5 leading ASX shares I’d buy and hold until 2040

Holding an ASX share until 2040 is a big commitment.

For me, that means looking for businesses with strong competitive positions, long growth runways, and products or services that should still be relevant many years from now.

These are five leading ASX shares I would be comfortable buying with that timeframe in mind.

Pro Medicus Ltd (ASX: PME)

Pro Medicus would be one of my first choices. Its Visage imaging software is used by major healthcare organisations to manage and view increasingly large volumes of medical imaging data.

What I like is the combination of a highly scalable software model and exposure to a healthcare system that continues to generate more imaging.

The technology company has also shown it can win large customers in the United States, giving it plenty of room to keep expanding internationally.

By 2040, I think medical imaging will be even more digital, data-heavy, and AI-assisted than it is today. Pro Medicus looks well placed to grow alongside that shift.

Commonwealth Bank of Australia (ASX: CBA)

CBA brings a very different type of strength.

It is already Australia’s largest bank, with leading positions across home lending, deposits, and digital banking.

That means I would not expect explosive growth over the next 14 years. The attraction here is the quality and resilience of the franchise.

Banking should remain a core part of the Australian economy for decades, and I think CBA’s scale, customer base, and technology investment leave it well positioned to keep earning attractive returns.

For me, that makes it the major bank I would be most comfortable owning through multiple economic cycles.

Cochlear Ltd (ASX: COH)

Cochlear is another ASX share I think suits a very long investment horizon.

The company is a global leader in implantable hearing solutions, helping people with severe hearing loss regain access to sound.

Ageing populations and greater awareness of hearing loss could continue to increase demand over time, while ongoing innovation should broaden the range of patients who can benefit from treatment.

I also like that Cochlear operates in a specialised medical field where clinical expertise, technology, and trusted relationships with healthcare professionals are difficult to replicate.

That gives me confidence in its ability to remain relevant well beyond the next few years.

Xero Ltd (ASX: XRO)

Xero would provide the portfolio with long-term technology exposure.

Its accounting platform is deeply integrated into the day-to-day operations of small businesses, accountants, and bookkeepers across the world.

However, with a total addressable market estimated to be around 100 million businesses globally, Xero is still only scratching the surface of its market opportunity with its 4.9 million customers.

If the company can keep growing its market share, I think it could be a much larger business by 2040.

NextDC Ltd (ASX: NXT)

This ASX share rounds out my five.

NextDC develops and operates data centres, giving investors direct exposure to the enormous growth in digital infrastructure.

Cloud computing was already driving demand before the current AI boom. Artificial intelligence is adding another layer because training and running increasingly powerful models requires huge amounts of computing capacity.

That creates demand for secure facilities with access to power, connectivity, and large amounts of technical infrastructure.

NextDC still has plenty to execute as it expands its capacity, but I think the structural demand behind the business could run for many years.

Foolish takeaway

A lot can change between now and 2040, so I would not expect every year to be smooth for any of these businesses.

What gives me confidence is that each one is exposed to a long-term need I can still see as important well into the future, whether that is healthcare, banking, small-business software, or digital infrastructure.

That is the sort of foundation I would want before committing to holding an ASX share for the next 14 years.

The post 5 leading ASX shares I’d buy and hold until 2040 appeared first on The Motley Fool Australia.

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Motley Fool contributor Grace Alvino has positions in Commonwealth Bank Of Australia. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Cochlear and Xero. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Pro Medicus. The Motley Fool Australia has positions in and has recommended Xero. The Motley Fool Australia has recommended Cochlear and Pro Medicus. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.