One of the simplest investment strategies that investors can use is the buy and hold strategy.
The idea behind the strategy is simply that investors buy high quality shares that have solid long term growth prospects and hold onto them for long periods of time.
Three quality shares that I think would be great options for buy and hold investors are as follows:
Afterpay Touch Group Ltd (ASX: APT)
Whilst this payments company is certainly a high risk option, its impressive start to life in the United States gives me the confidence to believe that it will more than live up to the market’s lofty expectations. Within 12 months of entering the U.S. market the company attracted over 1 million active customers to its platform. And given how more and more millennials are turning away from traditional credit products, I believe this customer growth is likely to continue over the coming years and underpin its impressive sales growth.
CSL Limited (ASX: CSL)
My favourite buy and hold option on the Australian share market is this global biotherapeutics giant. Thanks largely to the quality of its products and its high level of investment in research and development, CSL has generated outsized returns for its shareholders for well over a decade. I remain confident that the company is well-positioned to carry on this strong form over the next decade, making it a strong buy in my eyes.
WiseTech Global Ltd (ASX: WTC)
Although this logistics solutions company’s shares have rocketed higher over the last 12 months and trade on sky high multiples, I believe the strong long-term growth potential of its CargoWise One platform makes it a great option for investors. CargoWise One is a single-platform software solution which provides an enterprise-class management system for logistics businesses across 130 countries. At the last count the company had over 8,000 logistics organisations using its solution, which is quickly making it an integral part of the global supply chain.
And here are three more top options for buy and hold investments. All three have recently been rated as buys.
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James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of CSL Ltd. The Motley Fool Australia owns shares of AFTERPAY T FPO and WiseTech Global. 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.