It's my view that ASX investors who are looking to brace their portfolios against further geopolitical or economic shocks should resist the siren's song of buying energy shares, oil ETFs or other short-term bets.

Instead, those investors should consider which companies are best placed to protect their earnings bases amid the significant challenges that the world is currently throwing their way.

It's my view that consumer staples stocks are a sector that is best positioned to protect investor capital amid high levels of uncertainty. Consumer staples stocks are companies that produce or sell goods that we tend to need to buy regularly. That includes food, drinks and household essentials, as well as alcohol and tobacco. Woolworths Group Ltd (ASX: WOW), Coles Group Ltd (ASX: COL) and Endeavour Group Ltd (ASX: EDV) are all prominent examples on the ASX.

However, I think an ASX ETF is a better option than a single ASX stock in terms of protecting a portfolio against uncertainty. That's why I think the iShares Global Consumer Staples ETF (ASX: IXI) is a perfect fund for an uncertain 2026.

Why this ASX ETF is an antidote for uncertainty

As the name implies, this ASX ETF holds a basket of global consumer staples stocks. These range from food and drink producers like Coca-Cola Co, Nestle and Cadbury-owner Mondelez International and makers of household essentials like Colgate-Palmolive and Procter & Gamble to staples retailers and grocers like Walmart, Costco Wholesale and Kroger. Even our own Woolworths and Coles feature as holdings.

It's my view that these sorts of companies can ride out economic shocks and inflation better than any other sector. We all need to buy food and household essentials on a regular basis. That means that, although painful to consumers, these companies can effectively pass on higher costs without the threat of significant sales losses.

Even if consumers switch en masse from expensive branded products to cheaper home-brand options, this ASX ETF holds a mix of companies with strong brands (Procter & Gamble, Coca-Cola) and supermarket stores, mitigating this potential trend.

IXI's holdings are also spread across many different markets, also lowering geographic and currency risk to the ASX investor.

Pulling all of these factors together, and I think we have an ASX ETF that is a perfect investment for the uncertain world we find ourselves in in 2026.

The post This ASX ETF is perfect for an uncertain world appeared first on The Motley Fool Australia.

If you are one of them, or are planning to become one, and are looking for investment ideas, then read on.

Listed below are three super ASX exchange traded funds (ETFs) that could be top picks for an SMSF. Here's what you need to know about them:

VanEck MSCI International Quality ETF (ASX: QUAL)

The first ASX ETF that could be a strong fit for an SMSF is the VanEck MSCI International Quality ETF.

This ETF focuses on high-quality global companies with strong balance sheets, consistent earnings, and high returns on capital. Rather than chasing short-term growth, it targets businesses that have proven their ability to perform across economic cycles.

Holdings include stocks such as Microsoft (NASDAQ: MSFT), Nvidia (NASDAQ: NVDA), and Visa (NYSE: V). These businesses operate at global scale and benefit from entrenched positions in their respective markets.

For an SMSF, the VanEck MSCI International Quality ETF can work as a core international holding, offering exposure to global leaders while leaning toward financial strength and durability rather than speculation.

It was recently recommended to investors by the fund manager.

Betashares Global Defence ETF (ASX: ARMR)

Another ASX ETF that may appeal to SMSF investors is the Betashares Global Defence ETF.

This fund provides exposure to global defence companies at a time when government spending in this area is increasing. Geopolitical uncertainty, regional conflicts, and heightened focus on national security have led many countries to commit to higher defence budgets over the long term.

Holdings include companies such as Lockheed Martin (NYSE: LMT), Northrop Grumman (NYSE: NOC), and RTX Corporation (NYSE: RTX). These businesses often benefit from long-dated government contracts, which can provide revenue visibility.

Overall, the Betashares Global Defence ETF offers exposure to a sector that is less tied to consumer spending and economic cycles, adding diversification to a long-term portfolio.

This fund was recommended by the team at Betashares.

Betashares Global Cash Flow Kings ETF (ASX: CFLO)

A final ASX ETF to consider for an SMSF is the Betashares Global Cash Flow Kings ETF.

This fund invests in global companies with strong and consistent free cash flow generation. This focus can be particularly attractive for retirement-focused investors, as cash flow underpins dividends, reinvestment, and balance sheet strength.

Holdings include stocks such as Alphabet (NASDAQ: GOOGL), Costco Wholesale (NASDAQ: COST), and Johnson & Johnson (NYSE: JNJ). These businesses generate significant cash while operating in industries with long-term demand.

The Betashares Global Cash Flow Kings ETF could complement growth-oriented holdings by adding exposure to companies that emphasise financial discipline and sustainable returns. It was also recently recommended by the fund manager.

The post 3 super ASX ETFs to add to your SMSF appeared first on The Motley Fool Australia.

Saying that, I am also an investor who loves to buy shares at the kind of steep discounts that we do tend to see during a stock market correction or crash. As such, I do tend to keep some money on the sidelines for that time that the inevitable market crash rolls around.

Now, I, along with everyone else on the planet, have no idea when the next market crash will arrive. For all I know, it could be in 2026 or in 2036.

But I do know the companies that I will attempt to load the boat with when that crash does come. 

My stock market crash buy list for 2026

When the market goes through a period defined by intense fear, I usually try to prioritise companies that tend to trade at lofty valuations. That's because it is often the only time you can buy shares of these companies at reasonable prices. 

As such, I would have my eye firmly on two ASX tech shares in the next crash. Those are TechnologyOne Ltd (ASX: TNE) and Pro Medicus Ltd (ASX: PME).

Both of these companies are growing at exceptional rates, with high levels of free cash flow and compelling growth runways. As a result, it is normal for both TechnologyOne and Pro Medicus to trade with expensive price tags. But if there is a buying window to snatch up these stocks at a bargain price, I'll be trying hard to climb through it.

I would also be looking to buy more shares of Washington H. SouL Pattinson and Co Ltd (ASX: SOL). As I've long documented, Soul Patts is one of my top ASX investments, and any chance to buy more shares of this market-beater at low prices would (at least in my view) do wonders for my long-term wealth.

I wouldn't stop at the ASX, though. These days, stock market crashes are global events. And I will be turning to the US markets when the next one happens as well. Some of the stocks I would be looking forward to loading up on include Costco Wholesale Corp (NASDAQ: COST), Mastercard Inc (NYSE: MA), McDonald's Corp (NYSE: MCD) and Meta Platforms Inc (NASDAQ: META). These are all top-quality companies that (with the possible exception of Meta) never seem to go on sale. If they did, I would be there with as much cash as I could muster.

The post Here's my buy list if the stock market crashes in 2026 appeared first on The Motley Fool Australia.

With more than $8 billion in assets under management, QUAL is currently the fifth most popular ASX ETF on our markets. It comes in behind the Vanguard Australian Shares Index ETF (ASX: VAS), the Vanguard MSCI Index International Shares ETF (ASX: VGS), the iShares S&P 500 ETF (ASX: IVV) and the BetaShares Australia 200 ETF (ASX: A200).

Unlike those four ETFs, though, QUAL isn't a market-wide index fund that blindly invests in companies according to their market capitalisation, with few other considerations.

Instead, it tracks an index that actively screens companies to identify their quality. These screens include factors like a stock's return on equity, earnings stability and financial leverage.

After applying these screens to a range of internationally listed shares, the VanEck International Quality ETF settles on a portfolio of around 300 different stocks, hailing from more than a dozen different countries. These countries range from Switzerland, Japan and the United Kingdom to China, Denmark and Ireland.

However, the vast majority of QUAL's portfolio is drawn from the United States of America, which commands more than three-quarters of this ETF's weighted holdings.

So, let's get into what you're actually buying when purchasing QUAL units in 2026.

QUAL: What's in this ASX ETF's box?

Here are the current top ten holdings of the VanEck International Quality ETF, as well as their respective weightings in the QUAL portfolio:

1. Alphabet Inc (NASDAQ: GOOG)(NASDAQ: GOOGL) at 5.67% of the total QUAL portfolio
2. Meta Platforms Inc (NASDAQ: META) at 5.02%
3. NVIDIA Corporation (NASDAQ: NVDA) at 4.64%
4. Apple Inc (NASDAQ: AAPL) at 4.62%
5. Microsoft Corporation (NASDAQ: MSFT) at 4.46%
6. Eli Lilly & Co (NYSE: LLY) at 3.44%
7. Visa Inc (NYSE: V) at 2.92%
8. ASML Holding N.V. (AMS: ASML) at 2.52%
9. Johnson & Johnson (NYSE: JNJ) at 1.86%
10. Walmart Inc (NYSE: WMT) at 1.77%

Some other significant QUAL holdings include Mastercard Inc (NYSE: MA), Netflix Inc (NASDAQ: NFLX), Costco Wholesale Corp (NASDAQ: COST) and Caterpillar Inc (NYSE: CAT).

Not only does this list reveal how dominant the US is in this ASX ETF, but it shows how similar its holdings are to a broad-market US index fund like the iShares S&P 500 ETF. We discussed that ETF just the other day, so check out how its holdings compare to QUAL's here.

This methodology seems to have worked quite well for the VanEck International Quality ETF, though. As of 31 December, QUAL units have returned an average of 14.8% per annum over the past ten years, and 22.85% per annum over the past three. It will be interesting to see if this performance keeps up in 2026.

This ASX ETF charges a management fee of 0.4% per annum.

The post Investing in the VanEck International Quality ETF (QUAL)? Here's what you're really buying appeared first on The Motley Fool Australia.

The GARP acronym stands for growth at a reasonable price. 

It was made famous by investor Peter Lynch.

The strategy seeks to combine the best facets of growth and value investing approaches to select individual stock investments.

In the words of Global X, the fund provides access to global companies with:

• Strong earnings growth
• Solid financial strength
• Reasonable valuations

Inside GARP's December 2025 Rebalance

In a fresh report out of the ETF provider yesterday, it highlighted the changes made to the fund.

These changes went into effect in December.

Marc Jocum, Senior Product and Investment Strategist said the latest rebalance resulted in a measured refresh rather than a wholesale shift. 

While some individual holdings changed, the portfolio's core identity remains intact.

It is tilted toward high-quality global companies with improving earnings momentum, resilient fundamentals, and reasonable valuations.

Periods of market noise often tempt investors to chase momentum or retreat to defensives. However, the most durable outcomes tend to come from discipline – owning companies that can consistently grow earnings, maintain balance sheet strength, and trade at a fair price.

What's in?

According to the report, the December 2025 rebalance saw the addition of companies where earnings are improving, but valuations are yet to fully re-rate.

The first inclusion was Rolls-Royce Plc (LSE: RR.). 

Global X said this was due to expanding earnings margins, driven by higher engine flying hours, improved pricing, a greater mix of recurring services revenue, and disciplined cost control.

The company is also emerging as a beneficiary of the AI-driven power generation theme. 

Another inclusion to the fund was Walt Disney (NYSE: DIS) due to improved earnings momentum across its diversified entertainment ecosystem.

Additionally, SoftBank (OTC: SFBQ.F) – a global technology investment conglomerate was added. This was thanks to its unique leverage to the AI megatrend. 

What's out?

The GARP ETF also saw key stock removals from the fund. 

Global X said several high-quality franchises were removed not because their businesses are broken, but because growth has slowed, balance sheet risks have risen, or valuations are no longer warranted.

• Visa (NYSE: V) was exited as earnings growth moderated, balance sheet leverage increased, all amidst regulatory and competitive pressures intensified.
• Costco Wholesale (NASDAQ: COST), despite its exceptional business model, faced slowing revenue momentum and emerging margin headwinds, challenging to reconcile with a premium valuation.
• General Motors (NYSE: GM) screened as optically cheap, but weakening margins and falling returns on equity, perhaps due to uncertainty around EV strategy, meant GM no longer fit a GARP framework.

The post Own the Global X GARP ETF? The fund just made some key changes appeared first on The Motley Fool Australia.

In part, that's a quasi-New Year's Resolution to write more.

In part, that's because the events and occasions (New Year, Buffett's retirement and more) have provided some welcome stimulus.

But mostly, I think it's not because I've had more 'time' per se, but rather more 'space'.

Indeed, the first couple of columns of the year were written in the early mornings on holidays, when my young bloke was asleep: I had some thoughts and some opportunity, so I grabbed both.

This week I'm back on deck, but the momentum and opportunity has continued.

The opportunity has come in two ways, related to the 'space' I mentioned earlier.

Yes, there's meaningfully less company news to deal with. Fewer ASX announcements. No data from the ABS.

The newspapers are thinner (or, if you prefer, there are fewer new stories on their websites).

But also, and related, that's meant more mental space, too.

More time for independent and undirected thought.

More time thinking about the 'important' rather than the 'urgent'.

Now look, at The Motley Fool, we've always been long-term investors. We do our best to eschew short-term thinking and tune out the noise.

So the idea itself isn't new.

But even then, I've found myself with more 'clear air' than normal, and it was noticeable in the sorts of things I found myself focussing on.

I will say – perhaps disappointingly, sorry – that there were no blinding flashes of new insight.

I haven't discovered the secret of nuclear fusion, nor have I invented a brand new way to get rich overnight.

But what I did find myself dwelling on were the more important fundamental aspects of investing and economics.

I've already written this week about the folly of predictions, and the interaction of supply and demand when it comes to housing.

On Twitter, I've engaged in a fascinating conversation about the impact of investors, and the extent to which their marginal additional demand impacts house prices, including with smart people who disagree with me.

I've thought a lot about pricing power – but in a slightly different way: the pricing power that isn't used.

Costco Wholesale Corp (NASDAQ: COST), in the US, is derided by some as 'the world's largest co-op': a criticism that points to the critics' belief that the company charges too little for its products and should increase prices to boost margins.

And yet, the company, by sticking to its guns – and its business model – has grown its profit from US$5 billion in 2021 to over US$8 billion last year. Not bad for a 'co-op'!

Contrast that with Woolworths Group Ltd (ASX: WOW) here in Australia, which is adding friction and annoyance to members of its 'Delivery Unlimited' program by adding a $2 surcharge to deliveries made on Sundays and Public Holidays.

Justified? Sure, financially, based on the company's higher costs. But it doesn't charge more for groceries on Sundays, so this feels jarring.

In either event, I'm sure the reported financials will look a little better after the surcharge is added. And that'll look like a win.

But in the long term? Let's just say that if I was looking to maximise long term shareholder value (the job of every CEO and Director), I wouldn't be poking customers who are paying to increase their own loyalty (if you're paying a subscription for free delivery, you're not likely to buy your groceries somewhere else).

And that might be the best example of what's been on my mind most over the past few weeks: the trade-offs between the short- and long-term.

Whether it's housing policy (or politics in general)…

Whether it's profit maximisation…

Whether it's the lure of predictions…

Whether it's trying to grow our portfolios…

… the short term is just so incredibly seductive.

We get to see results more quickly.

There's less uncertainty.

It feels like we have more control.

And yet, the real rewards come over time.

I mentioned Costco's impressive recent results.

What's more impressive is that the US$8b the company earned last year is eight times the earnings of 20 years earlier.

And the share price? It closed 2005 at around US$50 a piece. At the end of last year, it was US$862.

Again, these aren't new insights for me. And I hope not for you, either.

But as the news cycle picks up, and then we hit 'earnings season' in February, I want you to keep the lessons of the last couple of weeks in mind.

When the temptation is to react to the latest news and announcements, I want you to imagine how many pieces of news were written about, and how many announcements were released by, Costco over the last 20 years.

Think about the times when the company's profits weren't quite what the market expected.

When the share price fell.

When analysts changed their '12 month price targets'.

The breathless reporting and the hand-wringing.

The obsession over the latest quarter's sales growth or this year's profit margins.

As I think of all that, I can't help but shake my head and smile, wryly, at the futility of so much of it.

All of that – as Shakespeare famously wrote – sound and fury, signifying nothing.

Don't get me wrong: sales and profits matter. Of course they do.

So does the growth in those metrics.

The price you pay absolutely matters, too.

But the question for investors – proper investors, who know that compounding's magic not-so-secret is time – is what those things look like in 5, 10 and 20 years.

Feels hard, right? 20 years… who can wait that long?

Me. And you, I hope.

Because there's no short cut. There's no get-rich-quick alternative.

There is only quality. And time.

Can I put it bluntly? I think (almost) everything else is wishful thinking and/or wilful ignorance.

Almost? Sure, someone, somewhere, might be able to make a buck guessing short term share price movements. I can't exclude that possibility, so I can't make absolute statements.

But is it likely for them?

Is it likely for you and me?

Not even a little bit.

Luck might take you some of the way. For a time.

For the rest of us, buying quality companies at good prices is the best approach, I reckon.

That, and tuning out the noise.

It worked for Buffett. It worked for Costco (not coincidentally, Buffett's late business partner Charlie Munger was a long-time director of that company!).

I think it is likely to work for us, too.

Fool on!

The post Space, time and… clarity appeared first on The Motley Fool Australia.

Yet history shows that wealth is usually built by backing the right assets and then giving them time to work, not by constantly tweaking a portfolio.

If your goal is to invest once, stay invested, and let global growth do the heavy lifting over the next decade, exchange-traded funds (ETFs) are hard to beat. They offer portfolio diversification, exposure to powerful structural trends, and far less stress than trying to pick individual winners.

With that in mind, here are three ASX ETFs that could be top buys in 2026 and worth holding through to at least 2036.

Betashares Asia Technology Tigers ETF (ASX: ASIA)

The Betashares Asia Technology Tigers ETF gives investors access to some of the most influential technology companies across Asia, excluding Japan. These are businesses powering everything from ecommerce and digital payments to semiconductors and social media across fast-growing economies.

Key holdings include companies such as WeChat owner Tencent Holdings (SEHK: 700), chip giant Taiwan Semiconductor Manufacturing Company (NYSE: TSM), Temu owner PDD Holdings (NASDAQ: PDD), and ecommerce leader Alibaba Group (NYSE: BABA).

While Asian tech stocks can be volatile in the short term, the long-term opportunity is compelling and underpinned by rising middle classes, accelerating digital adoption, and ongoing innovation.

This fund was recently recommended by analysts at Betashares.

BetaShares Nasdaq 100 ETF (ASX: NDQ)

The Betashares Nasdaq 100 ETF is one of the simplest ways to invest in many of the world's highest-quality growth companies. It tracks the Nasdaq 100 Index, which is home to global leaders in technology, consumer services, and healthcare.

While the Magnificent Seven often dominate headlines, the Betashares Nasdaq 100 ETF also provides exposure to businesses beyond that group. This includes stocks like Adobe (NASDAQ: ADBE), Intuit (NASDAQ: INTU), Starbucks (NASDAQ: SBUX), and Costco Wholesale (NASDAQ: COST).

Over a 10-year horizon, continued investment in artificial intelligence, cloud computing, and digital services could help the Magnificent Seven and these businesses compound earnings well into the 2030s.

Betashares India Quality ETF (ASX: IIND)

The Betashares India Quality ETF offers a different kind of long-term opportunity. Rather than focusing purely on technology, it targets high-quality Indian stocks with strong balance sheets, sustainable earnings, and competitive advantages.

India is forecast to be one of the fastest-growing major economies over the next decade, driven by favourable demographics, infrastructure investment, and a rapidly expanding middle class.

The Betashares India Quality ETF provides exposure to this growth through a diversified portfolio of businesses across financials, consumer sectors, and industrials.

For investors looking to diversify beyond developed markets, this fund adds an attractive growth engine to a long-term portfolio. It was recently recommended by analysts at Betashares.

The post The best ASX ETFs to buy in 2026 and hold until at least 2036 appeared first on The Motley Fool Australia.

So today, let's talk about five US stocks that I would love to buy, or buy more of, this year.

5 US stocks I'd love to buy in 2026

Amazon.com Inc (NASDAQ: AMZN)

First up, no one will be surprised to see Amazon. This e-commerce and cloud giant has been in my portfolio for many years. But I would love to add some more in 2026. I am still excited about this company's future growth. Amazon's online marketplace has never looked more dominant, given that it is entrenched in economies right around the world.

This company's AWS cloud platform also continues to grow at an astounding pace, and seems to be carving out a place as the clear market leader in cloud-based infrastructure.

Amazon stock had a fairly flat 2025, so I wouldn't be surprised if it is my first US stock purchase this year.

Duolingo Inc (NASDAQ: DUOL)

Duolingo is another US stock that I've owned for a while now, and one that has been particularly lucrative to my portfolio. I am delighted to see this language-learning company report seemingly evergreen growth year after year, both in active users and through the number of courses users can engage with (chess was a notable 2025 addition).

Despite its impressive growth rates, Duolingo is a stock that tends to be highly volatile. Over 2025, for instance, it got as high as US$544.93 and as low as US$166.27 a share. I'm hoping for more volatility this year, and a low price to pick up more shares at.

S&P Global Inc (NYSE: SPGI)

Now onto a stock that I don't yet own, but would like to by this time next year. S&P Global is a financial services company you might know best from its stewardship of many of the world's most important stock market indexes. These include both the S&P/ASX 200 Index (ASX: XJO) and the S&P 500 Index.

The rise of index investing over the past decade or two has been a boon for S&P Global. It has been able to compound revenues and profits at a remarkably consistent rate. This is evidenced by its 52-year streak of annual dividend increases, which have averaged an inflation-crushing rise of 7.46% per annum over the past five years. If there is a pullback opportunity to buy this company in 2026, I won't miss it.

Costco Wholesale Corp (NASDAQ: COST)

Costco is the US stock behind the eponymous supermarket chain. Costco's unique membership model and bulk-oriented grocery warehouses have helped the company stand out against fierce global competition, including in Australia. We can see this in action through Costco's 21-year streak of dividend increases, which have averaged an impressive 12.97% per annum over the past five years.

Costco stock also had an uncharacteristically poor year in 2025. If this trend continues in 2026, I will be happy to add some more shares to my existing position.

Mastercard Inc (NYSE: MA)

Our final US stock is a company we'd all be familiar with, and one that is probably in your wallet as we speak. Mastercard is the global payments giant that forms a near-duopoly with its fierce rival, Visa.

Mastercard has one of the most picture-perfect growth trajectories you can imagine, with more than a decade of double-digit growth in revenues, earnings, profits and dividends in the bank. Its annual dividend growth has averaged 13.7% over the past five years.

I've held Mastercard shares for many years, but have always regretted not loading the boat to the brim at the time of my first purchase. If I have the opportunity to rectify this mistake in 2026, I would be delighted to.

The post I want to buy Amazon and these 4 US stocks in 2026 appeared first on The Motley Fool Australia.

But not all US stocks are at all-time highs right now. In fact, many quality names have been left in the dust as investors flock to the tech titans that are so popular right now.

Today, let's discuss three US stocks that I believe are among the best businesses out there, but are currently underappreciated by the market.

Three high-quality US stocks I would buy at current prices

Procter & Gamble Inc (NYSE: PG)

Procter & Gamble is one of the best consumer staples stocks in the world. It might not be a household name itself, but I can almost guarantee that its products would be in most readers' houses as we speak. This company's brands include Gillette razors, Fairy dishwashing products, Oral-B toothpaste, and Pantene shampoo.

Procter & Gamble is distinguished by its phenomenal dividend track record. It has increased its annual dividends every single year for 69 years running. Despite this inherent quality, Procter & Gamble shares have had a rough year, currently down aobut 14% in 2025. Although the company has recently bounced off a new 52-week low of just over US$145 a share, I think its current 2.9% dividend yield represents a nice entry point.

Costco Wholesale Corp (NASDAQ: COST)

Next up, we have another US stock and consumer staples company in Costco, famous for its bulk-focused warehouse supermarkets. Its unique membership model has driven this company to immense profitability, evident from its five-year gain of 133%. Costco also has an impressive dividend track record. It has increased its annual dividend for 21 consecutive years, by an average of 12.97% per year since 2020.

However, just like Procter & Gamble, Costco has had a rough year. This US stock has lost 11.1% over 2025 so far, and is down more than 20% from its last 52-week high. Although I wouldn't call this company cheap just yet, it is still a rare dip for a high-quality name that almost never goes on sale. I'm seriously considering adding more shares to my position at these prices.

Waste Management Inc (NYSE: WM)

I've always been attracted to waste management as an investable industry, given its inherent defensiveness. Waste Management is the largest of these US stocks, and the most dominant. It has been growing its revenues and earnings like clockwork in recent years, helping the company to do the same with its dividends.

Waste Management has a 22-year streak of dividend increases, and has grown its payouts by an average of 8.65% per annum over the past five years.

Yet investors have been tepid on this company over 2025, with Waste Management stock down almost 10% from its May record high.

Again, if this US stock stagnates any further, I might add some more shares to my position.

The post 3 high-quality US stocks that look temptingly cheap today appeared first on The Motley Fool Australia.

To illustrate, the ASX share with the longest streak of annual dividends increases on the ASX is income champion Washington H. Soul Pattinson and Co Ltd (ASX: SOL). But over in the US, there are more than 50 stocks that have increased their shareholder payouts for more than 50 years. Some, including Procter & Gamble Inc (NYSE: PG), are nudging 70.

But today, let's discuss two US stocks that don't yet have long dividend streaks, but are increasing their dividends at a breakneck pace.

Two US dividend stocks with fast-growing payouts

Costco Wholesale Corp (NASDAQ: COST)

First up, we have the famously bulk-focused supermarket operator, Costco. Although Costco still has a relatively small presence in Australia, there might be a few readers with a membership card in their wallets. Costco is one of the finest grocery retailers in the world, evidenced by its 1,300% stock price rise or so over the past 15 years. 

At first glance, this might not look like a dividend heavyweight, given Costco shares are trading on a rather paltry-looking dividend yield of 0.56%. However, what investors should note is how fast this dividend has been rising of late. Not to mention the 21-year streak of annual increases.

Back in 2020, Costco's quarterly dividend was worth 70 cents per share. But this was recently upped to $1.30 per share, representing a five-year growth average of 12.97% per annum. 

If these payouts keep rising at this rate (which one should never assume), long-term investors will be laughing all the way to the bank.

Visa Inc (NYSE: V)

Visa is a company we'd all be familiar with. In fact, there is a high likelihood that almost every reader would have a Visa card to their name as we speak. 

This company provides a global payments network, helping connect customers' bank accounts to retailers. As the world has shifted more and more of its payments away from cash and towards cards and other electronic transactions, Visa has been a prime beneficiary. Like Costco, it has seen phenomenal success in recent years, with its shares rising by more than 1,600% since this time in 2010. 

Again, you wouldn't think of Visa as a dividend stock, given its current yield of around 0.8%. However, Visa has been increasing its shareholder payments with gusto, raising the quarterly dividend from 30 cents per share in 2020 to its most recent payout of 67 cents. That's a five-year growth rate worth 14.87% per annum. 

The post These US stocks are growing their dividends like crazy appeared first on The Motley Fool Australia.

That's why exchange-traded funds (ETFs) can be such a powerful starting point, they offer simplicity, instant diversification, and exposure to high-quality companies without the stress of picking individual winners.

If you're new to the share market and want a strong foundation, here are three ASX ETFs that could be perfect for beginner investors.

iShares S&P 500 ETF (ASX: IVV)

The iShares S&P 500 ETF is one of the most popular choices for new investors, and for good reason. This ASX ETF tracks the S&P 500 Index, giving you exposure to America's largest and most influential businesses.

Among its top holdings are Berkshire Hathaway (NYSE: BRK.B), Apple (NASDAQ: AAPL), Eli Lilly (NYSE: LLY), and Broadcom (NASDAQ: AVGO). These are all major players in their respective industries and key drivers of US market performance.

Eli Lilly is a pharmaceutical giant that has grown into one of the world's most valuable healthcare companies, powered by blockbuster drugs in areas such as diabetes and obesity treatment. Its strong research pipeline and global demand make it one of the most dependable earnings machines in the index.

Vanguard MSCI Index International Shares ETF (ASX: VGS)

If you want broad international diversification for your portfolio, the Vanguard MSCI Index International Shares ETF is hard to beat. This fund holds more than 1,200 stocks across major developed markets outside Australia, offering huge exposure with just a single trade.

Some of its largest positions include Nestle (SWX: NESN), Roche (SWX: ROG), and Toyota Motor Corporation (TYO: 7203). These are global leaders in consumer goods, healthcare, and automotive innovation.

Nestle is the Swiss food and beverage giant that owns household brands found in kitchens worldwide. Its global footprint, steady demand, and defensive earnings profile make it an anchor holding that helps smooth portfolio volatility when markets get bumpy.

Overall, the Vanguard MSCI Index International Shares ETF could be ideal for beginners who want long-term international growth without having to worry about choosing individual global stocks.

BetaShares Global Quality Leaders ETF (ASX: QLTY)

For those wanting a portfolio tilted toward high-quality, financially strong stocks, the BetaShares Global Quality Leaders ETF could be an excellent option.

This ASX ETF screens for businesses with high returns on equity, stable earnings, and strong balance sheets. These are traits that typically reflect resilient, well-managed businesses. Among its major holdings are Visa (NYSE: V), Novo Nordisk (NYSE: NVO), and Costco Wholesale (NASDAQ: COST).

Costco is the US retail giant that has built a powerful membership-based model that drives recurring revenue and high customer loyalty. Its disciplined operations and steady growth record make it a classic example of the kind of durable business the fund is designed to capture.

The team at BetaShares Global Quality Leaders ETF recently recommended this fund.

The post 3 ASX ETFs that could be perfect for beginner investors appeared first on The Motley Fool Australia.

The United States is simply home to a vast majority of the most dominant companies in the world. The likes of Commonwealth Bank of Australia (ASX: CBA) and Telstra Group Ltd (ASX: TLS) are wonderful, successful companies. But they just can't match the ubiquity of names like, for example, Apple, Amazon, or Coca-Cola.

So today, let's talk about three US stocks that I think have more potential than most of the stocks listed on the ASX. An investment in any of these three, in my view, could make long-term investors very wealthy.

3 US stocks that could make shareholders rich

Costco Wholesale Corp (NASDAQ: COST)

Supermarket chain Costco is first up here. If you haven't shopped at a Costco yet, you've probably heard about its buy-in-bulk store format or perhaps its rather unusual membership model. Unusual it may be, but it is also a raging success.

Costco continues to grow and expand into new markets, quarter after quarter, and year after year. It even counted the late, great Charlie Munger as one of its loudest backers. I would happily buy more Costco today as a solid bet on a future consumer staples titan.

Visa Inc (NYSE: V)

Speaking of titans, next up is a US stock that arguably already commands that status. Visa is one of the most well-known brands in the world in 2025. Chances are, you have at least one of their cards in your wallet right now. Together with its rival, Mastercard, these two companies form a significant part of the glue that holds the global payments system together.

In facilitating funds transfers between banks, customers and retailers, Visa gets to clip the ticket every time something is bought on its network. This has allowed the company's growth to explode in recent years as more and more payments shift from cash to cashless. As this trend is only in its infancy in many parts of the world, Visa's growth runway doesn't look like it's running out of room anytime soon.

Netflix Inc (NASDAQ: NFLX)

Our final US stock worth checking out today is another brand we'd probably all be familiar with. Netflix only launched in Australia ten years ago. Since then, it has literally become a household name, with its logo present on almost every television remote these days. Despite the company running out of new markets to launch in, it continues to grow.

The push to limit password sharing a few years ago has proven a massive success. With the company expanding into gaming and other market segments, I don't see us giving up our Netflix subscriptions anytime soon. Recently, this US stock announced a 10-for-1 stock split, which demonstrates the ongoing appetite for its shares.

The post 3 US stocks that could make you rich appeared first on The Motley Fool Australia.

But with signs that cooler heads will prevail and a full-blown trade war likely to be avoided, attention is turning back to what could come next.

And if history is any guide, periods of uncertainty often set the stage for the next major market rally.

For long-term investors, that means now could be the ideal time to focus on high-quality, growth-focused exchange-traded funds (ETFs) positioned to lead the next upswing.

Here are three ASX ETFs that could be standouts when the next market boom arrives.

Betashares Nasdaq 100 ETF (ASX: NDQ)

The Betashares Nasdaq 100 ETF is one of the simplest and most effective ways to gain exposure to the world's leading growth companies. It gives investors access to the 100 largest (non-financial) stocks on the Nasdaq index.

While technology dominates the fund, it is more than just the usual household names. The Betashares Nasdaq 100 ETF's portfolio includes global leaders such as Apple (NASDAQ: AAPL), Microsoft (NASDAQ: MSFT), Nvidia (NASDAQ: NVDA), Amazon (NASDAQ: AMZN), Starbucks (NASDAQ: SBUX), and Costco (NASDAQ: COST).

These businesses are highly profitable, globally diversified, and many sit at the centre of megatrends like artificial intelligence, cloud computing, and digital transformation. If optimism returns and investors re-embrace growth, the Betashares Nasdaq 100 ETF could once again be a front-runner in the next bull market.

Betashares Australian Momentum ETF (ASX: MTUM)

The Betashares Australian Momentum ETF offers investors a unique way to capture strong-performing Australian shares. Unlike traditional index funds, this ASX ETF doesn't hold the same shares all the time. It dynamically adjusts its holdings based on momentum, focusing on shares that are already trending higher.

This strategy can work particularly well in rising markets, as it systematically identifies and holds the shares leading the charge. At present, the Betashares Australian Momentum ETF's portfolio includes Qantas Airways Ltd (ASX: QAN), Coles Group Ltd (ASX: COL), and Evolution Mining Ltd (ASX: EVN). These are a blend of cyclical and defensive names that reflects the current market's mixed sentiment.

If market confidence improves and Australian equities regain upward momentum, this ASX ETF's strategy is designed to capitalise automatically, keeping investors exposed to the strongest trends without the need to trade in and out of individual shares.

Analysts at Betashares recently recommended this fund.

Betashares Cloud Computing ETF (ASX: CLDD)

The Betashares Cloud Computing ETF is another ASX ETF to consider. It gives investors access to one of the most powerful long-term growth stories in technology. That is the global shift to the cloud.

Businesses across every industry are moving their operations, data, and services online, and this transformation is still only in its middle stages.

The Betashares Cloud Computing ETF holds a portfolio of companies driving this revolution, including Shopify (NASDAQ: SHOP), ServiceNow (NYSE: NOW), and Salesforce (NYSE: CRM). These provide the digital tools, infrastructure, and platforms that modern enterprises rely on to operate efficiently and scale globally.

This fund was recently recommended by analysts at Betashares.

The post 3 high-growth ASX ETFs that could lead the next market boom appeared first on The Motley Fool Australia.

As a reminder, the NDQ ETF allows investors to invest in 100 of the largest businesses listed on the NASDAQ. It's quite a tech-heavy fund because many of the world's biggest tech businesses are listed on the NASDAQ.

Share prices of the US giants have delivered strong gains in the last couple of years as investors anticipated rate cuts, which did eventually come. But, there could be further rate cuts on the cards following comments by US Federal Chair Jerome Powell.

According to reporting by CNBC, the employment numbers have rapidly cooled, leading to Powell to comment that the risk between high inflation and high unemployment is "shifting". This means the Federal Reserve may change its focus to support employment rather than taming inflation, leading to rate cuts.

Chairman Powell said:

The shifting balance of risks may warrant adjusting our policy stance.

Rate cuts could be good news for shareholders because it could increase the valuations of businesses even more.

Why do rate cuts matter?

As one of the world's greatest investors, Warren Buffett, once said:

The value of every business, the value of a farm, the value of an apartment house, the value of any economic asset, is 100% sensitive to interest rates because all you are doing in investing is transferring some money to somebody now in exchange for what you expect the stream of money to be, to come in over a period of time, and the higher interest rates are the less that present value is going to be. So every business by its nature…its intrinsic valuation is 100% sensitive to interest rates.

Therefore, when rate cuts occur, it makes assets more valuable, at least in theory. That sounds like good news for the NDQ ETF, in my view.

Is this a good time to buy the NDQ ETF?

The exchange-traded fund (ETF) not as cheap as it was a few months ago, a year ago or five years ago. It would have been better to buy earlier than today. However, I certainly don't think this will be the highest the Betashares Nasdaq 100 ETF unit price ever gets to.

There are many great businesses in the portfolio such as Microsoft, Alphabet, Amazon, Nvidia, Apple, Meta Platforms and Netflix. There are some less high-profile, high-quality names such as Costco and Intuitive Surgical too.

These businesses are typically the ones leading the way in their respective industries such as e-commerce, cloud computing, social networks, smartphones, AI, e-commerce and so on. I think they are likely to collectively to continue growing earnings at a solid pace for the foreseeable future.

So, despite the relatively high valuations, I think their share prices will be higher in five years and ten years, which is why I'd still describe this as a good time to invest in the NDQ ETF, even if there's volatility in the short-term.

The post Is the Betashares Nasdaq 100 ETF (NDQ) a buy with further potential Fed rate cuts? appeared first on The Motley Fool Australia.

But the good news is, with just $1,000, you can begin building a smart, diversified portfolio.

And better yet, you don't need to be an expert. The key is starting with a solid foundation and then gradually building from there.

Start with just two ASX ETFs

For investors new to the market, the easiest and most effective strategy is to begin with is ASX exchange-traded funds (ETFs) that give you broad exposure to both Australian and global equities.

In this case, a combination of the Vanguard Australian Shares Index ETF (ASX: VAS) and Betashares Nasdaq 100 ETF (ASX: NDQ) could be a powerful starting point.

Vanguard Australian Shares Index ETF

The Vanguard Australian Shares Index ETF is one of the most popular ETFs on the ASX. It provides exposure to the largest 300 Australian shares, offering an easy way to invest in the local share market in one hit.

It includes heavyweights like BHP Group Ltd (ASX: BHP), Commonwealth Bank of Australia (ASX: CBA) and Cochlear Ltd (ASX: COH) — but also holds a long tail of smaller, quality names such as REA Group Ltd (ASX: REA) and Breville Group Ltd (ASX: BRG).

This broad mix gives you diversification, stability, and regular income via dividends. It could be a great backbone for any portfolio.

Betashares Nasdaq 100 ETF

To balance out your Aussie exposure, the Betashares Nasdaq 100 ETF offers something different: access to the 100 largest non-financial companies listed on the Nasdaq in the U.S.

Yes, it includes the giants — Apple (NASDAQ: AAPL), Microsoft (NASDAQ: MSFT), and Amazon (NASDAQ: AMZN) — but also features exciting names that don't often make the headlines here in Australia, such as Intuit (NASDAQ: INTU), Adobe (NASDAQ: ADBE), Starbucks (NASDAQ: SBUX), and Costco (NASDAQ: COST).

These are high-quality, globally dominant businesses in technology, consumer staples, and healthcare — many of which have grown earnings consistently for decades.

Build steadily with regular contributions

Once you've allocated your initial $1,000 — perhaps an even split of $500 into each ASX ETF — the next step is to build the habit of regular investing.

Even modest monthly contributions of $200 to $500 can compound significantly over time, especially when invested in diversified the two ETFs above.

This approach helps smooth out volatility and lets you benefit from dollar-cost averaging — where you buy more units when prices are low and fewer when prices are high.

Add growth stocks over time

As your confidence grows and your ETF portfolio takes shape, you might consider branching out into individual shares with the potential to deliver outsized returns over time.

Think companies like Pro Medicus Ltd (ASX: PME), a medical imaging business with high margins and global customers, WiseTech Global Ltd (ASX: WTC), a logistics software leader with enormous scale, Temple & Webster Group Ltd (ASX: TPW), a fast-growing online furniture retailer, and CSL Ltd (ASX: CSL), a global biotech giant with a long history of growth and innovation.

These are higher-growth businesses that could compound wealth faster than the broader market. However, they also carry more risk, which is why it is important to ensure they complement — not replace — your diversified core holdings.

Foolish takeaway

You don't need a big bank balance to start investing on the ASX. With just $1,000 and the right strategy, you can begin building a portfolio that's diversified, growth-oriented, and income-generating.

Start with ASX ETFs, commit to regular contributions, and then gradually add select individual shares. With patience and discipline, your portfolio could grow into something truly meaningful over the long term — no matter how modest the beginning.

The post How to start your ASX share portfolio with just $1,000 appeared first on The Motley Fool Australia.

According to CNBC's Berkshire portfolio tracker, Buffett, as of 31 March, has US$347.7 billion in cash and cash-equivalent investments ready to go at Berkshire. That cash pile is worth more than the combined public stock portfolio of Berkshire right now (although not if combined with its private, unlisted investments). It's also the highest cash position Berkshire has ever had. Not a bad problem to have, all things considered.

But let's move from the factual to the hypothetical. If I had a cash pile as large as Warren Buffett's, what would I spend it on?

Well, apart from a nice house and perhaps a vintage Aston Martin DB5, I would, of course, buy stocks.

The ASX shares I would buy with Buffett's cash pile

I would be happy to spend a large chunk of the pile on a simple index fund tracking ASX shares, probably the Vanguard Australian Shares Index ETF (ASX: VAS). This exchange-traded fund (ETF) offers investors exposure to the largest 300 shares listed on the ASX, weighted by market capitalisation.

This is a great hands-off investment that will likely grow in line with the broader Australian economy over time, which I find appealing as a cornerstone investment.

Following VAS, I would then opt for some additional ASX shares that balance a supply of reliable dividends with some of the ASX's most exciting growth stocks.

For dividends, I would choose a mixture of Washington H. Soul Pattinson and Co Ltd (ASX: SOL), Coles Group Ltd (ASX: COL), Telstra Group Ltd (ASX: TLS), Wesfarmers Ltd (ASX: WES), and National Australia Bank Ltd (ASX: NAB). These companies all have a strong history of providing hefty and steadily rising dividends, which is a trait Buffett himself often looks for.

I would add investments in TechnologyOne Ltd (ASX: TNE), REA Group Ltd (ASX: REA), and Xero Ltd (ASX: XRO) for some growth exposure too.

Never bet against America

But I wouldn't just stick with ASX shares. Warren Buffett himself has expressed his belief that the US markets, and the companies that reside on them, are the world's best. As such, I would probably invest more of that enormous cash pile into US stocks than those on the ASX.

My top priorities would be the companies that are leaders in their fields and have a long history of delivering for shareholders. I would start with the magnificent seven stalwarts Amazon.com Inc (NASDAQ: AMZN), Alphabet Inc (NASDAQ: GOOG)(NASDAQ: GOOGL), and Microsoft Corporation (NASDAQ: MSFT). I think these names are the best that the US currently has to offer, and have long growth runways still ahead of them.

Then, I would add quality names like Mastercard Inc (NYSE: MA), Netflix Inc (NASDAQ: NFLX), American Express Inc (NYSE: AXP), and Costco Wholesale Corp (NASDAQ: COST).

Perhaps I would also consider Caterpillar Inc (NYSE: CAT), McDonald's Corporation (NYSE: MCD), and Procter & Gamble Inc (NYSE: PG).

With these stocks, which range from growth engine companies like Mastercard to consumer staples fortresses like Procter & Gamble, I think I would have a portfolio that could look after my family's financial interests for the rest of my days.

Shame about the lack of a Buffett-style cash pile, though.

.

The post If I had a big cash pile like Warren Buffett, here's how I'd spend it in 2025 appeared first on The Motley Fool Australia.

The ASX is certainly home to many quality stocks, including famous blue-chip investments like Commonwealth Bank of Australia (ASX: CBA), Telstra Group Ltd (ASX: TLS), and Woolworths Group Ltd (ASX: WOW). But these businesses, while great, just don't offer the size, scale, and global dominance that many prominent US stocks, such as Apple, Amazon, and Colgate-Palmolive, do.

As such, it's my firm belief that most ASX investors should look to add some quality US shares to their portfolios.

But which US shares to buy? Here are three that I personally own and think would suit the needs of most ASX investors today.

3 US shares to consider buying today

Microsoft Corporation (NASDAQ: MSFT)

First up, we have the technology giant Microsoft. You probably know Microsoft from its flagship Windows operating system and popular Office productivity software suite. But Microsoft offers far more than just those products.

I consider this company to be a 'tech ETF' of sorts, as it has its fingers in so many pies. In addition to Windows and Office, these pies include its Azure cloud platform (and associated data centre infrastructure), its gaming division, spearheaded by the Xbox brand and the acquisition of Activision Blizzard a few years ago, and its Copilot AI platform. Not to mention its LinkedIn social media network.

Despite its gargantuan size (US$1.9 trillion at last count), Microsoft is still growing at a rapid pace. Back in February, the company reported quarterly revenue growth of 12% (year on year) to US$69.6 billion, earnings per share (EPS) growth of 10% to US$3.23, and a 10% spike in net income to US$24.1 billion.

Costco Wholesale Corp (NASDAQ: COST)

Next up, we have another US stock that you may have heard of in supermarket operator Costco Wholesale.

Costco is famous for its massive warehouses, where customers can buy goods in bulk. The company is also renowned for its unusual membership model, where shoppers have to pay an annual fee to enjoy the privilege of even entering a Costco.

This model has brought the company an unprecedented level of global success. But unlike most established supermarket operators, Costco is still growing at a healthy clip. It recently reported a 9% rise in quarterly net revenues to US$63.72 billion, alongside a 2.6% increase in net income.

Given Costco's defensive nature as a supermarket business and its unique and compelling business model, I think this US stock would be a happy home in most ASX investors' portfolios today.

Mastercard Inc (NYSE: MA)

Finally, we have a US stock that is probably in most readers' wallets as we speak. Mastercard is a global payments giant. Along with its archrival Visa, Mastercard forms a near-global duopoly on the infrastructure that supports electronic payments, credit cards, and bank cards.

I believe that the global shift to electronic payments will only continue to accelerate in the years ahead. If that is the case, Mastercard will be a major beneficiary of this trend.

This US stock has been a growth beast over the past decade and continues to expand at a rapid pace. In January, the company posted year-on-year revenue growth of 14% to US$7.5 billion, with earnings per share rocketing 20.1% to US$3.82.

Given this growth and the tailwinds still blowing behind it, I think Mastercard is another top US stock pick for any long-term ASX investor today.

The post Are these the best US stocks to consider buying right now? appeared first on The Motley Fool Australia.

At this point, most investors interested in artificial intelligence (AI) know the critical role Nvidia's (NASDAQ: NVDA) AI accelerator chips have played. The resulting growth spurt has propelled the company and its stock to staggering heights. If you're reading this, you're probably wondering whether Nvidia's AI tailwinds can continue and whether the stock is still buyable after soaring over 800% since early 2023.

Yes, the cat's out of the bag on Nvidia and AI. Today, the stock trades over 50 times trailing-12-month earnings, so buyers are banking on the future rather than the past.

What might the future hold for Nvidia? I researched the company's growth prospects to determine whether the stock is a buy today.

Peering into Nvidia's leadership in AI chips amid massive market expansion

Nvidia rose to prominence in AI thanks to its Hopper AI accelerator chip architecture, which became the gold standard for training today's AI models. According to industry estimates, the company owns between 70% and 95% of the market. Owning that much of the market means that future growth depends on market expansion because there's little room to gain additional business from competitors. On the other hand, it means Nvidia risks ceding market share to other chip companies.

However, the market is growing so fast that it could realistically offset any modest market share losses. The global AI chip industry was estimated at $123 billion in 2024 and could grow to $311 billion by 2029. Nvidia's trailing-12-month revenue was $113 billion, most of which came from AI data centre sales. The company could lose market share and double its revenue over the next five years.

The underlying factors driving AI chip growth seem pretty intact. AI will need more (and better) chips to train and operate more intelligent models, and increased demand for AI services will require additional computing resources to create the capacity to accommodate that demand.

Blackwell looks like a successful continuation of AI momentum

Nvidia has begun transitioning to Blackwell, the successor to Hopper. The new architecture represents significant breakthroughs in performance and, arguably more importantly, efficiency. The chip has 208 billion transistors, up from 80 billion on the H100. The B200 can achieve up to 20 petaflops of computing power (like horsepower for computing) versus four for the H100.

The B200 will deliver three times faster large-model training than the H100 and 15 times the AI inference performance. It's also 25 times more energy efficient, translating to a significantly lower cost of ownership. This is a key point because companies investing billions of dollars in AI data centres need to monetise these investments over time. Low operating costs can be very helpful.

Blackwell has already shown signs of rampant demand. A few months back, Nvidia announced that it had sold out its entire Blackwell capacity for 2025. The lack of Blackwell supply should also continue trickling down to ongoing Hopper sales, as some companies may opt to build with Hopper chips rather than wait 12 months or longer for chips.

Is Nvidia a buy?

Assuming the prominent companies building up AI data centres, known as hyperscalers, continue investing in AI infrastructure, Nvidia's growth prospects look fantastic.

Analysts estimate Nvidia will grow earnings by an average of 38% annually over the next three to five years, which makes sense within the broader growth forecast for the AI chip market. There doesn't seem to be much reason to doubt the growth forecast until competition shows tangible evidence of eating into Nvidia's business. So far, Blackwell looks like a smashing success.

I like using the PEG ratio to weigh a stock's valuation versus its growth rate. Typically, I'll buy high-quality stocks up to a PEG ratio of 2.0 to 2.5, and Nvidia's (PEG ratio of 1.4) falls comfortably below that threshold. I'd much rather buy Nvidia here than a similarly priced retail stock like Costco, which has much slower growth.

So yes, Nvidia is a buy in my book.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

The post Is Nvidia a buy? appeared first on The Motley Fool Australia.

It's normal to make more than a few flubs while investing, especially when you're new. At the same time, we owe it to ourselves to be humble and to recognise when we've made a mistake with our finances. There's no point in beating yourself up, but there's a big point to understanding what went wrong and how to do it better the next time -- after all, there's money on the line.

Not every mistake has to be a catastrophe, obviously. But it's still worth ironing out the kinks in your investing habits, especially if you plan to be investing for decades to come. With that in mind, I'd like to share three examples of less serious oversights I made in 2024 so that you can (hopefully) avoid them in your own investing life.

1. Not updating my investment thesis in a timely fashion

One of my rules is that I need to have a strong and pithy investment thesis for every investment I make, and for any that I write about, too. But an investment thesis simply can't be a monolith that stands unchanged over time, as markets are constantly changing, and businesses are constantly updating their strategies to compete more effectively both today and in the future.

The more complicated the industry and the more complicated the company, the more moving parts there are for the investor to take into account when formulating a thesis, which entails a larger responsibility to update the thesis more frequently. Even when broadly upholding that responsibility, it's still very possible to miss the forest for the trees, as I did with Pfizer.

Since roughly 2020, my investment thesis called for Pfizer to be a favorable stock to buy and hold because of its large portfolio of pharmaceuticals and its demonstrated competency in research and development (R&D), as reflected by its massive pipeline.

Nonetheless, the stock is down by 45% over the last three years, badly underperforming the market's gain of 31%. Clearly, something wasn't working, but I kept circling back to the same factors that were originally in my investment thesis, finding them to still be sound.

Then, late in 2024, an activist investing group called Starboard Value said that it had taken a $1 billion stake in Pfizer with the goal of improving the company's efficiency. The group published a report outlining many areas where it thought that the company was struggling, including specifically its R&D efficiency and its capital allocation strategy.

Reading the report, I was gobsmacked; the activist group had essentially explained to me quite fastidiously that my investment thesis was no longer accurate. I immediately changed my stance on the stock to be a bit more bearish.

One lesson here is to listen to any nagging feelings you have about a stock and its performance. If your investment thesis still seems true on the surface in the face of a company's difficulties, dig deeper into the details, and be ready to update your mental model accordingly.

2. Assuming the best outcome would occur

Another subtle investing mistake I made pertains to Costco Wholesale, which to this day remains my single most favorite investment.

In late 2023, Costco's CEO announced he would be retiring, and that he would be replaced in the following year by Ron Vachris, who was the company's president at the time and an employee for 40 years. Given Costco's tradition of successfully promoting leaders from within, I reacted positively to the news and thought nothing more of it.

But that was a mistake, even if it didn't carry negative consequences. My level of trust in the board of directors was and still is fairly high. Nothing has gone wrong with Costco under its new management. I'll buy more shares as I'm able to do so.

Still, if you don't perform any due diligence when you know there has been a major change with one of your investments, like a new CEO, it's much harder to build the conviction necessary to hold on to your shares for the longer periods of time, where you'll see the largest growth.

Think about it. Psychologically, it's much better to have a hunch about which new factor is causing things to go right -- or wrong -- than it is to look at your returns and feel confused about what's happening. Checking the details is how to become a better investor.

3. Complacency

I've held Apple (NASDAQ: AAPL) for quite some time now. Everyone knows that Apple will be selling iPhones, MacBooks, and iCloud subscriptions until the end of time, not to mention a bunch of other products and services. Its brand is most likely the most valuable on the planet, and it has an endless runway for more growth.

But does the company's actual performance bear out all of this common "knowledge" that formed the basis for my investment in the stock? In a word, no. Over the last 10 years, its quarterly revenue has risen by 63.6%, reaching $94.9 billion, and its free cash flow (FCF) has grown by 43.9%, reaching $23.9 billion.

Those figures are impressive for a gargantuan business, to be sure. But in relative terms, there are many other companies that are expanding at a much faster pace. Similarly, it is very likely that Apple is facing some headwinds due to its comprehensive penetration of its core markets like smartphones, which are also highly competitive.

My mistake here was to assume that the boom times both could and would continue forever with Apple. There is no guarantee that the stock will fall, and it's still a favorable investment.

But the only way to avoid the unanticipated consequences of complacency is to invest some effort and do the diligence even if there are not any major changes happening in any given quarter, so that's what I'll be doing from now on with this stock.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

The post 3 subtle investing mistakes I won't repeat in 2025 and beyond appeared first on The Motley Fool Australia.

But after these rosy 2024 gains, many ASX investors might be looking for some stable, defensive investments to ride out 2025. After all, the returns of both the Australian and American markets were well above average last year. And the markets do have a sometimes uncomfortable tendency to revert to their mean sooner or later.

With that in mind, let's discuss a pair of defensive ASX shares that I think offer investors stability as we embark upon another year on the stock market.

Two defensive ASX shares to buy for 2025 stability

Telstra Group Ltd (ASX: TLS)

First up is the leading Australian telco, Telstra. We all know Telstra (and may or may not love it), but I think this company's shares represent a solid and stable investment for 2025. The Telstra share price actually had a fairly poor 2024, treading water for most of the year.

Despite this, the company managed to report some solid earnings and substantially grew its dividend. Today, it offers a hefty (and fully franked) dividend yield of 4.42%.

Telstra is also a highly defensive company. Fixed-line internet and mobile services are essential to modern life, and as such, customers won't want to give them up even if their personal financial circumstances deteriorate. That makes this company's earnings and profits highly stable, which should lend comfort to any investor seeking a reliable investment in 2025.

iShares Global Consumer Staples ETF (ASX: IXI)

Our second defensive ASX share is not technically a share at all. Instead, it is an exchange-traded fund (ETF). This particular ETF offers investors a portfolio of global companies that are leaders in providing consumer staples goods. Consumer staples are products that we tend to need, not want. They include food, drinks, household essentials, alcohol, and tobacco.

This ETF houses around 100 of these companies, which hail from several different countries. You'll find some familiar names in the current portfolio, including Coca-Cola, Colgate-Palmolive, Costco, Kraft Heinz and Nestle.

The inherent nature of these products makes, at least in my view, the companies that produce them very stable investments.

After all, we all still need to eat, drink and run our households regardless of how the economy or stock market is doing. I won this ETF in my personal portfolio as a sleep-well investment, and I think it can lend stability as an ASX defensive share to any portfolio in 2025.

The post 2 ASX defensive shares to buy now for stability appeared first on The Motley Fool Australia.