But I wouldn't want to invest in something that's going to be mediocre for a long time; I'd only want to buy investments that could help grow my wealth over time.

Below are two ideas I'd feel comfortable owning for the next 10 years (and beyond).

TechnologyOne Ltd (ASX: TNE)

TechnologyOne describes itself as Australia's largest enterprise software company with a global presence. It aims to provide end-to-end software as a service (SaaS) enterprise resource planning (ERP) for clients.

It has 1,300 leading corporations, government agencies, local councils and universities as clients.

The business has won several major clients recently, including the City of Townsville, Cardinia Shire Council, Liverpool City Council, Salisbury City Council, and City of Ryde Council.

The UK could be a strong area of growth for the business over the coming years. According to TechnologyOne, the UK local government sector is currently undergoing a transition period with the planned amalgamation of smaller councils to form larger, economically viable councils. It said in the FY26 result that its sales pipeline for local government in the UK remains strong and it thinks it will see accelerated growth from this sector in future periods.

The education is also growing, with annual recurring revenue (ARR) growth of 15% in FY26, with good wins like James Cook University. In the UK, it has won the University of Suffolk and Royal Holloway, University of London.

This business is aiming to reach at least $1 billion in ARR by FY30 from its base of $598 million. The company also thinks economies of scale could help it boost its profit-before-tax margin to at least 35% in the long term.

In the next decade, I think its earnings could rise significantly, making it good value today.

BetaShares Diversified All Growth ETF (ASX: DHHF)

The other investment I want to discuss is an exchange-traded fund (ETF) that aims to provide exposure to a diversified, low-cost 'all-growth' portfolio.

The idea of the portfolio is that it can provide exposure to global shares across a wide range of global exchanges.

Currently, it has a strategic asset allocation guideline of 37% to Australian shares and 63% to international shares across US shares, developed share markets (excluding the US) and emerging market shares.

The ASX share market allocation is similar to the US share market allocation, while the developed market (excluding the US) has a 15% allocation, and emerging markets has an approximate 7% allocation.

The markets that have the biggest exposure beyond the US and Australia, are Japan, Taiwan, China, Canada, the UK, South Korea and India.

I like how the fund can give exposure to a wide variety of assets with just a single investment, which I'd call very appealing for a long-term investment.

Since the fund's inception in December 2020, it has returned an average of 11.8% per year.

The post 2 top ASX shares to buy and hold for the next decade appeared first on The Motley Fool Australia.

But I would not see it as too late to start.

There would still be time to build meaningful wealth, particularly if I could save consistently and avoid making the process more complicated than it needs to be.

And if I were starting from scratch, I would take plenty of inspiration from Warren Buffett.

Why Warren Buffett?

Buffett, often called the Oracle of Omaha, has spent decades showing what patient, disciplined investing can achieve.

He took control of Berkshire Hathaway (NYSE: BRK.A) in the 1960s when it was still a struggling textile business.

Over time, he transformed it into one of the world's most valuable companies.

The textile operations eventually disappeared, while Berkshire became a collection of high-quality businesses and investments spanning insurance, railroads, energy, manufacturing, consumer products, and listed shares.

A big part of Buffett's success has come from buying good businesses, holding them for long periods, and allowing compounding to do the work.

That is the part I would copy.

I would focus on quality

Starting at 50 would make me reluctant to gamble on highly speculative shares.

I would want companies with strong balance sheets, proven business models, good competitive positions, and the ability to increase earnings over many years.

On the ASX, that could lead me toward businesses such as Wesfarmers Ltd (ASX: WES), ResMed Inc (ASX: RMD), Goodman Group (ASX: GMG), and TechnologyOne Ltd (ASX: TNE).

They are different companies, but each has qualities that could allow it to keep becoming more valuable over time.

I would not expect every investment to work perfectly.

Buffett has made plenty of mistakes himself. The important thing is making sure the winners have the potential to do far more good than the losers do damage.

I would keep adding money

With no savings at 50, investment selection would only be part of the job. I would need to build the capital base.

That means investing regularly and increasing contributions whenever possible.

If I could invest $1,500 a month and generate an average annual return of 10%, after 15 years the portfolio could grow to around $600,000.

At $2,000 per month, it could reach roughly $800,000.

Those returns are not guaranteed, of course, but they show why starting now is so much better than waiting another five years.

I would leave the portfolio alone

One of Buffett's greatest advantages has been patience. He has often held successful investments for decades rather than constantly trading in and out of the market.

I would try to do the same. Once I owned quality businesses, I would give them time to grow earnings, reinvest profits, pay dividends, and compound.

I would still review the portfolio and sell if the investment case genuinely changed. But I would not let every market fall, broker downgrade, or bad week convince me to start again.

At 50, I would not have time to waste. But I would still have enough time for patience, regular investing, and compounding to make a very meaningful difference.

The post With no savings at 50, I'd follow Warren Buffett's approach to build wealth appeared first on The Motley Fool Australia.

For a genuine buy-and-hold investment, I want a strong business today with plenty of opportunity still ahead.

These three could be best buys for me.

Pro Medicus Ltd (ASX: PME)

Pro Medicus is an ASX share that has already grown enormously, but I still think its best years could be ahead.

The healthcare technology company develops the Visage imaging platform used by hospitals and radiology groups to view and manage medical images.

Despite winning contracts with some of the United States' largest hospital networks, management has previously estimated that Pro Medicus still holds only around 11% of the market.

That leaves a substantial number of hospitals still available to win.

There is also more to the opportunity than radiology. Pro Medicus is expanding further into cardiology and broader enterprise imaging, potentially allowing its software to become more deeply embedded across hospital systems.

Winning major healthcare customers can take time, but once the platform becomes central to clinical workflows, I think those relationships can be extremely valuable.

That makes Pro Medicus the type of business I would be comfortable holding through short-term share price volatility.

TechnologyOne Ltd (ASX: TNE)

TechnologyOne could also be one of the best ASX shares for a long holding period.

Its enterprise software is used by councils, universities, government organisations, and other large institutions to manage important day-to-day operations.

These customers generally do not change core software systems lightly. Moving financial, payroll, property, or other critical processes to another provider can be expensive and disruptive. That helps TechnologyOne build long customer relationships and recurring revenue.

I also like that the business still has opportunities outside Australia. Its expansion in the United Kingdom gives TechnologyOne another sizeable market to pursue, while continued investment in cloud software and artificial intelligence could increase the value of its products for existing customers.

Overall, I think TechnologyOne has many of the qualities I want from an ASX share I would own for a decade or longer.

REA Group Ltd (ASX: REA)

REA Group is another ASX share I would be comfortable owning for the long term.

Its realestate.com.au platform has become deeply embedded in how Australians search for property, giving the company a very strong position with both buyers and sellers.

That large audience is a major advantage. Property agents want to advertise where buyers are already looking, while buyers keep returning because that is where the listings are. I think that creates a network effect that is difficult for competitors to replicate.

The Australian housing market will always move through stronger and weaker periods, so listings activity can fluctuate.

But over a long timeframe, I think REA Group's dominant position and ability to earn more from its audience give the business plenty of room to keep growing.

Foolish takeaway

I would not necessarily expect these ASX shares to outperform every year.

What I like is that each company has a strong position today and a clear opportunity to become much larger over the next decade.

If I could buy Pro Medicus, TechnologyOne, and REA Group at sensible valuations, I would be happy to hold them for years and give those growth stories time to develop.

The post Why I think these are the best ASX shares to buy and hold appeared first on The Motley Fool Australia.

It is about putting together a portfolio that can keep growing even when individual companies disappoint, markets fall, or the economy changes.

That sounds simple enough, but there is a big difference between owning a collection of shares and owning a portfolio with a clear purpose.

Here is how I would approach it.

Build around your best long-term ideas

I would start with the companies I would be most comfortable owning for the next five to ten years.

These should be businesses with strong market positions, healthy balance sheets, and opportunities to keep growing earnings.

Examples could include companies such as Goodman Group (ASX: GMG), ResMed Inc (ASX: RMD), TechnologyOne Ltd (ASX: TNE), REA Group Ltd (ASX: REA), and Wesfarmers Ltd (ASX: WES).

They operate in different industries, but each has qualities that could allow it to become more valuable over time.

This is where a large part of the ASX share portfolio's wealth creation can come from.

Give growth shares room to compound

A winning portfolio should probably have some exposure to faster-growing businesses as well.

Technology companies such as Xero Ltd (ASX: XRO), Life360 Inc (ASX: 360), and HUB24 Ltd (ASX: HUB) operate in markets where there is still considerable room to expand.

These shares can be more volatile, and valuations can move around quickly.

But if earnings grow strongly for many years, the eventual value of the business can look very different from where it started.

The important thing is giving successful investments enough time.

Selling a great company simply because its share price has already risen can sometimes cut short the most valuable part of the compounding process.

Do not let one idea control the portfolio

Conviction is useful, but concentration can become dangerous.

Even excellent businesses can run into unexpected problems.

I would therefore spread investments across different industries and earnings drivers rather than allowing one company or sector to dominate the portfolio.

Australian investors should also think beyond the local market.

ASX exchange traded funds (ETFs) such as the Vanguard MSCI Index International Shares ETF (ASX: VGS) or iShares S&P 500 ETF (ASX: IVV) can provide global exposure alongside individual Australian shares.

Pay attention to price

Quality alone is not enough. A fantastic company bought at an extreme valuation can still deliver disappointing returns.

I would rather keep a company on my watchlist than convince myself I have to buy it immediately.

There will usually be another opportunity. Results disappoint, markets correct, sentiment changes, and shares fall out of favour. Having cash ready when a quality business becomes more reasonably priced can be valuable.

Keep adding to the portfolio

The portfolio itself is only one part of the equation. Regular contributions can make an enormous difference over a long period.

Adding money each month or quarter means investors continue buying through strong markets, weak markets, recessions, recoveries, and everything in between.

Over decades, the combination of new contributions, rising company earnings, reinvested dividends, and compounding can become extremely powerful.

For example, $1,000 a month into an ASX share portfolio would turn into approximately $725,000 in 20 years with an average 10% annual return.

A winning ASX share portfolio does not need every decision to be right. It needs enough good businesses, sensible diversification, reasonable purchase prices, and plenty of time to compound.

The post How to build a winning ASX share portfolio and create wealth appeared first on The Motley Fool Australia.

I think it should also be something an investor can comfortably hold when markets fall, individual shares disappoint, and the latest hot investment starts grabbing attention.

Here is how I would build one with a decade in mind.

Start with businesses I genuinely understand

I would begin with ASX shares where I can explain the investment case without needing a complicated spreadsheet.

Coles Group Ltd (ASX: COL), for example, sells products Aussies buy regularly. ResMed Inc. (ASX: RMD) provides treatment for sleep apnoea, while Macquarie Group Ltd (ASX: MQG) has built expertise across banking, asset management, commodities, and investment markets.

The businesses themselves can be complex, but I want the reason for owning them to remain clear.

That makes it easier to judge whether something has genuinely changed when the share price falls.

Give the ASX portfolio several ways to succeed

I would also spread my investments across ASX shares that make money in different parts of the economy.

A portfolio dominated by one industry can perform brilliantly when conditions are favourable, but it can become uncomfortable very quickly when that sector struggles.

I would want exposure to areas such as healthcare, financial services, consumer spending, technology, infrastructure, and resources.

An exchange-traded fund (ETF) could make this easier. The Vanguard Australian Shares Index ETF (ASX: VAS), for example, provides exposure to hundreds of Australian shares through one investment.

I could then add individual shares where I have particularly strong conviction.

Leave room for growth

I think a 10-year portfolio should contain businesses that have somewhere to go.

That does not necessarily mean choosing the fastest-growing companies today.

I would look for businesses that can keep entering new markets, adding products, improving their operations, or becoming more important to customers. This might include ASX shares like Breville Group Ltd (ASX: BRG) or TechnologyOne Ltd (ASX: TNE).

A company that can repeatedly find sensible places to reinvest its money has a much better chance of being worth considerably more a decade from now.

I would also be careful not to fill the portfolio entirely with businesses that already depend on everything going right. Some balance between established companies and higher-growth opportunities can make the journey easier to tolerate.

Avoid constantly rebuilding it

There will always be reasons to change an ASX portfolio.

I would certainly sell if the investment case genuinely deteriorated. But I would not want ordinary volatility to turn a 10-year strategy into a series of short-term decisions.

Regularly adding money, reinvesting dividends, and allowing strong businesses to develop would be far more important to me than continually searching for something better.

Foolish takeaway

I think the best long-term ASX portfolio is one that gives an investor enough confidence to remain patient.

For me, that means understandable businesses, sensible diversification, room for growth, and a strategy simple enough that I do not feel compelled to keep changing it.

If I can build that portfolio and still feel comfortable owning it through difficult markets, I think I have given myself a strong chance of being pleased with the result 10 years from now.

The post How to build an ASX portfolio you can stick with for 10 years appeared first on The Motley Fool Australia.

There is nothing wrong with that. But not everyone wants investing to become a second job.

The good news is that a strong ASX portfolio should not need constant attention. In fact, some of the best portfolios are built to be left alone most of the time.

Start with investments that do the work for you

The easiest way to reduce the need for constant decision-making is to own investments that already spread money across lots of companies.

ASX exchange traded funds (ETFs) can help here.

Funds such as the Vanguard MSCI Index International Shares ETF (ASX: VGS), iShares S&P 500 ETF (ASX: IVV), and the Vanguard Australian Shares Index ETF (ASX: VAS) give investors exposure to large collections of businesses in one trade.

That means an investor does not have to know which company will report the best result next month.

They are backing the long-term progress of markets rather than relying on one perfect stock pick.

Choose businesses that can compound quietly

Individual ASX shares can still have a place in a low-maintenance portfolio. But the type of company is important.

I would focus on businesses with strong market positions, repeat customers, pricing power, and long-term growth opportunities.

These are companies that can become more valuable over time without needing everything to go right each quarter.

Examples could include ResMed Inc. (ASX: RMD), Goodman Group (ASX: GMG), REA Group Ltd (ASX: REA), Wesfarmers Ltd (ASX: WES), and TechnologyOne Ltd (ASX: TNE).

They will still have weaker periods. No company avoids those. But if the long-term investment case remains intact, investors may not need to react to every share price move.

Avoid shares that require too much watching

Some ASX shares need constant monitoring. That might be because they carry too much debt, rely on commodity prices, need regular capital raisings, or have business models that are still unproven.

These shares can work out well, but they often demand more attention.

For investors who want a portfolio they can leave alone for longer periods, it may be better to avoid making these positions too large.

A portfolio becomes easier to live with when it is not filled with companies that can change dramatically from one update to the next.

Let dividends help

Dividends can also make a portfolio feel more productive.

Income from shares such as Transurban Group (ASX: TCL), APA Group (ASX: APA), Woolworths Group Ltd (ASX: WOW), and Charter Hall Long WALE REIT (ASX: CLW) can provide cash flow while investors wait.

That cash can be taken as income or reinvested to buy more shares.

Over time, reinvested dividends can quietly add to returns without the investor needing to do much at all.

Set a review schedule

A low-maintenance portfolio does not mean ignoring everything forever. It just means checking it sensibly.

For many investors, a proper review every six or 12 months may be enough. That review can ask a few simple questions.

Is the portfolio still diversified? Are the main holdings still doing what they were bought to do? Has any position become too large? Is there enough exposure to global shares, income, and long-term growth?

That is very different from watching every daily move. The aim is not to build a portfolio that never changes. It is to build one that does not need constant fixing.

For investors who want to build wealth without living inside their brokerage account, that could be a very good place to start.

The post How to build an ASX portfolio you do not need to check every day appeared first on The Motley Fool Australia.

The ASX 200 stayed in green territory all session, steadily climbing to close with a 0.6% gain. That leaves the index at 9,092.3 points as we head into the weekend.

This happy day for Australian investors followed an upbeat Thursday session for US markets overnight.

The Dow Jones Industrial Average Index (DJX: .DJI) enjoyed a modest 0.1% gain.

Meanwhile, the tech-heavy Nasdaq Composite Index (NASDAQ: .IXIC) ran much hotter, rising 1.57%.

But let's get back to the local markets now for an examination of how the various ASX sectors fared amid today's pleasant trading conditions.

Winners and losers

There were only a couple of sectors that weren't invited to today's ASX party.

The most conspicuous absentee was real estate investment trusts (REITs). The S&P/ASX 200 A-REIT Index (ASX: XPJ) was left out in the cold, slumping 0.78%.

The other unlucky corner of the market was utilities shares, with the S&P/ASX 200 Utilities Index (ASX: XUJ) slipping 0.09%.

Let's get to the winners now, though. Leading said winners this Friday were tech shares. The S&P/ASX 200 Information Technology Index (ASX: XIJ) was on fire, shooting 2.31% higher.

Mining stocks were in high demand too, illustrated by the S&P/ASX 200 Materials Index (ASX: XMJ)'s 0.98% surge.

Gold shares were also popular. The All Ordinaries Gold Index (ASX: XGD) roared 0.9% higher this session.

Financial stocks had a day to remember as well, with the S&P/ASX 200 Financials Index (ASX: XFJ) soaring 0.75%.

Energy shares didn't miss out. The S&P/ASX 200 Energy Index (ASX: XEJ) enjoyed a 0.66% jump this Friday.

We could say something similar for consumer discretionary stocks, as you can see by the S&P/ASX 200 Consumer Discretionary Index (ASX: XDJ)'s 0.44% leap.

Its consumer staples counterpart was a little less enthusiastic. The S&P/ASX 200 Consumer Staples Index (ASX: XSJ) still managed a 0.3% improvement, though.

Communications stocks were our next corner of the market, with the S&P/ASX 200 Communication Services Index (ASX: XTJ) advancing 0.25%.

Healthcare shares were decent performers, too. The S&P/ASX 200 Healthcare Index (ASX: XHJ) put on 0.08% today.

Finally, industrial shares only just got over the line, evidenced by the S&P/ASX 200 Industrials Index (ASX: XNJ)'s 0.04% bump.

Top 10 ASX 200 shares countdown

Gold stock Pantoro Gold Ltd (ASX: PNR) was our chart-topper this Friday.

Pantoro shares rocketed up 5.88% to close at $2.88 each today. That was despite no news or announcements from the company today.

Here's the rest of today's best:

Enjoy the weekend!

Our top 10 shares countdown is a recurring end-of-day summary that shows which companies made big moves on the day. Check in at Fool.com.au after the weekday market closes to see which stocks make the countdown.

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

But time and consistency can change the picture considerably.

If I were aiming for that target over the next 20 years, this is how I would approach it.

Start with $20,000 and keep adding

Let's assume I begin with a $20,000 ASX share portfolio and invest another $1,500 each month.

That works out to $18,000 of new money every year.

If the portfolio produces an average return of around 9% per annum, those contributions could grow to approximately $1 million over 20 years.

I should point out that there are no guarantees the market will deliver 9% annually. Returns will vary considerably from year to year, but 9% is roughly in line with the historical average annual return.

I think this example shows why I would focus less on finding one spectacular investment and more on keeping money invested for a long time.

I would also reinvest dividends where appropriate and give successful investments time to grow rather than constantly trading in and out of the market. This will allow compounding to do its work.

Focus on quality businesses

If I were choosing individual ASX shares, I would want companies capable of becoming more valuable over many years.

That means looking for strong competitive positions, healthy balance sheets, capable management, and genuine opportunities to keep growing.

This could mean ASX shares like Goodman Group (ASX: GMG), Cochlear Ltd (ASX: COH), TechnologyOne Ltd (ASX: TNE), and Macquarie Group Ltd (ASX: MQG).

The goal would not be to predict which share performs best next month. I would be trying to assemble a collection of businesses capable of compounding earnings and value throughout much of the 20-year period.

Diversification would also be important. It is worth remembering that even businesses that look excellent today can disappoint. So, having a portfolio with sufficient diversification could offer some downside protection.

Consistency could be the biggest advantage

I think the $1,500 monthly contribution into ASX shares is just as important as the return assumption.

There will inevitably be periods when markets fall sharply and investing feels uncomfortable.

Those could actually be some of the most valuable months to keep contributing, because the same $1,500 buys more shares at lower prices.

Foolish takeaway

I would not expect the journey to $1 million to be smooth.

But starting with $20,000, investing $1,500 each month, and targeting a long-term return of around 9% gives the goal a realistic foundation.

For me, the strategy comes down to three things: quality investments, consistent contributions, and enough patience to let compounding do its work.

The post How I'd aim to build a $1 million ASX share portfolio in 20 years appeared first on The Motley Fool Australia.

But I like the idea of gradually building something alongside it.

ASX shares can give investors ownership in businesses that may grow, pay dividends, and become more valuable over time. Given enough patience, that portfolio could eventually become a substantial asset in its own right.

I would invest in ASX shares regularly

I would start by making investing a habit.

Rather than waiting for the perfect moment, I would aim to put a manageable amount into the share market regularly and gradually build my ownership of strong businesses.

The early years may not look particularly exciting. A few thousand dollars invested here and there can feel small compared with a salary or a home.

But each investment adds another asset working on my behalf.

And as the portfolio grows, dividends can be reinvested into more shares, while successful companies can increase in value. Eventually, the returns generated by the portfolio itself can become a meaningful part of the wealth-building process.

I would own businesses that can compound

For the core of the portfolio, I would look for ASX shares with potential to become more valuable over many years.

TechnologyOne Ltd (ASX: TNE) is the type of business I have in mind.

Its enterprise software is deeply embedded within organisations such as councils, universities, and government bodies. It can grow by attracting more customers, expanding internationally, and encouraging existing customers to use more of its products.

If a company can repeatedly reinvest in opportunities like these, earnings can grow and shareholders can benefit from that progress over a long period.

I would not expect every investment to produce spectacular returns. I would be looking for a collection of strong businesses that can steadily do more over time.

Dividends can help as well

Capital growth would be a major part of my plan, but I would not ignore income.

A company such as Macquarie Group Ltd (ASX: MQG) can potentially grow over time while also returning cash to shareholders through dividends.

During the wealth-building stage, I would generally reinvest that income.

This means the dividends buy more shares, which can generate further dividends in later years. The effect may look small initially, but decades of reinvestment can make a considerable difference.

Later in life, the same portfolio could potentially provide income without requiring every share to be sold.

That gives me another reason to think of share investing as building a second pool of wealth rather than simply trying to make money from share price movements.

I would spread the risk

I would also avoid relying too heavily on one company or sector.

An Australian portfolio could include businesses exposed to healthcare, technology, financial services, resources, consumer spending, infrastructure, and overseas markets.

ResMed Inc. (ASX: RMD), for example, gives investors exposure to global demand for sleep apnoea treatment, while BHP Group Ltd (ASX: BHP) provides ownership of major mining assets supplying commodities used around the world.

I think owning a collection of strong businesses makes it easier to stay invested when one company or industry goes through a difficult period.

That patience is important because building meaningful wealth through shares is usually a long process.

Foolish takeaway

I would approach ASX investing as something I build gradually in the background for years.

Every regular investment adds another small piece of ownership, while business growth and reinvested dividends can make that portfolio increasingly valuable over time.

The goal would be to reach a point where my wealth is no longer being built solely from the money I earn from working.

I think a patient portfolio of quality ASX shares can be a powerful way to get there.

The post How I'd use ASX shares to build a second source of wealth appeared first on The Motley Fool Australia.

The companies I am most interested in are those that can keep increasing revenue and earnings for many years while reinvesting in even larger opportunities.

When that process continues for long enough, the results can be substantial.

Look for businesses with room to grow

A company can already be successful and still have a long way to go.

TechnologyOne Ltd (ASX: TNE) is a good example. Its enterprise software is used by councils, universities, government organisations, and other large institutions.

Once an organisation builds important processes around a software platform, changing providers can become time-consuming and disruptive. That can help TechnologyOne retain customers while gradually expanding the services they use.

The tech company also has opportunities to keep growing overseas, particularly in the UK.

For me, that is the type of growth story worth looking for. TechnologyOne does not need to invent an entirely new business every few years. It can keep improving its existing software, add customers, and expand into larger markets.

Give compounding time to work

Growth investing becomes particularly powerful when a company can reinvest its profits and keep generating attractive returns from that spending.

Hub24 Ltd (ASX: HUB) has been doing this for years as it expands its investment and superannuation platform.

Australia's pool of retirement savings should keep growing over the decades ahead, while financial advisers increasingly rely on modern platforms to manage client portfolios.

If Hub24 continues winning advisers and attracting more money onto its platform, the business can become more valuable without needing to reinvent its core proposition.

This is where patience becomes important.

A strong company can have an excellent year without creating life-changing wealth for shareholders. The bigger opportunity comes when it repeats that growth over five, 10, or even 20 years.

Earnings can compound, the business can become considerably larger, and shareholders participate in that expansion.

I would focus on quality as well as growth

Rapid growth alone would not be enough for me.

I want to understand why a company is growing and whether it has a realistic chance of continuing.

REA Group Ltd (ASX: REA) is the type of business I find attractive for that reason.

Realestate.com.au has built an enormous audience, which encourages property agents to list their homes on the platform. Those listings then give buyers and renters another reason to keep visiting.

REA Group can build on that position by offering better tools, property data, artificial intelligence features, and services connected to financing and the broader property journey.

I think businesses with strong competitive positions have a better chance of protecting the profits needed to keep investing for the future.

The share price will not always cooperate

Even great growth shares can fall sharply.

Expectations can become too high, economic conditions can change, or investors can simply lose enthusiasm for a sector.

I would expect volatility rather than treating it as a sign that a long-term strategy has failed.

That makes diversification important as well. I would rather own several high-quality growth businesses than depend on one company getting everything right.

It also means I would be careful about chasing a share simply because its price has been rising. The business still needs to justify my confidence in its future.

Foolish takeaway

I think ASX growth shares can play an important role in building serious long-term wealth.

The businesses I want to own have clear opportunities to become larger, strong competitive positions, and the ability to reinvest successfully for years.

Finding those companies is only part of the job. The other part is giving them enough time to compound.

If I can own a collection of strong growth businesses and resist the temptation to constantly interfere, I think that can be a powerful approach to growing wealth over the long term.

The post How I'd use ASX growth shares to build long-term wealth appeared first on The Motley Fool Australia.

They have clear opportunities to keep expanding, established positions in their markets, and reasons to believe they could be considerably larger a decade from now.

If I could only check my portfolio once a year, these are three ASX shares I would be comfortable owning.

ResMed Inc. (ASX: RMD)

ResMed would be my first pick because sleep health is a market I expect to keep growing for many years.

The company is best known for its devices and masks used to treat obstructive sleep apnoea. Millions of people already use its products, but a huge number of people around the world remain undiagnosed or untreated.

That gives ResMed plenty of people still to reach.

I also like what happens after someone begins treatment. Masks and other accessories need replacing regularly, creating an ongoing relationship rather than a one-off equipment sale.

Its latest results show that demand remains strong. ResMed's fourth-quarter revenue increased by 9%, supported by its sleep devices, masks and accessories.

The company is also investing in digital health to help patients remain on therapy. I think combining connected devices, software and replacement products can strengthen those customer relationships over time.

For me, ResMed is a business that could quietly keep growing as more people receive treatment for sleep-related conditions.

TechnologyOne Ltd (ASX: TNE)

TechnologyOne is another share I would happily leave alone for long periods.

Its software is used by councils, universities, government organisations and other institutions to manage important everyday functions.

Once one of these organisations has built its operations around TechnologyOne's software, changing systems can involve considerable time, disruption and retraining. Meanwhile, the company continues improving what existing customers can do through the platform.

TechnologyOne's SaaS+ model takes this further by giving the company greater responsibility for implementing and operating its software for customers.

I think its expansion outside Australia could be particularly important over the next decade. UK annual recurring revenue reached $53 million in the first half of FY26, up 23%. That figure caught my attention because it shows TechnologyOne is gaining traction in another large market rather than relying solely on its established Australian customer base.

Artificial intelligence could give customers another reason to deepen their use of the platform, with TechnologyOne investing in technology that can automate tasks inside its software.

There should be plenty more runway if the company can repeat its Australian success overseas.

Coles Group Ltd (ASX: COL)

Coles may seem like the least exciting company of the three, but I wouldn't let that put you off.

Australians need groceries every week, giving Coles an enormous base of recurring customer demand and defensive earnings.

The business is also changing behind the scenes. Coles has invested heavily in automated distribution centres and customer fulfilment centres, which can make the supply chain more efficient while helping it handle growing online demand.

Ecommerce sales increased by 27% during the first half of FY26, with volumes through its automated fulfilment centres continuing to grow.

I think that shows Coles can continue evolving even in a mature industry.

The company also owns valuable customer relationships through Flybuys and is developing its retail media operations, creating more ways to earn from the enormous amount of shopping activity already passing through its stores and websites.

For a long-term holding, I like that combination of everyday demand and gradual improvement.

Foolish takeaway

I like all three because I can see a reason to stay patient with them through the inevitable market noise.

If the underlying businesses keep progressing, I think these are the sort of shares that could reward investors for simply giving them time.

The post 3 ASX shares I'd buy if I could only check my portfolio once a year appeared first on The Motley Fool Australia.

For me, I would want businesses capable of increasing their earnings over time, but I would also place plenty of weight on dependable cash flows, dividends, diversification and companies that can hold up reasonably well through different economic environments.

With that in mind, here is how I would think about building a 10-share ASX retirement portfolio.

Start with dependable income

I would want a meaningful part of the portfolio invested in companies with relatively predictable cash flow.

Telstra Group Ltd (ASX: TLS) would be one of my first choices. Australians are unlikely to stop needing mobile and internet services in retirement, recessions or booming markets, giving Telstra a large base of recurring revenue.

I would add Transurban Group (ASX: TCL) for exposure to long-life toll road infrastructure. Traffic growth and regular toll increases can help its cash flows rise over time.

APA Group (ASX: APA) would give my retirement portfolio another source of infrastructure income through its extensive energy network.

For exposure to the banking sector, I would probably choose Commonwealth Bank of Australia (ASX: CBA). Its strong market position and history of paying substantial dividends make it a natural retirement candidate in my view.

Add defensive businesses

I think a retirement portfolio also needs defensive companies whose products and services remain important regardless of the economic backdrop.

Coles Group Ltd (ASX: COL) fits that description for me. People need groceries in almost every economic environment, while its supermarket network gives the company a large and established position in Australian retail.

I would also include CSL Ltd (ASX: CSL). Healthcare demand can be resilient, while CSL's global operations and long-term growth opportunities give the portfolio something more than income alone. It also currently offers a reasonable dividend yield.

Then there is Wesfarmers Ltd (ASX: WES). Businesses such as Bunnings and Kmart give Wesfarmers exposure to some of Australia's strongest retail brands, while management has a long record of investing capital across different opportunities.

Keep some growth in the portfolio

Retirement could last for decades, so I would not want to give up on growth.

Goodman Group (ASX: GMG) would be one of my preferred choices here. Its logistics property portfolio already gives it exposure to high-quality global assets, while data centres could become an increasingly important growth engine.

I would also include TechnologyOne Ltd (ASX: TNE). Its recurring software revenue, expanding international presence and long customer relationships give it the kind of compounding potential I would be happy to own for many years.

Finally, I would add Pro Medicus Ltd (ASX: PME). Its medical imaging software has gained significant traction with major healthcare organisations, and I think its international growth runway remains substantial.

These growth shares may not provide the largest dividends today, but they can help the portfolio's earnings base grow over time.

Foolish takeaway

For me, a strong retirement portfolio needs to provide dependable income today, businesses capable of protecting that income, and enough growth to help the portfolio keep pace with a retirement that could last 20 years or 30 years.

I think this mix would give me all three.

The post How to build a strong ASX retirement portfolio with 10 shares appeared first on The Motley Fool Australia.

I want them to hold good quality ASX shares that can stand the test of time. That's high-quality businesses with strong fundamentals, a competitive advantage and maybe even a steady passive income. 

Here are the ASX 200 shares I'd be happy for my kids to own for the next 20 years.

Wesfarmers Ltd (ASX: WES)

Wesfarmers is a premier blue-chip Australian stock with a well-established and financially sound history of reliable growth and stability.

The retail giant has a huge and highly diversified exposure across multiple industries and sectors. It owns and operates major everyday brands including Bunnings, Kmart, Target, and Officeworks. It also has operations across health and wellbeing, industrials, chemicals, energy, and even more.

Over the past 12 months, the ASX 200 shares have climbed around 1% to $89.50 at the time of writing. 

But quick returns aren't my goal. Wesfarmers may not be a growth stock, but it generally and steadily trends upward over time. And a company of this size isn't going anywhere.

The best part is that, thanks to its sheer size and market dominance, it has been able to pay its shareholders a regular fully-franked dividend dating back to 2004. 

The conglomerate most recently paid its shareholders a fully-franked interim dividend of $1.02 per share in March. And as the company's earnings climb, its payout is expected to rise too. Wesfarmers is expected to pay an annual $2.13 dividend per share for FY26. Based on the current share price, that translates to a forward dividend yield of around 2.4% for FY26. 

Origin Energy Ltd (ASX: ORG)

Unlike Wesfarmers, Origin is a defensive stock. This means the company is generally resilient to sharemarket volatility and global uncertainty. After all, energy is an essential service. People won't stop powering their homes because the purse strings have tightened. Australians will always need power.

And Origin's assets operate under long-term contracts, often with rising income, which gives it another strong defensive quality.

The ASX 200 company's shares are a great option for passive income because they generate substantial cash flows, especially when energy prices are elevated. This means Origin can then pay high yields to shareholders.

In the first half of FY26, Origin Energy paid its investors 30 cents per share, fully franked. The business is forecast to pay an annual 61 cent per share dividend for FY26. Using the $10.91 share price at the time of writing, this translates to a forward yield of around 5.6%, including franking credits, at the time of writing.

TechnologyOne Ltd (ASX: TNE)

TechnologyOne is an entirely different type of ASX 200 stock again. It's not cyclical or defensive, but it's shares do have the potential to give strong growth and good compounding benefits over the long term. 

The business is aggressively expanding and is heavily focused on growing its Software-as-a-Service (SaaS) annual recurring revenue and scaling its enterprise solutions internationally.

The company provides enterprise software to customers which include councils, universities, government agencies, and large businesses. It also has a cloud-based software model which generates recurring revenue. It has a sticky subscriber base because, once customers adopt its software, switching is costly and disruptive.

The ASX 200 business also has the potential for a long runway for growth as more customers migrate to its platform.

What's better is that it looks like TechnologyOne is one of few tech companies which actually benefits from (AI) product development, rather than challenging it. 

The company pays a small dividend to its shareholders too, dating back to 2004. It most recently paid an interim 8 cents per unit dividend, 75% franked, in June. Using the $33.12 share price at the time of writing, that implies a yield of around 0.5%.

The post 3 ASX 200 shares I'd want my kids to own for the next 20 years appeared first on The Motley Fool Australia.

The three shares below have opportunities that I believe could stretch well into the next decade and beyond.

Pro Medicus Ltd (ASX: PME)

Pro Medicus would be one of my first choices. Its Visage platform has already won over some of the largest healthcare organisations in the United States, yet I think there is still a long way for the business to expand.

One reason is the size of the customers it is now attracting. Large integrated healthcare networks can contain numerous hospitals and thousands of clinicians, giving Pro Medicus an opportunity to become deeply embedded across an organisation once Visage is selected.

There is also more for Pro Medicus to sell. Visage started with radiology, but newer contracts are increasingly taking a broader combination of Viewer, Workflow, and Open Archive. Cardiology is opening another market, while artificial intelligence could eventually add further capabilities to the platform.

I think this ASX share could spend many years winning more hospitals while becoming increasingly important to the customers it already has.

TechnologyOne Ltd (ASX: TNE)

TechnologyOne is another ASX growth share I would happily own for the long term.

Its enterprise software sits at the heart of organisations such as councils, universities, and government departments. These customers use TechnologyOne to manage important areas including finance, payroll, property, and student administration.

The company is also finding considerable growth outside Australia.

The United Kingdom has become an increasingly important market, giving TechnologyOne another large pool of organisations to pursue with software originally developed and proven in Australia. Its recurring revenue continued to grow strongly in the first half of FY26, with management highlighting particularly strong momentum in the UK.

Artificial intelligence adds another opportunity for the company, in my opinion. TechnologyOne's new Plus product is designed to go beyond answering questions and actually perform tasks for customers inside its software.

I think that could make the platform even harder to replace as more work becomes automated.

Goodman Group (ASX: GMG)

Goodman is my final pick, and its business is changing in a way I find particularly interesting.

The ASX growth share has spent decades developing logistics properties in major global cities. That experience in securing scarce land and infrastructure is now helping it pursue the enormous demand for data centres.

For me, power is the key part of this opportunity. Goodman's global data centre power bank has reached 6.4 gigawatts, including 3.6 gigawatts where power has already been secured.

Goodman has sites across major international cities where land, power, and connectivity can be difficult to secure. I think that puts it in an excellent position as hyperscalers and other technology companies look for places to expand.

It also has its established logistics portfolio and investment management operations alongside this emerging data centre opportunity.

Foolish Takeaway

The businesses I want to own for decades are those that still have somewhere meaningful to go.

I would be happy to buy all three of these ASX growth shares with a very long-term mindset.

The post 3 ASX growth shares I want to buy and hold forever appeared first on The Motley Fool Australia.

That can make it easier to stay focused on the long term when share prices inevitably move around.

Here are three ASX shares I think could be good places for beginners to start looking.

NextDC Ltd (ASX: NXT)

NextDC would be my first pick for exposure to one of the biggest technology trends of the next decade.

The company develops and operates data centres. These facilities provide the power, cooling, security, and connectivity needed to run cloud computing and increasingly demanding artificial intelligence (AI) workloads.

I think that makes the long-term opportunity fairly straightforward to understand. As companies use more cloud services and AI becomes more widely adopted, considerably more computing infrastructure will be needed.

NextDC is positioning itself directly in the middle of that expansion. It is already one of Australia's leading data centre providers and is expanding into Asia, including with its first AI-ready facility in Kuala Lumpur.

The company is also developing facilities specifically designed for AI workloads, including its S6 Sydney data centre.

NextDC shares can be volatile, particularly because building data centres requires enormous investment. For a beginner with a long investment horizon, though, I think its exposure to the growth of AI and cloud computing makes it an interesting share to consider.

REA Group Ltd (ASX: REA)

REA Group is another business where I think the investment case is easy to follow.

Its main asset is realestate.com.au, which Australians use to search for homes, research property, and connect with real estate agents.

That gives REA an important position between property buyers, sellers, and agents. The company has also expanded beyond property advertisements into areas such as property data, valuations, and home financing.

I think that creates plenty of room for the business to keep becoming more involved in the property journey.

Technology can also make the platform more valuable over time. REA uses large amounts of property data to personalise the experience for users and develops automated property valuations using machine learning.

For a beginner investor, I like that REA operates a service many Australians already know and use. It also has several ways to keep expanding without needing to completely reinvent what made the business successful in the first place.

TechnologyOne Ltd (ASX: TNE)

My final pick is TechnologyOne.

This ASX share develops enterprise software used by organisations such as councils, government departments, universities, and other large institutions. Its software helps customers manage important functions across areas, including finance, payroll, property, and student administration.

I think this is an attractive market because these organisations can rely on the same systems for many years.

TechnologyOne also develops its software specifically for the industries it serves. Its education platform, for example, is designed around the needs of universities and TAFEs rather than being a generic product adapted afterwards.

That gives the company plenty of scope to win more customers in Australia and continue expanding internationally.

For someone starting out, I think TechnologyOne offers exposure to the long-term shift towards cloud software through a well-established Australian business.

Foolish Takeaway

NextDC, REA Group, and TechnologyOne give beginners three ways to invest in long-term growth.

I like NextDC for AI infrastructure, REA for its position in Australian property, and TechnologyOne for the continuing move towards cloud-based business software.

I would be comfortable buying any of the three with the intention of holding for many years.

The post 3 top ASX shares for beginners to buy now appeared first on The Motley Fool Australia.

Investors in Australia were inspired to buy tech stocks after more strong US earnings reports last week.

Amazon and Apple reported big quarterly earnings that helped allay fears over artificial intelligence (AI).

This followed robust earnings reports from Microsoft and Google parent, Alphabet, the week before.

eToro analyst Josh Gilbert said 86% of US companies had beat expectations so far this season.

He added:

… big tech delivered answers to the AI question marks.

That's the template for the local market to follow, because Wall Street's rally has been earned by results while the ASX is still waiting on its own.

The 8.4% gain for ASX 200 tech shares last week follows an 8.2% rise the week before.

The tech sector is recovering from a dramatic 48% slump between August 2025 and March this year.

The S&P/ASX 200 Information Technology Index (ASX: XIJ) is now up 27% since bottoming out on 30 March.

The broader market is also on a roll.

The ASX 200 has risen for four consecutive months, and hit a new record of 9,296.7 points on Thursday.

After just five weeks of trading in FY27, the ASX 200 is already up 5.5%.

That's significant after just 2.8% growth in FY26 (total return, including dividends, was 7%).

Investors have been buoyed by cooler inflation, which lowers the risk of more interest rate hikes for now.

The market also remains hopeful that an Iran-Oman deal to reopen the Strait of Hormuz will be finalised soon.

The August earnings season will provide an important test for the ASX 200's momentum, said Gilbert.

The ASX reaching this new high has been helped by pretty much the whole index, with broad-based gains across the board. 

Over the next month, corporate Australia has to show the numbers to match the market's confidence.

Our reporting calendar shows when the big ASX 200 names are releasing their results this season.

Tech shares lead for a second week

The WiseTech Global Ltd (ASX: WTC) share price soared 12.89% to $40.98 last week.

The Xero Ltd (ASX: XRO) share price rose 9.37% to $76.56.

TechnologyOne Ltd (ASX: TNE) shares ascended 6.47% to $32.75 apiece.

The Life360 Inc (ASX: 360) share price jumped 11.39% to $28.56.

The Megaport Ltd (ASX: MP1) share price leapt 11.49% to $20.18.

The Nextdc Ltd (ASX: NXT) share price rose 6.96% to $14.29.

Dicker Data Ltd (ASX: DDR) shares lifted 5.19% to $13.18 apiece.

Codan Ltd (ASX: CDA) shares rose 2.45% to finish at $41.06 on Friday.

The Elsight Ltd (ASX: ELS) share price soared 26.48% to $7.07 on a record quarterly report.

ASX 200 market sector snapshot

Here's how the 11 market sectors stacked up last week, according to CommSec data.

Over the five trading days:

The post ASX 200 tech shares lead again as big US earnings inspire local confidence appeared first on The Motley Fool Australia.

That selling commenced in the last few months of 2025 before looking to have petered out in April.

If you're not familiar with the term, it refers to investor concerns that artificial intelligence may have the potential to replace the services that Software as a Service (SaaS) companies like Xero and TechnologyOne provide.

Coupled with other headwinds, like higher interest rates, this has sent most S&P/ASX 200 Index (ASX: XJO) tech stocks sharply lower over the last 12 months.

Indeed, while the ASX 200 has gained 4.4% since this time last year, the S&P/ASX 200 Information Technology Index (ASX: XIJ) has lost 38.2%.

As for the two tech stocks in question, the TechnologyOne share price is down 23.2% in 12 months, while Xero shares have tumbled a painful 58%.

Which brings us back to our headline question.

Xero shares: Buy, hold, or sell?

MPC Markets' Mark Gardner recently analysed the outlook for both ASX 200 tech companies (courtesy of The Bull).

"Xero is a quality accounting software provider," he said. "The shares have plunged in the past 12 months, partly in response to investor concerns about artificial intelligence replacing some of its services."

While Gardner sounded an optimistic note on the company's rebound potential, he issued a hold recommendation on Xero shares for now.

According to Gardner:

The company has a credible product road map to meet the challenge, such as JAX-powered bank reconciliation and an integration with Microsoft 365 Copilot. The company recently surpassed 5 million subscribers. Investors can hold, but should monitor the news flow.

Should I buy TechnologyOne shares today?

Atop Xero shares, Gardner also dug into TechnologyOne shares.

He noted:

This enterprise resource planning software company posted a positive result in the first half of 2026, generating revenue and net profit growth when compared to the prior corresponding period. It re-affirmed annual recurring revenue growth of between 16% and 18% for the full year.

TechnologyOne released its half-year results on 19 May. The company reported a 17% year-on-year increase in annual recurring revenue (ARR) to $598 million. And on the bottom line, profit after tax of $66.8 million was up 6%.

But with TechnologyOne shares having leapt 57.5% since plumbing a one-year closing low on 13 February, Gardner also issued a hold recommendation on this ASX 200 tech stock.

He concluded:

The business is executing well. Broker targets cluster around $32. We would rather add stock on any pull-backs rather than chase TNE after its recent bounce, so we stay on hold.

The post Down 23% and 58%, should I buy TechnologyOne and Xero shares now? appeared first on The Motley Fool Australia.

The first few years may look almost disappointingly ordinary, but I think the real strength of this strategy reveals itself over the long term.

Here is how the numbers could work.

What would $1,000 a month become?

I will assume the portfolio earns an average return of 9% per annum, with dividends reinvested and returns compounded monthly.

At that rate, investing $1,000 at the start of every month could grow to around $190,000 after 10 years.

After 20 years, the balance could reach approximately $640,000. It would then pass $1 million after just over 24 years.

I think the striking part is how little of that final balance comes directly from the investor. Total contributions over 24 years would be around $292,000. The remaining $708,000 or so would come from investment growth.

It is important to note that a 9% return is never guaranteed, and the journey would include weak years and market falls. The calculation also excludes brokerage, fees, and tax. Even so, I believe it shows what time can do when regular investing continues.

Which ASX shares would I buy?

I would look for ASX shares with strong market positions and room to keep growing earnings.

Aristocrat Leisure Ltd (ASX: ALL) is one example. Its gaming content can be used across land-based machines, social casino apps, and regulated online gaming, giving the company several ways to expand globally.

TechnologyOne Ltd (ASX: TNE) also interests me because its software is deeply connected to the daily operations of councils, universities, and government organisations. The tech stock's annual recurring revenue and high customer retention could provide a strong base for long-term growth.

Macquarie Group Ltd (ASX: MQG) offers something different. Its ability to find opportunities across infrastructure, asset management, commodities, banking, and investment markets has helped it adapt through changing conditions.

Why the later years change everything

The first $100,000 would take a little over six years under these assumptions.

Reaching $500,000 would take around 17 and a half years. From there, the portfolio could add the next $500,000 in less than seven years.

That acceleration happens because a 9% return on a large balance can become more valuable than the monthly contribution itself.

The difficult part is staying invested long enough to reach that stage.

Foolish takeaway

I think the path to $1 million with ASX shares can be surprisingly simple, although it will never feel easy every month.

I would automate the investment, choose businesses I could comfortably own for years, reinvest the dividends, and keep buying through both exciting and frustrating markets.

At a 9% average return, $1,000 a month could become $1 million in roughly 24 years. But remember, success is more likely to come from consistency than perfect market timing.

The post How to turn $1,000 a month into $1 million with ASX shares appeared first on The Motley Fool Australia.

Among the 11 market sectors, utilities is in the lead today, up 1.4%.

The energy sector is the laggard, down 1.5%.

Let's check out some new ratings on three ASX shares today (courtesy The Bull).

Pro Medicus Ltd (ASX: PME)

The Pro Medicus share price is $164.57, up 1.5% today and down 48% over 12 months. 

Mark Gardner from MPC Markets has a buy recommendation on this ASX 200 healthcare share.

The company provides medical imaging software and services to hospitals and health care groups across the world.

It was removed from S&P/ASX 50 and the S&P Global 1200 in June, which left index funds dumping stock whether the business deserved it or not in terms of performance.

Reported half year net profit after tax of $171.2 million in the first half of 2026 was up 230.9 per cent on the prior corresponding period.

The group keeps signing US hospital deals. Although the stock has bounced off its lows, we believe the market is still underpricing growth.

TechnologyOne Ltd (ASX: TNE)

The TechnologyOne share price is $31.13, up 1.2% today and down 23% over 12 months. 

Gardner has a hold rating on this ASX 200 tech share, and commented: 

This enterprise resource planning software company posted a positive result in the first half of 2026, generating revenue and net profit growth when compared to the prior corresponding period.

It re-affirmed annual recurring revenue growth of between 16 per cent and 18 per per cent for the full year.

The business is executing well. Broker targets cluster around $32.

We would rather add stock on any pull-backs rather than chase TNE after its recent bounce, so we stay on hold.

Boss Energy Ltd (ASX: BOE)

The Boss Energy share price is $1.21, down 0.7% today and down 28% over 12 months. 

Warwick Grigor from Far East Capital has a sell rating on this S&P/ASX 300 Index (ASX: XKO) energy share.

Grigor said: 

Boss Energy is a multi-mine uranium producer. It owns the Honeymoon project in South Australia and has a 30 per cent stake in the Alta Mesa project in South Texas.

The shares have fallen from $4.62 on June 23, 2025 to trade at $1.205 on July 30, 2026.

Boss cut production guidance at its Honeymoon operation in response to bad weather impacting third quarter production.

In my view, company performance has fallen well short of expectations as indicated by the market examining its track record and questioning its outlook.

It's time to consider moving on from BOE in what can be a volatile sector.

The post Buy, hold, sell: TechnologyOne, Boss Energy, Pro Medicus shares appeared first on The Motley Fool Australia.

Healthcare shares weren't far behind with a 5.5% gain, making this another impressive week for the rebounding sector.

Meanwhile, the S&P/ASX 200 Index (ASX: XJO) surged 2.3% to close at 8,976.8 points on Friday.

A better-than-expected inflation report last week reduced the risk of the Reserve Bank raising interest rates again on 11 August.

This, along with more oil tankers getting through the Strait of Hormuz, provided substantial tailwinds for the market last week.

All but one of the 11 market sectors finished the week in the green.

Let's review.

ASX 200 tech shares and healthcare outperform

ASX 200 tech shares are continuing to recover from a 48% sector meltdown between 29 August 2025 and 30 March this year.

Stretched valuations and fears that massive artificial intelligence (AI) capex spending would fail to yield high returns drove the downturn.

The S&P/ASX 200 Information Technology Index (ASX: XIJ) is now up 17% since 30 March vs. a 6.1% lift for the broader ASX 200.

Last week, ASX 200 tech shares were buoyed Microsoft Corp's (NASDAQ: MSFT) 15.5% rise on Thursday.

That was the biggest single-day increase for Microsoft shares ever.

The price jump followed the company's 4Q FY26 report, which revealed more than US$100 billion in annual revenue for Azure.

Among last week's best-performing ASX 200 tech shares was WiseTech Global Ltd (ASX: WTC), up 20.9% to $36.30.

The Xero Ltd (ASX: XRO) share price rose 13.7% to $70 per share on Friday.

TechnologyOne Ltd (ASX: TNE) shares rose 13.5% to $30.76 apiece.

The Life360 Inc (ASX: 360) share price ascended 11.1% to $25.64.

Healthcare shares fell 39% over the 12 months to 3 June, when the S&P/ASX 200 Health Care Index (ASX: XHJ) hit a 9-year low.

The sector's downward spiral was due to many industry headwinds, including currency challenges for companies reporting in US dollars, cost-of-living pressures prompting patients to delay treatments and product purchases, higher shipping costs due to the US-Iran war, new caps on insurance payouts in some nations, higher staff wages, and US regulatory uncertainty impacting the biotechs.

Value investors have swooped on healthcare shares since 3 June, with the sector up 19% versus a 2.2% lift for the benchmark index.  

Last week, CSL Ltd (ASX: CSL) shares rose 7.7% to finish at $123.06 on Friday. 

Shares in Chemist Warehouse owner, Sigma Healthcare Ltd (ASX: SIG), rose 3.5% to $2.94.

Resmed CDI (ASX: RMD) shares ascended 8.6% to $29.79.

Sonic Healthcare Ltd (ASX: SHL) shares rose 3% to $21.86 and Cochlear Ltd (ASX: COH) increased 7.5% to $119.94.

ASX 200 market sector snapshot

Here's how the 11 market sectors stacked up last week, according to CommSec data.

Over the five trading days:

The post ASX 200 technology and healthcare shares continued their comeback last week appeared first on The Motley Fool Australia.