3 reasons why I'd buy cheap ASX shares right now and hold them to 2035

Buy and hold investing after the market selloff could be a smart move. Let's find out why.

| More on:
A businessman hugs his computer and smiles.

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

sdf

I think it is fair to say that 2025 hasn't exactly started the way most investors were hoping.

Trade tensions, market jitters, and a sharp selloff in growth and tech stocks have sent many ASX shares tumbling well off their highs. And while that might sound like a warning sign to some, for long-term investors, it looks more like an open door.

If your investment horizon stretches out to 2035 and beyond, buying during bouts of market weakness could be one of the smartest financial moves you make.

Here are three reasons why I'd be buying cheap ASX shares right now — and not looking back for a decade.

Reason One: Bargains emerge when sentiment is weak

Markets are emotional. When things get uncertain, investors often overreact, sending good companies down with the bad. We've seen exactly that in recent months, with quality ASX shares falling 30% or more despite delivering solid results and maintaining strong long-term outlooks.

Buying when others are fearful is more than just a Warren Buffett quote — it's a proven approach to long-term investing. History shows that many of the best returns come from investing when sentiment is at its weakest.

Reason Two: You're buying the next decade

When you buy (and hold) shares in 2025, you're not just buying the next few quarters of performance. You're buying everything those businesses could achieve over the next 10 years — new products, market expansion, margin improvements, and more.

The ASX is home to a number of shares with massive global potential, from logistics tech like WiseTech Global Ltd (ASX: WTC) and radiopharmaceuticals like Telix Pharmaceuticals Ltd (ASX: TLX) or digital infrastructure like Goodman Group (ASX: GMG). Today's discounted prices won't last forever, but the benefits of owning great businesses over a decade can be extraordinary.

Reason 3: Dividends and compounding

Even if share prices move sideways for a while, the power of dividends and compounding shouldn't be underestimated. Reinvesting those dividends into more shares during down markets allows investors to accumulate a larger position at lower prices — supercharging future returns.

By holding for the long term, you allow time and compounding to do the heavy lifting. And with many ASX shares offering yields of 4%+ (many fully franked), there's meaningful income to be earned along the way.

Foolish takeaway

Markets move in cycles — but patient investing rewards consistency, not perfect timing. Right now, there are ASX shares trading at prices we might look back on in 2035 and wish we'd bought more of.

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

More on How to invest

A group of young people lined up on a wall are happy looking at their laptops and devices as they invest in the latest trendy stock.
How to invest

3 common investing mistakes with ASX shares (and how to avoid them)

Avoiding these mistakes could protect your capital when investing.

Read more »

Man putting in a coin in a coin jar with piles of coins next to it.
How to invest

How to generate $52,000 of annual passive income starting at $0

The share market is a great place to generate income. Here's how to do it.

Read more »

Man holding fifty Australian Dollar banknote in his hands, symbolising dividends, symbolising dividends.
How to invest

How to build a passive income portfolio with $20,000 and ASX dividend shares

Here's quick guide to generating income from the share market.

Read more »

A woman sits at her computer with her hand to her mouth and a contemplative smile on her face as she reads about the performance of Allkem shares on her computer
How to invest

How to start investing in ASX shares with just $1,000

Starting out can be intimidating but it needn't be.

Read more »

Person handing out $50 notes, symbolising ex-dividend date.
How to invest

How to build a $1,000 a month passive income stream

Here are two strategies for generating a boost to your income.

Read more »

Woman looking at a phone with stock market bars in the background.
How to invest

Can't find ASX shares to buy right now? You're not alone

It's hard to find a good bargain in the markets right now.

Read more »

A little girl fills her jar up with coins with a smile on her face.
How to invest

Harness the power of compounding: 3 tips to turbocharge your ASX share portfolio

Compound interest can change your life if you let it.

Read more »

a smiling picture of legendary US investment guru Warren Buffett.
How to invest

What Warren Buffett would look for in ASX shares

Here's how you could invest like the Oracle of Omaha on the ASX.

Read more »