When it comes to buy and hold investments, I think a great place to look is the information technology sector.
This is because I believe Australia is home to a number of high quality technology shares with the potential to grow enormously over the next decade and become blue-chip shares.
Here are three to consider:
Aconex Ltd (ASX: ACX)
While this cloud collaboration software company has underwhelmed the market in the last 12 months, there's no doubt that its platform has significant potential. And with its popularity growing fast, management has forecast 15% to 19% revenue growth in 2018 and 20% revenue growth over the medium to long-term. I expect that as the company scales its margins will increase, allowing it to grow earnings at an even quicker pace.
Nextdc Ltd (ASX: NXT)
This leading data centre operator would have to be one of my top picks in the technology sector. As the migration to the cloud gathers pace, I expect demand for NEXTDC's services will grow substantially. Management appears to believe this to be the case as well and plans to expand its capacity significantly in FY 2018. This is likely to lead to bumper earnings growth in FY 2019 in my opinion.
Webjet Limited (ASX: WEB)
Thanks to the growing number of travel bookings made online each year, I believe this leading online travel agent is positioned perfectly for strong long-term growth. In FY 2018 the company aims to continue to grow its market share and is targeting growth at 3x the underlying market growth rate over the next three years. While its shares are reasonably expensive, if it can deliver on its targets then I believe it will more than justify the premium.
