Tag: Stock pick

Artificial intelligence isn’t just a buzzword anymore, it is rapidly becoming one of the defining technologies of the decade.

From cloud computing to logistics to data processing, AI is transforming how businesses operate and creating enormous investment opportunities along the way.

And while the world’s biggest AI winners tend to come from the US, the ASX is home to several stocks that play critical roles in the infrastructure behind the boom.

These aren’t speculative AI stocks chasing hype. They are established, essential businesses supplying the digital backbone that AI systems rely on.

If you’re looking for ASX stocks positioned to thrive as AI adoption accelerates, these three stand out according to analysts.

Goodman Group (ASX: GMG)

When you think of AI stocks, property developers might not come to mind, but Goodman Group is quietly becoming one of the most important players in the global data economy.

Goodman develops and owns industrial facilities around the world, and more recently it has been shifting aggressively into large-scale data centre infrastructure. These sites are in massive demand thanks to AI training models, cloud providers, and hyperscale computing companies needing enormous amounts of secure, high-power, high-cooling capacity real estate.

Global tech giants are now turning to Goodman to build the next generation of AI-ready facilities. With a development pipeline in excess of $12 billion, and 68% of this focused on data centres, Goodman is well-placed to be a big winner from the AI boom.

It is partly for this reason that UBS has a buy rating and $36.41 price target on its shares.

Megaport Ltd (ASX: MP1)

Artificial intelligence requires data to move quickly and reliably across multiple cloud platforms. That’s where Megaport shines.

Its global software-defined networking platform allows businesses to connect seamlessly to cloud providers like Amazon Web Services, Microsoft Azure and Google Cloud. As AI workloads increase, so does the need for flexible, high-speed connectivity that traditional networks simply can’t match.

The company also recently acquired Latitude.sh, which is a globally scalable Compute-as-a-Service platform. It provides automated high-performance compute infrastructure that enables customers to scale their workloads. Management notes that this now means that it has “open[ed] the door to the explosive world of AI inference and training.”

This week, the team at Morgans put a buy rating and $17.00 price target on its shares.

NextDC Ltd (ASX: NXT)

NextDC is one of Australia’s leading data centre operators. It continues to expand aggressively, building hyperscale centres designed to support AI-intensive workloads. Its facilities offer industry-leading power capacity, energy efficiency and connectivity, making them attractive to cloud providers and multinational enterprises.

The company has secured long-term customer contracts and is investing billions into new sites, including major expansions in Sydney, Melbourne and international markets. With AI adoption driving unprecedented demand for compute power, analysts expect NextDC to benefit from a multi-year structural tailwind.

UBS currently has a buy rating and $21.45 price target on its shares.

The post The unstoppable ASX stocks powering the AI revolution appeared first on The Motley Fool Australia.

More reading

• The Warren Buffett golden rule that investors can’t ignore
• Macquarie reveals ASX 200 share tips in each market sector for 2026
• The next wave of ASX tech winners to buy before 2026
• Want to build wealth? Here’s how Warren Buffett does it
• How to retire early with ASX shares and the power of compounding

Motley Fool contributor James Mickleboro has positions in Goodman Group, Megaport, and Nextdc. 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.

If you are on the hunt for income opportunities on the Australian share market, a number of ASX dividend shares are currently catching the attention of analysts.

As well as being labelled as buys, these shares are expected to deliver attractive dividend yields in the coming years and could be worth a closer look for investors wanting a source of passive income.

Here are three ASX dividend shares that brokers are rating as buys right now.

BHP Group Ltd (ASX: BHP)

Mining giant BHP Group remains a favourite for income-focused investors.

And it isn’t hard to see why. The Big Australian continues to generate strong free cash flow through its world-class iron ore, copper, and metallurgical coal operations.

It is thanks to these operations that BHP has long been recognised as a dependable payer of large, fully franked dividends.

And Morgan Stanley believes shareholders can expect another couple of healthy years of income. The broker is forecasting fully franked dividend equivalents of $1.90 per share in FY 2026 and $1.70 per share in FY 2027. Based on its current share price of $41.74, this equates to dividend yields of 4.55% and 4.1%, respectively.

Morgan Stanley has an overweight rating and $48.00 price target on its shares.

HomeCo Daily Needs REIT (ASX: HDN)

Income investors may also want to consider HomeCo Daily Needs REIT. This property trust owns and operates convenience-focused retail centres anchored by essential services. These are properties like supermarkets, pharmacies, large-format retailers, and healthcare centres.

Its tenant base includes heavyweights such as Woolworths Group Ltd (ASX: WOW) and Wesfarmers Ltd (ASX: WES), helping underpin stable rental income.

UBS is positive on the company, highlighting the discount between its share price and its net tangible asset value.

It also expects some big distributions over the next two years. The broker is forecasting 9 cents per share in dividends for both FY 2026 and FY 2027. Based on its current share price of $1.35, this equates to dividend yields of 6.7%.

UBS has a buy rating and $1.53 price target on its shares.

Sonic Healthcare Ltd (ASX: SHL)

Another ASX dividend share on brokers’ buy lists is Sonic Healthcare.

It operates a global network of pathology and diagnostic imaging services, spanning Australia, the US and Europe.

Bell Potter sees Sonic as a top pick for income investors. The broker believes Sonic is poised for a meaningful improvement in its earnings driven by cost-rightsizing measures, recent acquisitions, and the gradual return to pre-pandemic activity levels across its laboratories and clinics.

The broker expects this to underpin dividends of $1.09 per share in FY 2026 and $1.11 per share in FY 2027. With Sonic shares trading at $23.35, this equates to dividend yields of 4.7% and 4.8%.

Bell Potter has a buy rating and a $33.30 price target on its shares..

The post Analysts think BHP and these ASX dividend shares are buys this week appeared first on The Motley Fool Australia.

More reading

• 3 excellent ASX ETFs for income investors to buy in December
• These ASX 200 shares could rise 40% to 90%
• 2 Australian dividend giants that I think belong in every portfolio
• Top 10 most-traded ASX shares last week
• What is Ord Minnetts’ view on Virgin Australia and BHP shares?

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

Most people know Warren Buffett as one of the world’s greatest investors.

But very few everyday investors actually follow the golden rule he credits for almost all of his success. A rule so boring and so uncomplicated, but so quietly powerful that most people overlook it.

Meanwhile, Buffett quietly turned a small investment partnership in the 1950s into a fortune worth an estimated US$160 billion.

What is Warren Buffett’s rule?

The rule is very simple. Buy great businesses and hold them for as long as humanly possible.

This may sound obvious. But many investors don’t actually do it. And that is why so few achieve Buffett-like results.

Let’s break down what this looks like in practice, and how you can use this mindset to build wealth on the ASX.

Be patient

Buffett’s entire strategy boils down to patience, not prediction

Many investors spend their time trying to guess what the market will do next. Buffett doesn’t. He once said:

The stock market is designed to transfer money from the active to the patient.

His edge wasn’t timing. It wasn’t trading. Nor was it chasing hot ideas. It was identifying businesses he understood and holding them long enough for compounding to take over.

That’s why he avoided speculation and focused on companies with durable advantages.

If you were to apply that to the ASX, the equivalents might be global compounder ResMed Inc. (ASX: RMD), tech leader TechnologyOne Ltd (ASX: TNE), and long-term growth machine Goodman Group (ASX: GMG).

These aren’t get-rich-quick stocks. They’re get-rich-slow stocks. Exactly the kind Buffett prefers.

Why this works

The biggest problem most investors face is impatience. They sell too early. They panic on dips. They move from one idea to the next. Buffett does none of that.

When Buffett buys a company, he asks a simple question: would I be happy owning this business if the stock market shut down for 10 years?

Imagine applying that question to your own portfolio. Suddenly, the noise disappears. Headlines stop mattering. Instead, the focus shifts to businesses with real earnings power, strong competitive moats, recurring revenue, and positive long-term outlooks.

Companies like Xero Ltd (ASX: XRO) and Life360 Inc. (ASX: 360) arguably fit this mould. They are global platforms with sticky customers and massive addressable markets.

But it doesn’t have to be stocks. Buffett has openly said that if he were starting today with a small amount of money, he would simply buy an S&P 500 index fund, like the iShares S&P 500 ETF (ASX: IVV), and hold it forever.

Foolish takeaway

Buffett’s rule is simple: buy great businesses, ignore the noise, and hold them for decades. Most investors never do it, and that’s why most investors never achieve Buffett-like returns.

The good news? There’s nothing stopping you from following in his footsteps.

The post The Warren Buffett golden rule that investors can’t ignore appeared first on The Motley Fool Australia.

More reading

• 2 ASX stocks to help turn $100,000 into $1 million
• The easy set and forget ASX share portfolio I’d build today
• These top ASX 200 stocks could rise 25% to 60%
• Macquarie reveals ASX 200 share tips in each market sector for 2026
• It’s time to buy: 1 Australian stock that hasn’t been this cheap in years

Motley Fool contributor James Mickleboro has positions in Goodman Group, Life360, ResMed, Technology One, and Xero. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Goodman Group, Life360, ResMed, Technology One, Xero, and iShares S&P 500 ETF. The Motley Fool Australia has positions in and has recommended Life360, ResMed, and Xero. The Motley Fool Australia has recommended Goodman Group, Technology One, 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.

On Thursday, the S&P/ASX 200 Index (ASX: XJO) continued its positive run and carved out a small gain. The benchmark index rose 0.1% to 8,617.3 points.

Will the market be able to build on this on Friday and end the week on a high? Here are five things to watch:

ASX 200 expected to fall

The Australian share market looks set to give back yesterday’s gains on Friday despite a relatively positive night in Europe. According to the latest SPI futures, the ASX 200 is expected to open 31 points or 0.35% lower this morning. Wall Street was closed for Thanksgiving but in Europe the DAX was up 0.2%, the CAC rose slightly, and the FTSE edged a fraction higher.

Oil prices rise

It could be a good finish to the week for ASX 200 energy shares Santos Ltd (ASX: STO) and Karoon Energy Ltd (ASX: KAR) after oil prices pushed higher overnight. According to Bloomberg, the WTI crude oil price is up 0.8% to US$59.10 a barrel and the Brent crude oil price is up 0.4% to US$63.39 a barrel. Traders appear to believe that oil prices have been oversold.

Buy Catapult shares

The team at Morgans thinks investors should be buying Catapult Sports Ltd (ASX: CAT) shares. The broker has initiated coverage on the sports performance technology provider with a buy rating and $6.25 price target. It said: “A scalable platform and strong SaaS metrics should see CAT join the ‘Rule of 40’ club by FY27. We initiate coverage on Catapult Sports (CAT) with a Buy recommendation and a A$6.25 per share price target.”

Gold price softens

ASX 200 gold shares Evolution Mining Ltd (ASX: EVN) and Northern Star Resources Ltd (ASX: NST) could have a subdued finish to the week after the gold price fell overnight. According to CNBC, the gold futures price is down 0.3% to US$4,153.6 an ounce. Traders were taking profit after the precious metal hit a two-week high on rate cut optimism.

Buy Nick Scali shares

Nick Scali Limited (ASX: NCK) shares could be in the buy zone according to Bell Potter. This morning, the broker has initiated coverage on the furniture retailer with a buy rating and $27.00 price target. It said: “We initiate coverage of Nick Scali (NCK) with a Buy rating at a $27.00/share Price Target. NCK is one of Australia’s largest furniture retailers competing within the middle to upper end of the Australian furniture market and growing its global presence via the UK entry.”

The post 5 things to watch on the ASX 200 on Friday appeared first on The Motley Fool Australia.

More reading

• Here are the top 10 ASX 200 shares today
• Macquarie reveals ASX 200 share tips in each market sector for 2026
• Why Morgans is bullish on these ASX tech shares
• What Australia’s shocking inflation print means for ASX 200 investors and interest rates
• Why Catapult, Kingsgate, Light & Wonder, and Reece shares are storming higher today

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

Turning $100,000 into $1 million is the dream. But despite what you might read on social media, it doesn’t happen overnight and it certainly doesn’t happen without risk.

What can help everyday investors reach that milestone, however, is a combination of time, patience, and investments in high-quality ASX stocks that are capable of compounding earnings for many years.

The maths is surprisingly simple: at a 10% average annual return, money doubles roughly every seven years. That means a 10x return is absolutely possible over a 20 to 25-year horizon, but you need to own the right businesses.

With that in mind, listed below are two ASX stocks that stand out today as long-term compounders with the potential to help turn a $100,000 starting balance into something substantially bigger over time.

CSL Ltd (ASX: CSL)

CSL is exactly the kind of stock that investors should own for generational wealth creation. It isn’t flashy, speculative, or volatile. It is a global biotech powerhouse with irreplaceable assets, deep competitive moats, and decades of proven execution.

The company’s plasma-derived therapies and vaccines serve millions of patients worldwide, and demand tends to grow steadily regardless of economic conditions. In addition, CSL continues to invest heavily in R&D to expand its pipeline, while also increasing its US manufacturing footprint to reduce supply-chain risk and support long-term margin recovery.

Although CSL’s share price has struggled in 2025 due to tariff concerns, margin recovery delays, and uncertainty around the Seqirus spin-off, the fundamentals remain exceptionally strong.

More importantly, CSL has the kind of long-term growth engine that investors want when trying to multiply their wealth. Over the past two decades, the company has transformed many investors into millionaires through steady earnings growth and disciplined reinvestment. If it continues compounding at anything close to its historical rate, CSL could be a great holding in a balanced portfolio.

Life360 Inc. (ASX: 360)

Another ASX stock to buy could be Life360. The family safety and location-sharing platform has been delivering exceptional growth in recent years.

This has continued in 2025, with third quarter revenue rising 34% year on year to US$124.5 million. In addition, Annualised Monthly Revenue hit US$446.7 million, up 33%, and Paying Circles climbed to 2.7 million following a record quarter of additions.

Life360 is scaling rapidly across the US and internationally, underpinned by subscription growth, rising average revenue per user and expanding premium features.

With approximately 91.6 million monthly active users and just a fraction currently paying for premium features, Life360 has an enormous runway. If it successfully monetises even a modest portion of its global user base, the long-term earnings potential could be enormous.

The post 2 ASX stocks to help turn $100,000 into $1 million appeared first on The Motley Fool Australia.

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• Macquarie reveals ASX 200 share tips in each market sector for 2026
• Should I buy CSL shares in December?
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Motley Fool contributor James Mickleboro has positions in CSL and Life360. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended CSL and Life360. The Motley Fool Australia has positions in and has recommended Life360. The Motley Fool Australia has recommended CSL. 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.

Back on May 3, 2025, Warren Buffett announced he would be retiring as CEO of Berkshire Hathaway (NYSE: BRK.A) (NYSE: BRK.B) at the end of the year. With the end of 2025 quickly approaching, investors have been wondering just what Buffett’s role will be starting next year, as well as the implications for Berkshire Hathaway as an investment.

Will Buffett still influence the investing decisions of incoming CEO Greg Abel? Will he write the annual letter? Will he still participate in the annual meeting, which has become known as “Woodstock for capitalists”? And for investors, will Berkshire continue to be a wise addition to their portfolio?

Just the facts

Fortunately for those of us who dislike uncertainty, Buffett wrote a letter to shareholders through Berkshire’s corporate website on Nov. 10, 2025, and let us know some of what the future holds for Berkshire. Buffett opened by telling us he would be “going quiet” and would no longer write the annual shareholder letter, which dates back to 1977.

He also said he would no longer “talk endlessly at the annual meeting,” which is usually held the first weekend in May. Greg Abel, the incoming CEO, will now preside over the meeting, which attracted nearly 20,000 shareholders and devotees in person in Omaha in May. There was good news, though, for those of us who can’t get enough of the Oracle of Omaha: Buffett said that he does plan to communicate with his followers via an “annual Thanksgiving message,” which he started in 2024.

For those of us who had no problem with Buffett talking endlessly or who don’t like change in general (count me in both of those camps), this letter was a hard pill to swallow. Buffett — who is 95 — saying he was “going quiet” also has a final tone to it.

However, Abel and Buffett have been working together for the better part of two decades now, so it is reasonable to assume many aspects of running the Berkshire conglomerate will remain the same. In fact, Abel has indicated that he does not plan to materially change either the investing philosophy or the allocation of Berkshire’s capital.

The second annual Thanksgiving letter (here’s to hoping this goes for at least another decade) included a nice history of Buffett’s childhood in Omaha, where he mentioned purchasing his “first and only home” back in 1958, and, “in the 1990s, Greg lived only a few blocks away from me on Farnam Street.” Thinking long term and developing deep, meaningful relationships are part of Buffett’s DNA. Buffett also mused in this letter about whether there might be “some magic ingredient in Omaha’s water.”

Any investment insight?

Many of us are on the lookout for investment opportunities in Buffett’s communications. This one was admittedly scant on ideas outside of Berkshire stock. Buffett did indicate he plans to keep a large amount of the Class A Berkshire shares (which carry voting rights) until shareholders are confident that Abel is the right man for the job. Berkshire also owns large stakes in big tech companies, including Apple and a recent position in Alphabet. Berkshire remains one of the best ways to obtain broad, diversified exposure to the best corporations America has to offer. The Alphabet investment could also indicate a growing interest in tech stocks, as opposed to Buffett’s hesitation to fully embrace the technology space.

Buffett indicated that he hopes Abel will remain Berkshire’s fearless leader for at least “several decades,” and that, ideally, Berkshire might need only five or six CEOs over the next century. He opined that, in total, “Berkshire’s businesses have moderately better-than-average prospects,” but its size remains a hindrance to outperforming the market to the degree it did when Berkshire was a much smaller company.

The future looks bright

However, the bottom line is that “Berkshire has less chance of a devastating disaster” than any other business he can think of. Buffett also suggested that Berkshire, like any stock, could once again fall by around 50% one day, which has occurred three different times in Buffett’s 60-year tenure. This volatility is always a possibility, despite humans’ best efforts, when investing in the stock market.

To me, this speaks to the stability of Berkshire’s stock in times of stress. One could argue that speculation and greed are high in the market right now — given the ambitious artificial intelligence (AI) buildout, the thousands of cryptocurrencies in existence, less regulation and financial oversight than at times in the past — but Buffett has undoubtedly constructed a company that is built to last well beyond him. If this is going quietly, I’m all for it.

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

The post What Warren Buffett’s farewell letter means for Berkshire Hathaway investors 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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• Bill Gates just sold 2.4 million shares of Berkshire Hathaway — Should investors panic?
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Ryan Fuhrmann 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 Alphabet, Apple, and Berkshire Hathaway. The Motley Fool Australia has recommended Alphabet, Apple, and Berkshire Hathaway. 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.

Nvidia (NASDAQ: NVDA) has asserted itself as the leader of the artificial intelligence (AI) data revolution, primarily because of the essentialness of its graphic processing units (GPUs). 

Nvidia’s GPUs are the brains behind the AI applications driving the new tech boom, like ChatGPT and similar generative AI tools, and the company is estimated to have more than a 90% share of the data center GPU market, which is where the AI revolution is happening.

The chip giant’s success is the fruit of decades of planning and investment, beginning with its invention of the GPU in 1999 and followed but its CUDA software library that helps make its GPUs easy to use for developers, creating stickiness. 

Partnerships and alliances

However, since the initial frenzy following the ChatGPT launch, Nvidia has established itself as the kingpin of AI in another way. It’s forged a vast network of partnerships and alliances, connecting it to many of the other top players in AI, and reinforcing their dependence on Nvidia.

Those include:

• Arm Holdings: Nvidia owns 1.1 million shares in Arm, and works closely with it on products like the Arm-based Grace Blackwell Superchip.
• CoreWeave: Nvidia owns 24.3 million shares in CoreWeave, one of the two major neocloud, or AI-specific cloud computing platforms. Nvidia helped prop up CoreWeave’s IPO, and the two companies are customers of one another.
• Nebius: Nebius is the other major neocloud provider, and Nvidia owns 1.19 million shares of Nebius. Like CoreWeave, Nebius depends heavily on Nvidia hardware.
• Intel: Nvidia surprised the market by agreeing to take a $5 billion stake in Intel back in September, and the two plan to work together on certain AI and personal computing products.
• OpenAI: Also in September, Nvidia announced a deal with OpenAI to invest $100 billion in the start-up over time, while OpenAI said it would deploy at least 10 gigawatts of AI data centers with Nvidia systems over time.

On the heels of the partnerships with Intel and OpenAI, Nvidia is now making a big move with another AI start-up, Anthropic.

What Nvidia is doing with Anthropic

Microsoft and Nvidia announced a blockbuster deal Tuesday morning with Anthropic. Microsoft will invest $5 billion in the start-up, while Nvidia will put in $10 billion, a move that will push Anthropic’s valuation up to around $350 billion, about double where it was in its last funding round in September.

Both tech giants will form strategic partnerships with Anthropic as well. Anthropic has committed to purchase $30 billion of compute capacity from Microsoft Azure and to contract additional compute capacity of up to 1 gigawatt, which comes from Nvidia chips, after an initial commitment of 1 gigawatt from Grace Blackwell and the upcoming Vera Rubin systems. The two companies will also work together to optimize Nvidia architecture for Anthropic workloads.

What the Anthropic deal means for Nvidia

With the investment and partnership with Anthropic, Nvidia is tying itself to the No. 2 generative AI start-up, hedging its bet against OpenAI. Microsoft is doing the same thing, in fact.

Doing so makes sense for Nvidia. By investing in these companies, it ensures it has a stake in them and a seat at the table. The partnerships mean that the start-ups are even more dependent on Nvidia, and it helps give it an edge over the competition, though OpenAI also signed a deal with AMD.

The surge in Anthropic’s valuation could add to concerns about a bubble, but the start-up is aiming for $9 billion in run-rate revenue by the end of the year, and nearly tripling run-rate revenue to $26 billion. Based on that forecast, it’s understandable why Nvidia and Microsoft would want to own a piece of Anthropic.

For Nvidia, the Anthropic deal might be its most important deal yet — that title probably goes to the OpenAI deal — but it’s another savvy move that should only further cement its status as the dominant force in AI.

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

The post Could the Anthropic partnership be Nvidia’s most important AI deal yet? 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.

More reading

• The most jaw-dropping number you may have missed from Nvidia’s latest earnings report
• Is Google about to eat Nvidia’s lunch?
• If you’d invested $100 in Nvidia 10 years ago, here’s how much you’d have today
• 3 ASX thematic ETFs that could boom over the next decade
• Anthropic will spend $30 billion on Azure. Could this be Microsoft’s most important AI deal yet?

Jeremy Bowman has positions in Advanced Micro Devices, Arm Holdings, CoreWeave, and Nvidia. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Advanced Micro Devices, Intel, Microsoft, and Nvidia. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended the following options: long January 2026 $395 calls on Microsoft, short January 2026 $405 calls on Microsoft, and short November 2025 $21 puts on Intel. The Motley Fool Australia has recommended Advanced Micro Devices, Microsoft, and Nvidia. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Many investors overcomplicate things. They chase hot stocks, jump in and out of trades, react quickly to headlines, and constantly try to outsmart the market.

But time and again, the data tells a different story. The simplest portfolios often perform the best.

A true set and forget strategy doesn’t rely on forecasting, nerves of steel or endless research.

It relies on broad diversification, consistent contributions, and decades of compounding doing the hard work.

If I were building a portfolio today designed to be held for decades, these are the three ASX ETFs I’d start with.

Vanguard Australian Shares Index ETF (ASX: VAS)

For the core of the portfolio, I would begin at home. The Vanguard Australian Shares Index ETF gives instant exposure to around 300 of Australia’s largest shares.

This means it provides broad coverage across sectors such as financials, resources, healthcare and consumer staples, including heavyweights like BHP Group Ltd (ASX: BHP), Commonwealth Bank of Australia (ASX: CBA), and Wesfarmers Ltd (ASX: WES).

While the ASX isn’t the fastest-growing market in the world, it has historically delivered steady returns backed by profitable, well-established businesses. So, for investors who want dependable growth paired with income, it remains one of the most efficient and low-cost ways to invest in Australia’s economic engine.

iShares S&P 500 ETF (ASX: IVV)

The iShares S&P 500 ETF is another ASX ETF to consider adding to a portfolio. This fund tracks the S&P 500 index, which is one of the strongest-performing major market over the long term.

It gives investors exposure to world leaders such as Apple Inc. (NASDAQ: AAPL), Microsoft Corp (NASDAQ: MSFT), Nvidia Corp (NASDAQ: NVDA), Amazon.com Inc. (NASDAQ: AMZN) and Walmart (NYSE: WMT).

The United States remains the global innovation hub, dominating technology, pharmaceuticals, cloud computing, and artificial intelligence. By owning this fund, investors capture the compounding power of many of the world’s most influential stocks without needing to pick individual winners.

Vanguard MSCI Index International Shares ETF (ASX: VGS)

Finally, another ASX ETF to set and forget could be the Vanguard MSCI Index International Shares ETF.

It offers broad diversification across developed markets outside Australia. This includes giants such as Nestlé (SWX: NESN), ASML Holding (NASDAQ: ASML), Toyota Motor Corp (NYSE: TM), AstraZeneca plc (NASDAQ: AZN) and Samsung Electronics.

While the iShares S&P 500 ETF is purely US-focused, the Vanguard MSCI Index International Shares spreads your investment across the whole world. This helps reduce concentration risk and ensures your long-term returns don’t hinge on a single country or sector.

The post The easy set and forget ASX share portfolio I’d build today appeared first on The Motley Fool Australia.

More reading

• 3 defensive ASX ETFs for a rocky 2026
• Want to build wealth? Here’s how Warren Buffett does it
• 3 top ASX ETFs to buy for your SMSF in December
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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 positions in and has recommended ASML, Amazon, Apple, Microsoft, Nvidia, Walmart, Wesfarmers, and iShares S&P 500 ETF. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended AstraZeneca Plc and Nestlé 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, Amazon, Apple, BHP Group, Microsoft, Nvidia, Vanguard Msci Index International Shares ETF, 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.

If you are looking for quality ASX 200 stocks to buy for big potential returns, then read on!

Listed below are three shares that analysts believe can rise very strongly from where they trade today.

After which, they have the potential to compound and build wealth for investors long into the future. Here’s why they could be top picks right now:

Cochlear Ltd (ASX: COH)

The first ASX 200 stock that could be a top buy is hearing implant leader Cochlear. It appears well position for growth over the long term thanks to rising demand for its devices on the back of ageing populations across the globe and broader access to hearing healthcare.

And with a robust balance sheet and a track record of delivering both earnings and dividend growth, Cochlear could be a blue chip to buy and hold onto for the next decade.

UBS currently rates Cochlear as a buy with a $350.00 price target. This implies potential upside of 25% for investors over the next 12 months.

ResMed Inc. (ASX: RMD)

Another ASX 200 stock to buy and hold could be ResMed. With more than one billion people worldwide estimated to suffer from sleep apnoea, and the vast majority undiagnosed, ResMed has a significant growth runway over the next decade and beyond. The company continues to innovate across masks, devices and software while benefiting from rising awareness and diagnosis rates. Its cloud-connected ecosystem creates sticky customer relationships and high recurring revenue. For investors seeking a defensive growth story backed by secular demand, ResMed could be a top pick.

Macquarie has an outperform rating and $49.20 price target on its shares. This suggests that upside of 25% is possible for investors from current levels.

Xero Ltd (ASX: XRO)

A third ASX 200 stock to consider buying and holding is Xero. It is one of the world’s leading cloud accounting platforms and still has a huge global market to chase. With more than 4.5 million subscribers and NZ$2.7 billion in annualised monthly recurring revenue, the company remains in the early stages of penetrating a total addressable market estimated at around 100 million small businesses. As digital adoption accelerates in the UK, North America and Asia, Xero’s subscription model and high customer lifetime value create a powerful long-term growth engine.

Ord Minnett is bullish on Xero’s outlook. It recently put a buy rating and $200.00 price target on its shares. This implies potential upside of 60% for investors between now and this time next year.

The post These top ASX 200 stocks could rise 25% to 60% appeared first on The Motley Fool Australia.

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

The post Here are the top 10 ASX 200 shares today appeared first on The Motley Fool Australia.

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Motley Fool contributor Sebastian Bowen has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Catapult Sports, HMC Capital, Light & Wonder Inc, Temple & Webster Group, and WiseTech Global. The Motley Fool Australia has positions in and has recommended Catapult Sports and WiseTech Global. The Motley Fool Australia has recommended Gqg Partners, HMC Capital, 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.