Buying your first few ASX shares can feel overwhelming when there are thousands of companies to choose from.

For a beginner, I would keep things fairly simple and focus on established businesses that are easy to understand and have strong long-term prospects.

These five would be high on my list.

Macquarie Group Ltd (ASX: MQG)

Macquarie would be one of the first shares I would consider.

The company operates across areas including asset management, infrastructure, commodities, financial markets, banking, and advisory.

For a beginner, I think that provides an interesting introduction to a financial business that looks quite different from the major Australian banks.

Macquarie earns money from managing assets for clients, helping businesses manage commodity and financial risks, lending, and providing other financial services around the world.

That gives the company several ways to grow as its operations expand.

Earnings can move around from year to year, so I would not expect a perfectly smooth ride. But for someone investing with a long-term view, I think Macquarie is a high-quality business with plenty of opportunity still ahead of it.

Woolworths Group Ltd (ASX: WOW)

Woolworths is another ASX share I think beginners should consider.

Most Australians are familiar with its supermarkets and the role they play in everyday spending.

Grocery demand is also fairly dependable. People may cut back on discretionary purchases when budgets become tighter, but they still need food and household essentials.

I think Woolworths also has opportunities to grow through population growth, online shopping, and continued improvements across its stores and supply chain.

The company pays dividends as well, which can give new investors another way to see how owning shares can generate returns over time.

Telstra Group Ltd (ASX: TLS)

Telstra would add a more defensive element.

Mobile phones and internet connections have become essential services for households and businesses, giving Telstra recurring demand through different economic conditions.

The company has also made sustainable dividend growth an important part of its plans.

I would not expect Telstra to deliver spectacular growth every year. But I think there is value in owning a business with dependable demand, established infrastructure, and regular cash returns to shareholders.

ResMed Inc. (ASX: RMD)

ResMed would give beginners stronger growth potential.

The company develops devices, masks, and software for sleep apnoea and respiratory care.

I like how large the opportunity remains. Sleep apnoea is significantly underdiagnosed and undertreated globally, leaving ResMed with plenty of potential patients still to reach.

There is also recurring demand after someone begins treatment because masks and other accessories need replacing over time.

For a beginner, I think ResMed offers a good introduction to owning an ASX share with a genuinely global business.

BHP Group Ltd (ASX: BHP)

BHP would round out my five picks.

The mining giant gives investors exposure to commodities including iron ore and copper, which remain important to construction, manufacturing, electrification, and infrastructure.

BHP's earnings can change significantly as commodity prices move, which is worth understanding before investing.

At the same time, its scale, strong balance sheet, and long-life assets make it one of the more established ways to gain exposure to the resources sector.

The company can also return substantial cash to shareholders when conditions are strong.

Foolish takeaway

I think all five companies give beginners something different to learn about investing.

Macquarie provides exposure to global financial markets, Woolworths and Telstra have businesses built around regular household demand, ResMed brings international healthcare growth, and BHP introduces the commodity cycle.

For someone researching their first few ASX shares, I think each is a sensible place to start.

The post 5 ASX shares I'd recommend to beginners appeared first on The Motley Fool Australia.

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• Wesfarmers vs Telstra: Which ASX dividend stock comes out on top?

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

Retirement investing does not have to be all about chasing the highest dividend yield.

I would still want businesses that can grow over time, while also providing some income along the way.

These three ASX shares would be on my list.

Wesfarmers Ltd (ASX: WES)

Wesfarmers is one of the first ASX shares I would consider.

The group owns businesses including Bunnings, Kmart, Officeworks, and Priceline, giving it several sources of earnings across different parts of the Australian economy.

For retirement investors, I like the combination of established businesses and room for further growth.

Bunnings has built a powerful position in home improvement, while Kmart continues to benefit from its focus on affordable products. Wesfarmers also has the financial strength to invest in existing businesses or pursue new opportunities when management sees attractive returns.

The company has also paid dividends consistently over many years.

Commonwealth Bank of Australia (ASX: CBA)

CBA would give me a more traditional source of income.

The bank generates substantial profits from its large customer base across home lending, deposits, business banking, and other financial services.

That has allowed it to return significant amounts of cash to shareholders through fully franked dividends.

Australian banking is a mature industry, so I would not expect rapid earnings growth.

But for retirement, I would be comfortable owning a high-quality business capable of producing substantial cash flow while still gradually increasing earnings over time.

CBA is rarely the cheapest bank on the ASX, but I would be willing to pay a little more for what I think is the strongest banking business in Australia.

Sigma Healthcare Ltd (ASX: SIG)

Sigma would be the more growth-focused choice of the three ASX shares.

Following its combination with Chemist Warehouse, the company now has exposure to one of Australia's best-known pharmacy brands alongside a major pharmaceutical distribution operation.

I think there are several ways the business can become larger over the next decade.

Chemist Warehouse continues to expand its store network, while international markets such as New Zealand and the United Kingdom provide additional room for growth.

Sigma can also benefit from the wider pharmacy ecosystem, including distribution, retail sales, online channels, and relationships with suppliers.

While its dividend yield is not the largest, if the company can expand earnings over time, there should be greater scope for shareholder returns to increase.

Foolish takeaway

For me, retirement would not mean giving up on growth.

I would want some dependable income, but I would also want businesses capable of becoming more valuable over the years ahead.

Wesfarmers, CBA, and Sigma each offer a different balance between those two goals, which is why I would be comfortable considering any of them for a long-term retirement portfolio.

The post 3 ASX shares I'd buy for income and growth in retirement appeared first on The Motley Fool Australia.

More reading

•  If I invest $10,000 in CBA shares, how much passive income will I receive in FY27?
• Down 22%: Are Wesfarmers shares now a good buy for passive income?
• Wesfarmers vs Telstra: Which ASX dividend stock comes out on top?
• How much passive income could I earn from a $650,000 superannuation balance?
• How to make $26,000 of passive income from ASX shares

Motley Fool contributor Grace Alvino has positions in Commonwealth Bank Of Australia and Wesfarmers. 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.

Retiring at 60 would sound pretty good to me.

But finishing work earlier means my superannuation may need to support me for a long time.

So, how large would I want my balance to be before calling it a day?

Start with the lifestyle I want

The Association of Superannuation Funds of Australia (ASFA) provides a helpful starting point.

Its latest Retirement Standard estimates that a single homeowner aged 65 to 84 needs around $56,166 a year for a comfortable retirement. For a couple, the figure is approximately $78,998 a year.

That comfortable lifestyle includes things such as private health insurance, regular leisure activities, meals out, maintaining a car, home repairs, and occasional travel.

Of course, my own spending could be higher or lower.

But I think those figures provide a sensible benchmark for thinking about how much income my super may need to provide.

Retiring at 60 changes the numbers

ASFA estimates that a single homeowner needs around $630,000 in super to fund a comfortable retirement from age 67. A couple needs around $730,000 combined.

The important part is the age.

Those figures assume retirement at 67, whereas I am looking at stopping work seven years earlier.

Age Pension eligibility also currently begins at 67, subject to the relevant income, asset, and residency rules.

That means someone retiring at 60 may need to fund several additional years before any potential Age Pension support begins.

For people born from 1 July 1964, 60 is also the current preservation age for superannuation, although a condition of release still needs to be met before the money can generally be accessed.

How much would I want?

If I were a single homeowner aiming for something close to ASFA's comfortable lifestyle, I would personally want around $900,000 in super before retiring at 60.

That is not an official ASFA target.

It simply gives me more room to fund those extra seven years while leaving plenty of capital invested for later in retirement.

For a couple, I would be thinking closer to $1.1 million combined, depending on our expected spending and other assets.

I would not treat either figure as a magic number. Someone with inexpensive hobbies, a paid-off home, and modest travel plans may be comfortable with less. Someone planning regular overseas holidays or helping family financially may want considerably more.

I would keep investing after retirement

I would also want my superannuation to continue growing after I stopped working.

At 60, retirement could still last 30 years or more.

That is too long for me to become entirely focused on cash and defensive investments like bonds.

I would still want exposure to Australian and international shares, alongside enough defensive assets to cover spending without being forced to sell shares during a market downturn.

Investment returns could then help offset some withdrawals and give the balance a better chance of keeping up with inflation.

Foolish takeaway

If I planned to retire at 60, I would personally aim for around $900,000 in superannuation as a single homeowner, rather than relying on the age-67 benchmark of $630,000.

Retiring seven years earlier creates a larger job for the portfolio.

For me, having that extra buffer would provide more flexibility around spending, market downturns, and the possibility of a retirement lasting several decades.

The post How much superannuation would I want if I planned to retire at 60? appeared first on The Motley Fool Australia.

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• 3 ASX shares I'd buy for income and growth in retirement

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 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.

Rio Tinto Ltd (ASX: RIO) shares have long been a popular choice with Australian income investors.

The mining giant has returned substantial amounts of cash to shareholders over the years.

At around $166.25 today, are Rio Tinto shares still worth considering for passive income?

Why miners can work for income investors

Rio Tinto and BHP Group Ltd (ASX: BHP) are regular fixtures in many income portfolios for good reason.

Both companies own large, long-life mining operations that can generate enormous amounts of cash when commodity markets are supportive.

For Rio Tinto, iron ore remains a key part of the business. Its Pilbara operations produce huge volumes and have historically generated substantial profits.

That cash can then be used to fund new projects, strengthen the balance sheet, and pay dividends to shareholders.

I also like that Rio Tinto is building out its exposure to copper. That gives the company another potential source of earnings as demand grows from areas such as electrification, power networks, and renewable energy infrastructure.

For income investors, I think that mix works well. Rio Tinto has major assets generating cash today while still investing for the future.

What could the dividend look like?

For passive income investors, Rio Tinto's dividend is one of the main reasons to consider the shares.

According to consensus forecasts, the miner is expected to pay fully-franked dividends of $6.34 per share in FY26 and $6.62 per share in FY27.

At the current Rio Tinto share price, that works out to be prospective dividend yields of around 3.8% and 4%, respectively.

Those yields may not jump off the page, but I think they are attractive when combined with the potential benefit of franking credits.

For me, the bigger point is that investors are getting a reasonable level of income from a company I would also be comfortable owning for the long term.

What does the valuation look like?

Consensus forecasts are for earnings per share of $12.07 in FY26 and $12.04 in FY27.

At the current share price, Rio Tinto is therefore trading on a P/E ratio of around 14 times forecast earnings.

I think that is a reasonable valuation for a business of this scale, particularly when the dividend is also part of the return.

Of course, Rio Tinto's earnings will always move with commodity prices.

Iron ore weakness could put pressure on profits and dividends, while stronger prices could have the opposite effect.

That variability is simply part of owning a large miner.

I would not rely on the dividend alone

Rio Tinto is not the type of income share where I would expect the dividend to rise neatly every year.

The payout can move significantly depending on profits and commodity markets.

For that reason, I would see Rio Tinto as one part of a broader passive income portfolio rather than relying on it to provide a fixed amount every year.

That would still leave plenty of room for the company to make a meaningful contribution when conditions are favourable.

Foolish takeaway

Yes, I would buy Rio Tinto shares for passive income.

The prospective yield is solid, the dividends are expected to be fully franked, and the valuation looks reasonable.

I also like that Rio Tinto can offer more than income alone, with its existing assets and growing copper exposure giving the business opportunities to create value over the years ahead.

The post Should I buy Rio Tinto shares for passive income? appeared first on The Motley Fool Australia.

More reading

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• Iron ore is back below US$100. Are BHP and Rio Tinto shares still buys?

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 no position in any of the stocks mentioned. The Motley Fool Australia has recommended BHP Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Netwealth Group Ltd (ASX: NWL) shares have had a difficult 12 months.

The wealth management platform company's shares are down around 40% over that period and fell to a fresh 52-week low of $18.29 on Wednesday.

Here's why I think the lower share price has created an opportunity for investors with this S&P/ASX 200 Index (ASX: XJO) share.

This ASX 200 share is still growing

The first thing I would look at is whether Netwealth's weaker share price reflects a weaker business.

I do not think that is the case.

Netwealth finished FY26 with $135.7 billion of funds under administration, up more than 20% over the year. It also continued attracting strong net inflows and gaining market share.

That tells me financial advisers and their clients are still putting more money onto the platform.

As those assets grow, Netwealth has more opportunities to earn administration and investment-related revenue from the same expanding customer base.

I think that remains a strong long-term foundation.

AI has added a concern

Artificial intelligence (AI) has recently given investors something else to think about.

Anthropic launched Claude for Financial Advisors on 14 September, providing wealth managers with specialised data connectors and workflow tools. That followed OpenAI launching its own financial industry offering just days earlier.

I can understand why that has caused some concern.

If powerful AI tools can automate more of the research, administration, and client work carried out by financial advisers, investors may question how much value traditional wealth technology platforms can continue adding.

I think it is too early to assume AI will simply replace platforms such as Netwealth.

Financial advisers still need to administer client assets, meet regulatory requirements, execute investments, and keep large amounts of sensitive financial information organised. AI could change how that work is done, but I think established platforms can also use the technology themselves.

The latest acquisition makes more sense in that context

Netwealth's acquisition announced this week is particularly interesting for that reason.

The company has agreed to buy Paradino, which operates an AI-enabled workflow and automation platform for financial advisers.

Its technology can assist with areas such as documents, meeting notes, client communications, and other administrative work.

The acquisition itself is not large enough to transform Netwealth overnight.

But I like what it says about the direction of the business.

Rather than watching AI develop from the sidelines, Netwealth is bringing more of that capability into its own adviser technology offering.

If AI can help advisers save time and manage more clients efficiently, I think it could ultimately strengthen the value of the wider Netwealth ecosystem rather than undermine it.

Why I would buy before sentiment improves

There are still risks.

Netwealth is investing heavily, margins could face some near-term pressure, and AI could reshape parts of the financial advice industry faster than expected.

But this ASX 200 share is still growing assets, attracting inflows, and investing in technology that could keep its platform relevant as adviser workflows change.

At $18.29, I think the 40% decline has created a much more attractive entry point.

Foolish takeaway

I would be comfortable buying Netwealth shares at current levels.

AI has added a new source of uncertainty, but I do not think it removes the need for wealth platforms or the long-term opportunity in financial advice technology.

If the ASX 200 share can combine its existing platform with better AI tools while continuing to attract client assets, I think today's weaker sentiment could eventually look like a good buying opportunity.

The post Down 40%: Why I'd buy this ASX 200 share before sentiment improves appeared first on The Motley Fool Australia.

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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 Netwealth Group. The Motley Fool Australia has positions in and has recommended Netwealth Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

A $1.2 million superannuation balance is a substantial amount of money.

But what sort of retirement income could it fund?

The answer to that depends on how the money is invested and how quickly the retiree is comfortable drawing it down.

Start with the withdrawal rate

One simple way to think about retirement income is as a percentage of the starting balance.

If someone withdrew 4% from a $1.2 million portfolio in the first year, that would provide around $48,000.

A 5% withdrawal would increase the annual income to $60,000, while 6% would provide $72,000.

That gives us a fairly wide range.

I would not automatically choose the highest figure simply because the portfolio could support it in the first year. Retirement could last for decades, and the balance still needs to cope with market downturns, inflation, and future spending.

For me, the amount withdrawn would need to make sense alongside the investments held and the lifestyle I wanted.

Income does not have to come entirely from dividends

It is important to note that a $1.2 million portfolio doesn't necessarily have to generate a 5% dividend yield to provide $60,000 of annual income.

Retirement income can come from several places.

A portfolio might receive dividends and distributions from shares and exchange-traded funds (ETFs), interest from defensive assets, and cash from selling a small portion of investments when required.

That gives an investor more freedom when building the portfolio.

I would rather hold a mixture of investments with good long-term prospects than force the entire $1.2 million into high-yield assets purely to produce a particular income figure.

Growth still has a role

Even after retirement, I would want part of the portfolio invested for growth.

If someone retires in their 60s, their superannuation may still need to support them for another 30 years.

Over that period, living costs are likely to rise.

An income of $60,000 may feel comfortable today, but it will not have the same purchasing power decades from now.

Holding Australian and international shares gives the portfolio a chance to keep growing while withdrawals are being made.

Of course, share markets will not rise every year. That is why I would also want some cash or more defensive investments available for spending during weaker periods.

How much would I aim for?

If I had $1.2 million in superannuation, I would probably think about an initial income somewhere around $48,000 to $60,000 a year rather than immediately targeting $72,000.

That is not because $72,000 is impossible.

It simply places more pressure on the portfolio from the beginning, particularly if withdrawals later need to rise with inflation.

Someone with lower expenses may be happy to take much less, while another retiree may deliberately draw down their capital more quickly because they want to spend more in the early years of retirement.

There is no single number that will suit everyone.

Foolish takeaway

A $1.2 million superannuation balance could potentially provide a meaningful retirement income without requiring an unusually high investment return.

At withdrawal rates of 4% to 5%, it could provide roughly $48,000 to $60,000 in the first year.

For me, the bigger goal would be finding a level of income that supports the lifestyle I wanted while still giving the remaining balance a chance to keep working for the years ahead.

The post How much income could a $1.2 million superannuation balance generate? appeared first on The Motley Fool Australia.

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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 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.

BHP Group Ltd (ASX: BHP) is already one of the largest companies on the Australian share market.

That size can sometimes make it easy to assume the biggest growth period is already behind it.

I am not so sure that is the case.

And if I were looking for an ASX mining share to buy today and leave alone for the next decade, BHP would be high on my list.

Scale gives BHP options

One of the things I like most about BHP is the flexibility that comes with its scale.

The company owns large, long-life assets across several major commodities, which means management can direct capital towards the opportunities offering the strongest prospective returns.

That becomes particularly valuable in resources.

Mining projects can take years to develop, cost billions of dollars, and operate for decades once they are running. Companies with strong balance sheets and existing infrastructure have a major advantage when attractive opportunities appear.

BHP does not need every commodity to be booming at the same time.

It can continue investing through weaker periods, expand existing operations where the economics make sense, and take a patient approach to major new projects.

Over a 10-year holding period, I think that flexibility could be more valuable than trying to predict which commodity will perform best next year.

Demand should keep evolving

The global economy will probably look quite different a decade from now, but it will still need enormous quantities of physical materials.

Cities will keep expanding. Electricity networks need upgrading. Data centres, renewable energy projects, electric vehicles, construction, and manufacturing all require resources somewhere along the supply chain.

BHP's exposure to commodities, including copper and iron ore, puts it in a strong position to participate in that spending.

I am particularly interested in how its copper portfolio could develop.

BHP already operates major copper assets, giving it a platform to expand as demand increases. New supply is also difficult to bring online quickly, which could make high-quality existing operations increasingly valuable over time.

The important point for me is that BHP already owns the assets and expertise needed to participate rather than having to build an entirely new business from scratch.

I would expect income along the way

A decade is a long time to wait for an investment thesis to play out, so I also like that BHP can return substantial amounts of cash to shareholders.

Its dividend will move with commodity prices and profits, so I would never treat the payment as fixed.

But when conditions are strong, BHP's enormous operations can generate significant free cash flow.

That gives management the ability to balance reinvestment in future projects with dividends to shareholders.

For a long-term investor, I think receiving income while the company's asset base continues to develop is a valuable combination.

The risks are part of the investment

BHP will not deliver smooth results every year.

Commodity prices can fall sharply, major projects can run over budget, and changes in global economic activity can quickly affect demand.

There are also political, regulatory, and operational risks across the countries where BHP operates.

Those uncertainties are why I would think about the investment in decades rather than quarters.

I am backing the quality of the assets, the company's financial strength, and management's ability to allocate capital through multiple commodity cycles.

Foolish takeaway

BHP is the type of share I think makes more sense when viewed over years rather than months.

There will be weaker periods for commodity prices along the way, but the company has the assets, financial strength, and investment opportunities to keep moving forward through those cycles.

For me, that is enough to make BHP a share I would be comfortable buying and holding for the next decade.

The post Why I'd buy and hold BHP shares for 10 years appeared first on The Motley Fool Australia.

More reading

• 5 ASX shares I'd recommend to beginners
• BHP vs Rio Tinto: What's the better buy?
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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 no position in any of the stocks mentioned. The Motley Fool Australia has recommended BHP Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The share market has traditionally generated average annual returns of around 9% to 10% over the long term.

But I think some ASX shares have the potential to do even better from here.

These three would be on my buy list.

Breville Group Ltd (ASX: BRG)

Breville is one company I think the market may be underestimating.

The business has spent years building premium appliance brands that can be sold into households around the world. Coffee machines remain very important, but the opportunity extends across a much wider range of kitchen products.

What I like is the repeatability of that model. Breville can enter new markets, expand distribution, launch new products, and encourage existing customers who already know the brand to buy something else.

That gives the ASX share several ways to grow without needing one breakthrough product to carry the business.

So, with Breville shares now trading around $30.43, down almost 15% from their 52-week high, I think a combination of earnings growth and improving investor sentiment could comfortably support a return of more than 10%.

Hub24 Ltd (ASX: HUB)

Hub24 has also had a substantial fall from its highs, but I remain positive about the business.

The company operates investment platforms used by financial advisers to manage client wealth.

I like the position Hub24 has built because more advisers are choosing modern platforms that can make portfolio administration easier while giving them access to a wider range of investment options and technology.

Once an adviser begins moving client assets onto a platform, those funds can remain there for years. New clients and additional contributions can then increase the amount administered without Hub24 having to start from scratch each time.

The company has continued gaining market share and attracting strong net inflows, while its growing scale can support higher profits as more assets move onto the platform.

At around $70, Hub24 is now trading more than 40% below its 52-week high. I think this has created an attractive entry point for long-term investors.

Cochlear Ltd (ASX: COH)

Cochlear shares have fallen heavily from their previous highs as weaker growth and a reduced earnings outlook have tested investor confidence.

There are genuine reasons for caution. But I do not think the long-term need for Cochlear's products has changed.

Severe hearing loss remains significantly undertreated around the world, leaving a large population of people who could potentially benefit from cochlear implants.

Cochlear is also continuing to improve its technology. The newer Nucleus Nexa platform gives the company an opportunity to strengthen its offering, while future innovations could make implants more capable and easier for patients to live with.

The business does not need to return anywhere near its previous share price for investors buying today to earn 10%.

If sales growth improves and confidence in the earnings outlook begins to rebuild, I think there is plenty of room for the shares to move higher.

Foolish takeaway

I think all three ASX shares have more going for them than their recent share price performances suggest.

Breville still has international room to expand, Hub24 continues to benefit from more wealth moving onto its platform, and Cochlear is addressing a large healthcare need that is not going away.

None is guaranteed to deliver a double-digit return, but I would be comfortable backing each from current levels.

The post 3 ASX shares I think could return 10%+ appeared first on The Motley Fool Australia.

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Motley Fool contributor Grace Alvino has positions in Hub24. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Cochlear and Hub24. The Motley Fool Australia has recommended Cochlear and Hub24. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

An $800,000 superannuation balance sounds like a substantial amount of money.

But retirement could last for 20 or 30 years, and that money may need to cover everything from everyday expenses to travel and unexpected costs.

So, could $800,000 really be enough for a comfortable retirement?

What does a comfortable retirement cost?

One place I would start is the Association of Superannuation Funds of Australia's Retirement Standard.

ASFA estimates that a single homeowner aged 65 to 84 needs roughly $56,000 a year for a comfortable retirement, while a couple needs around $79,000.

That budget is designed to cover more than the basics. It allows for things such as private health insurance, leisure activities, eating out, maintaining a car, household repairs, and occasional travel.

Of course, everyone's spending will look different. Someone who enjoys frequent overseas trips with Qantas Airways Ltd (ASX: QAN) may want considerably more, while another retiree with relatively modest expenses could live comfortably on less.

How does $800,000 compare?

This is where I think an $800,000 balance starts to look encouraging.

ASFA estimates that a single homeowner retiring at age 67 needs around $630,000 in superannuation to fund a comfortable retirement. For a couple, the estimated combined balance is around $730,000.

On those benchmarks, $800,000 sits above both figures.

Importantly, those calculations do not assume someone simply lives off the investment income and leaves the original capital untouched forever.

Retirement savings are there to be used. ASFA's modelling assumes retirees gradually draw down their superannuation and may also receive some Age Pension support as their balance declines.

That means an $800,000 balance does not necessarily need to produce the entire annual spending requirement through dividends or interest alone.

I would still keep investing

If I retired with $800,000, I would not suddenly move the whole balance into cash.

Retirement could still last 20 or 30 years, and inflation will continue increasing the cost of living throughout that period.

I would therefore want part of the portfolio invested in growth assets such as Australian and international shares or exchange-traded funds (ETFs).

The aim would be for investment returns to help replace some of the money being withdrawn and give the balance a better chance of supporting rising expenses over time.

I would also keep some more defensive assets available so I was not forced to sell shares after a major market fall.

That balance between growth and stability would become increasingly important once the portfolio was funding my lifestyle.

There are some important assumptions

Whether $800,000 is enough would depend heavily on personal circumstances.

Owning a home outright makes a substantial difference. A retiree still paying rent or a mortgage would generally need considerably more income.

Retirement age also matters. Someone stopping work at 60 needs their savings to support more years than someone retiring at 67.

Health costs, travel plans, family support, and other major expenses could also change the amount required.

For that reason, I would treat the $800,000 figure as part of the retirement plan rather than the whole plan.

Foolish takeaway

I think $800,000 in superannuation could provide a comfortable retirement for many Australians, particularly homeowners retiring around the traditional retirement age.

It is already above ASFA's current comfortable retirement benchmarks for both singles and couples.

For me, the key would be making sure the money remained invested sensibly, withdrawals were sustainable, and there was enough flexibility to deal with whatever the next few decades brought.

The post Could I retire comfortably with $800,000 in superannuation? appeared first on The Motley Fool Australia.

More reading

• Why I'd invest $10,000 into Qantas shares today
• Looking to bank the final Qantas dividend? You'd better hurry!
• How many Qantas shares do I need to buy for $5,000 of passive income in FY27?
• 33 ASX shares going ex-dividend next week
• Top 3 ASX 200 shares now below their 200-day moving average

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 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 Vanguard MSCI Index International Shares ETF (ASX: VGS) is an exchange-traded fund (ETF) I would be comfortable owning for a very long time.

It provides broad exposure to international share markets in a single investment, which can make it a simple way to add global growth to a portfolio.

Here are three reasons I think it is a buy.

Broad global diversification

One of the biggest attractions of the VGS ETF is just how much exposure investors get through one fund.

It invests across developed markets outside Australia, giving investors access to companies in the United States, Japan, the United Kingdom, Europe, and other major economies.

That means an investor is not relying on the performance of one country or a small collection of businesses.

I think this can be particularly valuable for Australians whose other investments are already concentrated locally.

The Australian share market has plenty of strong companies, but many of the world's largest healthcare, industrial, technology, consumer, and financial businesses are based elsewhere.

The Vanguard MSCI Index International Shares ETF makes it easy to participate in those opportunities without having to open an overseas brokerage account or research dozens of individual companies.

Exposure to global leaders

The VGS ETF owns some of the world's most successful businesses.

Its portfolio includes companies such as Nvidia, Microsoft, Apple, and Amazon, alongside over a thousand other businesses operating across many industries.

I like that because investors can benefit if today's leading companies continue expanding, without having to decide which individual stock will ultimately perform best.

The portfolio also changes naturally over time. Companies that become more valuable can grow into larger positions in the underlying index, while businesses that lose ground become less influential.

Over a long holding period, I think that is attractive. The fund can continue evolving alongside global markets without investors having to constantly rebuild their portfolio themselves.

It is easy to keep adding

The third reason I like the VGS ETF is its simplicity.

There is no need to wait for the perfect stock idea every time new money becomes available.

An investor can buy more units and immediately spread that money across a large collection of international businesses. That can make regular investing much easier.

I would still expect volatility. Global share markets will go through recessions, bear markets, changing interest rates, and periods when valuations become stretched.

Currency movements can also influence returns for Australian investors.

But for someone investing over 10 years or longer, I think those short-term fluctuations are a reasonable price to pay for access to global economic and corporate growth.

Foolish takeaway

I think the VGS ETF gets a lot right without making investing unnecessarily complicated.

It gives investors exposure to a wide range of countries and industries, includes many of the world's strongest companies, and can be easily added to over time.

For me, those qualities make the Vanguard MSCI Index International Shares ETF one of the ASX ETFs I would be happy to buy and hold for the long term.

The post 3 reasons to buy the Vanguard MSCI Index International Shares (VGS) ETF appeared first on The Motley Fool Australia.

More reading

• How to make $26,000 of passive income from ASX shares
• Vanguard ETFs vs. Betashares ETFs: Who's coming out on top?
• Why I'd buy this ETF instead of picking 20 ASX shares
• Which ASX ETFs could be top picks for beginner investors?
• Could a $1 million superannuation balance provide $50,000 a year in retirement?

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 Amazon, Apple, Microsoft, and Nvidia. The Motley Fool Australia has recommended Amazon, Apple, Microsoft, Nvidia, and Vanguard Msci Index International Shares ETF. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

DroneShield Ltd (ASX: DRO) shares are going through a difficult period.

The counter-drone technology company has fallen to a fresh 52-week low of around $1.59, leaving the share price a long way below its previous high of $6.70.

For investors prepared to accept a high level of risk, I think the lower price is becoming increasingly interesting.

The business is still growing

The share price performance looks ugly, but I think it is important to separate that from what is happening inside the business.

DroneShield continues to convert growing global demand for counter-drone technology into revenue.

Its latest trading update showed FY26 committed revenue had reached $251 million, putting it inside management's existing revenue outlook of $250 million to $270 million. The company also reported $46 million of committed revenue for FY27 and beyond.

For me, that is encouraging because it shows the opportunity is moving beyond conversations and potential contracts. Customers are placing orders.

DroneShield also secured the first order for its recently released RfRecon product, which will be deployed to an existing Western European military customer before the end of 2026. The initial order is not financially material, but it does provide early validation for another product in the company's expanding range.

Why the opportunity still interests me

The long-term driver behind DroneShield has not disappeared just because the shares have fallen.

Drones are becoming a larger part of modern warfare, border security, and threats to critical infrastructure.

That creates demand for systems capable of detecting, tracking, and defeating them.

DroneShield already sells into military, government, law enforcement, and critical infrastructure markets around the world.

I also like that the company is investing to expand internationally rather than relying entirely on Australia.

If counter-drone spending continues increasing and DroneShield can establish itself as a meaningful supplier across several major defence markets, today's business could look very different in five or 10 years.

But this is still a high-risk investment

This is the part I would not understate. DroneShield remains one of the highest-risk ASX shares I would consider buying.

Revenue can be lumpy because defence orders do not arrive evenly. The company is still scaling quickly, and investors need to see that larger revenue translates into sustainable profits over time.

Competition could also intensify as governments commit more money to counter-drone systems and larger defence companies pursue the same opportunity.

Then there is the share price itself. A fall from $6.70 to $1.59 shows how violently market expectations can change. I would not assume that reaching a 52-week low means the shares cannot fall further.

For that reason, I would only consider DroneShield as a relatively small position within a diversified portfolio.

Foolish takeaway

At $1.59, I think DroneShield shares are a buy for investors with a high tolerance for risk.

The valuation is much less demanding than it was near the highs, while committed revenue continues to move in the right direction.

There is still plenty for the company to prove, particularly around profitability and execution.

But for patient investors willing to accept substantial volatility, I think the long-term counter-drone opportunity makes the current share price worth considering.

The post Are DroneShield shares a buy at their 52-week low? appeared first on The Motley Fool Australia.

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Motley Fool contributor Grace Alvino has positions in DroneShield. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended DroneShield. 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 CSL Ltd (ASX: CSL) share price has staged an extraordinary recovery over the past few months.

After dropping to around $90 in June, the healthcare giant is trading at around $171.57 on Tuesday.

That is a huge change in a short period. But with the CSL share price still comfortably short of its highs, could there be another leg higher?

The easy gains may be behind us

When the CSL share price was trading around $90, I thought the valuation looked exceptionally cheap for a company with its global healthcare operations and long-term growth potential.

Investors were pricing in plenty of disappointment following weaker guidance, restructuring, and uncertainty around the earnings outlook.

Since then, the CSL share price has risen by more than 90%.

At $171.57, I certainly would not describe the stock as dirt cheap anymore.

According to consensus estimates, CSL is expected to generate earnings per share of $9.01 in FY27, rising to $9.51 in FY28 and $10.10 in FY29.

That means CSL shares are currently trading on a PE ratio of around 19 times forecast FY27 earnings.

I think that still represents decent value for money, but the investment case has changed.

From here, I expect CSL's earnings growth to become much more important for the market than simply recovering from an unusually depressed valuation.

What would a $200 CSL share price mean?

A move from $171.57 to $200 would represent further upside of around 17%.

I do not think that looks unrealistic. At $200, CSL would trade at roughly 22 times forecast FY27 earnings.

Looking further ahead, that falls to around 20 times the FY29 earnings estimate.

For a global healthcare company with strong positions in plasma therapies and other specialised treatments, I think that valuation could be justified if CSL delivers on the earnings recovery currently expected.

What could push it higher?

CSL Behring remains particularly important to the outlook.

The business has opportunities to grow demand for its immunoglobulin and albumin therapies while improving profitability as plasma collection becomes more efficient.

Margin recovery would be encouraging because it could allow revenue growth to translate into stronger earnings growth.

There are also still challenges elsewhere in the group, including pressure within CSL Vifor. But if earnings rise towards the current FY28 and FY29 forecasts, I think investors could become increasingly comfortable paying a higher price for the shares.

Foolish takeaway

I think the CSL share price could reach $200, although the path looks quite different from the recovery out of June's lows.

At $171.57, the shares are no longer obviously cheap. They are trading at around 19 times forecast FY27 earnings after almost doubling in value.

For the CSL share price to move another 17% higher, I think the company will need to show that its earnings recovery is genuinely taking hold.

If it can do that, $200 does not look like an unreasonable valuation to me.

The post Is the CSL share price heading to $200? appeared first on The Motley Fool Australia.

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Motley Fool contributor Grace Alvino has positions in CSL. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended CSL. 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.

Having $3,000 ready to invest opens up plenty of possibilities on the ASX.

For me, exchange-traded funds (ETFs) would be worth considering because they can put that money to work across a large number of businesses straight away.

These three Vanguard ETFs would all be on my shortlist.

Vanguard Diversified High Growth Index ETF (ASX: VDHG)

For someone wanting to keep things simple, the VDHG ETF could be a strong option.

The fund is effectively a ready-made investment portfolio. Around 90% is allocated to growth assets such as Australian and international shares, with the remainder invested in defensive assets such as bonds.

That gives investors exposure to thousands of securities across numerous markets without having to decide how much money to allocate to each one.

Vanguard also takes care of rebalancing the portfolio over time.

I think that makes the Vanguard Diversified High Growth Index ETF particularly interesting for an investor who wants to buy one ETF, keep adding to it, and largely leave the portfolio management to Vanguard.

Vanguard Global Technology Index ETF (ASX: VTEK)

Investors looking for stronger growth exposure might prefer the VTEK ETF.

This fund invests in hundreds of technology stocks from developed and emerging markets.

Its holdings include businesses such as Nvidia, Apple, Microsoft, Taiwan Semiconductor Manufacturing Company, and ASML Holding.

That gives investors exposure to several areas I expect to keep attracting significant investment over the coming decade, including artificial intelligence, semiconductors, cloud computing, and software.

Of course, concentrating in one sector would bring more risk than choosing a broadly diversified ETF.

But for someone comfortable with a higher level of volatility and looking for long-term growth, I think this Vanguard ETF is a top option.

Vanguard S&P 500 US Shares Index ETF (ASX: V500)

The V500 ETF is another Vanguard fund that I would buy.

It tracks the S&P 500 Index, providing exposure to around 500 of the largest companies listed in the United States.

That includes technology businesses, but also major companies across healthcare, financial services, consumer products, industrials, and many other industries.

I like this because investors can participate in the growth of corporate America without relying on a handful of individual stock picks.

The ETF also has a low management fee, which can become increasingly valuable over a long holding period.

For someone wanting to put money behind US shares, I think the Vanguard S&P 500 US Shares Index ETF could make a lot of sense.

Foolish takeaway

I think all three Vanguard ETFs offer something worth considering for a long-term investor.

Which one I chose would depend on what I already owned and where I wanted more exposure.

With $3,000 available, I would be comfortable putting the money into one of these ETFs or spreading it across more than one. The important thing for me would be choosing the opportunity that best complemented the rest of my investments.

The post 3 top Vanguard ETFs I'd buy with $3,000 appeared first on The Motley Fool Australia.

More reading

• Why these ASX ETFs could be strong long-term picks
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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 ASML, Apple, Microsoft, Nvidia, and Taiwan Semiconductor Manufacturing. The Motley Fool Australia has recommended ASML, Apple, Microsoft, and Nvidia. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The National Australia Bank Ltd (ASX: NAB) share price is trading around $38.48 on Monday.

For investors looking at the major banks, NAB offers a combination of earnings, dividends, and exposure to Australian business banking.

At this price, I think the shares deserve a closer look.

Why I like NAB

One of the main reasons I am positive on NAB is its strong position in business banking.

The bank has deep relationships with Australian small and medium-sized businesses, giving it exposure to lending, deposits, payments, and other financial services.

I like that because it gives NAB another avenue for growth alongside its large consumer banking operations.

Australian banking is still highly competitive, particularly in mortgages, and I would not expect earnings to race higher every year.

But NAB has a sizeable customer base, strong market positions, and a business banking franchise that I think can continue supporting earnings over the long term.

What does the valuation look like?

The next question is whether investors are paying a sensible price.

According to CommSec, consensus estimates are for earnings per share of $2.38 in FY26, increasing to $2.54 in FY27.

At $38.48, that puts NAB on a PE ratio of approximately 16 times forecast FY26 earnings and around 15 times FY27 earnings.

I would not describe that as bargain territory. But I also do not think the valuation is excessive for a major Australian bank with a strong franchise and the prospect of modest earnings growth.

If NAB delivers something close to current expectations, I think today's price leaves room for reasonable capital growth over time.

The dividend remains a big attraction

For many investors, NAB is just as much an income stock as it is a capital growth investment.

That is an important part of the case for me.

CommSec's consensus forecasts point to fully franked dividends of $1.70 per share in FY26 and $1.72 in FY27.

At the current share price, those payments would represent dividend yields of approximately 4.4% and 4.5%, respectively, before taking any potential benefit from franking credits into account.

I think that is a solid level of income from a business I would also be comfortable owning for the long term.

What would make me cautious?

NAB still faces the same pressures as the rest of the banking sector.

Competition for customers can put pressure on margins, while weaker economic conditions could increase bad debts and slow credit growth.

The shares also would not look nearly as interesting if earnings failed to grow as expected.

Those are risks I would keep in mind, particularly after the strong performance Australian bank shares have delivered over recent years.

Foolish takeaway

At $38.48, I think the NAB share price is a buy.

The valuation looks reasonable rather than cheap, but I like the bank's business banking position and the prospect of earnings moving higher in FY27.

Add a fully franked prospective dividend yield of around 4.4% to 4.5%, and I think investors are being offered a good balance of income and potential capital growth at today's price.

The post Is the NAB share price a buy at $38.48? appeared first on The Motley Fool Australia.

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• Westpac, ANZ, NAB or CBA shares? Which ASX bank stock should I buy for $5,000 a year in passive income?
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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 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 think passive income is most valuable when you can see it continuing well into the future.

That means looking beyond the dividend available today and thinking about what could support those payments over the next decade.

With that said, these four ASX passive income stocks would be high on my list.

Commonwealth Bank of Australia (ASX: CBA)

CBA would be my first choice among the major banks.

Its dividend is supported by one of Australia's strongest banking franchises, with millions of customers using the company for home loans, deposits, business banking, credit cards, and other financial services.

I particularly like CBA's technology and customer relationships. Its digital capabilities make it easier to keep customers within the bank and offer them additional products over time.

Australian banking will always be competitive, and I would watch CBA's premium valuation closely.

But if I were choosing a bank to provide income for the next decade, its combination of earnings strength and fully franked dividends would put it near the top of my list.

Aurizon Holdings Ltd (ASX: AZJ)

Aurizon gives income investors exposure to a completely different part of the economy.

The company operates rail freight services and owns rail infrastructure used to move commodities across Australia.

I like the infrastructure side of the business because these assets are difficult and expensive to replicate. Aurizon's Network operation also earns revenue from customers using its rail infrastructure rather than relying entirely on the profitability of individual commodity producers.

There will still be fluctuations in freight volumes and commodity markets.

Even so, I think the essential nature of its transport infrastructure can support substantial cash generation and shareholder distributions over the long term.

HomeCo Daily Needs REIT (ASX: HDN)

HomeCo Daily Needs REIT would add property income to the mix.

The real estate investment trust owns properties centred around everyday spending, including supermarkets, neighbourhood retail centres, and other assets that consumers regularly visit.

I think that focus makes sense for an income investment.

People may delay large discretionary purchases when household budgets become tight, but groceries and other everyday needs remain part of regular spending.

As rents increase and the portfolio develops over time, there is also potential for the underlying income generated by these properties to grow.

Interest rates and property valuations can create volatility, so I would keep an eye on debt levels and funding costs.

But for a decade-long income portfolio, I like the type of property exposure the HomeCo Daily Needs REIT provides.

Transurban Group (ASX: TCL)

Transurban would round out my four picks.

The company operates major toll roads in Australia and North America, including CityLink in Melbourne, Cross City Tunnel in Sydney, and AirportLinkM7 in Brisbane.

Traffic volumes can grow as populations increase and cities become busier, while contractual toll increases provide another way for revenue to rise over time.

That creates the potential for dividends to increase as the underlying cash flows expand.

Transurban carries substantial debt and requires plenty of capital, so it is not a risk-free income investment. But its roads are long-life assets that millions of motorists rely on.

Foolish takeaway

If I were building passive income for the next 10 years, I would want more than a collection of today's highest-yielding shares.

CBA, Aurizon, HomeCo Daily Needs REIT, and Transurban give me income supported by banking, freight infrastructure, everyday retail property, and toll roads.

I think that gives the portfolio several sources of cash flow while still leaving room for those payments to grow over time.

The post My top ASX passive income stocks for the next 10 years appeared first on The Motley Fool Australia.

More reading

• 3 ASX shares I'd buy for income and growth in retirement
•  If I invest $10,000 in CBA shares, how much passive income will I receive in FY27?
• Transurban posts 3.4% August traffic growth
• How much do I need in superannuation to receive $1,000 passive income per week?
• How to make $26,000 of passive income from ASX shares

Motley Fool contributor Grace Alvino has positions in Commonwealth Bank Of Australia and Transurban Group. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Transurban Group. The Motley Fool Australia has positions in and has recommended Transurban Group. The Motley Fool Australia has recommended HomeCo Daily Needs REIT. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Qantas Airways Ltd (ASX: QAN) shares have had a tough run on the market recently.

The shares are trading around $9.01 today, well below their 52-week high of $11.39.

I think that weakness has made the valuation more interesting, particularly for investors prepared to look beyond the next few months.

Here's why I would invest $10,000 in Qantas shares today.

The underlying business still looks strong

Qantas remains in a powerful position in Australian aviation.

Its domestic network gives the group strong exposure to business and leisure travel, while Jetstar provides a lower-cost option for customers who are more sensitive to price.

I also like the contribution from Qantas Loyalty. Its Frequent Flyer program gives the company another way to earn from its customer base outside the airline itself, while also encouraging passengers to remain within the wider Qantas ecosystem.

Then there is the fleet renewal program and Project Sunrise, which should gradually modernise the airline and expand what Qantas can offer on long-haul routes.

None of those opportunities depends on the share price recovering quickly. They are reasons I think the business itself can keep improving over the coming years.

Near-term pressure would not put me off

One issue I would watch closely is the oil price. Fuel is a major expense for airlines, so a sustained rise in oil prices could put pressure on Qantas' margins in the near term.

That could make earnings more volatile than investors would like and is one risk I would keep in mind at the current price.

I would not ignore that risk. At the same time, I still think Qantas is well placed to deliver solid earnings over the next few years. The company has significant scale, a strong domestic position, multiple brands, and several sources of revenue beyond simply selling airline seats.

For me, that gives the business more resilience than the share price currently seems to imply.

The valuation looks attractive

I think Qantas shares are looking attractive at current prices.

According to CommSec, consensus forecasts point to earnings per share of $1.04 in FY27, rising to $1.30 in FY28 and $1.50 in FY29.

At $9.01, Qantas is trading on a PE ratio of roughly 8.7 times forecast FY27 earnings.

If the FY29 estimate is achieved, that multiple falls to around six times earnings.

I think that looks cheap enough to compensate for some of the risks that come with owning an airline.

Investors may also receive a growing stream of dividends while waiting.

Consensus forecasts suggest dividends per share of 39.6 cents in FY27, 43.1 cents in FY28, and 49.6 cents in FY29.

At today's share price, those estimates represent forward dividend yields of roughly 4.4%, 4.8%, and 5.5%, respectively.

Foolish takeaway

I would be comfortable investing $10,000 into Qantas shares at current levels.

The airline industry will always bring volatility, but Qantas has several strong businesses underneath the headline brand and a clear path to higher earnings if current expectations are met.

At around $9.01, I think the shares offer enough value to make that risk worthwhile.

The post Why I'd invest $10,000 into Qantas shares today appeared first on The Motley Fool Australia.

More reading

• Could I retire comfortably with $800,000 in superannuation?
• Looking to bank the final Qantas dividend? You'd better hurry!
• How many Qantas shares do I need to buy for $5,000 of passive income in FY27?
• 33 ASX shares going ex-dividend next week
• Top 3 ASX 200 shares now below their 200-day moving average

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 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 iShares Global 100 AUD ETF (ASX: IOO) puts some of the world's biggest multinational businesses into a single ASX investment.

That includes companies leading areas such as artificial intelligence, cloud computing, financial services, healthcare, and consumer technology.

With so many established global names under one roof, is the IOO ETF a good buy today?

A portfolio of global leaders

The IOO ETF tracks the S&P Global 100 Index, giving investors exposure to 100 major multinational companies from around the world.

I like the focus on businesses that have already built significant global operations.

Major holdings include Nvidia, Apple, Microsoft, Amazon, Alphabet, and JPMorgan.

These companies give the fund exposure to areas including artificial intelligence, cloud computing, digital advertising, ecommerce, financial services, and consumer technology.

There are also businesses outside the technology sector, which gives investors exposure to other parts of the global economy.

For me, one of the advantages is that I do not need to decide which individual global giant will deliver the strongest returns over the next decade. The ETF gives me exposure to a collection of them through a simple ASX investment.

Concentration comes with trade-offs

The IOO ETF is more concentrated than some broad global ETFs.

With around 100 holdings, individual companies can have a greater influence on performance. Its largest positions also account for a meaningful proportion of the portfolio.

I do not necessarily see that as a negative. If I were buying this fund, I would be doing so because I specifically wanted greater exposure to some of the world's biggest and most established businesses.

But investors should understand that the fund may behave differently from an ETF holding more than 1,000 stocks.

If several of its largest holdings struggle at the same time, performance could suffer.

Why I would buy

What I like most about the IOO ETF is the quality of the businesses it allows me to own without needing to build the portfolio myself.

Many of its holdings have spent years establishing global customer bases, strong brands, valuable technology, or leading positions within their industries.

I think several of them could still be considerably larger businesses a decade from now.

That makes IOO ETF a fund I would be comfortable gradually adding to rather than trying to pick the perfect entry point.

Foolish takeaway

So, would I buy the IOO ETF now? Yes, I would.

I like the opportunity to own a focused collection of major global businesses through one ASX investment.

The portfolio is relatively concentrated, and some of its biggest holdings are not cheap, so I would expect plenty of volatility along the way.

But for an investor prepared to hold for years, I think the companies inside IOO give the ETF a strong long-term foundation.

The post Should I buy the iShares Global 100 ETF (IOO) now? appeared first on The Motley Fool Australia.

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JPMorgan Chase is an advertising partner of Motley Fool Money. 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 Alphabet, Amazon, Apple, JPMorgan Chase, Microsoft, and Nvidia. The Motley Fool Australia has recommended Alphabet, Amazon, Apple, Microsoft, and Nvidia. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

I enjoy researching individual companies and deciding which ASX shares I want to own.

But stock picking is not for everyone.

For an investor who wants a simpler way to build wealth over the long term, I think there is another option worth considering.

Building a portfolio takes work

Owning one or two ASX shares leaves a portfolio heavily dependent on what happens to a very small number of businesses.

To build reasonable diversification with individual stocks, I would be looking at roughly 20 companies spread across several industries.

That is certainly possible, but it also creates work.

I would want to understand why I owned every company, follow its results, keep an eye on management decisions, and decide whether anything had changed enough to reconsider the investment.

Some investors enjoy doing that. Others may have little interest in spending their spare time reading annual reports and company announcements.

For those investors, an exchange-traded fund (ETF) can make the process considerably easier.

Vanguard MSCI Index International Shares ETF (ASX: VGS)

The VGS ETF would be one of my preferred choices.

With a single investment, the fund provides exposure to more than 1,000 stocks across developed share markets around the world.

That immediately spreads an investment across many more businesses than I could realistically research and own individually.

It also takes me well beyond the opportunities available on the ASX.

Australia has plenty of excellent listed companies, but there are enormous global industries where the biggest businesses are based overseas.

Through this Vanguard ETF, investors can gain exposure to companies operating across technology, healthcare, industrials, consumer products, financial services, and many other parts of the global economy.

The portfolio also stretches across countries including the United States, Japan, the United Kingdom, and major European markets.

I don't need to find every winner

This is probably the part I like most for someone who does not want to pick stocks.

Individual investing requires making choices. I could buy an ASX share that looks promising today only to discover several years later that a competitor executed better or an industry developed differently from what I expected.

With the VGS ETF, I do not need to work out which individual global companies will eventually become the biggest winners.

Successful businesses can grow into larger positions within the underlying index, while companies that lose ground become less important over time.

There will still be periods when the ETF falls. It owns shares, so investors should expect market volatility.

But company-specific disappointments have far less ability to derail the overall investment when the money is spread across such a large portfolio.

It could make investing easier to stick with

I think there is also something to be said for simplicity.

An investor could regularly add money to the VGS ETF without needing to find a new stock idea every time cash becomes available.

That could make it easier to remain consistent through both strong and weak markets.

Foolish takeaway

I still enjoy choosing individual ASX shares, and I think stock picking can produce excellent results for investors prepared to put in the work.

But it is not a requirement for building long-term wealth.

Rather than selecting and following around 20 individual ASX shares, I think the Vanguard MSCI Index International Shares ETF provides a simple way to own a large collection of businesses around the world with a single investment.

For someone who wants to spend less time researching stocks and more time simply staying invested, I think that is a compelling proposition.

The post Why I'd buy this ETF instead of picking 20 ASX shares appeared first on The Motley Fool Australia.

More reading

• How to make $26,000 of passive income from ASX shares
• 3 reasons to buy the Vanguard MSCI Index International Shares (VGS) ETF
• Vanguard ETFs vs. Betashares ETFs: Who's coming out on top?
• Which ASX ETFs could be top picks for beginner investors?
• Could a $1 million superannuation balance provide $50,000 a year in retirement?

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 no position in any of the stocks mentioned. The Motley Fool Australia has recommended Vanguard Msci Index International Shares ETF. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Some ASX shares are trading a long way below where investors were willing to value them only a year ago.

That doesn't automatically make them bargains, but I think it can create an opportunity when the long-term business case remains strong.

These are two ASX shares I would be comfortable buying at today's lower prices.

Cochlear Ltd (ASX: COH)

Cochlear shares are trading around $137.88 at the time of writing, compared with a 52-week high of $303.74. That puts the stock roughly 55% below its high.

I think the size of that fall deserves attention because Cochlear still operates in a market with a significant amount of unmet demand.

The company develops cochlear implants for people with severe hearing loss, yet many potential candidates around the world are never referred for treatment or ultimately receive an implant.

For me, that leaves a long runway even before considering population growth and ageing.

Cochlear also continues to improve the technology itself. Its newer Nucleus Nexa platform gives the company another opportunity to encourage upgrades and make treatment more attractive to future recipients. Longer term, developments such as personalised stimulation, drug-eluting electrodes, and potentially totally implantable devices could continue improving the patient experience.

Healthcare companies can go through periods when growth disappoints or investors become less willing to pay premium valuations. I think that's where we are right now. But that disappointment won't last forever.

As such, I would be happy to buy Cochlear at today's level and give the underlying growth opportunity time to play out.

Nextdc Ltd (ASX: NXT)

NEXTDC shares are also trading well below their previous high.

At around $12.30 at the time of writing, the data centre operator is roughly 31% below its 52-week high of $17.85.

I continue to think the long-term opportunity behind the ASX share is substantial. NEXTDC is investing heavily to expand its data centre network as demand grows from cloud computing, artificial intelligence, and other digital workloads.

What I like is that the company already has a large amount of customer demand contracted before all that capacity has been completed. That gives me more confidence in the expansion strategy.

As new data halls are completed and contracted, and customers begin using them, more of that capacity should start contributing revenue.

There is still plenty to watch. Data centres require enormous amounts of capital, and NEXTDC needs to build efficiently, secure sufficient power, and manage its funding as the network expands. But those are risks I am willing to accept given the scale of the opportunity.

At $12.30, I think investors are getting a much more attractive entry point than they had near the 52-week high.

Foolish takeaway

Neither Cochlear nor NEXTDC needs to return to its previous high for me to be interested today.

I like the growth opportunities behind both businesses, while their much lower share prices give investors a very different entry point from where they traded previously.

If Cochlear keeps reaching more patients and NEXTDC successfully converts its contracted demand into operating data centre capacity, I think both ASX shares have plenty of room to recover over the years ahead.

The post 2 ASX shares I'd buy before they return to their 52-week highs appeared first on The Motley Fool Australia.

More reading

• Nextdc vs Megaport: Which ASX tech growth share comes out on top?
• 3 ASX shares I think could return 10%+
• Cochlear share price rebounds 53% from 10-year low: Can it keep climbing?
• Cochlear vs Pro Medicus: Which beaten-down ASX healthcare share is the better buy today?
• 2 ASX 200 shares tipped by brokers to return 73% and 83%

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 Cochlear. 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.

Buying an S&P/ASX 200 Index (ASX: XJO) share becomes a little more serious when selling is taken off the table.

If I knew I had to hold an investment for the next decade, I would want businesses that could keep finding new ways to grow long after the initial purchase.

These three ASX 200 shares would make my shortlist.

Xero Ltd (ASX: XRO)

Xero would be one of my first choices.

Its accounting software has become an important part of how millions of small businesses manage invoicing, payroll, payments, reporting, and other financial tasks.

I like the position that creates. Once a business has moved its financial records onto Xero, connected its accountant, and added other applications, changing platforms can become increasingly inconvenient.

That can help Xero retain customers while gradually offering them more services.

The company also still has a surprisingly large market left to target. Xero had around 4.9 million customers in FY26, while management has previously pointed to a global addressable market of around 100 million small businesses.

Payments, payroll, artificial intelligence, and its acquisition of Melio could also allow Xero to play a larger role in the financial lives of those customers.

Over 10 years, I think there is plenty of room for both the customer base and the amount each customer spends with Xero to increase.

HUB24 Ltd (ASX: HUB)

HUB24 would give me exposure to another long-term change happening in Australia.

The ASX 200 share provides investment and administration technology used by financial advisers to manage client portfolios.

What I like here is the opportunity for more wealth to move onto modern platforms as advisers look for better technology, greater flexibility, and more efficient ways to manage client money.

HUB24 can benefit as its existing advisers bring more client assets onto the platform, while new advisers provide another source of growth.

The wider group also owns businesses including Class and myprosperity, giving it technology that reaches accountants and wealth-management clients beyond the core investment platform.

Australia's pool of superannuation and investment savings should continue growing for many years. I think HUB24 has a good chance of capturing an increasing share of the activity surrounding that wealth.

Macquarie Group Ltd (ASX: MQG)

Macquarie would be my third ASX 200 share pick.

The company has built businesses across asset management, infrastructure, commodities, energy, financial markets, advisory, and banking.

That gives Macquarie plenty of places to look for opportunities as the world changes.

Over the coming decade, enormous amounts of capital will likely be required for energy infrastructure, transport, digital networks, and other major projects. Macquarie has spent decades building the expertise and relationships needed to participate in those areas.

Its earnings can be up and down, and some years will inevitably be much stronger than others.

But if I were forced to ignore the share price for 10 years, that would bother me less. I would be backing Macquarie's ability to keep finding attractive opportunities and allocating capital effectively over a full market cycle.

Foolish takeaway

A 10-year restriction would change the way I thought about buying ASX 200 shares.

Short-term catalysts would become far less important. I would spend much more time asking whether the business could still have a larger customer base, stronger competitive position, and higher earnings a decade from now.

For Xero, HUB24, and Macquarie, I think the answer could be yes.

The post 3 ASX 200 shares I'd buy if I couldn't sell for 10 years appeared first on The Motley Fool Australia.

More reading

• 5 ASX shares I'd recommend to beginners
• Hub24 shares have fallen 27% in 2026. Could they really rebound 38%?
• Netwealth Group vs HUB24: Which financial platform is better from an investor's perspective?
• Xero shares crashed 59%. What do brokers see next?
• 3 ASX shares I think could return 10%+

Motley Fool contributor Grace Alvino has positions in Hub24. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Hub24, Macquarie Group, and Xero. The Motley Fool Australia has positions in and has recommended Xero. The Motley Fool Australia has recommended Hub24 and Macquarie Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.