I'm a big fan of buy and hold investing and believe it is one of the best ways to grow your wealth.
But not all ASX 200 shares necessarily make good long-term investments.
Let's now look at three shares that have the potential to dominate the next decade and deliver for investors. They are as follows:
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Life360 Inc (ASX: 360)
Life360 is much more than just a family tracking app. It is evolving into a full-service digital safety platform, offering features such as driver reports, crash detection, roadside assistance, and location-based alerts for families.
It is doing this while growing its sales and earnings at a rapid rate. For example, in the first quarter of FY 2025, Life360 posted a 32% increase in sales to US$103.6 million along with adjusted EBITDA of US$15.9 million. The latter was an even more significant jump from the prior period.
With over 83 million monthly active users and 2.4 million paying circles globally, the business is gaining scale and operating leverage. This bodes well for the future, especially as it expands internationally and deepens its monetisation strategy.
Pro Medicus Ltd (ASX: PME)
Another ASX 200 share that could be a top buy and hold pick is Pro Medicus.
Few companies on the ASX combine high margins, elite client retention, and a razor-sharp global focus quite like it. The medical imaging software specialist sells its Visage platform to some of the world's top hospitals and health networks — and it's not slowing down.
Pro Medicus' revenue is growing consistently, backed by long-term contracts and a capital-light business model. The company is increasingly winning competitive tenders in the U.S., where healthcare systems are digitising rapidly and demanding faster, AI-enhanced diagnostic tools.
Its expansion into other areas, such as cardiology and AI, bode well for the future.
Temple & Webster Group Ltd (ASX: TPW)
Finally, Temple & Webster could be an ASX 200 share to buy and hold for the next decade.
It is Australia's leading online furniture and homewares retailer, with an asset-light, digital-first business model that allows for scale and adaptability. While many retailers are struggling with macroeconomic headwinds, Temple & Webster continues to grow strongly.
And with a growing private label portfolio, expansion into new categories, and a huge addressable market still shifting online, it appears well-placed to continue this positive form long into the future.
Importantly, the company is run by a disciplined management team that has prioritised profitability without sacrificing innovation. And as online penetration continues to rise in the furniture and homewares space, Temple & Webster could be one of the biggest winners.
