3 ASX 200 growth shares to buy and hold for 10 years

Looking to build long-term wealth? Here are three shares that could help.

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Key points

  • Life360 has built a global user base of over 90 million monthly active users and is now transitioning from pure growth to monetisation, converting free users into paying subscribers with significant runway ahead given its low penetration outside the US.
  • ResMed is positioned to benefit from a massive structural opportunity, with an estimated one billion people worldwide suffering from sleep apnoea and the vast majority still undiagnosed, providing a huge growth runway as awareness increases over the next decade.
  • Temple & Webster has established itself as Australia's leading online furniture retailer in a market that remains one of the least penetrated retail categories online, with its asset-light model allowing it to scale efficiently as more sales shift to e-commerce.

When you're investing with a decade-long time horizon, short-term noise matters far less than business quality and long-term growth potential.

But which ASX 200 growth shares could be top picks for the long term? Let's take a look at three that I think look well placed to deliver strong returns over the next 10 years. They are as follows:

Life360 Inc (ASX: 360)

Life360 could be a top ASX 200 growth share to buy and hold. Its app, which helps families stay connected through location sharing, driving alerts, and emergency assistance, now reaches over 90 million monthly active users globally.

But what makes Life360 particularly compelling as a long-term holding is its transition from user growth to monetisation. The company is steadily converting free users into paying subscribers, lifting recurring revenue and margins in the process. And with a massive addressable market and relatively low penetration outside the US, there is still significant runway ahead.

If management continues to execute successfully, Life360 could evolve into a global consumer subscription powerhouse over the coming decade.

ResMed Inc (ASX: RMD)

Another ASX growth share to look at is ResMed. It operates in one of the most attractive areas of global healthcare: sleep apnoea and respiratory care.

There are an estimated one billion people worldwide that suffer from sleep apnoea, with the vast majority still undiagnosed. The company is a clear leader in sleep devices, masks, and cloud-connected software that helps clinicians monitor patient outcomes. This gives it a huge growth runway over the next decade, especially as sleep health education and awareness increases.

Over a 10-year period, these structural drivers could translate into robust earnings growth, strong cash generation, and ongoing reinvestment into innovation.

Temple & Webster Group Ltd (ASX: TPW)

Finally, Temple & Webster could be an ASX 200 growth share to buy and hold for 10 years. In recent years, it has firmly established itself as Australia's leading online furniture and homewares retailer, capitalising on the long-term shift toward e-commerce.

Despite the company's strong growth, it is operating in a furniture market that remains one of the least penetrated retail categories online. As more and more sales shift online, this bodes well for its future growth.

In addition, the company's asset-light, digital-first model allows it to scale without the heavy costs faced by traditional retailers. Its expanding private-label range also provides scope for margin improvement over time.

If online penetration continues to rise and Temple & Webster maintains its execution discipline, this is an ASX 200 growth share that could look significantly larger and more profitable a decade from now.

Motley Fool contributor James Mickleboro has positions in Life360, ResMed, and Temple & Webster Group. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Life360, ResMed, and Temple & Webster Group. The Motley Fool Australia has positions in and has recommended Life360 and ResMed. The Motley Fool Australia has recommended Temple & Webster Group. 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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