MENU

3 buy and hold ASX shares for FY 2019

One of the simplest and most effective investment strategies is buy and hold investing.

This strategy will see an investor buy shares of a company with solid long-term growth prospects and hold on for many years or even decades as long as the original investment thesis is intact.

It is a strategy favoured by legendary investor Warren Buffett and, given his success, it wouldn’t be wise to bet against him.

Here’s why I think the following three shares would be great buy and hold investments:

Aristocrat Leisure Limited (ASX: ALL)

I think that this gaming technology giant could be a great long-term investment. Although I believe its pokie machine business is one of the best around and capable of growing strongly over the next few years, it is Aristocrat Leisure’s digital segment which I believe will be the key driver of growth. With 8.3 million users playing its mobile and social games on a daily basis, the recurring revenues they generate is quite staggering. And as more and more games are released, I believe the number of daily active users could rise strongly in the coming years.

CSL Limited (ASX: CSL)

I would argue that this biotherapeutics company is the best buy and hold investment option on the Australian share market. Due to the quality of its core operations, its strong pipeline of new products in development, and the success of its fledgling influenza business, I think CSL is capable of growing its earnings at a solid rate for the foreseeable future. Its shares may not be cheap, but I’m not sure there ever has been a time that they have been. Despite this they have still provided an average annual total return of 20.9% over the last decade.

NEXTDC Ltd (ASX: NXT)

Demand for data centre services has been growing at an impressive rate over the last few years thanks to the cloud computing boom. And with the shift to the cloud accelerating, I expect this demand to grow strongly for a long time to come. Which should put NEXTDC in a position to profit thanks to its world-class data centre network which is spread out across strategically important locations throughout Australia. However, its shares are trading on a sky high earnings multiple at present, which does mean there is a risk of a significant share price decline if its growth is not as strong as expected.

Looking for more quality buy and hold options? Then don't miss out on these top shares.

4 Stocks for Building Wealth After 50

Renowned investor Scott Phillips just released a brand-new report detailing his 4 favourite stocks to buy right now.

And I don’t know about you, but I always pay attention when some of the best investors in the world give me a stock tip.

This is your chance to get in at the very beginning of what could prove to be very special investments.

Click here to get started today!

Motley Fool contributor James Mickleboro owns shares of NEXTDC Limited. The Motley Fool Australia has no position in any of the stocks mentioned. 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 Scott Phillips.

Two New Stock Picks Every Month!

Not to alarm you, but you’re about to miss a very important event! Chief Investment Advisor Scott Phillips and his team at Motley Fool Share Advisor are about to reveal their latest official stock recommendation. The premium “buy alert” will be unveiled to members and you can be among the first to act on the tip.

Don’t let this opportunity pass you by – this is your chance to get in early!

Simply enter your email now to find out how you can get instant access.

By clicking this button, you agree to our Terms of Service and Privacy Policy. We will use your email address only to keep you informed about updates to our website and about other products and services we think might interest you. You can unsubscribe from Take Stock at anytime. Please refer to our Financial Services Guide (FSG) for more information.