When it comes to finding Australian stocks to buy, I'm more interested in long-term compounding than short-term trades.
Two stocks that I think fit the bill for long-term investments are discussed in this article. Here's why I'd feel comfortable owning them for the long haul.
TechnologyOne Ltd (ASX: TNE)
TechnologyOne is one of the most consistent compounders on the ASX, and I think its recent performance reinforces why it continues to deserve a premium valuation.
The enterprise software company has now delivered 16 consecutive years of record profit, and its shift to the SaaS+ model is proving to be a genuine differentiator rather than just a marketing label. Annual recurring revenue (ARR) climbed 18% in FY25 to $554.6 million, with management now targeting more than $1 billion in ARR by FY30.
What stands out to me is the quality of that revenue. More than 90% of total revenue is now recurring, churn sits around 1%, and net revenue retention remains an impressive 115%. That combination gives TechnologyOne a high degree of earnings visibility and pricing power.
The UK is also becoming a meaningful growth engine. UK ARR grew 49% in FY25, driven by wins in local government and higher education. I think this shows that the product travels well beyond Australia. When you combine that with continued investment in R&D, in-product AI, and the expansion of its SaaS+ ecosystem, I think TechnologyOne still has a long runway ahead.
Seek Ltd (ASX: SEK)
Seek doesn't get talked about as much as it once did, but I wouldn't let that put you off.
At its core, this Australian stock remains the dominant employment marketplace in Australia and New Zealand, with a highly profitable domestic business that continues to generate strong cash flow. That cash flow has been used to build exposure to online employment platforms across Asia and Latin America, regions where long-term workforce formalisation and digital hiring trends remain intact.
While short-term hiring conditions can ebb and flow, the structural shift toward online recruitment hasn't changed. Seek's investments in platform technology, data, and employer tools are designed to improve matching efficiency, not just volume. Over time, that should support higher yields per job ad and stronger returns when labour markets normalise.
I also like that Seek has been more disciplined in recent years, simplifying its portfolio and focusing on markets where it can be a clear leader. That discipline matters in a business that operates across multiple geographies and economic cycles.
Foolish takeaway
Both of these Australian stocks share a trait I value highly: they are not reliant on perfect conditions to succeed. TechnologyOne benefits from mission-critical software with deeply embedded customers, while Seek operates platforms that become more valuable as economies digitise and hiring rebounds.
If I were adding to my portfolio today with an eye on the next several years rather than the next few months, these are two Australian stocks I'd be very comfortable owning.
