Why I’d buy dirt-cheap ASX shares now and aim to hold them for a decade

History shows that some of the best returns are generated when investors are willing to buy quality businesses during periods of pessimism.

But it is also true that not every beaten-down share is a bargain. Some deserve to be cheap, and many never recover. That is why selectivity matters.

I would avoid companies with stretched balance sheets, structurally declining industries, or business models that could be made obsolete over time.

Instead, I would focus on ASX shares with financial resilience, strong brands, and clear long-term growth drivers, even if the short term outlook looks uncomfortable.

Here are a couple of ASX shares that fit that bill, in my view.

Accent Group Ltd (ASX: AX1)

Accent Group is a good example of a business that looks cheap because sentiment has turned against the retailer due to temporary headwinds, rather than because the company itself is broken.

As the owner of major footwear brands such as Platypus, Skechers, Stylerunner, Hype DC, and The Athlete’s Foot,, Accent Group has scale advantages, strong supplier relationships, and a proven ability to execute across both physical stores and online channels. While discretionary spending pressure has weighed on sales in the short term, footwear remains a non-negotiable category, and Accent’s exposure to global brands helps it stay relevant through economic cycles. And with interest rates easing in recent months, consumer spending could soon improve.

When it returns to consistent growth over the coming years, today’s low valuation could look overly pessimistic in hindsight.

CSL Ltd (ASX: CSL)

CSL is another ASX share that has fallen sharply, but for reasons that look cyclical rather than structural.

The biotech giant has faced margin pressure, weak influenza vaccine rates, and uncertainty related to strategic changes within the business. That has been enough to knock the share price to below average earnings multiples.

However, CSL still owns a collection of globally significant plasma and vaccine businesses, operates in markets with high barriers to entry, and continues to invest heavily in research and development. It is also embarking on a bold cost cutting plan that could save it upwards of US$500 million.

In addition, demand for plasma therapies is growing long term, driven by ageing populations and expanding medical applications.

For patient investors, CSL’s current valuation looks far more attractive than it has been for several years.

The post Why I’d buy dirt-cheap ASX shares now and aim to hold them for a decade appeared first on The Motley Fool Australia.

More reading

• Where will CSL shares be in 5 years?
• Down 60% with a 6% yield and P/E of 13x – are Accent shares a generational bargain?
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• Why these 2 battered ASX 200 stocks could shine in 2026
• Looking for ideas before Christmas? These 2 ASX shares stand out to me

Motley Fool contributor James Mickleboro has positions in Accent Group and CSL. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended CSL. The Motley Fool Australia has recommended Accent Group and CSL. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.