Buying shares from the S&P/ASX 200 index (ASX: XJO) for a decade requires looking well beyond what might happen over the next few months.
I want businesses with large markets, strong competitive positions, and plenty of room to become bigger over time.
With that in mind, here are three ASX 200 shares I'd be happy to buy and hold for the next decade.
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Life360 Inc (ASX: 360)
The first share is Life360. Its family safety platform now has 102.4 million monthly active users globally, including 54 million in the United States.
I think those numbers highlight both how far Life360 has come and how much opportunity remains. The US is currently its largest and most developed market, but I see no reason why its International business won't one day be significantly larger than its US business.
This gives Life360 a long runway to grow its user base over the next decade.
There are also plenty of opportunities to generate more revenue from existing users through paid memberships, advertising, and additional services covering families, pets, vehicles, and other connected devices.
If Life360 can keep growing its audience and converting more free users into paying customers, I think earnings could grow strongly for many years.
Megaport Ltd (ASX: MP1)
Another ASX 200 share I'd consider holding for a decade is Megaport.
It started as a way for businesses to connect quickly to cloud providers and data centres. But its opportunity has become considerably larger following its move into compute infrastructure.
Megaport has been winning major artificial intelligence (AI) infrastructure contracts through Latitude.sh. Most recently, it secured three contracts worth approximately $979 million, taking the total value of AI infrastructure contracts announced since April to around $2.3 billion. That is a significant change in scale.
Megaport now has exposure to networking, compute, storage, and the growing demand for GPU infrastructure needed to run artificial intelligence workloads.
There is plenty of execution risk as it invests heavily to fulfil these contracts. But if management delivers, I think Megaport could look like a very different business a decade from now.
TechnologyOne Ltd (ASX: TNE)
A final ASX 200 share I'd buy and hold is TechnologyOne.
This enterprise software company has built an impressive recurring revenue business serving governments, universities, councils, and other large organisations.
Importantly, management still sees substantial growth ahead. TechnologyOne last reported annual recurring revenue (ARR) of $598 million. It is now targeting ARR of more than $1 billion by FY 2030 and expects its profit before tax margin to eventually exceed 35%.
Driving this growth is its SaaS+ strategy, growing suite of AI-enabled products, and international expansion.
In light of this, I think TechnologyOne has the ingredients to keep compounding earnings well into the next decade.
