One of the most popular investing strategies is the simple buy and hold passive investment strategy.
As the name implies, this investment strategy sees investors buy shares to hold for a long period of time, ignoring fluctuations in the market.
It is a strategy which legendary investor Warren Buffett has used effectively for decades. Considering he now has a net worth in excess of US$73.1 billion, clearly it can be successful.
Three shares which I think would be great buy and hold investments at present are as follows:
The ResMed Inc. (CHESS) (ASX: RMD) share price may be up 16% in the last 12 months, but I don't believe it is too late to invest in the sleep treatment specialist. The sleep apnoea market has been tipped to grow at a strong rate for at least the next few years, which I believe will allow ResMed to continue growing its top line at an above-average rate for some time. Especially with its newly acquired Brightree performing well. Thanks partly to Brightree, ResMed recently posted a 17% increase in sales to US$530.4 million.
Although the SEEK Limited (ASX: SEK) share price has jumped around 10% in just the last 30 days, I still feel that it represents great value for money for patient buy and hold investors. Whilst growth in the Australian market may be slowing a touch, thanks to its international operations I expect Seek to deliver solid earnings growth for the next decade. The key to this will be its China-based Zhaopin business. I believe it has enormous potential and have been very impressed with its performance of late. Zhaopin recently delivered its tenth consecutive quarter of 20%+ growth in both unique hirers and online revenue.
The WiseTech Global Ltd (ASX: WTC) share price has been a big mover in the last 12 months, climbing a massive 38%. Considering the cloud-based supply chain management software provider recently reported a 361% jump in half-year net profit to $14.4 million, I don't believe it is hard to see why investors have been attracted to the company. It's not just investors that have been attracted to the company. Over 6,000 logistics companies are using its CargoWise software, making it an integral part of the industry in my opinion. At 51x estimated FY 2017 earnings its shares are certainly expensive, but I believe the company will deliver sufficient long-term earnings growth to justify this premium.
