I think that one of the best ways for investors to beat the market over the long-term is to invest in shares which have strong businesses and equally strong growth prospects.
The good news for investors is that there are a number of shares that tick these boxes right now.
Three ASX shares that I think would be great buy and hold options are listed below. Here's why I would buy them:
Afterpay Touch Group Ltd (ASX: APT)
Although its shares have almost doubled in value in 2019, I don't believe it is too late to invest in this payments company if you're prepared to hold its shares for the long term. The reason for this is that I believe Afterpay Touch has enormous long term growth potential thanks to its international expansion opportunities. Especially following the successful start to life in the U.S. market, which appears to demonstrate the global appeal of the Afterpay platform.
CSL Limited (ASX: CSL)
Another top buy and hold option could be this global biotherapeutics giant. I think CSL is well-positioned for long-term growth thanks to its two businesses – CSL Behring and Seqirus. I'm bullish on both businesses and expect them to deliver strong earnings growth over the next decade due to their industry-leading products, burgeoning product pipelines, and significant investment in research and development. All in all, I think it could arguably be the ultimate buy and hold share on the Australian share market.
REA Group Limited (ASX: REA)
REA Group is the operator of the realestate.com.au website and numerous international equivalents. Although the housing market downturn and the upcoming election mean trading conditions are tough right now, this hasn't stopped REA Group from delivering strong profit growth in FY 2019. I think this demonstrates the strength of its business model and how when conditions improve its earnings growth could accelerate.
