Buying and holding ASX 200 shares is a great way to grow your wealth.
There are two reasons for this. One is that market rises are non-linear. If you just invest for 12 months, you might get lucky and get an above-average return, but you could also get unlucky and have a below-average return (or even a negative return).
Historically, these things balance out over several years and have underpinned an average return in the region of 10% per annum over the long term.
This brings us onto the other reason why buy and hold investing is a great way to grow your wealth – compounding.
Compounding is what happens when you generate returns on top of returns. It's what turns a $10,000 investment (growing at 10% per annum) into approximately $16,100 in 5 years and then $42,000 in 15 years.
With that in mind, let's take a look at three ASX 200 shares that could be great buy and hold options for the next decade and beyond. They are as follows:
Goodman Group (ASX: GMG)
Goodman Group could be a great buy and hold investment option. It is a specialist global industrial property and digital infrastructure company. Goodman owns, develops, and manages high-quality sustainable properties that are close to consumers and provide essential infrastructure for the digital economy.
Citi is very positive on the company's outlook and expects its strong earnings growth to continue for the foreseeable future. For this reason, the broker has a buy rating and $40.00 price target on its shares.
REA Group Ltd (ASX: REA)
A second ASX 200 share that could be a top buy and hold option is REA Group. It is the clear market leader in Australian real estate listings with its realestate.com.au website.
Morgan Stanley was pleased with its recent full year results and believes there's more of the same to come in FY 2025 and beyond. For this reason, the broker recently put an overweight rating and $230.00 price target on its shares.
Webjet Limited (ASX: WEB)
Another ASX 200 share to consider as a buy and hold investment is Webjet. It is an online travel booker and bedbank services provider.
Morgans is a big fan of the company. This is due largely to its bedbank business, WebBeds, which it expects to continue its growth for some time to come. Particularly given how there is "significant market share still up for grabs." Morgans has an add rating and price target of $11.20 on Webjet's shares.
