How I'd invest $50,000 across ASX shares today

If I had $50,000 to invest today, I wouldn't overcomplicate it. I'd focus on quality and patience.

| More on:
A woman stands on the roof of a city building as papers fly in the sky around her.

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

When investing a meaningful sum like $50,000, my goal is not to be clever. It is to build a portfolio that balances quality, growth, and resilience, while keeping the number of moving parts manageable.

I am not trying to predict short-term market moves. Instead, I want exposure to businesses and assets that I would be comfortable holding through volatility, knowing that time and fundamentals can do the heavy lifting.

If I were investing $50,000 across the ASX right now, this is how I would allocate it.

$15,000 in Wesfarmers Ltd (ASX: WES)

Wesfarmers is not cheap, but I am willing to pay a premium for quality when the business has a long track record of good return and disciplined capital allocation. With exposure to Bunnings, Kmart Group, Officeworks, industrials, and healthcare, Wesfarmers offers diversification within a single holding.

I like having a business in the portfolio that can generate strong cash flows across different economic conditions. Wesfarmers plays that role for me.

$12,000 in CSL Ltd (ASX: CSL)

CSL gives me exposure to global healthcare and long-term structural growth.

After a disappointing period, expectations are lower and sentiment is more balanced. I do not need CSL to deliver spectacular growth to justify owning it. I just need steady execution, margin recovery over time, and continued demand for plasma therapies.

For a medium-sized portfolio, CSL adds global earnings exposure and defensive qualities that complement more cyclical holdings.

$10,000 in TechnologyOne Ltd (ASX: TNE)

TechnologyOne is one of two quality growth stocks in this portfolio.

Its enterprise software is deeply embedded in government, education, and large organisations, where switching costs are high and contracts are long-dated. The shift to SaaS has improved earnings visibility and margins, while international expansion adds a longer growth runway.

Together with its ongoing investment in research and development (20% to 25% of annual revenue), I believe this is an ASX share with a bright future.

$8,000 in Xero Ltd (ASX: XRO)

Xero adds more quality growth exposure to the portfolio.

This ASX share has built a global small business platform with strong recurring revenue and high customer retention. While the share price can be volatile, I think it is worth sticking with Xero because the long-term opportunity is immense if management continues to execute. The company estimates that it has a total addressable market worth $100 billion.

I would not make Xero my largest position, but I am comfortable allocating a meaningful amount to a global SaaS leader that now trades at a more reasonable valuation than in recent years.

$5,000 in the VanEck Morningstar Wide Moat AUD ETF (ASX: MOAT)

Finally, I would round out the portfolio with an ETF.

The VanEck Morningstar Wide Moat AUD ETF gives exposure to fairly valued US-listed stocks with durable competitive advantages. I like this as a way to add diversification and quality without relying on any single stock.

In a $50,000 portfolio, this ETF helps smooth risk and provides exposure to global businesses with pricing power and strong returns on capital. This is never a bad idea.

Why this mix of ASX shares works for me

This portfolio is deliberately simple. It blends defensive qualities, structural growth, global exposure, and diversification without becoming overly complex.

I am not claiming this is the perfect portfolio, or that it will outperform every year. But it reflects how I prefer to invest. Focus on quality, avoid overtrading, and hold businesses I understand and trust.

Motley Fool contributor Grace Alvino has positions in CSL and Wesfarmers. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended CSL, Technology One, Wesfarmers, and Xero. The Motley Fool Australia has positions in and has recommended Xero. The Motley Fool Australia has recommended CSL, Technology One, VanEck Morningstar Wide Moat ETF, and Wesfarmers. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Investing Strategies

Woman relaxing at home on a chair with hands behind back and feet in the air.
Dividend Investing

ASX income stocks: A once-in-a-decade chance to get rich

When income stocks fall out of favour, long-term investors often find their best opportunities hiding in plain sight.

Read more »

Man holding Australian dollar notes, symbolising dividends.
Dividend Investing

Want to build up passive income? These 2 ASX dividend shares are a buy!

These stocks are giving investors exciting payouts every year.

Read more »

Man on a ladder drawing an increasing line on a chalk board symbolising a rising share price.
Growth Shares

2 ASX shares to buy and hold for the next decade

These businesses have a lot of growth potential ahead…

Read more »

Man holding fifty Australian Dollar banknote in his hands, symbolising dividends, symbolising dividends.
Dividend Investing

Why a smaller dividend yield can lead to more passive income

A smaller dividend yield could be a better choice for the coming years.

Read more »

Person handing out $100 notes, symbolising ex-dividend date.
Dividend Investing

Get paid huge amounts of cash to own these ASX dividend stocks

These stocks have large payouts with potential for growth.

Read more »

A man casually dressed looks to the side in a pensive, thoughtful manner with one hand under his chin, holding a mobile phone in his hand while thinking about something.
Blue Chip Shares

A once-in-a-decade opportunity to buy CSL shares?

This biotech giant could have major upside potential in 2026.

Read more »

Australian dollar notes in the pocket of a man's jeans, symbolising dividends.
Dividend Investing

I'd buy 5,883 shares of this ASX stock to aim for $1,000 of annual passive income

I’d pick this stock for its strong dividend record.

Read more »

A group of business people pump the air and cheer.
Cheap Shares

Still under $30, these wealth-builders may not stay cheap for long

Want to buy quality when it is cheap? Check out these options.

Read more »