One of my favourite investing strategies is the simple buy and hold passive investment strategy. As the name implies, the strategy sees investors buy shares to hold for a long period of time, ignoring fluctuations in the market.
One prime example of how successful buy and hold investing can be is private hospital operator Ramsay Health Care Limited (ASX: RHC).
A $20,000 investment in its shares 10 years ago would be worth a whopping $140,000 today.
Perhaps the most impressive part about this return is the fact that a little over 18 months after making the investment its shares plunged almost 25%. Investors that held on during those tough days have certainly been rewarded today.
With that in mind, here are two shares which I think could be great buy and hold investment ideas:
Although the BWX Ltd (ASX: BWX) share price is up almost 13% this year, I don't believe it is too late to invest in the company behind the Sukin skincare brand. I expect the recent launch of its products in the UK market and online in China will provide the company with significant sales growth over the next few years. Because of this I think now would be an opportune time to pick up BWX shares.
The Mayne Pharma Group Ltd (ASX: MYX) share price has fallen heavily in the last 12 months on concerns over price-fixing allegations and the impact the Trump administration will have on the industry. This has left its shares trading at a little over 12x annualised earnings despite the company delivering triple-digit top line growth. As well as its current line-up of drugs, the company has a strong pipeline that I expect to drive further top line growth in the future. At the current price I think it provides investors with a compelling risk/reward.
