Australia Markets open in 5 hrs 42 mins

Why I would buy and hold Xero and these ASX shares

James Mickleboro
ASX Investment Manager

I continue to believe that one of the best ways to create wealth is to buy quality shares and hold them for the long term.

This is a strategy that has been used by legendary investor Warren Buffett. And you can’t argue with his track record, can you?

With that in mind, here are three top ASX shares that I think would be quality buy and hold options:

Altium Limited (ASX: ALU)

One share that I think would be a great buy and hold option is Altium. The printed circuit board (PCB) design software provider looks set to be a big winner from an Internet of Things (IoT) market which is forecast to grow from US$212 billion in 2019 to US$1.6 trillion in 2025. This is because almost all IoT/connected devices have a PCB inside them. Given the meteoric rise of the overall market, demand for its award-winning PCB design software platform looks set to grow rapidly over the next decade and drive strong earnings growth.

Domino’s Pizza Enterprises Ltd (ASX: DMP)

Another buy and hold option to consider is Domino’s. I believe it has the potential to double in size over the next decade thanks to its international expansion plans and same store sales growth targets. Domino’s recently reiterated its aim of growing its store network by 7% to 9% per annum for the next 3 to 5 years. It is also targeting same store sales growth of 3% to 6% per annum over the same period. I expect this to lead to strong profit growth for a number of years to come.

Xero Limited (ASX: XRO)

A final buy and hold option to consider is Xero. I think the leading provider of business and online accounting software has the potential to grow very strongly over the next decade. This is thanks to the continued shift to online accounting by small businesses, the quality and stickiness of its product, and its global expansion. Xero recently revealed that it has broken through the 2 million subscriber mark. Whilst this is a large number, it is still only a fraction of its global market opportunity.

The post Why I would buy and hold Xero and these ASX shares appeared first on Motley Fool Australia.

And here are more high quality shares that could be outstanding buy and hold options for Australian investors.

NEW. Five Cheap and Good Stocks to Buy for 2020 and beyond!….

Our Motley Fool experts have just released a fantastic report, detailing 5 dirt cheap shares that you can buy in 2020.

One stock is an Australian internet darling with a rock solid reputation and an exciting new business line that promises years (or even decades) of growth… while trading at an ultra-low price…

Another is a diversified conglomerate trading near a 52-week low all while offering a 2.7% fully franked yield...

Plus 3 more cheap bets that could position you to profit over the next 12 months!

See for yourself now. Simply click the link below to scoop up your FREE copy and discover all 5 shares. But you will want to hurry – this free report is available for a brief time only.


More reading

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of Altium and Xero. The Motley Fool Australia has recommended Domino's Pizza Enterprises 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 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. 2020