Trying to outperform the market is not easy. But it is possible.
I think by focusing on ASX 200 shares with lasting advantages, long growth runways, and the ability to compound earnings at an attractive rate, investors have a chance at beating the market.
With that said, here are three shares that I believe have a genuine shot at outperforming over the next 10 years.
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Goodman Group (ASX: GMG)
One of the first names that comes to mind for me is Goodman Group.
I do not really see it as a traditional property business. To me, it looks more like a global infrastructure platform that is tied to some of the most important trends in the economy right now.
Its exposure to logistics is already compelling, but what really stands out is its push into data centres.
With demand for cloud computing and artificial intelligence (AI) infrastructure continuing to grow, I believe Goodman is well positioned to benefit. Its access to strategic land, power, and capital gives it a meaningful edge in delivering these projects.
Over a decade, I think those advantages could translate into strong earnings growth.
Pro Medicus Ltd (ASX: PME)
Pro Medicus is a company I find particularly interesting because of how specialised its offering is.
It operates in medical imaging software and has built a reputation for delivering high-performance solutions to major hospitals and healthcare providers.
What I like most is its business model. It tends to win long-term contracts with high-value clients, which can provide recurring revenue and strong margins. On top of that, it has been expanding into other ologies and leveraging AI.
The valuation is still not conventionally cheap despite a heavy share price decline this year. But in my view, businesses with strong competitive positioning and global growth opportunities often command a premium for a reason.
WiseTech Global Ltd (ASX: WTC)
WiseTech is another company that I think fits the profile of a long-term compounder.
Its software platform, CargoWise, is deeply embedded in global logistics operations. That creates a level of stickiness that I believe is difficult for competitors to replicate.
As global trade continues to evolve and digitise, I see ongoing demand for more efficient and integrated logistics solutions.
What I find compelling is that once customers are on the platform, switching can be complex and costly. That can help support pricing power and long-term customer retention.
While there is some uncertainty with changes to its business model, if it executes successfully, it could set WiseTech up for strong and sustainable growth long into the future.
For this reason, I think it has potential to beat the market over the next 10 years.
Foolish takeaway
Outperforming the market is never guaranteed, and even high-quality companies can go through periods of underperformance.
But when I look at these three ASX 200 shares, I see businesses with strong fundamentals, clear growth drivers, and the potential to compound over time.
If I were building a portfolio with a 10-year horizon, these are the types of companies I would want to own.
