My top ASX stock picks for long-term wealth

These are the picks that I would want in my portfolio for decades.

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Key points

  • Pro Medicus and ResMed are highlighted for their advanced medical solutions and large addressable markets, respectively, positioning them as strong long-term investments due to growing demand in healthcare.
  • TechnologyOne and WiseTech Global stand out for their robust business models, with TechnologyOne's SaaS transition offering predictable revenue, and WiseTech capitalising on global trade digitalisation and expanding supply chains.
  • Xero is valued for its cloud accounting services' growth potential across multiple regions, supported by strong brand recognition and strategic acquisitions, making it a viable long-term hold.

Building long-term wealth on the share market doesn't happen overnight. It takes patience, discipline, and a portfolio filled with ASX stocks that can keep growing earnings and strengthening their competitive positions over time.

With that in mind, here are five standout stocks I would happily buy and hold for years, if not decades. They are as follows:

Pro Medicus Ltd (ASX: PME)

The first ASX stock I would buy and hold is Pro Medicus. It has built one of the world's most advanced medical imaging platforms. Its Visage 7 software allows radiologists to view and interpret scans with greater speed and accuracy, a capability that has won it long-term contracts with some of the biggest hospitals and research centres in the United States.

Its margins are exceptionally high, and with demand for better imaging solutions only growing as healthcare systems deal with rising patient loads and staff shortages, Pro Medicus looks well positioned to keep compounding earnings for years to come.

ResMed Inc. (ASX: RMD)

ResMed is another healthcare champion I would buy and hold. The medical device company dominates the global market for sleep apnoea devices and masks, and it is also expanding into connected health technology.

With more than a billion people estimated to suffer from major sleep or breathing issues, its total addressable market (TAM) is huge. And with awareness of these disorders growing, it appears well-placed to continue growing for decades.

TechnologyOne Ltd (ASX: TNE)

Another ASX stock that I would hold onto forever is TechnologyOne. It is one of the most reliable growth stocks on the ASX. The company provides enterprise software solutions to government, education, and corporate customers, and has successfully transitioned to a software-as-a-service (SaaS) model.

This recurring revenue stream provides predictability and scalability, making TechnologyOne a textbook example of how to grow steadily while maintaining healthy margins. In fact, management believes it can double its recurring revenue every five years.

WiseTech Global Ltd (ASX: WTC)

WiseTech Global is reshaping how the world moves goods through its CargoWise platform. This platform helps freight forwarders and logistics companies manage complex supply chains, an area that has become increasingly important as global trade continues to expand and digitise.

With near-monopoly status in many markets and significant pricing power, WiseTech is a high-quality growth business that could keep rewarding shareholders as trade volumes and globalisation trends persist. Especially given the potentially game-changing acquisition of E2open.

Xero Ltd (ASX: XRO)

Finally, Xero is an ASX stock I would buy and hold forever. It is the cloud accounting software provider that has transformed how small and medium-sized businesses handle their finances. From its base in New Zealand and Australia, Xero has expanded into the UK, North America, and beyond.

Its subscription model, strong brand recognition, and large addressable market give it plenty of room to grow over the next decade and beyond. This is being supported by a recent acquisition in North America which has strengthened its offering in the key market.

Motley Fool contributor James Mickleboro has positions in Pro Medicus, ResMed, Technology One, WiseTech Global, and Xero. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended ResMed, Technology One, WiseTech Global, and Xero. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has recommended Pro Medicus. The Motley Fool Australia has positions in and has recommended ResMed, WiseTech Global, and Xero. The Motley Fool Australia has recommended Pro Medicus and Technology One. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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