASX: STO) shares, or Beach Energy Ltd (ASX: BPT) shares?

That’s the million-dollar question the team over at Macquarie Group Ltd (ASX: MQG) dig into in their new Australia Energy report, released on Thursday.

Before we look at Macquarie’s share price forecasts for the three S&P/ASX 200 Index (ASX: XJO) energy stocks, here’s how they’ve been tracking this year.

How have the ASX 200 energy stocks performed in 2025?

Woodside shares closed on Friday trading for $25.15 apiece. That sees the ASX 200 energy stock up a slender 0.8% year to date.

Woodside shares also trade on a fully franked 6.6% trailing dividend yield.

Beach Energy shares closed on Friday trading for $1.17 each. Beach Energy shares have dropped 17.6% in 2025. The ASX 200 stock also trades on a 7.7% fully franked trailing dividend yield.

And Santos shares closed out the week with changing hands for $6.48 apiece. This sees Santos shares down 4.3% in 2025. Santos also trades on a 6.5% partly franked trailing dividend yield.

That’s the year (almost) gone by.

As for the year ahead…

Does Macquarie prefer Beach, Santos or Woodside shares?

Looking to 2026, Macquarie expects that Beach Energy, Santos and Woodside shares will all face headwinds from amid falling natural gas prices.

“Led by our global commodities colleagues, we lower spot LNG prices through 2026, factoring loosening gas markets as new LNG capacities arrive,” the broker said.

According to Macquarie:

We believe an underweight position in Oil & Gas is warranted, given our still bearish oil and LNG outlooks. Within this, Santos remains our top pick, where we see value appeal on an absolute and relative basis (and clear catalysts to re-rate).

Of the three ASX 200 energy stocks, Macquarie is the most bearish on Beach Energy, with an underperform rating.

“We continue to believe BPT shares are overvalued by the market (based on its existing assets). M&A could be an opportunity to enhance value,” the broker said.

Macquarie has a 77-cent price target on Beach Energy shares. That’s 34.2% below Friday’s closing price.

The broker has a better outlook for Woodside shares, with a neutral rating on the stock.

Macquarie noted:

Sangomar oilfield has performed exceptionally well over its first 5 quarters – we now include 50% risking for a Phase 2 project (was 0%). Scarborough project tracking well for 2H26 start. However, we are concerned that deteriorating gas markets in 2027-28 will hurt sentiment as WDS progresses the 28mtpa largely uncontracted US LNG project.

The broker has a $25.00 price target on Woodside shares, or 0.6% below Friday’s closing price.

Which brings us to…

The ASX 200 energy share Macquarie expects to outperform

Macquarie expects that Santos shares will materially outperform Beach Energy and Woodside shares in 2026.

Explaining its outperform rating on Santos, the broker said:

We see significant value in STO following the deal break with XRG/ Carlyle, and expect this to be better recognised once customer deliveries commence from Barossa gas project via Darwin LNG (within weeks) and Pikka oil in Alaska (1Q-2026).

Macquarie has an $8.00 price target on Santos shares. That represents a potential upside of 23.5% from Friday’s closing price.

The post Should you buy Santos, Beach Energy or Woodside shares? Here’s Macquarie’s top pick appeared first on The Motley Fool Australia.

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Motley Fool contributor Bernd Struben 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.

The fund manager Wilson Asset Management has picked two significant S&P/ASX 200 Index (ASX: XJO) shares that could make great buys today.

The investment team from listed investment company (LIC) WAM Leaders Ltd (ASX: WLE) say they are investing in the highest-quality Australian companies.

While it owns many of the most recognisable names on the ASX, it holds less of some the biggest ASX blue-chip shares than the ASX 200 Index. The businesses it’s most ‘underweight’ are: Commonwealth Bank of Australia (ASX: CBA), BHP Group Ltd (ASX: BHP), ANZ Group Holdings Ltd (ASX: ANZ), Wesfarmers Ltd (ASX: WES) and National Australia Bank Ltd (ASX: NAB).

The names that it’s most actively overweight on include the two that I’m going to cover in this article. The other three businesses that are most overweight include Rio Tinto Ltd (ASX: RIO), Aristocrat Leisure Ltd (ASX: ALL) and Whitehaven Coal Ltd (ASX: WHC).

Two of the businesses that the WAM team are excited about are the following large ASX 200 shares.

Alcoa Corporation CDI (ASX: AAI)

WAM described Alcoa as a global producer of aluminium, alumina and bauxite.

The fund manager noted that Alcoa delivered outperformance during November as the global aluminium market “tightened”, with China reaching its capacity ceiling, structural deficits in the US and Europe, alongside accelerating demand across the globe.

The investment team highlights that Alcoa Corporation is also implementing several initiatives to increase productivity, reduce costs and optimise the ASX 200 share’s asset portfolio.

WAM Leaders believes that the structural demand-supply imbalance in aluminium persists. With Alcoa Corporation’s “attractive valuation” relative to global peers and ongoing operational improvements, WAM Leaders has made the business a core holding in the portfolio.

CSL Ltd (ASX: CSL)

The WAM investment team described CSL is a global biotechnology company developing plasma therapies, vaccines and treatments for rare diseases.

WAM Leaders attended the CSL capital markets day in the US during November and also met the management team. The investment team toured the manufacturing facilities and plasma collection centres in Kankakee (Illinois) and Holly Springs (North Carolina).

The fund manager said its investment team were encouraged by the additional disclosures by the ASX 200 share on demand drivers for immunoglobulin products and CSL’s initiatives to grow market share, as well as progress in reducing plasma collection and fractionation costs.

WAM said the insights gained during these meetings have strengthened its confidence in the ASX 200 share’s earnings profile and it sees valuation support for the current CSL share price.

The post 2 big ASX 200 shares this fund manager rates as buys appeared first on The Motley Fool Australia.

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

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

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

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

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

Buffett’s transition

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

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

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

A trend that Buffett may not like

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

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

S&P 500 Shiller CAPE Ratio data by YCharts

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

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

The most important point

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

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

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

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

The post Warren Buffett, weeks before his retirement, has a warning for Wall Street. History says this may happen in 2026. appeared first on The Motley Fool Australia.

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

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

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Adria Cimino has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Berkshire Hathaway. The Motley Fool Australia has recommended Berkshire Hathaway. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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

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

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

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

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

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

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

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

High-grade gold hunt

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

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

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

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

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

New exploration blitz

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

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

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

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

Many Peaks managing director, Travis Schwertfeger, stated:

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

Initial assays from the drill programme are anticipated in January.

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

Many Peaks share price in focus

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

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

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

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

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

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

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

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

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

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

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

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

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

Significant lithium project

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

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

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

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

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

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

What happened?

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

And on Thursday, it unveiled the results.

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

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

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

Global Lithium managing director, Dr Dianmin Chen, commented:

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

What next for this ASX lithium stock?

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

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

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

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

More reading

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

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

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

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

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

Wesfarmers share price target

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

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

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

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

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

What are experts seeing with the retail giant?

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

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

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

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

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

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

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

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

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

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• Best ASX retail stock to buy right now: Wesfarmers or Woolworths?
• Is it time to sell your Wesfarmers shares?

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

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

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

Betashares Global Quality Leaders ETF (ASX: QLTY)

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

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

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

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

Betashares Australian Quality ETF (ASX: AQLT)

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

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

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

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

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

BetaShares India Quality ETF (ASX: IIND)

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

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

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

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

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

More reading

• The ASX ETFs I’d buy for my kids or grandkids
• These 2 ASX growth shares are ideal for Australians
• 3 ASX ETFs that could quietly make you rich over 20 years
• 3 of the best ASX ETFs for beginners to buy with $1,000
• The fundamentals behind quality investing according to experts

Motley Fool contributor James Mickleboro has positions in CSL. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended ASML, CSL, Microsoft, and Wesfarmers. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Johnson & Johnson and has recommended the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool Australia has recommended ASML, CSL, Microsoft, and Wesfarmers. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.