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Why I would buy and hold these shares for a decade

When it comes to finding shares to buy and hold for an extended period, I think the healthcare and information technology sectors are great places to start looking.

While there are a large number of quality options in both sectors, I have picked out my current favourites below.

Here’s why I think they are great buy and hold investment candidates:

Altium Limited (ASX: ALU)

Although its shares have almost tripled in value since this time last year, I still believe that Altium could prove to be a great buy and hold investment. The printed circuit board (PCB) design software provider looks set to be a big winner from the rise of the Internet of Things market. As the majority of devices that connect to the internet require a PCB inside them, I expect demand for Altium’s software will continue to increase significantly.

This increasing demand was evident when Altium released its half-year results last week. The software company reported half-year revenue growth of 30% to US$63.2 million, earnings before interest, tax, depreciation and amortisation growth of 51% to US$19 million, and net profit after tax growth of 51%. I believe this puts it well on course to achieve its revenue target of US$200 million by FY 2020.

CSL Limited (ASX: CSL)

This biopharmaceutical company is my favourite healthcare share on the Australian share market just ahead of private hospital operator Ramsay Health Care Limited (ASX: RHC). I thought CSL’s first-half result was a highlight of earnings season and demonstrated why it could be a stand out buy and hold investment option.

CSL reported a 31% lift in net profit after tax to surpass US$1 billion for the first time in half. This was driven by strong sales from its immunoglobulin and seasonal flu vaccine products. While the second-half is likely to be softer due to seasonal factors, I still expect a stellar full-year result that justifies the premium its shares trade at today.

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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 Altium. The Motley Fool Australia has recommended Ramsay Health Care Limited. 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.

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