Each sector has a benchmark index that tracks the performance of ASX-listed companies in that sector.

Healthcare and tech shares in focus

Recently, the two worst-performing sectors have been ASX healthcare and technology.

Year to date, the S&P/ASX 200 Information Technology Index (ASX: XIJ) is down 16%. 

Meanwhile, the S&P/ASX 200 Health Care Index (ASX: XHJ) is down 17%. 

This is relevant for investors to monitor because when sectors are heavily sold off, it creates buying opportunities. 

Quality, blue-chip stocks can be oversold and scooped up as value plays by savvy investors. 

However, in the last month, there has been a sharp difference between these two sectors. 

Many technology shares have begun to recover, experiencing sharp gains since the end of March. 

In fact, since March 30, the S&P/ASX 200 Information Technology Index (ASX: XIJ) has rocketed 19%.

Healthcare shares, on the other hand, have remained relatively flat.

Why are healthcare shares still flat?

The Information Technology Index experienced an extraordinary 48% sell-off between August 29 and March 30, driven by investor fears about high valuations and the potential for AI tools to wipe out SaaS companies.

Sentiment has now shifted, driven by a combination of value investing and a belief that AI will enhance some of these platforms rather than destroy them. 

Meanwhile, unlike tech, healthcare isn't getting the same sentiment-driven bounce because its headwinds are more structural.

Upheaval at the US FDA under the Trump administration has created regulatory uncertainty for many Australian biotechs with US ambitions.

Additionally, healthcare companies tend to generate most of their profits well into the future. 

This means rising interest rates hit them harder than most. 

Higher rates make those future earnings worth less in today's dollars, dragging on share prices even when the underlying businesses are performing fine.

Where is the opportunity for healthcare shares?

For investors focused on long-term returns, many healthcare companies are priced at relative values right now due to these headwinds. 

Some of the ASX healthcare stocks that have fallen the furthest include: 

• Australia's largest healthcare company, CSL Ltd (ASX: CSL), is down 42% in the last year
• Sleep technology company ResMed Inc (ASX: RMD) shares are down almost 13% year to date
• Medical imaging technology company Pro Medicus Ltd (ASX: PME) shares are down 36% year to date
• Cochlear Ltd (ASX: COH) is a cochlear implant device manufacturer. Its share price has fallen 35% year to date  

Foolish Takeaway 

The headwinds impacting healthcare stocks are unlikely to subside in the short term. 

However, many of these companies are structurally sound and are suffering from broader factors rather than structural issues. 

This leaves plenty of room for growth in the long term. 

The post Are ASX healthcare shares the next to rally? appeared first on The Motley Fool Australia.

Getting started early gives you time in the market, and that is where a lot of the long-term benefit comes from. The goal at this stage is to build a simple approach that you can stick with and continue adding to over time.

Here is how I would go about it.

Keep it simple to begin with

With $1,000, I think simplicity is important.

Trying to spread that amount across too many ASX shares can make things harder to manage and dilute the impact of each investment. I would focus on one or two positions to start with and build from there.

That keeps the portfolio easy to follow and makes it clearer how each investment is performing.

Start with broad exposure

One approach I like is to begin with an exchange-traded fund (ETF) that gives exposure to a large part of the market.

For example, the Vanguard Australian Shares Index ETF (ASX: VAS) provides access to many of the largest companies listed on the ASX in a single investment. That includes businesses across sectors such as banking, mining, and healthcare.

Alternatively, the iShares S&P 500 AUD ETF (ASX: IVV) does the same for the US market.

This kind of exposure can help reduce risk while still allowing you to participate in the overall growth of the market.

Add a high-quality ASX share

Alongside an ETF, I would consider adding one individual ASX share.

The focus here would be on quality. I would look for a business with a strong position in its industry and the ability to grow over time.

For example, ResMed Inc. (ASX: RMD) has a long history of growth in global healthcare, while Wesfarmers Ltd (ASX: WES) has built a portfolio of strong retail and industrial businesses, including Kmart and Bunnings.

Owning companies like these can add a different dimension to the portfolio alongside the ETF.

Invest regularly over time

The first $1,000 is just the starting point.

What matters more is the habit that follows. Adding to your investments regularly, even in smaller amounts, can build momentum over time.

This approach also helps smooth out market movements, as you are investing across different conditions rather than trying to pick the perfect moment.

Stay focused on the long term

Share prices will move around in the short term.

What matters is how the businesses and investments perform over time. 

Keeping a long-term mindset can make it easier to stay invested and avoid reacting to short-term changes.

Foolish takeaway

Getting started with $1,000 is about building a foundation.

A simple mix of broad market exposure and high-quality ASX shares can be a solid way to begin. Over time, adding regularly and staying focused on the long term can turn that first investment into something much larger.

The post How to start investing in ASX shares with $1,000 appeared first on The Motley Fool Australia.

The combination of ageing populations, rising healthcare spending, and ongoing innovation creates a supportive backdrop that can play out over many years. 

With that in mind, here are two ASX healthcare shares that stand out to me right now after falling heavily from their highs.

CSL Ltd (ASX: CSL)

CSL has been through a difficult period, and that has shown up clearly in the biotech giant's share price.

Although this has been disappointing, I think it is worth sticking with the ASX healthcare share.

Its CSL Behring division remains a global leader in plasma therapies, with demand supported by chronic and rare diseases that require ongoing treatment. That creates a recurring revenue base that can grow over time as patient numbers increase.

There is also a pipeline of products and innovation that can support future growth, alongside the company's vaccine and specialty pharmaceuticals divisions.

The recent CSL share price weakness has brought valuation multiples back toward levels that look cheap compared to its history. When combined with its positive long-term growth profile, I think that creates a more favourable risk-reward setup.

Over a 5 to 10 year period, I think CSL has the potential to rebuild momentum as execution improves and its growth drivers continue to play out. This could make it a great buy and hold option.

ResMed Inc (ASX: RMD)

ResMed operates in an area that continues to expand globally.

Sleep apnoea remains significantly underdiagnosed, with management estimating that there are over 1 billion sufferers across the world.

But with awareness growing thanks to education and technology, demand for ResMed's devices and software solutions has been increasing and looks set to continue increasing over the next decade.

ResMed isn't just selling masks. What stands out to me in is how the company is building an ecosystem.

It combines its hardware with cloud-based software and data insights, which allows it to support patients and healthcare providers across the full treatment journey. That creates a more connected model and strengthens its competitive position.

So, with the ResMed share price well below previous highs, I think the setup looks more compelling from a long-term perspective. This is especially with the combination of structural demand and a strong market position giving it a clear pathway to continue growing.

Foolish takeaway

Looking ahead, I see both of these ASX healthcare shares benefiting from long-term demand and continued innovation.

Their recent share price declines may be disappointing for shareholders, but I think they have created an entry point that looks appealing for buy and hold investors.

Over a five to 10 year timeframe, I think CSL and ResMed shares have the quality and positioning to deliver strong returns and outperform the market.

The post 2 ASX healthcare shares I think can beat the market appeared first on The Motley Fool Australia.

These are established businesses with proven track records, strong competitive positions, and the ability to perform across different market conditions. They may not always grab headlines, but they are often the companies that quietly compound wealth over time.

Here are three ASX 200 blue chip shares that could be worth considering.

Cochlear Ltd (ASX: COH)

The first ASX 200 blue chip to consider is Cochlear.

It is a global leader in hearing implant technology and operates in a highly specialised market with strong barriers to entry.

What makes the business particularly attractive is the long-term nature of its customer relationships. Once a patient receives a cochlear implant, they often remain within the ecosystem for upgrades, servicing, and accessories.

This creates a recurring revenue stream that supports consistent growth.

With hearing loss becoming more prevalent globally and access to treatment expanding, Cochlear appears well placed to continue growing over the next decade and beyond.

ResMed Inc (ASX: RMD)

Another ASX 200 blue chip that could be worth considering is ResMed.

It operates in the sleep apnoea and respiratory care market, combining medical devices with digital health solutions.

Its business benefits from recurring revenue, as patients continue to purchase masks and accessories after adopting its devices. There are also strong structural tailwinds, including ageing populations and increasing awareness of sleep health.

While the share price has faced some volatility, the long-term outlook remains very positive and is supported by growing demand and ongoing innovation.

Wesfarmers Ltd (ASX: WES)

A third ASX 200 blue chip that could be a top pick for Aussie investors this month is Wesfarmers.

It is a diversified business with exposure to retail, industrial, and chemical operations, including well-known brands such as Bunnings, Kmart, Officeworks, and Priceline.

One of its key strengths is its ability to adapt and allocate capital effectively. Over time, management has shown a willingness to invest in growth areas while maintaining discipline.

This has helped the company deliver steady returns and maintain a strong market position.

For investors, Wesfarmers offers a blend of resilience and growth, arguably making it a dependable addition to a long-term ASX share portfolio.

The post 3 ASX 200 blue chip shares to buy with $20,000 appeared first on The Motley Fool Australia.

The good news is that it isn't as hard to achieve this goal as you might think. In fact, all you really need is a combination of time, patience, and capital, and you could get there.

Here is a step-by-step way to approach it.

Step 1: Build a core portfolio

At this level, the foundation matters more than ever.

A large portion of the portfolio should be in reliable, high-quality ASX shares or broad exchange traded funds (ETFs) that can deliver consistent returns over time. These are the holdings that do the heavy lifting.

This might mean shares like Goodman Group (ASX: GMG) or ResMed Inc. (ASX: RMD), or ETFs like the iShares S&P 500 ETF (ASX: IVV).

Think of this as the engine room. It is not about chasing the highest returns. It is about creating stability and steady compounding.

Step 2: Add growth to drive progress

While the core provides stability, growth assets are what push the portfolio higher.

This is where companies with scalable models and strong tailwinds come in. Over time, these positions can outperform and meaningfully increase the overall value of the portfolio. ASX shares like WiseTech Global Ltd (ASX: WTC) or Xero Ltd (ASX: XRO) could be worth considering.

The key is balance. Too much growth can increase volatility, but too little can slow progress.

Step 3: Invest consistently

One of the biggest differences between successful investors and everyone else is consistency.

Regular contributions, whether monthly or quarterly, keep the portfolio growing regardless of market conditions. This also helps smooth out entry prices and reduces the pressure of trying to time the market.

Even as the portfolio grows, continuing to add capital can have a significant impact.

Based on an average 10% annual return (not guaranteed) and investments of $500 a month, it would take just under 17 years to reach $500,000.

Step 4: Let compounding take over

At some point, the portfolio starts to work harder than your contributions.

Returns begin generating their own returns, and growth accelerates. This is where patience pays off.

Trying to interfere too much during this phase can do more harm than good. Staying invested and allowing compounding to continue is often the best approach.

Foolish takeaway

Building a $500,000 ASX portfolio does not happen overnight.

It is the result of consistent investing, smart allocation, and patience over many years. But once you reach that level, the journey becomes very different.

Because from that point on, your money is doing much more of the work.

The post How to build a $500,000 ASX share portfolio step by step appeared first on The Motley Fool Australia.

Three broker buy ratings that you might want to know more about are summarised below. Here's why brokers think these ASX shares are in the buy zone:

Netwealth Group Ltd (ASX: NWL)

According to a note out of Bell Potter, its analysts have retained their buy rating and $30.00 price target on this investment platform provider's shares. Bell Potter notes that Netwealth released its quarterly update this week and delivered funds under administration (FUA) that fell a touch short of expectations. However, this FUA miss was due to a $3.7 billion negative market movement. The good news is that with markets rebounding in April, Bell Potter believes that most of this miss has now been reversed. Outside this, the broker highlights that Netwealth shares have de-rated to trade on 28x forward EBITDA. This compares to 33x through-the-cycle. Bell Potter believes there is scope for a re-rating in the future, which could make now a good time to buy. The Netwealth share price ended the week at $25.42.

Qantas Airways Ltd (ASX: QAN)

A note out of the Macquarie equities desk reveals that its analysts have retained their outperform rating on this airline operator's shares with a slightly reduced price target of $11.00. This follows the release of a market update from Qantas which revealed higher fuel costs compared to previous expectations. However, Macquarie was pleased to see that Qantas' yields have improved, which has underpinned international and domestic revenue growth ahead of estimates. In addition, it thinks Qantas is well-placed to adapt to challenges from the war in the Middle East through its accelerated fleet retirement. The Qantas share price was fetching $9.08 at Friday's close.

ResMed Inc. (ASX: RMD)

Analysts at Ord Minnett have retained their buy rating on this sleep disorder treatment company's shares with a trimmed price target of $41.40. According to the note, the broker is forecasting ResMed to deliver double-digit earnings and revenue growth in FY 2026. The good news is that it then expects this trend to continue through to at least FY 2028. Ord Minnett believes this will leave ResMed with a significant cash balance, which could lead to further capital management initiatives. Overall, it feels this makes the company's shares a top option for investors after recent weakness. The ResMed share price ended the week at $31.52.

The post Top brokers name 3 ASX shares to buy next week appeared first on The Motley Fool Australia.

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.

• Pro Medicus Ltd (ASX: PME) shares have dropped 38% year to date
• CSL Ltd (ASX: CSL) shares are down 19% 
• ResMed Inc (ASX: RMD) shares have fallen nearly 10%. 

At what point do blue-chip stocks become too cheap to ignore?

Let's find out.

Why are healthcare stocks in a free fall?

It has been a rough stretch for ASX healthcare stocks like ResMed shares in the last year. 

The S&P/ASX 200 Health Care Index (ASX:XHJ) is down 28% in that span. 

For comparison, the S&P/ASX 200 Index (ASX: XJO) is up nearly 16% in that same period. 

There have been several headwinds weighing on sentiment in this period: 

• Many healthcare stocks are growth companies. When interest rates rise, the future earnings that growth stocks are valued on get discounted more heavily, reducing their present value
• Tariff pressure have also hurt ASX healthcare stocks
• Many ASX healthcare giants earn significant revenues offshore (particularly in the US), so a stronger US dollar hurts the translation of those earnings back into Australian dollars

It's important to note that these headwinds are not guaranteed to subside in the short term. 

But with a long-term lens, the current stock price for healthcare giants could be a value play. 

Here's what experts are saying. 

Pro Medicus

Pro Medicus is a provider of medical imaging technology globally. The company is recognised as a leading supplier of radiology information systems (RIS), picture archiving and communication systems (PACS), and advanced visualisation solutions for medical practices and hospitals.

It remains down almost 60% from its 52-week highs, closing yesterday at $137.42. 

Pro Medicus shares have a strong chance of rebounding based on analysts forecasts via TradingView. 

The average price target of 14 analysts sits at $199.03 per share. 

That's 61% higher than current levels. 

CSL

CSL is Australia's largest healthcare stock. 

It is a biotechnology company that develops and delivers biotherapies and vaccines. 

Its share price is down 42% over the last year, and now could simply be too cheap to ignore. 

At the time of writing, shares in CSL are trading for approximately $139.44. 

This is almost 63% below the average fair price estimate from 16 analysts. 

ResMed

Finally, ResMed shares are another blue-chip healthcare stock worth buying low. 

The company is a global leader in sleep technology.

Its share price is down roughly 10% this year, trading today for approximately $32.70. 

The team at Ord Minnett recently placed a $41.40 price target on ResMed shares. 

If they reached this price, it would represent a 26% rise. 

The post Down 38% this year, is it finally time to buy low on CSL, ResMed and Pro Medicus shares? appeared first on The Motley Fool Australia.

While markets will inevitably have ups and downs, high-quality growth companies can often look through that noise.

Here are five ASX growth shares that could be worth buying and holding for the next five years.

Breville Group Ltd (ASX: BRG)

The first ASX growth share that could be a strong long-term pick is Breville.

Breville has built a premium global brand in kitchen appliances, with a focus on innovation and design. What makes the company particularly compelling is its international expansion.

A large portion of its revenue now comes from overseas markets, giving Breville exposure to a much larger opportunity than the domestic market alone. Combined with its leadership position in the thriving coffee market, this leaves it well-placed for sustainable growth.

Life360 Inc (ASX: 360)

Another ASX growth share to consider is location technology company Life360.

Life360 is transitioning from just a user growth story into a user growth and monetisation story. Its platform has almost 100 million users globally, but the focus is now on converting that scale into sustainable earnings.

Subscription growth, partnerships, and new features are helping drive revenue higher, while improving operating leverage is supporting profitability.

If the company continues executing well, it could evolve into a highly scalable global platform business.

Pro Medicus Ltd (ASX: PME)

A third ASX growth share that stands out is Pro Medicus.

Pro Medicus provides medical imaging software and has built a reputation for winning large, long-term contracts with leading hospitals.

What sets it apart is its high-margin business model and strong competitive positioning. Once its technology is in place, switching costs are high, leading to recurring revenue and strong retention.

ResMed Inc (ASX: RMD)

A fourth ASX growth share that could be worth considering is ResMed.

ResMed operates in the sleep apnoea and respiratory care market, combining medical devices with digital health platforms.

Its business benefits from recurring revenue, as patients continue to purchase masks, software, and accessories over time. There are also strong structural tailwinds, including ageing populations and increasing awareness of sleep health.

With ongoing innovation and a growing global footprint, ResMed appears well placed to deliver sustainable growth long into the future.

WiseTech Global Ltd (ASX: WTC)

A final ASX growth share that could be worth considering is WiseTech Global.

WiseTech is building the software backbone for global logistics through its CargoWise platform. Its solutions are deeply embedded in customer operations, creating strong switching costs and recurring revenue.

The company continues to expand its capabilities and increase its reach across global supply chains.

As trade becomes more complex and digitised, WiseTech's platform could become even more critical, supporting long-term growth.

The post 5 ASX growth shares to buy and hold for 5 years appeared first on The Motley Fool Australia.

In fact, small amounts invested consistently can compound into something meaningful over time. The key is focusing on quality ASX shares with strong long-term potential, rather than trying to chase quick wins.

Here are three shares that could be worth considering with $500.

Breville Group Ltd (ASX: BRG)

The first ASX share that could be a smart option is Breville Group.

Breville has built a premium brand in kitchen appliances, with products that are recognised globally for quality and design. But what makes the business particularly interesting is its international growth story.

A large portion of its revenue now comes from overseas markets, especially the United States. This gives Breville exposure to a much larger customer base than the Australian market alone.

At the same time, the company continues to innovate and expand its product range, helping to maintain its premium positioning. This is particularly the case in the growing coffee category, where Breville is a market leader.

Overall, Breville offers investors exposure to a global consumer brand with long-term growth potential.

ResMed Inc (ASX: RMD)

Another ASX share to consider is ResMed.

ResMed operates in the sleep apnoea and respiratory care space, providing devices and software that help patients manage chronic conditions.

What sets the company apart is its recurring revenue model. Once a patient starts using a device, they often continue purchasing masks, software, and accessories over time.

There are also strong structural tailwinds supporting the business. Sleep apnoea remains highly underdiagnosed globally, and awareness continues to grow. In fact, there are over 1 billion sufferers worldwide according to ResMed. But most aren't aware of their condition.

This means that ResMed potentially offers long-term investors a combination of defensive healthcare exposure and steady growth.

TechnologyOne Ltd (ASX: TNE)

A third ASX share that could be a strong option for the $500 is TechnologyOne.

It provides enterprise software solutions, primarily to government and education sectors. Its shift to a cloud-based model has transformed the business, increasing recurring revenue and improving margins.

One of the most appealing aspects of TechnologyOne is its consistency. The company has a long track record of delivering steady earnings growth and expanding its customer base.

It is also growing internationally, particularly in the UK, which could provide another leg of growth in the years ahead.

For investors looking to build wealth over time, TechnologyOne could be worth considering, especially after recent share price weakness.

The post Where to invest $500 in ASX shares right now appeared first on The Motley Fool Australia.

You need businesses that can keep moving forward without constant intervention.

That usually means ASX 200 stocks with durable demand, strong competitive positions, and the ability to grow without relying on perfect conditions.

With that said, here are three stocks that I think fit that description.

Hub24 Ltd (ASX: HUB)

Hub24 is a business that sits quietly behind the scenes of the wealth industry.

It provides the infrastructure that advisers use to manage client portfolios, which means it benefits as more money flows into professionally managed investments.

What I find interesting is how growth compounds. It is not just about attracting new clients. Existing accounts can grow as markets rise and as additional funds are added over time. That creates a layered effect, where growth builds on itself.

I also think the shift toward more sophisticated investment platforms is still playing out. As advisers look for better technology and reporting tools, platforms like Hub24 are well positioned to capture that demand.

For a buy and hold investor, I think that steady, structural growth is appealing.

ResMed Inc. (ASX: RMD)

ResMed is a business that I think benefits from a problem that is not going away.

Sleep apnoea and respiratory conditions are widespread and, in many cases, underdiagnosed. That creates a large and ongoing pool of potential patients.

What stands out to me is how the company monetises that. It is not a one-off product sale. There is an ongoing relationship with patients through devices, masks, and connected services that support long-term therapy.

That recurring revenue element is powerful. It creates visibility over future revenue and strengthens the company's position within the healthcare system.

For long-term investors, I think businesses tied to essential health needs can be easier to hold through market cycles.

Pro Medicus Ltd (ASX: PME)

Pro Medicus approaches healthcare from a different angle.

Instead of physical products, this ASX 200 stock focuses on software that helps doctors and hospitals interpret medical images more efficiently.

What I like here is the business model. The company typically signs long-term contracts with major healthcare providers, just like it did today, which can create a pipeline of revenue that extends well into the future.

At the same time, its technology is designed to improve workflow and speed, which makes it valuable to customers once implemented.

That combination of long contracts and high switching costs can support durability, and could ultimately underpin strong earnings growth over the next decade.

Foolish takeaway

For me, buy and hold investing is about finding ASX 200 stocks that can keep progressing over many years.

Hub24 benefits from long-term growth in managed investments, ResMed is tied to ongoing healthcare demand, and Pro Medicus provides critical software with long-term contracts and strong customer relationships.

They are different in what they do, but I think each has qualities that could make them well suited to a long-term approach.

The post Why these ASX 200 stocks could be perfect for buy and hold investors appeared first on The Motley Fool Australia.

The key is knowing what you want to buy before prices fall.

Here are three ASX 200 shares I would be ready to buy immediately if the market dips again.

Goodman Group (ASX: GMG)

The ASX 200 share I would be watching closely is Goodman Group.

At first glance, Goodman might look like a traditional property company. But its real strength lies in logistics and data infrastructure.

The group develops and manages high-quality industrial properties, many of which are critical to ecommerce supply chains and increasingly, data centre ecosystems.

As demand for digital infrastructure grows, Goodman is positioning itself to benefit from trends like cloud computing and artificial intelligence.

A market pullback could provide a chance to gain exposure to these structural themes through a proven operator.

ResMed Inc (ASX: RMD)

Another ASX 200 share I would target is ResMed.

ResMed sits at the intersection of healthcare and technology, focusing on sleep apnoea devices and connected care solutions. What makes it particularly interesting is how its business model is evolving beyond hardware.

Each device sold opens the door to long-term recurring revenue through masks, software, and patient monitoring platforms.

Concerns around weight loss drugs briefly pressured sentiment, but the reality is that sleep apnoea remains underdiagnosed globally and management sees the drugs as supporting demand rather than limiting it.

If the share price were to dip again, it could be an opportunity to pick up a high-quality global healthcare leader at a more attractive valuation.

Xero Ltd (ASX: XRO)

A third ASX share I would buy on weakness is Xero.

Xero has already built a massive global platform for small business accounting, but the next phase of its growth could be even more interesting.

Rather than just adding new users, the company is focused on deepening its ecosystem. Payments, payroll, lending integrations, and analytics all create additional value for customers and increase revenue per user.

This shift means Xero's growth is becoming more efficient and potentially more predictable. And while there are concerns that AI will disrupt its business, management doesn't believe this will be the case. In fact, it expects AI to support the business and has recently announced a deal with AI giant Anthropic.

If volatility returns and the share price pulls back, it could present a compelling entry point into a business with strong long-term potential.

The post 3 ASX 200 shares I would buy immediately if the market dips again appeared first on The Motley Fool Australia.

Three top ASX shares that leading brokers have named as buys this week are listed below. Here's why they are bullish on them:

Megaport Ltd (ASX: MP1)

According to a note out of Citi, its analysts have retained their buy rating and $14.65 price target on this network solutions company's shares. The broker highlights that demand for GPU rentals has been surging, which bodes well for its Latitude business. This is especially the case given how it has been increasing prices, which should be a boost to annual recurring revenue. In fact, Citi believes that there is upside risk to forecasts for 2026 and 2027. Looking ahead, the broker believes there is a strong chance that management will increase its FY 2026 guidance at an event. The Megaport share price is trading at $6.89 on Monday afternoon.

Northern Star Resources Ltd (ASX: NST)

Another note out of Citi reveals that its analysts have retained their buy rating on this gold miner's shares with an improved price target of $29.70. The broker has been busy updating its gold coverage to reflect stronger prices. This has led to a significant increase in earnings estimates for the gold mining industry. Overall, the broker is positive and sees value in Northern Star shares at current levels. So much so, the gold miner is one of its preferred picks in the industry at present. The Northern Star share price is fetching $23.68 at the time of writing.

ResMed Inc. (ASX: RMD)

Analysts at Ord Minnett have retained their buy rating on this sleep disorder treatment company's shares with a trimmed price target of $41.40. According to the note, the broker is expecting ResMed to deliver double-digit earnings and revenue growth in FY 2026. It then expects this trend to continue through to at least FY 2028. Ord Minnett believes this will leave ResMed with a significant cash balance, which it suspects could lead to further capital management activities. Overall, it feels this makes the company a top option for investors at current levels. The ResMed share price is trading at $32.22 this afternoon.

The post Leading brokers name 3 ASX shares to buy today appeared first on The Motley Fool Australia.

In fact, consistently investing a modest amount like $300 per month into high-quality Australian shares can grow into something significant over time.

The key is patience, discipline, and allowing compounding to work its magic.

Here is how the numbers can stack up.

Building long-term wealth with ASX shares

If you invest $300 each month and achieve an average return of 10% per annum (not guaranteed but possible), your portfolio could grow materially over time.

After 10 years, you would have invested $36,000 and your portfolio could be worth approximately $60,000.

After 20 years, your total contributions of $72,000 could grow to around $220,000.

But the real magic happens over longer periods. After 30 years of consistent investing, that same $300 per month could grow into a portfolio worth roughly $625,000.

Push that out to around 35 years, and your portfolio could approach $1 million.

Turning investments into passive income

Once you have built a large enough portfolio, it can begin to generate meaningful passive income.

Using a 5% dividend yield as a simple guide, a $1 million portfolio could produce a second income of around $50,000 per year.

That is the long-term goal. And while it may take time, the pathway to getting there is surprisingly straightforward.

Let's find out how to do it.

Backing quality Australian shares

Achieving a 10% annual return from Australian shares is not guaranteed, but it is a reasonable long-term target when investing in high-quality businesses.

These are companies with strong market positions, reliable earnings, and the ability to grow over time.

Examples include ResMed Inc (ASX: RMD), which benefits from growing global demand for sleep health solutions, and Goodman Group (ASX: GMG), which is leveraged to long-term demand for logistics and data infrastructure.

More defensive names like Woolworths Group Ltd (ASX: WOW) and Wesfarmers Ltd (ASX: WES) can provide stability, while Telstra Group Ltd (ASX: TLS) offers income and exposure to essential infrastructure.

A portfolio built around these types of businesses has the potential to deliver steady returns over time.

Staying consistent is the key

The most important part of this strategy is consistency.

Markets will go through periods of volatility, and returns will not be smooth year to year. But by continuing to invest each month, you take advantage of market dips and avoid trying to time your entries.

Over time, this approach can help smooth out your returns and keep your portfolio growing.

The long-term payoff

Turning $300 a month into a $50,000 annual income is not something that happens overnight.

But with a long-term mindset, a focus on quality, and a commitment to regular investing, it becomes an achievable goal.

The earlier you start, the easier it becomes.

The post How to invest $300 a month in Australian shares to target a $50,000 annual second income appeared first on The Motley Fool Australia.

Two of the ASX's biggest names in the sector are under pressure, with CSL Ltd (ASX: CSL) down 33% over the past six months and ResMed Inc (ASX: RMD) sliding 20% over the same period at the time of writing.

So, are these high-quality names primed for a comeback?

CSL: Global leader in plasma therapies

CSL has fallen out of favour, but the underlying business still looks incredibly strong.

This is a global leader in plasma therapies and vaccines, supplying critical treatments for chronic and rare diseases. Demand for its products is highly resilient — patients need them regardless of economic conditions.

That gives the $67 billion ASX healthcare stock a defensive edge, backed by recurring revenue and strong global demand.

Recent results have been softer, with margin pressure, restructuring costs, and policy changes weighing on performance. That's played a big role in the share price decline.

But there are signs of recovery. Plasma collections are improving, margins are stabilising, and its vaccine business, Seqirus, continues to diversify earnings. This looks more like a reset than a structural decline.

The main risks? Ongoing margin pressure, currency headwinds, and any delays in earnings recovery.

Still, analysts remain firmly in the corner of the ASX healthcare stock.

Broker sentiment is broadly positive, with most maintaining buy or outperform ratings. The average 12-month price target sits around $214.00 — implying 54% upside.

ResMed: Market leader in sleep apnea

ResMed has also been caught in the recent healthcare and tech sell-off, but its long-term story remains compelling.

This ASX healthcare stock is a global leader in sleep apnea devices and digital health solutions. Its products improve patient outcomes and are increasingly integrated with cloud-based platforms — creating a sticky, recurring revenue model.

A major growth driver is rising awareness and diagnosis of sleep disorders, alongside expansion in digital health and remote monitoring.

So why the sell-off? Concerns around competition, particularly from weight-loss drugs potentially reducing sleep apnea cases, have weighed on sentiment. Like CSL, it has also been hit by broader market rotation away from growth stocks.

That said, the business continues to deliver solid performance and innovation.

The risks include competitive pressures, regulatory changes, and any slowdown in patient growth.

But analysts remain largely upbeat on the ASX healthcare stock.

The average price target sits at $307.95, suggesting upside of around 37%. The most bullish forecasts go even further, tipping the stock could reach $371.80, implying gains of up to 66%.

Foolish Takeaway

CSL and ResMed have both been sold off, but their core businesses remain strong.

If sentiment shifts and earnings momentum improves, these ASX healthcare stocks could be well positioned to lead the next market surge.

The post 2 classy ASX healthcare stocks to buy before the next market surge 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.

But when I break it down, it becomes far more manageable.

It is not about finding the perfect ASX share or timing the market. It is about consistency, patience, and leveraging the power of compounding.

The maths behind it

Let's start with a simple assumption.

If you can achieve an average return of 9% per year, which I think is a reasonable long-term expectation for a diversified portfolio of ASX shares, although not guaranteed, the path to $1 million becomes clearer.

At that return, investing $5,000 per year would grow to roughly $1 million in just over 33 years.

Clearly this is not a one-off effort. It is a habit. A system that builds momentum over decades.

And once that momentum builds, the numbers can start to accelerate in ways that are hard to appreciate early on.

The early years feel slow

In the beginning, progress can feel underwhelming. After five years, you have contributed $25,000. The portfolio might be worth a bit more than that, but not dramatically so.

This is where a lot of people lose interest. But I think this is the most important phase.

Because what you are really building early on is not wealth. It is discipline.

You are learning to invest regularly, ignore short-term noise, and stay focused on the long term.

Then compounding starts to show up

As the portfolio grows, something changes. The returns begin to matter more than the contributions.

At some point, your portfolio might grow by more in a year than you are adding yourself.

That is when compounding really starts to work in your favour.

And from there, the process becomes less about how much you can contribute and more about how long you can stay invested.

Which ASX shares I would invest in

If I were building a portfolio like this, I would keep things simple.

I would focus on high-quality ASX shares that have the potential to grow earnings over time and deliver a mix of capital growth and income.

This might mean companies like Goodman Group (ASX: GMG), ResMed Inc. (ASX: RMD), and Cochlear Ltd (ASX: COH) for exposure to global growth themes.

At the same time, businesses such as TechnologyOne Ltd (ASX: TNE) and WiseTech Global Ltd (ASX: WTC) provide exposure to high-margin software models with recurring revenue.

And I would likely balance that with more established names like Commonwealth Bank of Australia (ASX: CBA) and Telstra Group Ltd (ASX: TLS), which can provide stability and income along the way.

The exact mix is less important than the principle. Own quality businesses and give them time.

Foolish takeaway

Building a million-dollar ASX share portfolio from zero is not about luck or timing. It is about consistency and time.

A steady investment of $5,000 per year, combined with a long-term return of around 9%, could get you there over a few decades.

It may not feel exciting in the early years. But over time, compounding can turn small, consistent steps into something significant.

The post How to build a million-dollar ASX share portfolio from zero appeared first on The Motley Fool Australia.

Right now, it might be inflation, interest rates, geopolitical tensions, or the impact of artificial intelligence (AI) on different industries.

All of those are valid concerns.

But when I look at how investors are reacting, I think the biggest mistake in 2026 is not any single decision.

It is stepping back from investing altogether.

Letting uncertainty stop you

Periods like this tend to create hesitation. Share prices move around more, headlines become more negative, and it can feel like the safer option is to wait for things to settle down.

The problem is that markets rarely give you that moment of clarity. There is almost always another reason to wait.

And while you are waiting, time passes. For long-term investors, time is one of the most important assets you have.

Volatility is part of the process

I think it is easy to forget that volatility is normal. Markets do not move in straight lines. Some years are strong, others are flat or negative.

We have seen that recently, with parts of the market pulling back even as others have held up better.

That does not mean the long-term opportunity has disappeared. If anything, it often means valuations in certain areas are becoming more reasonable.

ASX shares like CSL Ltd (ASX: CSL) and WiseTech Global Ltd (ASX: WTC) have seen significant share price declines at different points, even while continuing to invest in their businesses and position for future growth.

That is not unusual.

Trying to time the perfect entry

Another mistake I see is trying to get the timing exactly right.

Waiting for the bottom. Waiting for the next piece of good news. Waiting for markets to feel more comfortable again.

In reality, those moments are only obvious in hindsight.

I think a more practical approach is to invest progressively over time. That way, you are not relying on a single decision. You are building exposure gradually.

Forgetting what you own

When markets are volatile, it is easy to focus on share prices rather than the businesses behind them.

But in my view, that is the wrong focus.

If you own high-quality companies with strong balance sheets, competitive advantages, and long-term growth potential, short-term price movements matter less.

Businesses like Goodman Group (ASX: GMG), ResMed Inc. (ASX: RMD), or TechnologyOne Ltd (ASX: TNE) are not defined by a single year's performance.

They are built to grow over many years.

A different way to think about ASX investing

Instead of asking whether now is the perfect time to invest in the ASX, I think a better question is:

Am I investing in businesses I would be comfortable holding for the long term?

That shift in mindset changes everything.

It moves the focus away from short-term uncertainty and toward long-term opportunity.

Foolish takeaway

The biggest mistake I see ASX investors making in 2026 is letting uncertainty stop them from investing.

Markets will always have risks. But over time, it is participation, consistency, and patience that tend to drive results.

For me, the priority is not waiting for the perfect moment. It is making sure I stay in the market, invested in quality businesses, and focused on the long term.

The post The biggest mistake I see ASX investors making in 2026 appeared first on The Motley Fool Australia.