Trying to predict what the share market will do next week is almost impossible. But looking out 20 years? That's where long-term investors have the advantage.
Instead of chasing short-term noise, you can focus on high-quality businesses with durable advantages, long growth runways, and the ability to keep compounding year after year.
If you're building a portfolio designed to stand the test of time, these three Australian shares could be top buy and hold candidates.
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Light & Wonder Inc. (ASX: LNW)
Light & Wonder has transformed itself into one of the world's most diversified and innovation-driven gaming companies. Its business spans land-based gaming machines, digital games, and online real-money gaming.
What makes Light & Wonder so compelling for a 20-year horizon is its global footprint and deep library of intellectual property. The company continuously monetises successful franchises across physical casinos, mobile games, and digital platforms. As more jurisdictions legalise online gaming and digital entertainment continues to accelerate, Light & Wonder is positioned to capture a significant share of that shift.
REA Group Ltd (ASX: REA)
Another Australian share to buy and hold could be REA Group. It is one of the most dominant digital businesses in Australia. Its flagship platform, realestate.com.au, is effectively the default destination for property search, attracting enormous traffic that competitors have struggled to replicate. That dominance gives it significant pricing power, exceptional margins, and a strong moat built on network effects.
With Australia's population set to grow, housing demand remaining structurally high, and the digitalisation of property services continuing, REA's long-term runway looks very attractive. The company is also expanding offshore and into adjacent areas such as mortgages, data services, and financial products, which is creating new revenue streams on top of its core listings business.
For investors seeking a company that can keep compounding for decades, REA's track record and market position make it one to consider.
Temple & Webster Group Ltd (ASX: TPW)
Finally, Temple & Webster could be an Australian share to buy and hold. Over the past decade, it has established itself as Australia's leading online furniture and homewares retailer.
The good news is that it is still very early in its growth journey. Despite years of strong expansion, online penetration in the furniture category remains low compared to other developed markets. This means the company still has a huge opportunity as more consumers shift online.
So, with an enormous total addressable market, leadership position, and a proven ability to execute, Temple & Webster could look far larger in 20 years than it does today.
