Buy and hold investing is one of the simplest and arguably most effective investment strategies around.
One key advocate of the strategy is legendary investor Warren Buffett. And given the success he has had with it over many decades, I feel it is hard to argue against it.
With that in mind, here are three ASX shares which I feel would be great buy and hold investment options:
Cochlear Limited (ASX: COH)
Cochlear is a manufacturer and distributor of cochlear implantable devices for the hearing impaired. I believe it could be a great buy and hold investment option due to the quality of its products and the ageing population tailwind. As people age, their hearing will invariably deteriorate. So with populations across the world getting older and Cochlear possessing a wide distribution network, I believe it is well-positioned to benefit from the expected increase in demand for hearing implants globally.
REA Group Limited (ASX: REA)
Another top share to consider as a buy and hold investment is this property listings company. One key reason for this is the company's ability to still achieve strong profit growth in a housing market downturn. In the first half of FY 2019 REA Group grew its revenue by 15% to $469.2 million, EBITDA by 19% to $289.1 million, and net profit by 20% to $176.6 million. Whilst the second half is expected to be a touch softer due to the impact of the upcoming election on property listings, I'm confident that the realestate.com.au operator is well-positioned to continue its strong form in FY 2020 and beyond.
Xero Limited (ASX: XRO)
Xero is a cloud-based business and accounting software provider which I think would be a great option for investors that are willing to make a long-term investment. Xero has been growing at an exceptionally strong rate over the last few years and this has continued to be the case in FY 2019. During the first half Xero posted a 37% increase in first half revenue to NZ$256.5 million and a 40% lift in annualised monthly recurring revenue to NZ$589.1 million. This strong growth was driven by a combination of increased subscriber numbers, low churn levels, and higher average revenue per user. Due to its global growth opportunities and the quality of its product, I expect more of the same in the second half and into FY 2020.
