2 top ASX shares to buy and hold for the next decade

ASX shares are some of the best investments to own for the long-term thanks to the power of compounding.

As Albert Einstein once supposedly said:

Compound interest is the most powerful force in the universe. Compound interest is the eighth wonder of the world. He who understands it, earns it; he who doesn't pays it.

So, I'm going to highlight two investments that could perform strongly over the long-term.

Temple & Webster Group Ltd (ASX: TPW)

This ASX share is a leading e-commerce business selling hundreds of thousands of homewares, furniture and home improvement products.

The company is regularly increasing its market share thanks to the rising e-commerce adoption by Australians. If Australia continues to follow the trend seen in the UK and the US, e-commerce could be 30% (or more) of the homewares and furniture market in the coming years.

Temple & Webster is still growing strongly despite the headwinds of higher interest rates and elevated inflation. In FY26, the company expects revenue to be between $665 million to $675 million.

It plans to focus on profitability in FY27, with guidance that FY27 operating profit (EBITDA) could approximately double, even in a low growth scenario.

Temple & Webster also suggested that it could take advantage of the more attractive acquisition environment, particularly in its emerging growth areas such as home improvement, business-to-business (B2B) and international (which includes New Zealand).

I'm particularly excited about the ASX share's home improvement division, with that segment reporting 47% revenue growth in the first half of FY26. It could become a very sizeable contributor to the business in the coming years. Home improvement has less e-commerce adoption than homewares and furniture, so there's significant potential for expansion there.

It's aiming to reach $1 billion of annual sales in the next few years and I think by 2036 it could be an ASX blue-chip share name in the Australian retail landscape.

VanEck Morningstar Wide Moat ETF (ASX: MOAT)

Another investment I expect to deliver pleasing compounding over the long-term is the MOAT exchange-traded fund (ETF), which is focused on high-quality businesses with long-term potential.

The MOAT ETF aims to invest in high-quality US companies that Morningstar thinks have sustainable competitive advantages, which can also be described as wide economic moats.

How sustainable do the competitive advantages need to be? Morningstar's analysts need to believe that the economic moats will likely endure for 20 years, and almost certainly endure for the next 10 years.

Therefore, this is a long-term portfolio the moment we buy it.

Secondly, stocks are only added to the portfolio when the potential investments are trading at attractive prices compared to what Morningstar thinks is fair value.

This means it's a portfolio of attractively priced companies that are expected to be long-term winners.

I think this is a good time to invest while performance has been challenging in the short term, as the fund typically doesn't focus on tech stocks. But, over the past decade, it has returned an average of 14.4% per year. Past performance is not a guarantee of future returns, of course.

But, these aren't the only two names I'd be willing to invest in for the next decade.

The post 2 top ASX shares to buy and hold for the next decade appeared first on The Motley Fool Australia.

Motley Fool contributor Tristan Harrison has positions in Temple & Webster Group and VanEck Morningstar Wide Moat ETF. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Temple & Webster Group. The Motley Fool Australia has recommended Temple & Webster Group and VanEck Morningstar Wide Moat ETF. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The Motley Fool's purpose is to help the world invest, better. Click here now for your free subscription to Take Stock, The Motley Fool's free investing newsletter. Packed with stock ideas and investing advice, it is essential reading for anyone looking to build and grow their wealth in the years ahead. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson. 2026