One of the simplest and arguably most effective investment strategies is buy and hold investing.
This strategy involves buying quality companies with solid long-term growth potential and then holding them for an extended period.
Three growth shares which I think would be great candidates for a buy and hold investment are listed below. Here’s why I like them:
Bellamy’s Australia Ltd (ASX: BAL)
I have been pleasantly surprised with the remarkable turnaround of this infant formula company. From being on the brink of bankruptcy a year ago, the company has gone on to become a market darling once again. According to a recent trading update, in FY 2018 revenue growth is expected in the range of 30% to 35%. In FY 2019 I think that this growth could accelerate further thanks to increasing demand for its products and the probable granting of its CFDA accreditation in the next few months.
BWX Ltd (ASX: BWX)
This personal care company is the name behind the popular Sukin skincare range. Thanks to its growing popularity, international expansion, and a couple of highly earnings accretive acquisitions, I believe BWX will deliver bumper earnings growth in FY 2018. I expect further strong growth over the following years due to its increasing footprint and the strong organic growth being seen in a natural beauty products market that it holds a leadership position in.
CSL Limited (ASX: CSL)
In my opinion this biotherapeutics company is one of the highest quality companies in Australia. Furthermore, I believe its shares are capable of providing market-beating returns over the long-term, making it a great candidate for a buy and hold investment. This is thanks largely to the strength of its core business and growing influenza business. Overall, I think they have put CSL in a position to grow its earnings at an above-average rate for many years to come.
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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended BWX Limited. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.