If you are investing with a truly long-term mindset, you don't need dozens of stocks. You just need a few world-class companies with enormous runways, strong recurring revenue, and the ability to keep compounding for decades.
Two ASX giants that fit that description better than others are named below.
Both are leaders in their industries, have global scale, and still have huge addressable markets ahead of them. If I were building a 20-year portfolio today, these are the two screaming buys I'd want at the core of it.
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ResMed Inc. (ASX: RMD)
The first ASX share that could be a screaming buy is ResMed. It is one of the world's most important players in sleep and respiratory health.
The scale of ResMed's opportunity is almost hard to wrap your head around. It is estimated that more than 1 billion people worldwide suffer from sleep apnoea, and the vast majority remain undiagnosed. That means hundreds of millions of people who desperately need treatment are still not receiving it, and ResMed is perfectly positioned to serve that demand.
Its CPAP machines, masks, cloud-connected monitoring systems, and digital health tools have become the global standard for treating sleep apnoea. As more people are diagnosed, and as developing countries expand access to respiratory care, the market for ResMed's products continues to grow.
ResMed also benefits from a powerful recurring revenue engine. Once a patient begins treatment, they require ongoing mask and accessory replacements, creating a steady long-term income stream that compounds year after year. Add in its expanding digital ecosystem, data-driven patient monitoring, and new AI-enhanced tools, and ResMed looks like a business with decades of growth ahead.
Macquarie is bullish on ResMed and currently has an outperform rating and $49.20 price target on its shares.
Xero Ltd (ASX: XRO)
Another ASX share to buy and hold for the next two decades could be Xero.
It has already become one of the ASX's most successful technology exports, but its long-term runway remains enormous. The company currently serves 4.59 million subscribers, generating NZ$2.7 billion in annualised monthly recurring revenue.
But Xero's total addressable market is estimated at around 100 million small businesses worldwide. In other words, the company has penetrated less than 5% of its potential market. That leaves decades of expansion ahead as more small and medium-sized businesses move to cloud accounting and as Xero strengthens its footprint across the UK, the US, and Asia.
Macquarie is also a big fan of this one and sees major upside ahead for investors. It has an outperform rating and $230.30 price target on its shares.
