Why I Think Asx 200 Shares Remain The Best Path To Long-term Wealth

The stock market can be unpredictable in the short term, but history has shown that patient investors are usually rewarded.

If you want to build wealth, getting rich slowly through high-quality ASX 200 shares is one of the most effective strategies available.

The power of compounding

The Australian share market has delivered an average annual return of around 10% over the long term, including dividends.

There's no guarantee that it will do the same in the future, but I think it is a fair target and will use it for my calculations in this article.

With that in mind, an investor who starts with $10,000 and adds $500 a month could see their portfolio grow to over $1 million in 30 years—just by staying invested and letting compounding do its work.

Why the ASX 200 is ideal for long-term investors

The ASX 200 is home to Australia's leading companies across a range of industries, from banking and resources to healthcare and technology. Investing in a diversified selection of ASX 200 shares allows you to participate in the growth of the economy over time.

Unlike speculative investments that promise quick gains (and usually end up in big losses), high-quality ASX 200 shares tend to generate strong and steady returns through a combination of capital growth and dividends.

Companies like CSL Ltd (ASX: CSL), Cochlear Ltd (ASX: COH), and Pro Medicus Ltd (ASX: PME) have built wealth for investors over many years, and their business models remain as strong as ever.

Market downturns are opportunities, not threats

Many investors panic when the market drops, but long-term thinkers see these moments as golden opportunities. Every major correction in ASX 200 shares has been followed by a recovery, often leading to new highs.

For example, during the COVID-19 crash of 2020, ASX 200 shares fell sharply, but those who stayed the course or bought more at lower prices saw substantial gains in the following years.

The key is to focus on quality businesses and ignore short-term noise. If a company's long-term prospects remain strong, temporary declines in its share price should be viewed as a chance to buy at a discount.

The slow road is the smart road

Building wealth through ASX 200 shares is not about chasing the next hot stock. It is about owning great businesses, reinvesting dividends, and allowing time to do the heavy lifting.

The best investors don't try to outguess the market—they stick to a strategy, stay invested, and let compounding work its magic. If you do the same, you may find that getting rich slowly is the smartest investment decision you ever make.

The post Why I think ASX 200 shares remain the best path to long-term wealth appeared first on The Motley Fool Australia.

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• How to invest like Warren Buffett with ASX shares in 2025
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Motley Fool contributor James Mickleboro has positions in CSL, Cochlear, and Pro Medicus. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended CSL and Cochlear. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Pro Medicus. The Motley Fool Australia has recommended CSL, 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.