2 ASX 200 shares I’d buy for the next 10 years

I think long-term investing becomes a lot easier when the focus shifts away from what a share price might do next month and towards what a business could look like in a decade.

The market can be noisy in the short term. Interest rates, inflation, consumer confidence, earnings downgrades, and global events can all move share prices around quickly.

But over 10 years, I think business quality, growth options, balance sheet strength, and management execution tend to do far more of the heavy lifting.

Two ASX 200 shares I think look interesting for that kind of timeframe are named in this article.

Xero Ltd (ASX: XRO)

The first ASX 200 share I would be happy to buy for the next decade is Xero.

Xero has already built a strong position in small business accounting software, but I do not think the opportunity ends there.

To me, the bigger picture is that Xero can become more important to small businesses over time. Accounting is the starting point, but the platform can also help with invoicing, payroll, payments, tax, reporting, cash flow, and financial decision-making.

That gives Xero a lot of ways to deepen its relationship with customers.

Small business owners do not usually want more admin. They want tools that save time, reduce mistakes, and help them understand how their business is performing. Xero is well placed for that because its software sits close to the financial heartbeat of a business.

I also think artificial intelligence (AI) could become a useful tailwind over time. I am not expecting AI to magically transform the company overnight. But over the next decade, automation could make Xero’s products more valuable by helping customers with tasks such as reconciliation, forecasting, document handling, reminders, and simple business insights.

The US opportunity is another reason I like the stock. Xero is already a much larger business than it used to be, but its global runway still looks meaningful. Expanding in the United States will not be easy, given the competitive landscape. But if Xero can keep improving its product and growing its brand, I think it could be a materially larger company in 10 years.

Goodman Group (ASX: GMG)

Another ASX 200 share I would consider buying for the long term is Goodman.

Goodman has been one of the more impressive ASX 200 growth stories over the years, and I think its opportunity has evolved in an interesting way.

The company is best known for industrial property, including logistics facilities that support ecommerce, supply chains, and modern distribution networks. That part of the business still looks attractive to me. Companies need well-located, efficient space close to customers, transport routes, and major cities.

But I think Goodman’s data centre opportunity could be the bigger long-term driver.

The growth of cloud computing, AI, streaming, digital services, and enterprise software is creating huge demand for data centre infrastructure. These facilities need more than just land. They need the right locations, planning capability, capital, customers, and access to power.

That is where Goodman’s skill set could be valuable. This is not a low-risk opportunity. Data centres can be capital-intensive, and expectations for Goodman are already high. If growth disappoints, the share price could be vulnerable.

But I like that Goodman is not chasing a short-term trend from a standing start. It already has deep property expertise, global relationships, and a long record of developing high-quality assets in constrained locations.

Foolish takeaway

I would not expect either of these ASX shares to move in a straight line over the next decade. In fact, I would be surprised if they did.

Xero and Goodman both trade on expectations of growth, and that can make them sensitive to market mood. But I think both businesses are exposed to changes that could keep playing out for many years.

For patient investors, that is the kind of setup I like. The next 12 months may be uncertain, but a decade gives quality businesses time to reinvest, adapt, and become much larger than they are today.

The post 2 ASX 200 shares I’d buy for the next 10 years appeared first on The Motley Fool Australia.

More reading

• Should you buy and hold Xero shares for 10 years?
• 2 ASX 200 shares I’d buy today and hold for years
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• 3 of the best ASX 200 blue-chip shares to buy now
• How to build a $150,000 ASX share portfolio from scratch

Motley Fool contributor Grace Alvino has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Goodman Group and Xero. The Motley Fool Australia has positions in and has recommended Xero. The Motley Fool Australia has recommended Goodman Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.