When I think about holding a S&P/ASX 200 Index (ASX: XJO) share for a decade or more, I'm not looking for something that just looks cheap today. I'm looking for businesses with long runways, clear competitive advantages, and markets that are big enough to support years of growth without relying on perfect execution.
With that mindset, these are three ASX 200 shares I'd be very comfortable buying and holding until at least 2036.
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ResMed Inc (ASX: RMD)
ResMed operates in one of the most attractive long-term healthcare markets globally, in my opinion.
Sleep apnoea and respiratory conditions remain significantly underdiagnosed. Estimates suggest over a billion people worldwide could benefit from treatment, which gives ResMed a very large and still expanding addressable market. Add ageing populations and rising awareness of sleep health, and the structural tailwinds are hard to ignore.
What makes ResMed especially compelling to me is that it is no longer just selling devices. Its connected hardware, software platforms, and digital health ecosystem mean recurring data-driven revenue is becoming more important over time. That deepens customer relationships and raises switching costs.
For a 10-year-plus investment, I like that combination of essential healthcare demand, global scale, and increasing operating leverage.
Xero Ltd (ASX: XRO)
Xero is one of the clearest long-term growth stories on the ASX, in my view.
The company operates in the global small business and accounting software market, which spans millions of small and medium-sized enterprises worldwide. Even in Xero's core markets, penetration is still far from complete, and international opportunities, particularly in the US, remain substantial.
What stands out to me is how embedded Xero becomes once a business adopts it. Accounting software sits at the centre of financial operations. Switching is disruptive, which creates strong retention and recurring subscription revenue.
Over a decade-long timeframe, I think the opportunity isn't just more customers. It's deeper monetisation through payments, payroll, lending integrations, and ecosystem services. If Xero continues executing, the market opportunity in front of it is far larger than its current revenue base.
Hub24 Ltd (ASX: HUB)
Hub24 may be smaller than the other two, but I think this ASX 200 share's long-term opportunity is just as compelling.
Hub24 operates in Australia's wealth management platform market, which oversees trillions of dollars in household savings. While Hub24 is already a major player, it still controls only a modest share of total funds under administration, leaving plenty of room for growth.
The structural shift toward fee transparency, platform-based investing, and professional financial advice continues to work in Hub24's favour. As advisers consolidate platforms and focus on efficiency, Hub24's technology-led approach and strong adviser relationships position it well.
What I particularly like for a long-term hold is the operating leverage in the model. As funds under administration grow, revenue tends to scale faster than costs. Over 10 years, that can translate into very strong earnings growth if market inflows remain supportive.
Foolish Takeaway
ResMed, Xero, and Hub24 operate in different industries, but they share some important traits. Each has exposure to a large and growing market, strong competitive positioning, and business models that reward patience.
I wouldn't expect a smooth ride every year. Markets change, sentiment shifts, and short-term disappointments are inevitable. But if I were building a portfolio to hold until at least 2036, these are exactly the kinds of ASX 200 shares I'd want on my side.
