I think that buy-and-hold investing is the best way to grow your wealth in the share market.
I'm not alone. Legendary investor Warren Buffett once quipped that his "favourite holding period is forever".
And you only need to look at the Oracle of Omaha's success over multiple decades to see how effective the strategy can be.
But not all shares will necessarily make great buy-and-hold investments. So, let's take a look at three roaring ASX shares that I would happily hold for the next 20 years.
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Buy and hold these ASX shares
The first ASX share that I would buy and hold is the family safety app company Life360 Inc (ASX: 360).
Goldman Sachs analysts estimate that the company is "exposed to a US$12bn global TAM with a large opportunity to expand its product suite, grow average revenue per paying circle (ARPPC), increase payer conversion, and lift penetration rates outside of the US."
This gives Life360 a huge runway for growth over the next couple of decades.
Another ASX share that I would buy for the long term is Nextdc Ltd (ASX: NXT). It is one of the leading data centre operators in the Asia-Pacific region.
With more data going to the cloud, data centre demand is expected to increase materially over the next decade. This should also be boosted further by the rise of generative artificial intelligence (AI) services like ChatGPT.
Goldman Sachs highlights that the "DC industry will benefit from a 'third wave of demand' with generative AI requiring 5-10x more compute vs. traditional search."
This bodes well for NextDC's earnings growth over the next couple of decades, in my opinion.
Finally, I believe Xero Ltd (ASX: XRO) could be another ASX share to buy and hold for the long term.
This is because the cloud accounting platform provider has a massive global market opportunity and a product that is regarded as the best in its class by many.
Goldman Sachs estimates that Xero's addressable market comprises more than 100 million small to medium-sized businesses worldwide, or NZ$76 billion in value. This compares to its current subscriber base of approximately 4 million.
