2 top ASX shares to buy and hold for the next decade

I'd own these businesses for the next decade or more…

I think the best way to invest in ASX shares is for the long-term, with a decade or more being my preferred investment time horizon.

If investors hold for that length of time, it gives compounding the best opportunity to deliver results over the long-term.

Given how rapidly the world is changing in relation to technology and AI, I'm less optimistic about some ASX tech stocks than I used to be. That's partly why I think the investments below could be strong ASX share picks for the long term.

A stopwatch ticking close to the 12 where the words on the face say 'Time to Buy'.

Image source: Getty Images

Guzman Y Gomez Ltd (ASX: GYG)

GYG is one of the best quick service restaurant (QSR) businesses in Australia, in my view. At the end of March 2026, it had 242 Australian locations, along with 23 Singapore restaurants and five Japanese locations.

The company is aiming for 1,000 Australian restaurants within the next 20 years, which could mean significant network sales growth and excellent scale benefits.

In the third quarter of FY26, the company reported that Australian total network sales rose by 19.7% to $320.4 million, and Asian network sales grew by 15% to $21.5 million.

The business is growing network sales thanks to both solid comparable sales growth and an expanding mutlinational network.

Over the next decade, I expect the company to significantly increase its restaurant network, increase its market awareness and boost profit margins. I believe the market is underestimating how much the business could grow network sales overseas, which could unlock a lot of royalty income – its Asian operations are under a master franchise agreement.

According to the company, it's expecting its Australian and Asian operations to grow their underlying operating profit (EBITDA) by 29% in FY26 to $85 million, showing an increase in its profit margins.

According to the projection on Commsec, the GYG share price is valued at 33x FY28's estimated earnings, which I think is an appealing price for this fast-growing ASX share.

Global X S&P World Ex Australia GARP ETF (ASX: GARP)

Another investment that I want to highlight is this exchange-traded fund (ETF), which aims to give investors exposure to a portfolio of global businesses that fit the bill when it comes to the investing strategy 'growth at a reasonable price' (GARP).

When you buy growing businesses at a good price, it can lead to excellent investment returns over the long-term.

There are three different things that the GARP ETF looks for to include in its portfolio of 250 companies across different countries and sectors.

It wants to see growth characteristics, with a good pace of 3-year sales and earnings growth.

Second, it wants to see 'value'. That is identified by the price/earnings (P/E) ratio.

Finally, this GARP strategy involves looking at the quality of these businesses. That includes looking at the financial leverage (debt levels) and return on equity (ROE). ROE tells us how much profit is making compared to the retained amount of shareholder money – the higher the ROE the better.

Since inception in September 2024, the GARP ETF has returned an average of 16.8%. Past performance is not a guarantee of future returns of course, but I'm bullish about this strategy being able to continue to deliver good returns for the next decade and beyond.

These aren't the only ASX shares I think would make excellent long-term investments.

Motley Fool contributor Tristan Harrison has positions in Guzman Y Gomez. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. 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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