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

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.

These 3 stocks could be the next big movers in 2020

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

In this FREE STOCK REPORT, Scott just revealed what he believes are the 3 ASX stocks for the post COVID world that investors should buy right now while they still can. These stocks are trading at dirt-cheap prices and Scott thinks these could really go gangbusters as we move into ‘the new normal’.

*Returns as of 6/8/2020

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.

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