Buy and hold investing is arguably one of the most successful and simplest investment strategies around.
One advocate of the strategy is legendary investor Warren Buffett. He has amassed a net worth of US$84.3 billion largely by buying quality companies with solid growth prospects and holding them for many, many years.
Three shares which I think are great candidates for a buy and hold investment are listed below. Here's why I like them:
Altium Limited (ASX: ALU)
I think that Altium is a great way to profit from the Internet of Things boom. According to Cisco, an estimated 500 billion devices will be connected to the internet by 2030. As almost all of these devices require printed circuit boards (PCB) inside them, I expect demand for Altium's PCB design software will grow strongly over the next decade.
CSL Limited (ASX: CSL)
If, like Warren Buffett, you're looking to invest in quality companies, then you can't go wrong with CSL. I think that the biotherapeutics giant is one of the highest quality companies on the local share market and has the ability to grow earnings at an above-average rate for some time to come. This is due to its strong core business and its fledgling influenza business.
Nextdc Ltd (ASX: NXT)
Due partly to the rise of cloud computing, the amount of data that is being consumed each day continues to grow at a rapid pace. As one of Australia's leading data centres, I expect NEXTDC to profit greatly from the trend. Especially given the quality of its centres. Many of its centres have the highest possible certification, which helps explain why global tech giants Google and Amazon are amongst its growing list of customers.
