The Motley Fool

Why I would buy and hold a2 Milk Company and these ASX 200 shares

Buying quality shares and holding them over many years might not be an exciting get-rich-quick strategy, but it is a proven strategy that has the potential to generate significant wealth over the long term.

Some of the world’s richest people, such as Warren Buffett, have used this buy and hold strategy to build their fortunes and there is nothing to stop the average investor from doing the same.

With that in mind, here are three shares that I think would be outstanding buy and hold options:

a2 Milk Company Ltd (ASX: A2M)

I think this leading infant formula and fresh milk company could be a great buy and hold option. This is largely down to its expansion in the United States and the increasing demand for its infant formula products in the China market. The latter has been a key driver of growth in FY 2019, leading to the company reporting a 42% increase in revenue for the first nine months to NZ$938 million. Overall, I feel the company is well-placed for further strong growth in FY 2020 and beyond.

ResMed Inc. (ASX: RMD)

ResMed has certainly enjoyed great success over the last decade, but I think the next 10 years could be just as successful for the sleep treatment specialist. This is because the sleep apnoea market is growing every day and there is still a huge number of undiagnosed people that could benefit from its industry-leading treatment options. ResMed is also targeting the use of technology based services to improve its offering. So far this has gone very well and looks set to support the growth of the core business over the long term.

Xero Limited (ASX: XRO)

Xero is one of the world’s leading cloud-based business and accounting software providers. Like the others, it has been an impressive performer again in FY 2019. This has been driven by the winning combination of growth in subscriber numbers and an increase in the average revenue per user. Pleasingly, given the quality and stickiness of its product, its strong pricing power, and its massive global market opportunity, I believe it is capable of continuing to grow at an above-average rate for many years to come. This could make it an ideal buy and hold option for investors today.

Just like these two exciting tech shares which have been rated as buys and tipped for very big things.

These ASX shares have shot up 204% and even 954%, but we think they’re just getting started

The $700 billion “war on cash” is on… and even The New York Times is calling it “a goldmine of staggering proportions”…

That’s why The Motley Fool has just released a brand-new research report: “Leave Your Wallet at Home: 2 Stocks for the Digital Payments Revolution.” Inside, you’ll find 2 expert-picked ASX shares poised to profit from this sweeping tech revolution.

Heck, stock #1 is already up 204% in just the last two years. While Stock #2 has climbed an eye-watering 954% since 2015 alone…

Yet we’re convinced the sheer biggest returns could be still ahead, with 10X or more potential profits still on the table. Simply click the link below now and we’ll show you how to snap up this timely (and potentially highly profitable) new research for FREE.

Click here to snap up your copy of “Leave Your Wallet at Home: 2 Stocks for the Digital Payments Revolution.”

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 Xero. The Motley Fool Australia owns shares of A2 Milk. The Motley Fool Australia has recommended ResMed Inc. 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.

NEW. Five Cheap and Good Stocks to Buy in 2019…

Our Motley Fool experts have just released a brand new FREE report, detailing 5 dirt cheap shares that you can buy today.

One stock is an Australian internet darling with a rock solid reputation and an exciting new business line that promises years (or even decades) of growth… while trading at an ultra-low price…

Another is a diversified conglomerate trading near a 52-week low all while offering a 2.8% fully franked yield…

Plus 3 more cheap bets that could position you to profit over the next 12 months!

See for yourself now. Simply click the link below to scoop up your FREE copy and discover all 5 shares. But you will want to hurry – this free report is available for a brief time only.