I think investing in quality shares with positive long-term growth prospects for a prolonged period of time is one of the best investment strategies around.
You only need to look at what would have happened with a $5,000 investment in CSL Limited (ASX: CSL) shares 10 years ago to see this. That investment would now be worth almost $30,000.
With that in mind, here are three top buy and hold options that I would consider investing $5,000 into:
Bellamy’s Australia Ltd (ASX: BAL)
With its shares down significantly from their 52-week high, I think now could be an opportune time to invest in this organic infant formula company with a long-term view. FY 2019 is destined to be a touch weaker than expected due to delays getting its CFDA approval, but once this has been granted I believe its growth will accelerate. Especially if its premiumisation strategy is a success. So at around 21x estimated FY 2019 earnings, I think its shares offer a compelling risk/reward.
Domino’s Pizza Enterprises Ltd (ASX: DMP)
While I think it would be prudent to wait for Domino’s highly anticipated full-year results next week first, I believe it could be well worth snapping up shares on any weakness. Although it has hit a bit of a bump in the road this year I remain confident that it would be a great long-term investment. This is because the company has significant long-term expansion plans that will see its store network more than double in size. At the same time the company is working hard to expand its margins meaningfully through the use of technology.
Macquarie Telecom Group Ltd (ASX: MAQ)
This data centre, cloud, cyber security, and telecom company’s shares have been on fire this month after upgrading its profit guidance and announcing plans to expand its data centre capacity. Although I think they are about fair value now, I feel they could still be a great buy and hold investment. After all, the expansion of its data centres should allow the company to continue profiting greatly from the cloud computing boom for a long time to come.
Finally, here are more buy-rated shares that could be great options for that $5,000.
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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Domino's Pizza Enterprises 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 Scott Phillips.