One of the best ways to grow your wealth is by investing in ASX shares and taking advantage of compounding.
Compounding is what happens when you earn returns on top of returns. It supercharges your wealth creation the longer you do it.
But you can't just invest in any old ASX share for the long term. Some shares are more likely to flourish over the next decade than others, but which shares?
Let's take a look at three buy-rated ASX shares that Australians ought to consider as buy and hold investments for the next decade. They are as follows:
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Goodman Group (ASX: GMG)
The first ASX share that could be a good buy and hold option is Goodman Group.
It is a global property group that owns, develops, and manages critical warehouse and data centres needed to power the digital economy.
Over the past decade, Goodman has been growing its earnings at a consistently strong rate thanks to ongoing property developments and strong demand. This has led to its shares delivering market-beating returns over the period.
The good news is that Morgan Stanley believes that this trend can continue for the foreseeable future. As a result, the broker recently put an overweight rating and $42.40 price target on the company's shares.
ResMed Inc. (ASX: RMD)
Another ASX share that could be a great long term option is ResMed. It is a sleep disorder treatment company with a huge total addressable market (TAM).
In fact, last month the company's CEO, Mick Farrell, commented on its huge opportunity. He said:
Today, more than 2.3 billion people suffer from major sleep health and breathing issues, the vast majority of which are undiagnosed. By building on our leadership in connected digital health, our 2030 Strategy will further enable us to transform sleep health, breathing health, and health tech at home through world-class products and digital solutions.
ResMed is aiming to help more than 500 million people worldwide achieve their full health potential in 2030.
This went down well with analysts at Morgans, which see the company as a top option right now. The broker has ResMed on its best ideas list with an add rating and $41.33 price target.
Woolworths Group Ltd (ASX: WOW)
Finally, Woolworths could be an ASX share to buy and hold.
The supermarket giant's shares have come under significant pressure this year and Goldman Sachs thinks it has created a compelling buying opportunity. It commented:
While WOW is facing transition challenges as its new CEO recalibrates WOW's strategy against a value consumer, we believe that WOW's structural advantages of its store network, scaled online position and leading data/analytics capabilities will enable market share wins in the medium term. WOW is FY26 P/E of ~21x vs historical avg 26x,
Goldman has a buy rating and price target of $36.20 on its shares.
