One of the simplest and arguably most effective investment strategies is buy and hold investing.
This strategy involves buying quality companies with solid long-term growth potential and then holding them for an extended period.
Three growth shares which I think would be great candidates for a buy and hold investment are listed below. Here's why I like them:
Bellamy's Australia Ltd (ASX: BAL)
I have been pleasantly surprised with the remarkable turnaround of this infant formula company. From being on the brink of bankruptcy a year ago, the company has gone on to become a market darling once again. According to a recent trading update, in FY 2018 revenue growth is expected in the range of 30% to 35%. In FY 2019 I think that this growth could accelerate further thanks to increasing demand for its products and the probable granting of its CFDA accreditation in the next few months.
BWX Ltd (ASX: BWX)
This personal care company is the name behind the popular Sukin skincare range. Thanks to its growing popularity, international expansion, and a couple of highly earnings accretive acquisitions, I believe BWX will deliver bumper earnings growth in FY 2018. I expect further strong growth over the following years due to its increasing footprint and the strong organic growth being seen in a natural beauty products market that it holds a leadership position in.
CSL Limited (ASX: CSL)
In my opinion this biotherapeutics company is one of the highest quality companies in Australia. Furthermore, I believe its shares are capable of providing market-beating returns over the long-term, making it a great candidate for a buy and hold investment. This is thanks largely to the strength of its core business and growing influenza business. Overall, I think they have put CSL in a position to grow its earnings at an above-average rate for many years to come.
