5 Australian stocks to buy and hold for the next 5 years

Investing for the next five years doesn’t require predicting every twist in the market.

What matters more, in my view, is owning businesses with durable advantages, solid growth prospects, and management teams that know how to allocate capital well. If those ingredients are in place, time tends to do the rest.

Here are five Australian stocks I’d feel comfortable buying and holding for the next five years.

ResMed Inc (ASX: RMD)

ResMed remains one of the highest-quality healthcare stocks listed on the ASX, in my opinion.

The company develops devices and digital health platforms for sleep apnoea and respiratory conditions. Demand is supported by powerful long-term trends such as rising obesity rates and the growing awareness of sleep disorders.

What I particularly like is that ResMed combines hardware, software, and data into a single ecosystem. That creates switching costs and recurring revenue opportunities.

Over the next five years, I believe expanding device adoption and digital health services could continue to drive consistent earnings growth.

Hub24 Ltd (ASX: HUB)

Hub24 has quietly become one of the standout Australian stocks in financial services.

Its platform allows financial advisers to manage client portfolios efficiently, and it continues to attract strong inflows as advisers migrate away from legacy systems.

The broader trend towards professional financial advice and sophisticated wealth platforms is still playing out, and Hub24 has been consistently gaining market share.

If that momentum continues, I think the business could be materially larger in five years’ time.

Sigma Healthcare Ltd (ASX: SIG)

Sigma Healthcare is now in a very different position than it was a few years ago.

The Australian stock’s merger with Chemist Warehouse has transformed it into a major force in Australian pharmacy retail and distribution. Chemist Warehouse is one of the country’s strongest healthcare brands, with significant scale and customer loyalty.

That combination of retail presence, pharmaceutical distribution, and network expansion creates a powerful platform for long-term growth.

For me, this makes Sigma one of the more interesting healthcare plays on the ASX over the next several years.

Breville Group Ltd (ASX: BRG)

Breville is a great example of an Australian stock building a global brand.

Its premium kitchen appliances, particularly espresso machines, have developed strong reputations in key markets such as the United States, Europe, and Asia.

The company continues to expand geographically while also launching new product categories. I believe that combination of innovation and international expansion gives it a long runway for growth.

If management continues executing well, I think Breville could keep compounding earnings over the medium term.

BHP Group Ltd (ASX: BHP)

No long-term Australian portfolio feels complete to me without exposure to resources.

BHP remains the country’s mining heavyweight and offers diversified exposure to commodities such as iron ore and copper. In particular, copper demand is expected to grow as electrification, renewable energy, and data infrastructure expand globally.

The company also generates strong free cash flow during favourable commodity cycles, which supports attractive dividends.

While mining earnings can be cyclical, I think BHP’s scale and asset quality make it a compelling long-term holding.

Foolish takeaway

Five-year investing isn’t about finding the perfect entry point. It’s about owning businesses that can grow, adapt, and compound value over time.

For me, ResMed, Hub24, Sigma Healthcare, Breville Group, and BHP each bring something different to the table. Together they offer exposure to healthcare, financial technology, consumer brands, and global resources, which is a mix I’d feel comfortable holding for years.

The post 5 Australian stocks to buy and hold for the next 5 years appeared first on The Motley Fool Australia.

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Motley Fool contributor Grace Alvino has positions in Hub24. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Hub24 and ResMed. The Motley Fool Australia has positions in and has recommended ResMed. The Motley Fool Australia has recommended BHP Group and Hub24. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.