Over the weekend I demonstrated how buy and hold investing can generate significant wealth for investors.
With that in mind, here are three shares which I think have the potential to be market beaters over the next decade, making them great buy and hold options today:
Appen Ltd (ASX: APX)
When I'm looking for buy and hold options I will first look for an industry or market that has strong growth potential and then ultimately a company that has a leading position within it. That said, I believe Appen is a prime example of what a great buy and hold option looks like. It is the global leader in the development of high-quality, human annotated datasets for an artificial intelligence market forecast to grow materially over the next decade.
REA Group Limited (ASX: REA)
Another top buy and hold option could be this property listings company. I believe its market-leading position in Australia with the realestate.com.au website and its fast-growing international operations have put REA Group in a position to deliver above-average earnings growth once again over the next decade. Furthermore, I believe the fact that the company has continued to achieve strong earnings growth despite the housing market downturn, demonstrates the quality and resilience of its business model.
ResMed Inc (ASX: RMD)
ResMed is a leading developer of products that treat sleep apnea, chronic obstructive pulmonary disease, and other chronic respiratory diseases. According to the company's research, around 1 billion people are estimated to be impacted by sleep apnea worldwide. The vast majority of these people are undiagnosed and at risk of life-threatening conditions such as chronic daytime fatigue, heart disease, stroke, type 2 diabetes, and depression. I expect more and more people to be diagnosed over the next decade, which is likely to lead to increasing demand for its industry-leading products and services.
