When it comes to long-term investing, there is one principle that often proves timeless.
That is to buy quality, hold it tight, and let time and compounding do the heavy lifting.
With that in mind, if you are building an investment portfolio, here are three outstanding ASX 200 shares that may be worth owning for years, even decades.
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CSL Ltd (ASX: CSL)
CSL is a global biotechnology leader and one of Australia's biggest success stories. From its operations across the globe, the ASX 200 share delivers life-saving plasma therapies, vaccines, and other essential treatments.
While recent years have been impacted by margin pressures, CSL's fundamentals remain rock-solid. Its long-term track record of earnings growth, reinvestment into R&D, and expansion into new therapeutic areas make it a textbook compounding machine.
The good news is that the future looks just as rosy. In fact, many analysts believe that its plasma operations are going to underpin double-digit earnings growth for the coming years. So, with its shares trading on lower than average multiples, now could be a great time to make a buy and hold investment.
Macquarie believes that this is the case. It has an outperform rating and $360.30 price target on its shares.
ResMed Inc. (ASX: RMD)
Another ASX 200 share that could be a great buy and hold option is ResMed. It is a global leader in sleep and respiratory care, with a dominant position in the treatment of obstructive sleep apnoea (OSA).
ResMed's devices, masks, and cloud-connected software are used by millions of patients, helping them manage chronic conditions and improve quality of life. And with growing awareness of sleep health, demand for ResMed's products continues to rise.
The company is also investing heavily in digital health solutions, positioning itself for long-term relevance in the evolving healthcare landscape.
Macquarie is also bullish on ResMed and has an outperform rating and $48.00 price target on its shares.
Xero Ltd (ASX: XRO)
Finally, Xero could be an ASX 200 share to hold tightly to for the long term. Its cloud-based accounting platform is used by 4.4 million small businesses worldwide and is known for its intuitive interface and powerful integrations.
As the digitalisation of small business finances continues, Xero is well positioned to benefit from both market growth and customer expansion. Its subscriber base continues to rise, and as the company matures, so does its profitability.
And while 4.4 million subscribers is a big number, it pales in comparison to its estimated total addressable market of 100 million subscribers. This gives it a multi-decade runway for growth.
Morgans is a fan of the company and has an add rating and $215.00 price target on Xero's shares.
