The best investing strategy, in my opinion, is to own wonderful ASX shares for the long-term.
When we let a great company carry out its plans, we give it the best chance of delivering great profit growth. Compounding is a powerful force, as long as we let it run its course without prematurely interrupting.
I'm going to highlight two ASX shares that could significantly outperform the market over the next decade (or longer). Let's get into it.
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Siteminder Ltd (ASX: SDR)
Siteminder is a leading ASX tech share that provides software for hotels to manage operations and maximise revenue.
The business is winning thousands of new hotels as subscribers each year, and recently it's targeting larger hotels, which can generate more revenue for Siteminder.
It aims to increase its annual recurring revenue (ARR) by 30% per year, an incredible rate of growth. I don't know whether it'll be able to continue growing at that pace for the entire next decade, but I think it's being dramatically underrated by the market.
The company is rolling out its smart platform, helping subscribers connect with distribution platforms, analyse their performance and room demand, and even manage room prices. This helps unlock more revenue per subscriber when they sign up for those modules.
Siteminder's growing scale is improving its operating leverage, boosting profit margins and strengthening its bottom line.
I believe the ASX share will significantly outperform the ASX share market in the coming years, making the current value look very attractive.
Betashares Nasdaq 100 ETF (ASX: NDQ)
This is a leading exchange-traded fund (ETF) that invests in 100 of the largest non-financial companies listed on the NASDAQ, a US stock exchange.
It's rare to find a portfolio of this high-quality and deliver such strong returns.
I think it's great for Australians to have exposure to incredible businesses like Nvidia, Apple, Alphabet, Microsoft, Micron Technology, Amazon.com and Advanced Micro Devices. Many of the businesses involved are driving change in how we live.
These companies (and the rest of the ETF's 100 holdings) are among the best in the world at what they do, with market-leading products and services, enabling them to win an enormous customer base, achieve strong profit margins, maintain a strong balance sheet, and still have plenty of growth prospects.
The NDQ ETF portfolio holdings are leaders in areas such as AI, smartphones, computer software, online shopping, online video, cloud computing, driverless vehicles, and much more.
I don't know what the future returns of this fund will be, but the ASX ETF has performed extremely strongly for Aussies. It delivered an average annual return of 21% over the last decade. It's definitely one to look at during market volatility.
These aren't the only two ASX shares I'd be excited to own for the next decade, though.
