During a recent interview with CNBC legendary investor Warren Buffett once again reiterated his view that his favourite holding period is forever.
Whilst this doesn't mean he won't ever sell shares, unless he believes there is something fundamentally wrong with the business, Buffett appears happy to hold onto his investments for the long-term.
With a net worth estimated to be in the region of US$73 billion, clearly he has had a lot of success with this simple strategy.
I believe the first step to replicate this strategy is to find quality businesses that have strong long-term growth prospects.
Here are three which I think would be great buy and hold investments today:
I believe the Altium Limited (ASX: ALU) share price could climb significantly over the next few years thanks to the incredible rise in connected devices. Altium's printed circuit board design software continues to grow in popularity and currently commands a market share of approximately 16%. Management believes it is on course to reach US$200 million in revenue by FY 2020, up from a forecast US$100 million this year.
As one of my favourite buy and hold investment options on the ASX, I feel confident that the CSL Limited (ASX: CSL) share price has significant room for growth over the next decade. One key driver of long-term growth could come from its Seqirus business. Seqirus was established after CSL acquired the Novartis influenza vaccines business and integrated it with its bioCSL business. Whilst it is still early days for Seqirus, I've been pleased with its progress so far. Most recently the segment delivered a 14% increase in revenue and made a positive contribution to CSL's EBITDA.
Although the SEEK Limited (ASX: SEK) share price has gone sideways for the last 12 months, I believe it could climb meaningfully higher in the next few years if the company can recreate its domestic success in international markets. The biggest driver of growth, in my opinion, will be its China-based business Zhaopin. In its recent results SEEK advised that Zhaopin had achieved total revenue growth of 23% in the first-half. As well as this the business grew its market leadership further.
