Some of the best long-term investments are businesses that can keep growing without having to reinvent themselves every few years.

They usually have strong competitive positions, plenty of room to grow, and the ability to reinvest profits at attractive returns.

With that in mind, here are three ASX shares that I think have many of the ingredients needed to compound shareholder wealth over time.

Life360 Inc (ASX: 360)

The first share is Life360. Its family safety app has become a big part of everyday life for millions of families, offering location sharing, driving reports, crash detection, emergency features, and a growing range of other services.

What I like about Life360 is how much more it could potentially get from the audience it has already built.

Most users access the platform for free, which gives the company a huge pool of people that could eventually move onto paid memberships. At the same time, Life360 can keep adding reasons for families to spend more through new services and higher-value subscriptions.

There is also a significant international opportunity. The US is its most developed market today, but there is no obvious reason why its overseas business couldn’t eventually become much larger.

If Life360 can keep growing its audience while getting better at monetising it, I think the company could be considerably bigger in a decade.

Pro Medicus Ltd (ASX: PME)

Another ASX share I think has excellent long-term prospects is Pro Medicus.

Its Visage imaging platform is used by major hospitals and healthcare groups, particularly in the United States, to manage and interpret huge volumes of medical images.

And those volumes aren’t standing still. Healthcare systems are performing more scans, while radiologists are being asked to deal with increasingly heavy workloads. Software that allows them to work faster and more efficiently is therefore becoming increasingly valuable.

This has helped Pro Medicus win a string of major contracts in the US, and I think there is plenty more market share available to take.

I also like the economics of the business. Once another customer comes onto Visage, Pro Medicus doesn’t need to build factories or hire thousands of employees to support the extra revenue.

That scalability means continued market share gains could translate into very strong profit growth over the long term.

WiseTech Global Ltd (ASX: WTC)

A final ASX share with the potential to compound for many years is WiseTech Global.

Its CargoWise platform helps freight forwarders and logistics companies manage everything from customs and warehousing to shipping, documentation, and compliance.

Global logistics is complicated, which works in WiseTech’s favour. Large customers can build CargoWise deep into their operations, and once that happens, replacing it isn’t necessarily a simple exercise. This gives WiseTech an opportunity to grow alongside its customers and gradually provide them with more functionality through the same platform.

The company has also spent heavily on expanding what CargoWise can do, both through internal development and acquisitions.

Governance concerns are worth highlighting, because poor governance can ultimately undermine even a very good business.

But if WiseTech can put those issues behind it and CargoWise continues becoming an increasingly important part of global logistics, I think the company could have a lot more growth ahead of it.

The post These 3 ASX shares have the ingredients of long-term compounders appeared first on The Motley Fool Australia.

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• 3 ASX 200 shares I’d buy and hold for the next decade
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• Tech shares shine while ASX 200 plunges to 4-month low
• Why I just invested $1,500 into this top ASX growth share

Motley Fool contributor James Mickleboro has positions in Life360, Pro Medicus, and WiseTech Global. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Life360 and WiseTech Global. 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 Life360 and WiseTech Global. The Motley Fool Australia has recommended Pro Medicus. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The Lottery Corporation vs Aristocrat Leisure shares

Many Aussie investors might find themselves weighing up The Lottery Corporation Ltd (ASX: TLC) and Aristocrat Leisure Ltd (ASX: ALL) when looking for exposure to the broader gaming and leisure sector. Both companies have strong brand recognition and play prominent roles in gaming, but with very different business models and financial profiles. Whether you’re seeking steady income or growth prospects, let’s take a closer look at how The Lottery Corporation and Aristocrat compare.

The case for The Lottery Corporation

The Lottery Corporation is Australia’s biggest provider of lotteries, including well-known games like Powerball, Oz Lotto and TattsLotto, plus instant scratch-its and Keno. As of its company profile, The Lottery Corporation holds long-dated or exclusive licences in every state and territory outside WA, distributing its products through a wide retail network (including newsagents and service stations) as well as digitally. Since its 2022 demerger from Tabcorp Ltd (ASX: TAH), the business is now a pure-play lottery operator.

Some stand-out fundamentals:

• The Lottery Corporation boasts a 100% franked dividend yield of 3.40%, appealing for investors seeking steady, fully franked income.
• The P/E ratio sits at 37.97, making it pricier (by this metric) than Aristocrat Leisure.
• Year to date, The Lottery Corporation shares are down 2.6%, suggesting recent investor caution.

This is a classic “income and stability” pick, with defensive appeal thanks to its regulated monopoly-like position in lotteries. The fully franked dividends are consistent and attractive, and the business typically holds up well in mixed economic conditions.

The case for Aristocrat Leisure

Aristocrat Leisure is one of the world’s leading gaming technology providers. Famous for its poker machines, casino management systems, and rapidly growing digital and interactive divisions, Aristocrat generates revenue all over the world—especially in North America. Its products span physical pokies, real-money online gaming, and free-to-play mobile games via its Product Madness subsidiary.

Key points from the data:

• Aristocrat’s P/E ratio is 25.17, notably lower than The Lottery Corporation’s, which could make it look more attractive for value-conscious buyers.
• Its year-to-date return is positive at 3.6% as of early October 2026, outpacing TLC.
• The dividend yield is lower, at 1.66%, and recent dividends have not been fully franked.

Aristocrat is geared for growth, with technology and overseas expansion driving its outlook. Its lower dividend yield and franking may deter income investors, but those after capital growth might appreciate its global ambitions and strengthening digital business.

Valuation comparison

With both companies operating in the broader gaming space, it’s worth comparing their key numbers, though their business models and risk profiles differ.

Metric	The Lottery Corporation	Aristocrat Leisure
Market Cap	$10.62 billion	$35.19 billion
P/E Ratio	37.97	25.17
Dividend Yield	3.40% (100% franked)	1.66% (mostly unfranked recently)
Dividend per share	$0.17	$0.99
Earnings per share	0.128	2.374
YTD Return	-2.62%	3.58%

Aristocrat is the much larger company by market cap and boasts higher reported earnings per share. The Lottery Corporation trades on a notably higher P/E even though its EPS is lower, which could reflect investors’ preference for its reliable income stream. The trade-off shows up clearly in the higher dividend yield (plus franking credits) from The Lottery Corporation, compared to Aristocrat’s more modest, largely unfranked payouts.

Recent share price momentum

To keep things apples-to-apples, I’ve compared both shares as of 2 October 2026, the most recent date available in both datasets.

• The Lottery Corporation closed at $4.77, having dipped 1.85% that day. Its 2026 year-to-date return is down 2.6%.
• Aristocrat Leisure closed at $59.76, up 1.5% for the session and up 3.6% for 2026 year-to-date.

The difference in short-term momentum is clear: Aristocrat shares have outperformed so far this year, while The Lottery Corporation has edged lower.

Which is the better buy?

Looking at the numbers, my pick would be Aristocrat Leisure for Australian investors chasing growth. With its lower P/E ratio (25.17), stronger year-to-date share price gains, and global footprint, it feels better positioned for capital appreciation—even if the unfranked and lower dividend yield is less attractive for income hunters.

That’s not to say The Lottery Corporation should be ignored. If dividend income and franking credits are your main priority, The Lottery Corporation’s near 3.4% fully franked yield with defensive characteristics is compelling. But at a significantly higher P/E and given its recent underperformance, I think Aristocrat offers the more appealing risk/reward mix right now. The difference in franking could matter for some, but I’d lean toward Aristocrat’s growth story, scalable technology, and international reach.

The post The Lottery Corporation vs Aristocrat Leisure: ASX shares compared appeared first on The Motley Fool Australia.

More reading

• Buy, hold, sell: Aristocrat, Liontown, and Navigator Global shares
• Tabcorp vs The Lottery Corporation: Which ASX gaming share comes out on top?
• This ASX dividend share is near a 52-week low. Would I buy?
• Why I’d buy and hold these ASX passive income shares
• Light & Wonder vs Aristocrat Leisure: Which gaming share wins?

Motley Fool contributor Laura Stewart 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 The Lottery Corporation. The Motley Fool Australia has recommended The Lottery Corporation. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips. This article was prepared with the assistance of Large Language Model (LLM) tools for the initial draft. Any content assisted by AI is subject to our robust human-in-the-loop quality control framework, involving thorough review, substantial editing, and fact-checking by our experienced writers and editors holding appropriate credentials. The Motley Fool Australia stands behind the work of our editorial team and takes ultimate responsibility for the content published by The Motley Fool Australia.

The team at Bell Potter has made some significant changes to its Australian equities portfolio this month.

And the broker’s message is clear. Now could be a good time to increase exposure to quality.

Focus on quality ASX shares

Bell Potter notes that the S&P/ASX 200 index (ASX: XJO) has been one of the weaker major equity markets in 2026. But underneath the index, the falls have been much more severe, with a number of quality businesses down more than 20% despite relatively modest changes to earnings expectations.

It believes higher bond yields, subdued economic growth expectations, and concerns around artificial intelligence (AI) disruption have weighed on valuations more than company fundamentals.

This has created an opportunity to upgrade the quality of its portfolio, highlighting Charter Hall Group (ASX: CHC), Washington H. Soul Pattinson and Company Ltd (ASX: SOL), and Wesfarmers Ltd (ASX: WES) as opportunities. It explained:

The portfolio changes reflect a deliberate shift towards businesses with proven management teams, resilient earnings, strong balance sheets and long-term capital allocation credentials. Specifically, Soul Patts and Wesfarmers are proven high-quality capital allocators, providing a solid ballast in a portfolio and worthy of long-term ownership. Charter Hall, on the other hand, offers compelling value at a point when markets appear to be underappreciating the group’s long term growth potential.

Bell Potter also notes that it has been positioned for interest rates to remain higher for longer.

However, with that view now becoming more widely accepted and rate-sensitive sectors already de-rating, the broker believes valuations are starting to offer a margin of safety. It said:

Knowing equity markets look forward, we are neutralising our positioning given affected sectors have moved to factor in rate, policy and competitive headwinds, with valuations now representing a margin of safety. Collectively, these changes increase exposure to long-term structural growth, recurring earnings and proven capital allocators which have scope for long term value creation.

The buys

Bell Potter has added Charter Hall to gain exposure to a potential recovery in property capital markets.

The broker highlights the company’s $94 billion funds management platform and its exposure to office, industrial, retail, and social infrastructure.

It also likes that Charter Hall is not simply a traditional property owner. Its earnings are driven heavily by managing capital for institutional investors, giving the business a more scalable model. Bell Potter said:

CHC offers exposure to recovering property capital markets, growing institutional allocations to real assets and a high-quality funds management platform, underpinned by solid dividend growth averaging 6% per annum and a strong track record of long-term earnings growth.

Bell Potter is also buying Soul Patts shares, which it describes as Australia’s Berkshire Hathaway. It likes the company’s permanent capital base and ability to invest across listed shares, private businesses, credit, and real assets.

This gives management flexibility to deploy capital wherever it sees the best opportunities, including during periods of market weakness. It said:

SOL’s portfolio is deliberately diversified and increasingly liquid, providing the flexibility to capitalise on opportunities as they arise. The group’s strong balance sheet, permanent capital base and extensive deal flow allow it to invest counter-cyclically when others cannot.

Finally, Bell Potter has added Wesfarmers after its shares fell around 20% from their mid-year peak.

The broker believes this has created an opportunity to buy one of Australia’s highest-quality companies at a more attractive valuation.

It sees the investment case as extending beyond Bunnings and Kmart, with Wesfarmers also offering exposure to healthcare, lithium, and industrial businesses. Bell Potter said:

WES combines earnings resilience, growth optionality and disciplined capital allocation. Its portfolio spans household spending, housing, industrial demand and healthcare, reducing reliance on any single driver, while market-leading positions at Bunnings and Kmart generate defensive cash flows and healthcare, lithium and industrial technology investments provide additional growth avenues.

The post Why this top broker is buying Charter Hall, Soul Patts, and Wesfarmers shares appeared first on The Motley Fool Australia.

More reading

• Soul Patts vs GQG Partners: Which is the stronger pick?
• Down 20%: Is the Wesfarmers share price a top buy?
• How much passive income can I earn from a $950,000 superannuation balance?
• How much passive income can I make from a $100,000 ASX share portfolio?
• 3 defensive ASX shares I’d buy in a market sell-off

Motley Fool contributor James Mickleboro 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 Berkshire Hathaway, Washington H. Soul Pattinson and Company Limited, and Wesfarmers. The Motley Fool Australia has positions in and has recommended Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia has recommended Berkshire Hathaway and Wesfarmers. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.