The secret to successful long-term investing is to buy high-quality businesses and wait. If you buy the right companies, then the entry price really doesn’t matter that much because of the power of compounding. These are three of the best quality businesses on the ASX in my opinion.

Shares of superstar stock CSL Limited (ASX: CSL) are up 523% in the last 10 years and there is every reason to think the next 10 will be equally prosperous. Global demographic trends are a major tailwind for CSL and the company enjoys a dominant position in the blood plasma therapy market. The company is now looking to repeat its success with the newly formed Sequiris division which is the second largest flu vaccine company in the world.

Cloud accounting company XERO FPO NZX (ASX: XRO) has grown revenue from nothing to more than NZ$250 million in less than 10 years. This is a rare achievement but Xero is barely getting started as just a small proportion of businesses in the company’s existing markets have so far transitioned to cloud accounting software.

In stark contrast to many competitor products, Xero is loved by its customers because of the simplicity, ease of use and elegance of its product. It is hard to overestimate the importance of this because accountants spend a large amount of their working lives using such software.

Organic baby food provider Bellamy’s Australia Ltd (ASX: BAL) is another fast growing company with a powerful brand. Formed in 2004 Bellamy’s reported revenue of $244.6 million last year and is gaining traction in China following the recent free trade agreement, but currently only serves a tiny fraction of this massive market. The recent lifting of China’s one child policy represents another significant sales catalyst for the company.

If the best way to accumulate wealth is to buy and hold high quality businesses then the best way to destroy it is to buy and hold terrible quality companies. Make sure that you don't own one of these three rotten shares.

Also, here is a TOP PICK  to buy and hold forever just like those named above.

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Motley Fool contributor Matt Brazier owns shares of Bellamy's Australia, CSL Ltd., and Xero. The Motley Fool Australia owns shares of Bellamy's Australia and Xero. 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.