In the quest for long-term financial growth, it's tempting to hunt for secret tips that highlight the best Australian shares. But let's shift gears a bit. Instead of chasing the 'best' shares, why not focus on what's right for you?
For many investors, this journey can seem daunting. You're faced with a sea of options, each promising great returns. But how do you know which ones are best for your portfolio in the long run?
In this article, we've lined up some of Pearler’s most popular Australian share investments. These are assets that have caught the eye of many in our community.
We're here to help you understand what to consider when choosing Australian shares for long-term investing, so they align with your goals and risk profile.
10 of Pearler’s most popular Australian share investments
As you move forward in your investing journey, it's only natural to want to make smart choices. There's a lot to consider – the track record of shares, ups and downs of the ASX, and terms like 'yield curve' and 'market capitalisation'. It's enough to make your head spin, right?
Well, we’ve got a little cheat sheet for you – 10 of our most popular Australian share investments. These are individual stocks that have been attracting attention in the Pearler community.
Whether you're pondering the impacts of long-term compounding, weighing up against your risk tolerance, or figuring out how to meet your financial goals, you can learn something by assessing these stocks.
So, let's take a closer look and see why our community members choose them, and how they could fit into your investment portfolio. Remember, though: picking individual stocks isn't about following the crowd. It's about understanding the potential benefits and risks each brings to your portfolio.
1. Qantas Airways Limited (QAN Stock)
Qantas Airways stands tall as a key player in both domestic and international skies, and is a favourite among ASX investors.
Qantas operates across different segments. This includes Qantas Domestic and International for passenger and cargo transport; the budget-friendly Jetstar; and Qantas Loyalty, rewarding frequent flyers.
Why this stock is popular: Qantas is globally recognised, connecting Australia with continents like Asia, Europe, and Africa. It also boasts a strong performance record. Investing in Qantas means investing in a key part of Australia’s global trade and travel. Historically, it has been a solid choice for long-term growth in the global travel sector. However, as COVID proved, the travel sector can be susceptible to global disruptions.
2. Fortescue Ltd (FMG Stock)
Fortescue is a big name in mining iron ore in the Pilbara region of Western Australia. They're not just about iron, but also innovate with green electricity and hydrogen projects.
Why this stock is popular: This company is a key player in the global iron ore industry, with efficient operations from their mines to Port Hedland. They're a top choice for long-term investors, considering the ongoing need for iron ore, especially with growing demand in the Asia Pacific. Fortescue stocks have been viewed as a sound asset for investors seeking long-term growth in Australia's resource sector and interested in sustainable practices.
3. BHP Group Limited (BHP Stock)
BHP Group Limited is a mining powerhouse. They're a big deal when it comes to extracting essential resources like iron ore, copper, and nickel globally. They focus on materials vital for steelmaking, electric wiring, renewable energy, and batteries for electric vehicles.
Why this stock is popular: As a leader in the mining industry, BHP operates worldwide. This means that they contribute significantly to global infrastructure and the shift towards cleaner energy sources. If you're looking to align with the growing demand for resources essential for construction, energy, and advanced technologies, BHP Stock may be a strategic move for you.
4. Pilbara Minerals Limited (PLS Stock)
Pilbara Minerals Limited is a treasure hunter in the world of minerals, focused on lithium mining in the resource-rich Pilbara region.
Now, why is lithium so important? No, it isn't just a dark horse 2006 hit song by pop metal band Evanescence. It’s also a key ingredient in batteries. With the world shifting towards electric cars, lithium is currently in high demand. To add to it, Pilbara Minerals not only mines lithium, but also tantalite, which is used in electronics.
Why this stock is popular: Investing in Pilbara Minerals is often perceived as an investment in electric vehicles and clean energy. The company is also part of a project in South Korea to process lithium for battery use. Another popular choice for those seeking long term growth in the evolving energy sector. However, for those looking to invest in PLS for its clean energy credentials, be sure to first check its ESG scores .
5. Wesfarmers Limited (WES Stock)
Wesfarmers Limited is a diverse retail and industrial powerhouse. The company runs well-known brands like Bunnings, Kmart, Officeworks and Target, offering everything from home improvement items to office supplies.
Besides their different segments, Wesfarmers Limited is also into chemicals, energy, and safety products.
Why this stock is popular: WES Stock allows you to bet on a whole range of consumer and industrial sectors. With a strong presence across Australia and New Zealand, they offer a mix of growth and stability. It's a popular choice for diversified investment in key consumer and industrial markets.
6. Commonwealth Bank of Australia (CBA Stock)
The Commonwealth Bank of Australia (or CommBank) is one of Australia's largest banks. It serves about 16 million customers, including in New Zealand through the ASB brand. They offer a wide range of financial services, from retail banking for everyday needs to business banking for companies of all sizes, and institutional banking for large corporations and governments.
Why this stock is popular: Investing in CBA Stock is investing in a financial giant with a solid presence in the banking sector. It's ideal for those seeking a stable, long-term investment and a piece of the financial services sector in Australia.
7. Core Lithium Ltd (CXO Stock)
Core Lithium Ltd specialises in finding minerals like lithium. Their Finniss Lithium Project is located near Darwin Port in the Northern Territory – a promising site for both lithium extraction and shipping.
Why this stock is popular: By investing in CXO stock, investors aim to tap into the growing lithium market, essential for the electric vehicle (EV) revolution.
Though not as large as mining giants like BHP Group Limited, Core Lithium is focused on becoming a key lithium supplier for EV batteries. This makes CXO stock appealing to those exploring the future of energy, transportation, and mineral exploration.
8. Woolworths Group Limited (WOW Stock)
Woolworths Group Ltd is a major operator in the supermarket industry. All over Australia, New Zealand, and India, the company employs over 200,000 people. They operate various segments, including the Australian Food division for groceries, Australian B2B for business supplies, New Zealand Food, and BIG W for discounted goods in Australia.
Why this stock is popular: WOW Stock invests your money into a household name in Australia, with around 1,400 stores under their belt. They're a well-known retail giant with a growing e-commerce presence.
9. Woodside Energy Group Ltd (WDS Stock)
Woodside Energy Group Ltd is an established player in the oil and gas industry. They focus on exploring and producing energy, particularly natural gas. This is then converted into liquified natural gas (LNG) and oil, both in Australia and globally.
Why this stock is popular: WDS Stock allows investors to put their money into a company that’s powering up homes and industries. They’re involved in big projects like Pluto LNG and the Northwest Shelf project. These projects are all about getting natural gas and turning it into something usable. So, WDS Stock can be an option for those who are looking to get a piece of the action in the Australian and global energy market.
10. Macquarie Group Limited (MQG Stock)
Macquarie Group Limited is more than just a bank. It's a large financial services company offering a range of services from asset management and banking to global trading and financial advisory through Macquarie Capital.
Why this stock is popular: Macquarie is unique compared to Australia's biggest banks. It's involved in diverse areas like investment, trading, and corporate advisory. This makes it an aligned choice for those who want to invest in a diverse financial player with a global reach. Macquarie's broad service range and strong performance make it a popular investment on the ASX .
Key factors to consider when investing in Australian shares
The common concerns of investors are risk, returns, and market volatility. There’s always a chance your investment might drop in value. But there's also a chance your investment grows over time. Some stocks tend to rise and fall more than others depending on the company, industry, economic environment and other factors.
So, what are the personal factors to consider when investing in Australian shares?
- Risk profile: This is how much risk you're comfortable taking on with your investments.
- Investment time horizon: How long do you plan to keep your money invested? For long-term goals, you can ride out market ups and downs more easily.
- Investing style: Are you a hands-on investor who likes picking stocks like BHP Group Limited, or do you prefer a set-and-forget approach with ETFs? If the latter is more your style, it may be worth looking into why the Pearler community often leans more towards ETFs (Exchange-Traded Funds) . They can be a one-stop-shop for investing, especially if you're just starting or looking for a simpler approach.
- Diversification: Don’t put all your eggs in one basket; spread your investment across different sectors and companies for a more stable long-term investing journey.
Some more general factors to consider in choosing stocks are:
- Market trends: Keep an eye on big market movements, like the growing interest in Australian property securities or renewable energy, to inform your choices.
- Company fundamentals: Look at a company's health – things like profits, debts, and management – before buying shares.
- Sustainable and ethical investing: Want to feel good about where your money is going? Choose companies that align with your values, like those focusing on sustainability or ethical practices.
With long-term investing, you're not trying to make a quick buck – you're playing the long game. This approach is about setting and sticking to your financial goals, and not getting too worked up about the daily swings in the market. And swings can come often when investing in individual company shares!
Once you make your choice, sit back, monitor wisely, and give your investments a chance to grow over time.
The round-up on the best Australian shares
One thing is clear: the quest for the 'best' Australian stocks isn't one-size-fits-all. It’s more about finding a fit that resonates with your unique financial goals and risk tolerance.
Each of the Pearler community top picks we explored offers a unique slice of the Australian market. Yet, while these individual shares shine in their own ways, our Pearler community often leans towards the diversified approach of ETFs. Many have added both Australian shares and ETFs to their investment portfolios to reap the benefits of both.
No matter which way you lean, understanding factors like market volatility, investment time horizon, and your investing style are key to making investment decisions that are right for you.
Happy investing!
