Buying quality ASX shares and holding them for a decade or longer is a very good tactic in my opinion.
The ASX200 (ASX: XJO) has plenty of mature businesses that don't offer much growth. But I think there are some that are worth buying and holding for the next decade or more like these:
Altium Limited (ASX: ALU)
Altium is one of the leading tech businesses on the ASX with its electronic PCB software. The company has a target over the next six years to reach 100,000 Altium Designer subscribers and revenue of US$500 million. These would be impressive numbers if the company hits them.
But it's very unlikely that 2025 would be the end of the growth story if Altium does manage to convince the industry that it should be the global leader like Microsoft achieved with its Office products.
I believe Altium is one of the best ways to play the 'Internet of Things' tailwind. It's debt free, creates excellent cashflow and is paying a steadily growing dividend.
REA Group Limited (ASX: REA)
REA Group is the clear property portal leader in Australia. Being number one provides very useful network effects whereby it attracts the most potential buyers, which then attracts the most sellers and so on. This market position allows REA Group to implement regular price increases with little detrimental effects.
Whilst the first quarter of FY20 wasn't very inspiring, it still managed to prove its strength considering how much total listings dropped across Australia.
Property sellers who don't list on REA Group are probably making a mistake. It's very useful to be able to clip the ticket of almost every property sale in the country. Unless the way property is sold changes over the next decade, it should continue to generate pleasing growth and regular earnings.
As a bonus, the overseas property sites that REA Group has a stake in could become good profit earners for the company.
Xero Limited (ASX: XRO)
Xero is the dominant cloud accounting software business in Australia and New Zealand. It demonstrates this with every result by adding more subscribers and improving its gross profit margin despite it already being extremely high.
Having accounting software is very important for a business. It provides many useful administrative and analytical tools for business owners. Accounting software is also essential for creating business financials and providing the data for tax returns.
Xero generates excellent monthly cashflow from its subscriptions and that number keeps growing as it expands around the world. There's a very good chance that Xero can keep growing its market share in the UK towards the level seen in Australia.
Foolish takeaway
Each of these shares has very exciting growth prospects over the next decade. At the current prices I'd probably go for Altium because of its excellent free cash flow and expected profit margin growth, but all three are worth keeping an eye on.
