Buy and hold investing is arguably one of the most successful and simplest investment strategies available to investors.
Legendary investor Warren Buffett is an advocate of the strategy and has had enormous success with it.
He has amassed a net worth of US$88.7 billion largely by buying quality companies with solid growth prospects and holding them for many, many years.
With that in mind, here are three ASX shares that I believe are great buy and hold investment options:
Altium Limited (ASX: ALU)
Altium is an electronic design software company that has been growing at an explosive rate thanks partly to the Internet of Things boom. While its shares look fully valued now, I believe they have the potential to climb significantly higher over the coming years based on management’s outlook and targets. After a strong FY 2018 which saw revenue grow 26% to US$140.2 million and net profit after tax increase 34% to US$37.5 million, management believe it is on course to achieve its 2020 targets of US$200 million revenue and an EBITDA margin of 35% or better. Furthermore, the company is targeting 100,000 active subscribers of its flagship product, Altium Designer, by 2025. If it achieves this it believes it will compel key stakeholders within the manufacturing and supply chain industry to support its agenda to transform electronic design and its realisation.
Corporate Travel Management Ltd (ASX: CTD)
Another share that could be a great buy and hold investment option is this leading corporate travel manager. Last month Corporate Travel Management delivered a strong full year result which saw revenue grow by 14% to $372.2 million and underlying net profit after tax increase 34% to $86 million. The good news is that I believe this strong form can continue for some time to come thanks to its long runway for growth. In fact, despite its sizeable revenues, the company is only scratching at the service of its global opportunity. Management estimates that the company has a 15% share of the ANZ market at present, but just a 2% share of the Asia market and under 1% of both the European and US markets.
CSL Limited (ASX: CSL)
Possibly the ultimate buy and hold investment option on the Australian share market would be this global biotech star. Due to the quality of its core business, its growing plasma collection network, and fledgling influenza business, I believe CSL is well-positioned to continue delivering above-average earnings growth for some time to come. And while its shares may be expensive, I believe its future results will ultimately justify this premium.
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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 Corporate Travel Management Limited. The Motley Fool Australia owns shares of Altium. 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 Scott Phillips.