Trying to predict what the share market will do next month or next year is a tough game. But looking a decade ahead is where long-term investors often gain a real edge.
Businesses with sustainable competitive advantages, long growth runways, and proven execution can compound shareholder value quietly over many years.
If you are prepared to buy quality and sit tight through market cycles, the rewards by 2035 could be substantial.
With that in mind, here are three Australian shares that tick those boxes and look well placed for long-term buy and hold investors.
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Pro Medicus Ltd (ASX: PME)
Pro Medicus is arguably one of the ASX's highest-quality companies. It is the medical imaging software provider behind the Visage platform, which is used by leading hospitals and health networks across the United States.
What makes Pro Medicus especially attractive as a long-term holding is the strength of its business model. It operates with exceptionally high margins, recurring revenue, and minimal capital requirements. Once a hospital adopts its Visage platform, switching costs are high, and contract lengths are long.
With global demand for medical imaging continuing to rise due to radiologist shortages and digitisation still in its early stages, Pro Medicus has a long runway to expand earnings well beyond the next decade.
REA Group Ltd (ASX: REA)
REA Group is the company behind the realestate.com.au website. It has become the default destination for Australian property buyers, sellers, and agents, giving the company immense pricing power.
Even during softer housing markets, REA has continued to grow earnings by lifting yields from agents and expanding into adjacent services such as data, mortgages, and commercial property listings. This ability to grow without relying solely on listings volumes is a key reason it has been such a strong long-term performer.
Looking ahead to 2035, Australia's population growth, housing undersupply, and ongoing shift toward digital services suggest REA's competitive position is unlikely to weaken anytime soon. This bodes well for its earnings growth over the next decade.
Temple & Webster Group Ltd (ASX: TPW)
Finally, Temple & Webster may not yet have the scale of the other two, but its long-term potential is compelling. The online furniture and homewares retailer has steadily taken market share as consumers shift away from traditional bricks-and-mortar stores.
Its asset-light, digital-first model allows it to offer a wider product range, better data-driven marketing, and lower overheads than many competitors. Importantly, online penetration in furniture remains relatively low compared to categories like electronics or apparel, leaving plenty of room for growth.
If Temple & Webster continues to execute well, expands its private label offering, and benefits from the ongoing e-commerce tailwind, the next decade could be very positive.
