Investing with a 20-year timeframe fundamentally alters the approach to selecting ASX shares. Short-term market volatility becomes mere background noise, while the focus shifts to a company’s ability to remain relevant, reinvest, and grow in tandem with technological advancements, consumer behavior shifts, and global economic trends. Long-term top performers may not excel every year, but they often compound steadily as their markets expand.
With this perspective in mind, three ASX 200 growth shares stand out as potential candidates for a buy-and-hold strategy over the next two decades: Life360 Ltd, Lovisa Holdings Ltd, and WiseTech Global Ltd.
Life360 Ltd: A Platform for Everyday Safety
Life360 Ltd (ASX: 360) operates a platform that has quietly integrated into the daily lives of millions of families worldwide. The company’s app offers a combination of location sharing, safety features, and emergency tools within a subscription-based model that benefits from strong network effects. Once families adopt Life360’s service, it often becomes embedded in their routines, resulting in high retention rates and recurring revenue streams.
Over a 20-year horizon, Life360’s growth potential is significant. Despite already boasting over 90 million monthly active users, this represents only a fraction of the global population, indicating a long runway for growth. The company also has opportunities to deepen user engagement and increase its revenue per user significantly.
“Life360 could evolve from a single-purpose app into a broader consumer safety platform over time, if it continues to execute its strategy effectively.”
Lovisa Holdings Ltd: Fast-Fashion Jewelry with Global Appeal
Lovisa Holdings Ltd (ASX: LOV) exemplifies how a retail business can achieve long-term growth with the right model. The company operates a fast-fashion jewelry concept that has gained global appeal, supported by rapid product turnover, disciplined store economics, and a capital-light expansion strategy. Unlike many Australian retailers, Lovisa has successfully scaled its operations across Europe, the United States, and Asia.
Over the next two decades, Lovisa’s success will hinge not on any single season’s sales but on its ability to continue opening profitable stores and adapting to local markets. The company has demonstrated its capability to do so while maintaining strong margins and returns on capital.
“As long as management remains disciplined and demand for affordable fashion accessories persists, Lovisa has the potential to keep growing its footprint for many years.”
WiseTech Global Ltd: At the Heart of Global Trade
WiseTech Global Ltd (ASX: WTC) operates at the core of global trade and supply chains with its CargoWise platform, used by major freight forwarders and logistics providers to manage complex international shipments. As global trade becomes more regulated and interconnected, the value of integrated software solutions like CargoWise continues to rise.
The scalability of WiseTech’s software makes it particularly compelling over a multi-decade timeframe. The company can grow its revenue faster than its costs as customers expand their usage and adopt additional modules. Furthermore, high switching costs help protect WiseTech’s market position once customers are embedded in the platform.
“Despite recent share price volatility, the long-term trajectory for WiseTech is expected to be upwards, supported by its robust business model and market position.”
Conclusion: A Long-Term Perspective
While each of these ASX 200 growth shares presents unique opportunities, they all share a common trait: the potential for sustained growth over the long term. By focusing on companies with strong foundations and scalable business models, investors can look beyond short-term market fluctuations and align their portfolios with enduring growth trends.
As the landscape of global business evolves, these companies are well-positioned to adapt and thrive, making them worthy considerations for those looking to invest with a 20-year horizon.
