One of the simplest and arguably most successful investment strategies available to investors is the buy and hold strategy.
The idea with this passive investment strategy is to buy and hold quality shares for long periods of time, whilst ignoring short-term fluctuations in the market.
One of the most famous advocates of the strategy is legendary investor Warren Buffett. And with an estimated net worth of US$71.6 billion, it's hard to argue against it.
Three shares which I feel could prove to be great long-term buy and hold investments are as follows:
Ardent Leisure Group (ASX: AAD)
Whilst Ardent Leisure may be best known for the embattled Dreamworld theme park, I believe the real focus should be on its US operations. Its Main Event family entertainment centres have been growing at a rapid clip. Most recently the segment reported half-year revenue growth of 35.2% year on year to US$102.1 million. Currently there are 31 centres in operation across 12 states, with management planning to roll out upwards of 200 centres. If it delivers on its promise then I expect the segment to deliver high levels of growth for years to come.
InvoCare Limited (ASX: IVC)
As the largest operator of funerals and cemetery services in Australia with a 33% market share, I feel InvoCare is positioned perfectly to deliver solid and predictable earnings growth for at least the next decade. In addition to its steady Australian growth, a further boost to earnings may come from its recent foray into the US market. Another reason I think it is a good investment is its growing dividend. Although it yields just 3% fully franked at present, it has a long history of dividend increases and I expect the trend to continue for the foreseeable future.
Mayne Pharma Group Ltd (ASX: MYX)
I believe this fast-growing pharmaceutical company's incredibly lucrative pipeline of generic drugs makes it a great buy and hold investment. In November management estimated the pipeline to have annual sales potential of over US$7 billion in the US market alone. In the short-term Mayne Pharma's share price may be volatile due to allegations of price-fixing. But at 15x estimated forward earnings I believe this is a great time to invest and expect the company to grow strongly over the next decade.
