But if you are investing on the ASX, there is one obvious challenge. Buffett does not invest here, and we do not know which Australian shares he would choose.

That said, we do know how he thinks.

And that gives us a useful framework for building a Buffett-inspired portfolio using ASX shares.

Strong competitive advantages

One of Buffett's core principles is investing in companies with durable competitive advantages, often referred to as economic moats.

These are businesses that are difficult for competitors to replicate. This might be due to brand strength, scale, intellectual property, or deep integration into customer operations.

On the ASX, examples could include companies like CSL Ltd (ASX: CSL), which benefits from its global scale and complex plasma network, or REA Group Ltd (ASX: REA), which dominates online real estate listings in Australia.

These types of businesses are often able to maintain pricing power and deliver consistent returns over time.

Look for consistent earnings and strong returns

Warren Buffett has always preferred companies that generate reliable profits.

Rather than chasing speculative growth, he looks for businesses that can steadily grow earnings year after year. High returns on capital and strong cash flow are often key indicators.

ASX companies like Cochlear Ltd (ASX: COH) and ResMed Inc (ASX: RMD) fit this mould, with established products, global demand, and recurring revenue streams.

The goal is to own businesses that perform well across different economic conditions.

Keep it simple and understandable

Another hallmark of Buffett's approach is simplicity.

He invests in businesses he understands. This often means avoiding overly complex or speculative industries.

For ASX investors, this could translate to focusing on companies with clear business models and predictable revenue streams.

Retailers, healthcare companies, and infrastructure businesses can often be easier to understand than highly speculative sectors.

This might mean Woolworths Group Ltd (ASX: WOW), APA Group (ASX: APA), and Wesfarmers Ltd (ASX: WES).

Think long term

Warren Buffett is famous for his long-term mindset.

He has often said his favourite holding period is "forever." This reflects his belief in owning great businesses and allowing compounding to do the work.

A Buffett-inspired ASX share portfolio should be built with a similar mindset. Instead of reacting to short-term market movements, the focus should be on holding quality companies for many years.

Avoid overpaying

Even the best business is not a good investment at the wrong price.

Buffett looks for opportunities to buy high-quality companies at reasonable valuations. This often means being patient and waiting for periods of market weakness.

For ASX share investors, this could involve building a watchlist and being ready to act when quality shares fall out of favour.

Foolish takeaway

We may never know exactly which ASX shares Buffett would buy.

But by focusing on competitive advantages, consistent earnings, simplicity, and long-term thinking, investors can build a portfolio that reflects his philosophy.

It is about applying the principles that made him successful to our own portfolios.

The post How to build a Warren Buffett-inspired ASX share portfolio appeared first on The Motley Fool Australia.

It comes down to a few simple principles. Investing consistently, focusing on quality, and giving your money enough time to grow.

Here is how it can work.

Start with a clear plan

The foundation of wealth building is consistency.

Investing $1,000 every month into ASX shares creates a steady flow of capital into your portfolio. That is $12,000 per year, regardless of what the market is doing.

This approach removes the pressure of trying to pick the perfect moment to invest. Instead, you are building momentum through regular contributions.

Over time, this discipline becomes one of your biggest advantages.

Aiming for a 10% return

A 10% annual return is a useful benchmark.

It is broadly in line with long-term equity market returns and provides a realistic foundation for planning. While markets will not deliver this every year, it is a reasonable long-term expectation.

At this rate, investing $1,000 per month could grow to approximately $200,000 in around 10 years, and $725,000 in 20 years.

Stretch that out to 30 years, and the portfolio could exceed $2 million.

This is where the power of compounding becomes clear.

How to aim for strong returns

There are no guarantees in investing, but there are ways to tilt the odds in your favour.

Focusing on high-quality ASX shares with strong earnings, competitive advantages, and long growth runways can improve your chances of achieving solid returns over time.

ASX share examples include ResMed Inc. (ASX: RMD), REA Group Ltd (ASX: REA), Wesfarmers Ltd (ASX: WES), and Cochlear Ltd (ASX: COH).

It can also help to learn from some of the best investors in history. For example, Warren Buffett has delivered average annual returns of close to 20% over several decades for Berkshire Hathaway (NYSE: BRK.B).

While matching that level of performance is unlikely for most investors, his approach offers valuable lessons. Focus on quality, stay disciplined, and think long term.

Applying these principles can help investors move closer to their goals, even if returns are more modest.

Stay invested and let compounding work

One of the biggest drivers of wealth is time.

The longer your money stays invested, the more opportunity it has to grow. Returns begin generating their own returns, creating a compounding effect that accelerates over time.

This is why staying invested through market cycles is so important.

Short-term volatility can be uncomfortable, but it is often part of the journey toward long-term gains.

Foolish takeaway

Building massive wealth with ASX shares is certainly possible.

By investing $1,000 each month, aiming for solid long-term returns, and staying consistent, it is possible to create a portfolio that grows far beyond what many expect.

The key is to build something steadily, and let time do the heavy lifting.

The post How to build massive wealth with ASX shares appeared first on The Motley Fool Australia.

Here are four ASX 200 shares I think offer these qualities, and I would be looking at today.

Hub24 Ltd (ASX: HUB)

Hub24 is a business that benefits from momentum. Not the kind you see in share price charts, but the kind that builds within an industry over time. Once a financial adviser adopts an investment and superannuation platform, integrates it into their workflow, and brings clients onto it, that decision tends to stick.

What I like is how that creates a layering effect. New clients are added, existing clients grow their portfolios, and over time, the platform becomes more deeply embedded in the advice process. Growth does not rely on a single catalyst; it builds gradually as the ecosystem expands.

For me, it is a business where scale can quietly do a lot of the work over the long term.

REA Group Ltd (ASX: REA)

REA Group is one of those ASX 200 shares where the product is almost unavoidable.

Anyone who has searched for property in Australia has likely interacted with its platform, and that kind of reach creates a strong position in the market.

What I like in particular is how pricing power shows up. Agents are not just paying for a listing; they are paying for visibility in a highly competitive environment. When demand for property is strong, that visibility becomes even more valuable.

It is a business that sits at the heart of real estate activity and digital advertising, and I think that combination gives it a unique ability to grow over time without needing to constantly reinvent itself.

Sigma Healthcare Ltd (ASX: SIG)

Sigma Healthcare is another ASX share I'd look at buying with the $5,000.

Following its merger with Chemist Warehouse, the business now sits across both distribution and retail, which creates a more integrated model than it had in the past.

What I find compelling is how that changes its position in the supply chain. Instead of being one step removed, the company is now more directly connected to the end customer. That can create efficiencies, improve margins, and open up new opportunities over time.

It is still early days for this combined structure, but I think the long-term potential lies in how those two sides of the business work together.

ResMed Inc (ASX: RMD)

ResMed has had a tough run, with the share price hitting a 52-week low on Friday.

That kind of move can draw attention, but what matters more to me is what is happening within the business.

ResMed operates in sleep and respiratory care, and demand in that area is closely linked to awareness and diagnosis. As more people recognise the importance of sleep health, more patients enter the system, which can support long-term growth.

As well as devices, the company has a growing software business. It is about managing patient outcomes over time, which can create a more connected and recurring relationship with users.

In my opinion, that combination of hardware and software is what makes the business stand out.

Foolish Takeaway

If I had $5,000 to invest today, I would focus on ASX 200 shares that are building long-term momentum in different ways.

Hub24 is benefiting from structural growth in platform-based investing, REA Group continues to strengthen its position in digital property advertising, Sigma Healthcare is evolving into a more integrated healthcare business, and ResMed is building a broader ecosystem around sleep and respiratory care.

I think they offer a mix of growth drivers that could play out over time and deliver attractive returns.

The post If I had $5,000 to invest in ASX 200 shares today, here's what I'd buy appeared first on The Motley Fool Australia.

REA Group Ltd (ASX: REA) shares are down around 13% year to date, while Light & Wonder Inc (ASX: LNW) has fallen roughly 21%.

Both are leaders in their fields. Both ASX shares have strong long-term growth stories.

So, is this weakness an opportunity?

REA Group: a digital powerhouse

When it comes to dominant platforms, this ASX share is hard to beat.

The company sits at the centre of Australia's property market through realestate.com.au. That position gives it significant pricing power and a highly scalable business model.

Agents need eyeballs and REA controls them. That dynamic has allowed the company to consistently lift prices through premium listings and depth products, even when property volumes fluctuate.

While the housing cycle can create short-term volatility, the long-term trajectory remains intact. Growth is also supported by international expansion, adding another lever beyond the domestic market.

And the recent pullback hasn't gone unnoticed. Trading View data show that 12 out of 16 brokers rate REA Group as a buy or strong buy. They have set a 12-month average price target of $213.62, which points to a 32% potential gain.

Analysts at Morgan Stanley currently have an overweight rating on the ASX share, with a $230.00 price target. That suggests potential upside of roughly 44% from current levels.

For long-term investors, that's a strong signal that the market may be underestimating REA's staying power.

Light & Wonder: growth across multiple fronts

Light & Wonder offers a different kind of growth story, but one that's just as compelling.

The company operates across land-based gaming, iGaming, and social gaming through its SciPlay division. That diversified model allows it to tap into both traditional casino revenue and the fast-growing digital gaming market.

It's a powerful combination. By straddling physical and digital channels, the ASX share is positioned to capture multiple industry tailwinds at once. And that's exactly why analysts are paying attention.

Macquarie Group Ltd (ASX: MQG) has named the ASX share its top pick in the Australian gaming sector, pointing to its ability to win market share and its "wide moat from disruption." That's a big call in a competitive space.

The upside case is hard to ignore. Macquarie has set a $205 price target on the stock, compared to its current price of $122.77. That implies potential upside of more than 65%.

Of course, risks remain. Consumer spending cycles, regulatory changes, and execution all matter. But the long-term positioning is clear.

Foolish Takeaway

REA Group and Light & Wonder have both taken a hit in 2026. But their core strengths haven't disappeared. These are dominant businesses with scalable models, strong competitive advantages, and clear growth pathways.

For investors willing to look beyond short-term volatility, they could be the kind of shares you buy — and forget about for years.

The post Buy and forget? 2 top ASX shares built for the long term appeared first on The Motley Fool Australia.

It can make a big difference to invest in high-growth businesses when they sell off because of the much bigger change in the price/earnings (P/E) ratio.

For example, if a business with a P/E ratio of 10 falls by 10%, the ratio drops to 9. If a business had a P/E ratio of 50 and it fell by 10%, the P/E ratio would become 45.

With that in mind, the two businesses below look like great value to me.

REA Group Ltd (ASX: REA)

REA Group is the leading property portal company in Australia, with its realestate.com.au business, which sees significantly more visitors than competitors in terms of both property vendors and potential buyers. This market strength allows the business to charge more than rivals and increase prices regularly.

With Australia's growing population and increasing number of properties, the company's addressable market is steadily growing. The recent (and potential upcoming) RBA rate hikes may lead to an increase in property listings, which could boost earnings

The potential of AI hurting the ASX growth share's earnings is not as strong as the market has priced in, in my view, as AI could assist REA Group's earnings in a variety of ways on both the income side and the expense side. Plus, AI adoption by households may not become as widespread as expected (if that ends up being a headwind).

After falling around 40% since August 2025, the REA Group share price is now valued at 33x FY26's estimated earnings, according to CMC Invest.

Siteminder Ltd (ASX: SDR)

Siteminder is another technology company, it provides software for hotels for their operations and to generate revenue through room sales and distribution.

The company has a really impressive goal of 30% annual revenue growth, which most businesses would be very happy with. Not only is the company winning more hotel customers, but it's unlocking more revenue from existing clients by providing more modules.

These additional offerings allow the hotel to analyse their data and finances more effectively so they can decide what price to charge for their rooms. Siteminder can even change the hotel's room prices automatically for them.

The operating leverage of a software business means that costs don't grow at the same speed as revenue, so I'm expecting Siteminder to see its various profit margins (and bottom line) to improve significantly in the next few years.

Following the Siteminder share price's decline of 60% in the past six months, it now looks very good value to me. According to the projection on CMC Invest, it's valued at 24x FY28's estimated earnings.

The post 2 ASX growth shares to buy now while they're on sale appeared first on The Motley Fool Australia.

High-growth names have come under pressure, valuations have reset, and concerns around artificial intelligence (AI) and interest rates have made investors more cautious.

But these periods tend to do something important. They separate sentiment from fundamentals.

And in my experience, that is often when long-term investors start leaning back in.

Here are three ASX 200 shares I think are attracting attention after the recent pullback.

WiseTech Global Ltd (ASX: WTC)

WiseTech has been one of the more heavily sold-off tech names.

That reflects a mix of factors, including valuation concerns and broader uncertainty around how AI could reshape parts of the software industry.

But when I look at the business, I still see an ASX 200 share building a truly global logistics platform. Its software is deeply embedded in customer workflows, which creates switching costs and supports recurring revenue.

I think that matters. Even if growth moderates or sentiment takes time to recover, the underlying platform continues to expand.

For investors willing to look beyond the short term, I think that could make the current environment more interesting.

REA Group Ltd (ASX: REA)

REA Group has also seen pressure, despite operating one of the most dominant digital platforms in Australia.

Its position in online real estate listings gives it a powerful network effect. Buyers and sellers naturally gravitate to where the activity is, which reinforces its leadership.

The property market can move in cycles, and that can influence short-term performance.

But I think the long-term story is more stable than that. REA has consistently found ways to grow revenue through pricing, product expansion, and increased engagement.

For me, that combination of market position and monetisation potential remains compelling.

Hub24 Ltd (ASX: HUB)

Hub24 is not always grouped with traditional tech names, but it shares many of the same characteristics.

It operates a platform used by financial advisers to manage client investments, and that platform continues to grow as more funds flow onto it.

What I find interesting is how that growth tends to build over time. As advisers adopt the platform, it becomes embedded in their processes. That creates a base of funds that is both recurring and scalable.

In a softer market, flows may slow at times. But as confidence returns, I think platforms like Hub24 are well positioned to benefit from renewed activity.

Foolish takeaway

Selloffs in the tech sector can feel uncomfortable, but they also tend to create opportunities.

The key, in my view, is focusing on businesses that still have strong underlying models, even if their share prices have come under pressure.

WiseTech, REA Group, and Hub24 all operate in different parts of the market, but each has characteristics that could support long-term growth.

For investors thinking beyond the current volatility, I think they could be great long-term investments.

The post The ASX 200 shares I think smart investors are buying after the tech selloff appeared first on The Motley Fool Australia.

Since last Thursday, Australia's benchmark index has recovered roughly 4%. 

If this momentum continues, there are several notable ASX stocks that could be poised for strong growth. 

Here are five ASX stocks with lofty price targets from brokers. 

WiseTech Global Ltd (ASX: WTC)

WiseTech is a provider of logistics software that aims to improve the world's supply chains. 

It has suffered along with many tech shares at the hands of artificial intelligence integration/takeover fears. 

This has resulted in a 45% fall year to date. 

However, brokers are anticipating a rebound in the mid-term. 

The team at Blackwattle are confident it will be one of the tech shares to emerge from this bear market. 

Additionally, Morgan Stanley has a buy rating on Wisetech along with a $70 price target. 

From today's stock price of $37.43, that indicates approximately 87% upside. 

Seek Ltd (ASX: SEK)

Similar AI takeover fears have weighed heavily on Seek shares this year. 

The company behind the well-known online employment marketplace has seen its share price fall nearly 37% in 2026. 

Last month, the team at Citi acknowledged there are some headwinds coming for the company, but they still think it is undervalued.

The broker has a $26 price target on this ASX stock, which indicates an upside of roughly 76% from current levels. 

REA Group Ltd (ASX: REA)

REA Group is an online real estate advertising company that provides property and property-related services on websites and mobile apps across Australia, Asia, and North America.

So far in 2026, its share price has fallen by almost 15% and remains down 35% in the last year. 

Some estimates from brokers place a fair price target of $199 on this ASX stock, indicating an upside of 26%. 

Catalyst Metals Ltd (ASX: CYL)

Catalyst Metals is engaged in the mineral exploration, evaluation, and production of gold.

Like many gold shares, it enjoyed a strong run-up until January this year. 

Since then, it has dropped by more than 30%. 

However, 6 analysts' forecasts on TradingView have an average one-year price target of $14.10, which is 110% above today's opening stock price of $6.69. 

Vulcan Energy Resources Ltd (ASX: VUL)

Vulcan Energy is focused on providing lithium with a zero-carbon footprint to European electric vehicle manufacturers.

This ASX stock has fallen by approximately 15% year to date. 

Today, it is changing hands for roughly $3.72 per share. 

However, the average analyst stock price target on TradingView is $7.24, which is 94% above current levels. 

The post Could these ASX stocks double by the end of 2026? appeared first on The Motley Fool Australia.

Two standout ASX stocks — REA Group Ltd (ASX: REA) and Aristocrat Leisure Ltd (ASX: ALL) — were among the losers again on Thursday. In fact, both have shed roughly 30% of their value over the past six months.

While that might rattle short-term traders, brokers are increasingly viewing this weakness as a compelling long-term entry point.

REA Group

When it comes to dominant digital platforms, REA Group remains one of the ASX's crown jewels.

The ASX stock sits at the heart of Australia's online property advertising market through its flagship realestate.com.au platform, giving it powerful pricing power and a highly scalable business model.

While the housing cycle can create short-term volatility, REA's long-term growth story remains intact. It's supported by premium listings, depth products, and international expansion.

The recent price weakness on the ASX stock appears to have caught the attention of analysts. Broker Morgan Stanley currently has an overweight rating on REA's shares, alongside a $230.00 price target. That implies a potential upside of roughly 44% over the next 12 months.

For long-term investors, that's a strong vote of confidence in both the company's fundamentals and its ability to rebound as market conditions stabilise.

Aristocrat Leisure

Gaming technology leader Aristocrat Leisure is another high-quality name that has fallen out of favour recently. And the ASX stock could be primed for a comeback.

Aristocrat generates the bulk of its earnings from gaming machines and digital content, particularly in the lucrative US market. While sentiment has softened in recent months, underlying demand trends appear far more resilient than the share price suggests.

In fact, analysts are seeing encouraging signs. The team at Macquarie Group Ltd (ASX: MQG) has retained its outperform rating on the ASX stock, and set a $63.00 price target. That represents potential upside of approximately 33% from current levels.

Macquarie has been reviewing recent US casino gaming data and noted year-on-year growth, a positive signal for Aristocrat's core land-based gaming business. Combined with its expanding digital segment, the company appears well placed to deliver long-term earnings growth.

Foolish Takeaway

Market pullbacks can be uncomfortable, but they often create rare opportunities to buy high-quality ASX stocks at discounted prices.

With both REA Group and Aristocrat Leisure down significantly and backed by bullish broker forecasts, long-term investors may want to take a closer look before the market sentiment turns.

The post 2 high-quality ASX stocks to buy and hold long term appeared first on The Motley Fool Australia.

Here are three ASX shares that may not always grab headlines but could quietly build serious wealth over time.

Aristocrat Leisure Ltd (ASX: ALL)

The first ASX share that could quietly deliver strong returns is Aristocrat Leisure.

The company has built a powerful dual-engine business. Its traditional land-based gaming division generates reliable cash flow, while its digital segment provides exposure to higher-growth opportunities.

What makes Aristocrat particularly interesting is its ability to consistently produce successful game content. In both physical machines and mobile platforms, strong titles can generate recurring revenue long after their initial release.

This blend of stability and growth gives Aristocrat flexibility. It can reinvest in new opportunities while still returning capital to shareholders.

Over time, that balance between dependable earnings and expanding digital exposure could make it a compelling long-term compounder.

UBS recently put a buy rating and $69.00 price target on its shares.

NextDC Ltd (ASX: NXT)

Another ASX share that could be worth considering is data centre operator NextDC.

In many ways, it is helpful to think of NextDC as a backbone provider for the digital economy. As businesses move more workloads to the cloud and demand for data processing and AI grows, the need for secure, high-performance infrastructure continues to rise.

What sets NextDC apart is its focus on premium, interconnected facilities. These sites allow customers to link directly with cloud providers, networks, and partners, creating an ecosystem effect that is difficult to replicate.

While the company is still in a heavy investment phase, this infrastructure build-out could underpin earnings growth for many years.

This week, the team at UBS put a buy rating and $22.55 price target on NextDC's shares.

REA Group Ltd (ASX: REA)

A third and final ASX share that could be a long-term winner is REA Group.

REA Group operates a digital marketplace that has become deeply embedded in Australia's property ecosystem. Real estate agents rely on its platforms to reach buyers, giving the company significant pricing power and a dominant competitive position.

But the interesting part of the story is how REA Group continues to monetise that position. Premium listings, data-driven insights, and value-added services are all helping drive revenue per customer higher over time.

Even when property volumes fluctuate, REA Group has shown an ability to grow earnings through yield expansion and product innovation. Over the long run, this makes it less of a cyclical business than it might first appear.

Morgan Stanley currently has an overweight rating and $230.00 price target on its shares.

The post 3 fantastic ASX shares that could help build long-term wealth appeared first on The Motley Fool Australia.

The key is not trying to time the market or chase quick wins. Instead, it is about consistency, discipline, and backing quality investments that can compound over many years.

Here is a simple approach that could help.

Consistency

The biggest advantage of investing monthly is that you build momentum.

By investing regularly, you naturally buy more ASX shares when prices are lower and fewer when prices are higher. This is often referred to as dollar-cost averaging and can help smooth out market volatility.

The important part is sticking to your plan regardless of short-term market movements.

Build around quality ASX shares

Each month, look to allocate your capital into high-quality ASX shares with strong long-term prospects.

These are typically businesses with competitive advantages, strong management teams, and clear growth opportunities.

For example, REA Group Ltd (ASX: REA) dominates online real estate listings in Australia, while CSL Ltd (ASX: CSL) operates in a global healthcare market with significant long-term demand.

Owning these types of companies can provide a solid base for your portfolio.

Mix in growth

Alongside established names, consider allocating part of your monthly investment to growth-focused companies.

These businesses often reinvest heavily to expand their operations and can deliver strong returns if they execute well.

Companies such as Goodman Group (ASX: GMG) and TechnologyOne Ltd (ASX: TNE) are examples of businesses benefiting from increasing demand for digital infrastructure and enterprise software.

Including growth exposure can help accelerate your portfolio's long-term returns.

Use ETFs

If you do not want to pick individual stocks every month, ETFs can make the process easier.

Funds like the Vanguard MSCI Index International Shares ETF (ASX: VGS) provide access to global markets, while the Betashares Nasdaq 100 ETF (ASX: NDQ) focuses on leading technology companies.

Rotating between shares and ETFs can help you build a diversified portfolio over time.

Think long term

The real power of this strategy comes from compounding.

Investing $1,000 each month adds up to $12,000 per year. Over a decade, that is $120,000 invested, before considering any returns.

If your portfolio can achieve an average return of around 10% per annum (not guaranteed), your total portfolio value could grow to $200,000 after 10 years.

By staying consistent, focusing on quality, and thinking long term, this simple approach can become a powerful way to build wealth through ASX shares.

The post How to invest $1,000 per month in ASX shares and build long-term wealth appeared first on The Motley Fool Australia.

In fact, some of the best-performing ASX 200 shares over time have been the ones that steadily grow earnings, expand margins, and reinvest for the future without attracting too much attention along the way.

For investors focused on long-term compounding, here are three ASX shares that could be worth considering.

Goodman Group (ASX: GMG)

The first ASX share that could deliver steady compounding is Goodman Group.

Goodman focuses on logistics and industrial property, which has benefited from the growth of ecommerce and supply chain optimisation.

More recently, it has been increasing its exposure to data centre developments, positioning itself to benefit from rising demand for digital infrastructure and artificial intelligence.

Its integrated model, which combines development, management, and investment, allows it to generate earnings from multiple sources.

With long-term structural demand for logistics and data infrastructure, Goodman appears well placed to continue growing its earnings in a relatively steady and predictable way.

For investors looking beyond short-term market noise, these types of businesses can often deliver strong returns simply by continuing to execute over time.

REA Group Ltd (ASX: REA)

Another ASX 200 share that could quietly compound over time is REA Group.

REA operates Australia's leading online real estate platform, which has become the go-to destination for property listings. This dominant position gives it significant pricing power and strong network effects.

As more buyers and sellers use the platform, its value increases, allowing REA Group to continue lifting prices and expanding its revenue.

It is also leveraging its audience to grow adjacent services such as data, insights, and financial products. This creates additional revenue streams without needing to significantly expand its cost base.

With a capital-light model and strong margins, REA Group is well positioned to continue compounding earnings over time.

TechnologyOne Ltd (ASX: TNE)

A final ASX 200 share that could be a long-term compounder is TechnologyOne.

The enterprise software provider has been steadily transitioning its customers to a cloud-based platform, which is driving recurring revenue and improving margins.

What stands out is the predictability of its earnings. Once customers are embedded in its ecosystem, switching costs are high, which supports long-term retention.

TechnologyOne is also expanding internationally, particularly in the UK, where it is replicating its Australian success.

This combination of recurring revenue, operating leverage, and global expansion could support consistent growth over many years. In fact, management believes it can double in size every five years.

The post 3 ASX 200 shares that could quietly compound for years appeared first on The Motley Fool Australia.

Find businesses that can keep growing over time, supported by strong demand and durable competitive advantages.

They do not need to be the fastest-growing companies every year. What matters more is consistency and the ability to compound over many years.

Three ASX shares that I think fit that description are in this article.

ResMed (ASX: RMD)

Healthcare is an area where I like to look for long-term winners, and ResMed stands out to me.

The company focuses on sleep apnoea and respiratory care, which I believe are supported by long-term demographic and health trends.

An ageing population and increasing awareness of sleep disorders could continue to drive demand for its products and services.

I also like that ResMed has been building out its digital health ecosystem, which could enhance patient outcomes and strengthen its competitive position over time.

For me, it is a combination of defensive characteristics and growth potential, which is not always easy to find.

TechnologyOne Ltd (ASX: TNE)

TechnologyOne is probably one of the quieter achievers on the ASX, but I think that is part of what makes it interesting.

It provides enterprise software, particularly to government and education sectors, and has successfully transitioned to a software-as-a-service model.

What stands out to me is the consistency.

Recurring revenue, high margins, and long-term customer relationships all point to a business that can compound earnings over time.

It may not grab headlines in the same way as some other tech names, but I believe that reliability can be a real advantage for long-term investors.

REA Group Ltd (ASX: REA)

REA Group adds a different type of quality.

It operates one of the most dominant digital platforms in Australia through realestate.com.au, which gives it a very strong competitive position.

What I like here is the combination of pricing power and network effects. Agents need to list where buyers are, and buyers go where the listings are. That creates a reinforcing cycle that is difficult for competitors to break.

The business is also highly profitable, with strong margins and the ability to grow earnings over time as the property market evolves and digital penetration increases.

For me, REA Group is an example of a platform business that can continue compounding over many years.

Foolish takeaway

I think long-term investing is about owning businesses that you can hold through different market cycles without constantly second-guessing the decision.

ResMed offers exposure to global healthcare demand with a growing digital component, TechnologyOne provides a steady, recurring revenue model that continues to scale over time, and REA Group brings a dominant platform with strong pricing power and long-term growth potential.

Overall, the three have the kind of characteristics I think can support long-term compounding.

The post 3 high-quality ASX shares I'd buy and hold for the long term appeared first on The Motley Fool Australia.

Instead, it is about finding businesses that can grow consistently over many years, supported by strong competitive positions and large opportunities ahead of them.

These are the types of companies that can compound earnings and deliver meaningful returns over time.

Here are three ASX growth shares that could fit that description.

Megaport Ltd (ASX: MP1)

The first ASX share that I would buy and hold for the next decade is Megaport.

Megaport operates a global platform that allows businesses to connect to cloud services and data centres on demand. As more companies shift their operations to the cloud, the need for flexible and scalable connectivity continues to grow.

What arguably makes Megaport's story more compelling today is its expansion beyond networking. The recent acquisition of Latitude brings high-performance compute capabilities into the platform, allowing customers to deploy both connectivity and compute infrastructure on demand. This positions the company at the centre of how modern workloads, including AI, are built and scaled.

While the company has faced challenges in the past, it now appears to be entering a more mature phase focused on profitability and execution. If it delivers on this broader infrastructure vision, Megaport could benefit from the continued growth of cloud and AI-driven demand globally.

REA Group Ltd (ASX: REA)

Another ASX growth share that I would buy and hold is REA Group.

REA Group has built a dominant position in Australia's online property listings market through realestate.com.au. Its platform benefits from strong network effects, where more listings attract more buyers, which in turn attracts more agents.

This creates pricing power. Agents are willing to pay for premium listings and advertising products because of the platform's reach and effectiveness.

Over time, the company has been able to increase its revenue per listing, even during periods of softer property activity. Combined with its expansion into adjacent services, this could support continued growth over the long term.

TechnologyOne Ltd (ASX: TNE)

A third ASX growth share that I would buy and hold is TechnologyOne.

TechnologyOne provides enterprise software solutions and has successfully transitioned to a software-as-a-service model. This shift has created a more predictable and recurring revenue base, which is highly valuable for long-term investors.

The company is also expanding internationally, particularly in the UK, where it sees significant growth opportunities across government and enterprise sectors.

With high customer retention, strong margins, and a disciplined approach to growth, TechnologyOne has the characteristics of a business that can continue compounding earnings over many years.

The post 3 amazing ASX growth shares I'd buy and hold for the next decade appeared first on The Motley Fool Australia.

Shares in the realestate.com.au owner are drifting near multi-year lows after sliding 33% over the past six months and 16% so far in 2026.

That's a sharp fall for a company that spent years as one of the ASX's most expensive — and most admired — growth stocks.

So, what's changed?

Changing investor mindset

REA Group is one of Australia's most dominant digital platforms, operating the realestate.com.au property portal and a growing suite of property data and financial services tools.

For a long time, investors were happy to pay a premium for REA shares. Its dominant position in online property listings, industry-leading margins, and strong, reliable cash flow made it a market darling.

But that premium is now being unwound. The share price has dropped from above $220 in October 2025 to around $156 at the time of writing. And notably, this doesn't appear to be driven by a major deterioration in the business itself.

Instead, it looks like a shift in investor mindset. In today's market, investors are far less willing to pay up for growth. Higher interest rates and a more cautious environment have triggered a broad re-rating across premium tech and platform stocks. And REA shares haven't been spared.

Solid foundation, premium listings

Importantly, the fundamentals still look solid. REA continues to benefit from a powerful network effect, with a large base of real estate agents and unmatched audience reach.

The latest quarterly numbers of REA shares reinforced the point: revenue and EBITDA rose, driven more by smarter pricing and product mix than raw volume. 

Its ability to increase pricing on premium listings and advertising products remains a key earnings driver. In short, this looks more like a valuation reset than a business in trouble.

Housing activity fears

But there's another factor weighing on sentiment, the property market. REA's growth is closely tied to housing activity. The number of listings, agent advertising spend, and overall transaction volumes all play a role in its revenue. And right now, that outlook is uncertain.

With interest rates still elevated and affordability stretched, investors are questioning how quickly property listings will recover. Fewer homes changing hands means less demand for premium listings, display ads, and other high-margin services.

It's a familiar concern. Back in October 2023 — the last time REA shares traded around these levels — similar fears around housing activity were front of mind.

So, what's the verdict?

REA remains one of the strongest platform businesses on the ASX, with a market position that competitors have struggled to challenge. But even the best companies aren't immune when sentiment shifts and growth expectations are dialled back.

For now, the sell-off appears to be driven more by macro conditions than company-specific issues.

Encouragingly, analysts remain optimistic. Citi has retained its buy rating on REA shares and set a $199 price target, suggesting a 28% upside from current levels.

The bottom line? REA's glory days may be on pause, but they might not be over. The key will be how quickly the property market — and investor confidence — bounce back.

The post Are the glory days over for REA shares? appeared first on The Motley Fool Australia.

Not in a reactive way, but in a deliberate one.

For me, April feels like a good time to focus on quality. Businesses with strong market positions, proven track records, and the ability to keep growing over time.

If I am looking at blue-chip ASX 200 shares right now, these are three that stand out to me.

REA Group Ltd (ASX: REA)

REA Group is one of those businesses that I think quietly dominates its space.

Its realestate.com.au platform has become the go-to destination for property listings in Australia. That kind of market leadership is incredibly valuable.

What I find particularly compelling is its pricing power.

As long as agents and vendors want visibility for their listings, REA remains a critical channel. That gives it the ability to grow revenue even in more subdued property markets.

Of course, the housing cycle does matter. Listings volumes can fluctuate depending on market conditions. But over the long term, I believe the structural shift toward online property advertising has firmly played into REA's hands.

For me, it is a high-quality digital platform with strong margins and a long runway.

Breville Group Ltd (ASX: BRG)

Breville is another blue-chip ASX 200 stock I'd buy in April.

What stands out to me is its ability to grow globally while maintaining a strong focus on product quality and innovation.

It is not trying to compete on price. Instead, it is building a reputation around well-designed, high-end appliances, particularly in categories like coffee and kitchen products.

I also like the way it continues to expand into new markets.

Growth in regions such as the US, Europe, and parts of Asia suggests to me that the brand still has plenty of room to scale internationally.

There will always be some cyclicality in consumer spending. But I think Breville's premium positioning gives it a level of resilience that not all discretionary companies have.

Wesfarmers Ltd (ASX: WES)

Wesfarmers is probably one of the most well-known blue-chip names on the ASX, and I think there is a good reason for that.

At its core, it is a diversified group with exposure to retail, industrial, and chemical businesses. But what really stands out to me is its management track record.

Over time, Wesfarmers has shown an ability to allocate capital effectively, whether that is through acquisitions, divestments, or reinvestment into existing businesses.

Retail brands like Bunnings continue to perform strongly, and I think they provide a solid earnings base.

On top of that, the company has demonstrated a willingness to evolve, which I believe is critical for long-term success.

For me, Wesfarmers represents a blend of stability and strategic flexibility.

Foolish takeaway

When I think about blue-chip ASX 200 shares to buy in April, I am looking for quality.

REA Group offers a dominant digital platform, Breville brings global brand growth, and Wesfarmers provides diversification backed by strong management.

Individually, I think each has the potential to deliver solid long-term returns. And in a market that has recently pulled back, I believe they are worth a closer look.

The post My best blue-chip ASX 200 buys for April appeared first on The Motley Fool Australia.

Shares in the realestate.com.au owner finished the session down 0.81% at $151.00, after falling as low as $147.57 in morning trade.

That intraday low marked the weakest level since October 2023, extending the stock's difficult run in 2026. The latest move leaves REA shares down around 17% since the start of the year.

Here's what appears to be driving the continued weakness.

Investors are paying less for growth

REA has spent years trading as one of the ASX's most expensive growth stocks.

Its leading position in online property listings, strong profit margins, and reliable cash flow helped investors justify paying a high price for the shares.

However, that high valuation is now being wound back.

The shares have slid from above $220 in October 2025 to around $150 this week.

This seems to be more about investors becoming less willing to pay a premium for growth than any major weakness in the business itself.

Even so, the REA still appears solid. Its large agent network, established audience reach, and ability to lift pricing across premium products continue to support earnings.

This looks more like investors reassessing the share price than any problem with how the business is performing.

Property market worries remain

The other key issue is housing market activity.

Even though REA's business is strong, its growth is still tied to the number of homes being listed for sale, developer advertising budgets, and overall property turnover.

With interest rates still high and affordability stretched, investors seem to be questioning how quickly listing activity can improve.

Fewer homes changing hands can reduce demand for premium listings products, display advertising, and other services linked to property sales.

This was also a major concern back in October 2023, the last time the stock traded around these levels, which helps explain why the market is again focused on housing activity.

Foolish takeaway

REA remains one of the strongest platform businesses on the ASX, with a market position that competitors have struggled to challenge.

But even great businesses can fall when investors start paying less for growth and become more cautious on profits linked to the property market.

At this stage, the sell-off seems more about the current market backdrop.

Whether this proves to be an overreaction will likely depend on how quickly property listings and agent spending start to recover.

The post REA shares hit a multi-year low. Is the market overreacting? appeared first on The Motley Fool Australia.

While disappointing for existing shareholders, this weakness could give the rest of us a chance to build positions in companies with strong long-term potential.

Here are three Australian share ideas that could be worth considering with a $2,500 investment right now.

Pro Medicus Ltd (ASX: PME)

The first Australian share that continues to stand out is Pro Medicus.

Rather than competing across the entire healthcare software landscape, the company has focused on doing one thing exceptionally well. Its imaging platform is designed for speed and efficiency, which has helped it win contracts with some of the world's largest healthcare providers.

This focus has allowed it to build a premium product that commands strong margins and long-term contracts. Once embedded, its software becomes difficult to replace, giving the business a durable revenue base.

With healthcare systems increasingly prioritising productivity and workflow improvements, Pro Medicus appears well placed to continue expanding its footprint.

REA Group Ltd (ASX: REA)

Another Australian share that could be a smart pick is REA Group.

It has built a dominant position in online property listings, but what makes it particularly interesting is how it continues to deepen its role in the property ecosystem.

Beyond listings, REA is increasingly monetising its audience through data-driven products, advertising solutions, and financial services. This allows it to extract more value from each property transaction without needing a large increase in listings volumes.

Even in softer property markets, this model can support growth by lifting yields per listing and expanding into adjacent services.

With strong brand recognition and a highly engaged user base, REA remains a powerful platform business.

TechnologyOne Ltd (ASX: TNE)

A final Australian share to consider is TechnologyOne.

The enterprise software provider has been quietly building momentum through its transition to a cloud-based model. This shift is changing the shape of its revenue, making it recurring and predictable over time.

Rather than chasing rapid expansion, TechnologyOne has focused on steadily increasing its customer base across government, education, and corporate sectors.

This disciplined approach has supported consistent growth while maintaining profitability, which is relatively rare among software companies.

As more organisations move their operations to the cloud, TechnologyOne's long-standing relationships and industry-specific solutions could continue to drive adoption.

The post Top Australian shares to buy right now with $2,500 appeared first on The Motley Fool Australia.

Sharp swings have become the norm, with growth stocks leading the declines. Concerns around artificial intelligence (AI) disrupting business models, rising interest rates, high oil prices, and geopolitical tensions have all weighed heavily on sentiment.

For many investors, this kind of environment feels uncomfortable. But history suggests it can also create some of the best opportunities with ASX shares.

Market selloffs often create opportunities

Periods of uncertainty tend to push share prices lower, sometimes well beyond what fundamentals would justify.

We are seeing this play out right now. A number of high-quality ASX shares have fallen significantly despite continuing to grow their earnings and expand their market positions.

This disconnect between price and underlying performance is often where long-term investors find value.

While it is impossible to pick the exact bottom, buying during periods of weakness has historically delivered strong results over time.

Fear is driving short-term decisions

A big part of the current ASX share selloff is being driven by fear rather than fundamentals.

Artificial intelligence is a good example. While there are legitimate questions about how it will impact certain industries, many businesses are also benefiting from it or adapting quickly.

At the same time, rising interest rates are putting pressure on valuations, particularly for growth companies. But these cycles are not new and markets have navigated similar environments before.

When sentiment is negative, investors often focus too heavily on risks and ignore long-term potential.

Quality businesses are trading at better prices

One of the most important things to watch during a selloff is whether the underlying businesses are still performing.

In many cases, they are.

ASX shares like Goodman Group (ASX: GMG), REA Group Ltd (ASX: REA), and Xero Ltd (ASX: XRO) continue to benefit from strong industry positions and long-term growth drivers. Yet their share prices have come under pressure alongside the broader market.

This creates a more attractive entry point for investors who believe in their long-term outlook.

Timing the market matters less than time in the market

Trying to wait for the perfect moment to invest is rarely successful.

Markets can turn quickly, often before the broader outlook improves. By the time confidence returns, many of the best opportunities are gone.

This is why strategies such as gradual investing or dollar-cost averaging can be effective during volatile periods.

By investing consistently, investors can take advantage of lower prices without needing to predict short-term movements.

So, is this a rare buying opportunity?

While it may not be possible to say this is the exact bottom, the current environment does have many of the characteristics seen during past buying opportunities.

High-quality ASX shares are trading below their highs, sentiment is weak, and uncertainty is elevated.

For investors with a long-term mindset, that combination has often led to strong returns over time.

It may not feel like it in the moment, but periods like this are often when the foundations for future wealth are built.

The post Are we in the middle of a once-in-a-lifetime chance to buy cheap ASX shares? appeared first on The Motley Fool Australia.

Businesses with strong competitive advantages, consistent earnings, and the ability to reinvest for growth are often the ones that deliver the best returns over time.

While short-term market movements can be unpredictable, high-quality companies can continue compounding over many years.

Here are two ASX shares that could be worth buying and holding for the next decade.

REA Group Ltd (ASX: REA)

The first ASX share that fits the definition of quality is REA Group.

It operates Australia's leading online property marketplace and has built a dominant position that is difficult for competitors to challenge. Its platform is deeply embedded in the real estate industry, making it the go-to destination for buyers, sellers, and agents.

This dominance gives REA Group significant pricing power. Even in softer property markets, the company has historically been able to grow revenue through premium listings and value-added services.

Over time, its digital platform has continued to evolve, with additional tools and data services enhancing its offering.

With a strong market position, high margins, and exposure to long-term housing activity, REA Group appears well placed to continue delivering growth over the next 10 years.

Bell Potter recently put a buy rating and $211.00 price target on its shares. Based on its current share price of $153.78, this implies potential upside of 37% for investors.

TechnologyOne Ltd (ASX: TNE)

Another ASX share that could be a strong long-term investment is TechnologyOne.

It is an enterprise software company that provides solutions to government agencies, universities, and large organisations. Its transition to a cloud-based software-as-a-service model has transformed the business, leading to more predictable and annual recurring revenue (ARR).

One of TechnologyOne's key strengths is the stickiness of its customer relationships. Once its software is embedded into an organisation's operations, switching providers can be costly and complex.

This creates a high level of customer retention and supports long-term revenue growth.

The company also has a growing international presence, particularly in the United Kingdom, which could provide an additional growth runway over time.

With strong margins, recurring revenue, and a scalable platform, TechnologyOne has the characteristics of a business that could continue compounding over the next decade.

Morgan Stanley is one of a number of brokers that is bullish on TechnologyOne. It has an overweight rating and $34.00 price target on its shares. Based on its current share price of $27.43, this suggests that upside of 24% is possible between now and this time next year.

The post 2 high-quality ASX shares to buy and hold for 10 years appeared first on The Motley Fool Australia.

When it comes to building passive income, what matters most is consistency and a clear plan. Even from $0, it is possible to work towards a meaningful income stream over time with ASX shares.

Here is a simple three-step approach.

Step one: build the habit

The first step is to start investing regularly.

Even small amounts can make a difference when invested consistently. For example, setting aside $500 to $1,000 per month into ASX shares or exchange traded funds (ETFs) can begin to build momentum over time.

The goal at this stage is not income. It is building capital.

By investing regularly, you benefit from compounding and reduce the need to time the market. Over time, this discipline becomes far more important than trying to pick the perfect investments.

Step two: focus on growth first

In the early years, focusing on growth can accelerate your progress.

Targeting an average return of around 10% per annum is a reasonable and achievable long-term goal, though it is never guaranteed. This typically comes from owning high-quality businesses or diversified ETFs that can grow earnings over time.

ASX shares such as Goodman Group (ASX: GMG), REA Group Ltd (ASX: REA), or global ETFs tracking major markets are examples of assets that have historically delivered strong returns.

By reinvesting all returns during this phase, your portfolio can grow much faster than if you were taking income along the way.

Step three: turn capital into passive income

Once your portfolio reaches a meaningful size, you can begin shifting towards income.

If you assume an average dividend yield of 5%, generating $20,000 per year in passive income would require a portfolio of around $400,000.

Reaching this level could take time, but with consistent investing and compounding, it becomes achievable. For example, investing regularly and earning solid returns over a couple of decades can build a portfolio to this level.

In fact, with a 10% average annual return, $500 a month into ASX shares would turn into $400,000 in 21 years.

At that point, you can allocate more of your capital into dividend-paying shares across sectors such as infrastructure, real estate, and consumer staples.

Foolish takeaway

This approach does not rely on timing the market or taking unnecessary risks.

Instead, it focuses on three simple principles: invest consistently, prioritise growth early, and shift to income later.

Starting from $0 may feel like a long road, but with patience and discipline, it can lead to a reliable and growing passive income stream over time.

The post $0 in savings? I'd aim for $20k in annual passive income with 3 simple steps appeared first on The Motley Fool Australia.