One of the simplest and arguably most effective investment strategies out there is the buy and hold strategy.
It is a strategy that has been popularised by legendary investor Warren Buffett and for good reason.
At the last count, Mr Buffett had amassed a fortune of US$77 billion.
Fortunately for Australian investors I think there are a great number of shares on the Australian share market that would make great buy and hold investments. Here are four:
Altium Limited (ASX: ALU)
With the number of connected devices worldwide growing at an incredible rate, I believe this software-as-a-service company is positioned perfectly to achieve above-average earnings growth for some time to come. That's because the majority of these connected devices require printed circuit boards (PCB) inside them. I believe this will result in strong demand for Altium's PCB design software.
National Veterinary Care Ltd (ASX: NVL)
I believe this veterinary company has significant growth potential. It is estimated that on average 79% of dogs and 65% of cats go to the vet at least once a year. And with Australian pet ownership rising to a massive 62% of households, I feel this puts its ever-expanding network of veterinary services businesses in a great position to profit.
Nextdc Ltd (ASX: NXT)
NextDC is one of my favourite buy and hold options on the ASX. As businesses continue to migrate to the cloud, I believe this leading data centre operator will see demand for its services increase greatly. I expect this to result in increasing levels of contracted utilisation and ultimately bumper profit growth as it scales.
XERO FPO NZX (ASX: XRO)
I feel this cloud-based accounting software provider for small to medium enterprises would be a great buy and hold investment. The company has been growing its user numbers at a quick rate and recently broke through the 1 million subscribers mark. Despite this stellar growth, I still believe there is a significant opportunity for the company to grow globally.
