3 top ASX shares to buy and hold for at least a decade

I think Kogan.com Ltd (ASX:KGN) shares are one of three to buy and hold for the long-term. Here's why I'm a big fan of these ASX shares…

| More on:

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Buying shares and holding onto them for long periods may not be an exciting get-rich-quick strategy, but it has the potential to generate significant wealth over the long term.

For example, a single $20,000 investment into the share market would turn into over $200,000 if it earned an average annual 10% total return over a period of 25 years.

And if you were to add to this investment throughout the years and earn the same return, your wealth would grow materially.

But which shares would be good buy and hold options? Here are three ASX shares which I think have the potential to provide investors with strong returns over the long term:

Aristocrat Leisure Limited (ASX: ALL)

The first ASX share to consider for a buy and hold investment is this gaming technology company. Although it looks likely to experience a short term reduction in demand for its poker machines due to the pandemic, I expect its social and mobile gaming apps to thrive during the crisis. If it can retain these users when casinos reopen and business returns to normal, Aristocrat Leisure will be well-placed to accelerate its grow over the coming years.

Kogan.com Ltd (ASX: KGN)

Another share to consider as a buy and hold investment is Kogan. I think the ecommerce company would be a top option due to the continued shift to online shopping and its increasingly popular website. In addition to this, its expansion into potentially lucrative verticals such as energy and mobile, the launch of Kogan Marketplace, and potential value accretive acquisitions should support its earnings growth in the future.

Xero Limited (ASX: XRO)

A final ASX share to consider buying and holding is Xero. The cloud-based accounting software provider has been growing at a very strong rate over the last few years and looks well-placed to continue this positive form over the 2020s. This is due to the quality of its product, the shift to cloud-based accounting, and its expansion internationally.

James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of Kogan.com ltd and Xero. The Motley Fool Australia has recommended Kogan.com ltd. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on ⏸️ ASX Shares

a woman wearing a close-sitting hat featuring wires and thick computer screen glasses clutches her computer monitor and looks shocked and disturbed as she reads old-fashioned computer text from the screen.
Technology Shares

Here's why ASX 200 tech shares (ASX:XTX) outperformed today

ASX tech shares have taken a turn for the better today.

Read more »

Worker in hard hat looks puzzled with one hand on chin
Resources Shares

Why did the Rio Tinto share price (ASX:RIO) have such a lousy 2021?

We look at what happened to this ASX 200 mining giant's shares last year

Read more »

a miner wearing a hard hat smiles as he stands in front of heavy earth moving equipment on a barren mine site.
Share Gainers

Here's why the Rumble Resources (ASX:RTR) share price is climbing 5%

The mineral explorer's share price is on the rise amid promising drill results.

Read more »

share price high, all time record, record share price, highest, price rise, increase, up,
⏸️ ASX Shares

Here are the top 10 ASX 200 shares on Wednesday

Here are your top 10 biggest gainers in the ASX 200 on Wednesday.

Read more »

comical investor reading documents and surrounded by calculators
⏸️ ASX Shares

The ASX reporting wrap-up: WiseTech, Bravura, Seven Group

Just what the investor ordered. Here’s a recap of the companies that reported on Wednesday...

Read more »

Doctor performing an ultrasound on pregnant woman
⏸️ ASX Shares

The ASX reporting wrap-up: Ansell, Kogan, Nanosonics

Just what the investor ordered. Here’s a recap of the companies that reported on Tuesday...

Read more »

blue arrows representing a rising share price ASX 200
⏸️ ASX Shares

Here are the top 10 ASX 200 shares on Tuesday

Here are your top 10 biggest gainers in the ASX 200 on Tuesday.

Read more »

unhappy investor considering computer screen
Share Market News

The ASX reporting wrap-up: Charter Hall, Ampol, NIB Holdings

Just what the investor ordered. Here’s a recap of the companies that reported on Monday...

Read more »