For investors with a long-term mindset, owning a handful of high-quality Australian stocks can be one of the most effective ways to build wealth.
With $5,000 to put to work today, the local market offers plenty of opportunities across different sectors.
Here are three Australian stocks that stand out as top buy-and-hold candidates.
CSL Ltd (ASX: CSL)
The first Australian stock to buy and hold could be CSL. It is Australia's largest biotechnology company and a genuine global leader in blood plasma therapies, vaccines, and rare disease treatments. The company collects plasma from donors worldwide and processes it into life-saving medicines, while also investing heavily in research and development to expand its pipeline.
CSL's shares have been under pressure in recent months due to investor concerns around tariffs and the planned spin-off of Seqirus. While this is disappointing for shareholders, it could be one of the best buying opportunities in years for long-term investors. Especially given CSL's scale, innovation pipeline, and defensive demand for its therapies that position it for solid growth over the next decade.
Macquarie thinks it is a great time to buy. It currently has an outperform rating and $295.90 price target on its shares.
Goodman Group (ASX: GMG)
Another Australian stock to buy and hold with the $5,000 is Goodman Group. It is a global industrial property developer and manager with a focus on logistics and data centres. Its developments are in high demand from e-commerce retailers, logistics operators, and technology companies building AI and cloud infrastructure.
The company has an enviable track record of disciplined execution and capital management. And thanks to its global footprint, which provides both diversification and exposure to powerful structural trends, it looks well-placed to build on this in the future.
Bell Potter currently has a buy rating and $40.80 price target on Goodman's shares.
REA Group Ltd (ASX: REA)
Finally, REA Group could be a top Australian stock to buy and hold. It owns and operates realestate.com.au, the dominant online property listings platform in Australia. Its strong market position gives it unrivalled pricing power and brand recognition. Revenue growth has been driven by consistent price increases, new product offerings, and international expansion opportunities.
While the housing cycle can affect listing volumes, REA has proven it can deliver growth through the cycle thanks to its premium offerings. And with the cycle now turning favourable, REA looks well-positioned for a strong period of growth.
Bell Potter is also bullish on this one. It has a buy rating and $284.00 price target on its shares.
The post 3 of the best Australian stocks to buy and hold with $5,000 appeared first on The Motley Fool Australia.
Motley Fool contributor James Mickleboro has positions in CSL, Goodman Group, and REA Group. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended CSL, Goodman Group, and Macquarie Group. The Motley Fool Australia has positions in and has recommended Macquarie Group. The Motley Fool Australia has recommended CSL and Goodman Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
The Motley Fool's purpose is to help the world invest, better. Click here now for your free subscription to Take Stock, The Motley Fool's free investing newsletter. Packed with stock ideas and investing advice, it is essential reading for anyone looking to build and grow their wealth in the years ahead. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson. 2025