Buy and hold investing is one of the simplest and arguably most effective investment strategies around.
The strategy involves investors buying shares with quality business models and strong growth prospects and holding them for the long term.
Three ASX shares which I feel would be great buy and hold investment options are listed below:
CSL Limited (ASX: CSL)
I think that this global biotherapeutics company could be the ultimate buy and hold option on the Australian share market. Over the last decade the CSL share price has provided an average annual total return of approximately 21%. I believe that its shares could continue to provide outsized returns for shareholders over the next decade thanks to the quality of its products, management team, and investment in research and development.
ResMed Inc (ASX: RMD)
Another healthcare share that I think would be a great buy and hold option is ResMed. It is a sleep treatment-focused medical device company with a portfolio of cloud-connected devices caring for people with sleep apnoea and other chronic diseases. Like CSL, it has been a strong performer over the last decade, providing shareholders with an average annual total return of 19.6%. I'm confident there will be more of the same over the next decade thanks to the quality of its products and the strong growth of the sleep treatment market.
Webjet Limited (ASX: WEB)
This online travel agent is another share that I think would be a great option for buy and hold investors. As with the others, over the last decade Webjet's shareholders have been rewarded handsomely. Its shares have provided an average annual total return of 33.6% over the period. Whilst a gain of this level may be wishful thinking over the next decade, I think the increasing popularity of its numerous B2B and B2C brands and the continued shift to online travel booking has positioned it well for further strong growth. I expect this to lead to further market beating returns for shareholders.
