The Motley Fool

These tech shares could be great buy and hold investments

One of my favourite areas of the market to invest in is the tech sector.

I believe many companies in this sector have the potential to grow significantly in the future as they expand globally.

Two tech shares which I think are worth considering as long-term buy and hold investments are listed below. Here’s why I like them:

Aconex Ltd (ASX: ACX)

Although it is no longer the bargain buy it was around three months ago, I still believe this cloud collaboration software-as-a-service company could be a great option for patient investors.

I believe the quality of its product and the efficiencies it offers users in the construction industry will result in strong demand that allows the company to outperform its medium-term guidance. Especially given the expected uptick in construction activities in the Americas following recent disasters.

XERO FPO NZX (ASX: XRO)

Like Aconex, I felt Xero was a bargain buy three months ago and is now about fair value. But I wouldn’t let this put you off making a long-term buy and hold investment in this accounting software company. After all, the company has only scratched at the surface of its global opportunity in my opinion.

Although it has a strong share of the local market, it is still only in its infancy in the massive United States market. I believe the quality of its product gives it a great chance of winning a decent share of the US market. This could provide it with above-average revenue growth over the next decade.

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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of ACONEX FPO and Xero. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.