One of the best ways to grow wealth is through buy and hold investing with ASX shares.
If you can identify strong shares to buy and then hold them for the long term, you can unleash the power of compounding.
But which ASX shares could be quality long term picks? Let's look at three that analysts rate as buys. They are as follows:
ResMed Inc. (ASX: RMD)
The first ASX share to consider as a buy and hold investment is ResMed. Sleep apnoea might not sound exciting, but ResMed is quietly building a global healthcare empire around it. With a dominant market share in CPAP machines and masks, it is positioned at the intersection of ageing populations, lifestyle disease, and long-term tech-enabled healthcare.
ResMed's earnings have been growing strongly over the past decade. The good news is that this looks set to continue for some time to come. Its products are sticky, its moat is wide, and its balance sheet is strong. If you had to bet on one ASX share compounding over the next decade — it would have to be near the top of the list.
Goldman Sachs certainly agrees. It has the company's shares on its highly coveted conviction list with a buy rating and $49.00 price target.
Life360 Inc. (ASX: 360)
Family safety, location tracking, and digital peace of mind. Life360 is already a must-have app for millions of U.S. and global families — and it is only just getting started. The company is expanding into premium subscriptions, hardware (like Jiobit), and smart safety services, with huge cross-sell potential.
It is still early days, but the monetisation runway is long. Recurring revenue is growing fast, churn is low, and its addressable market is enormous. For investors willing to hold through the bumps, this ASX share could be a very different business in 10 years' time — and the kind you'll be glad you backed early.
Goldman Sachs is also a big fan of Life360. It has a buy rating and $27.00 price target on its shares.
Goodman Group (ASX: GMG)
The world is going digital, and Goodman is building the infrastructure to support it — from logistics warehouses to hyperscale data centre-ready properties. The company has carved out a niche in high-demand sectors and locations, and it is executing exceptionally well.
With a development pipeline focused on high-margin assets and a customer list that includes Amazon (NASDAQ: AMZN), FedEx, and countless other blue chips, Goodman is positioned for sustainable growth. Add in founder-led management and a fortress balance sheet, and it is one of the most reliable compounders on the Australian share market.
Morgans recently upgraded its shares to an add rating with a $35.30 price target.
