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 legendary investor 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:
Altium Limited (ASX: ALU)
Altium is a printed circuit board-focused design software company which I believe is well-positioned to be a market-beater. This is because the company's award-winning platform is exposed to the rapidly growing Internet of Things market. According to a recent presentation, global technology spending on IoT is expected to reach US$1.2 trillion in 2022. And as the vast majority of IoT devices have printed circuit boards inside them, Altium appears well-placed to profit.
CSL Limited (ASX: CSL)
I continue to believe this biotherapeutics company is the ultimate buy and hold option on the Australian share market. This is due to the quality of its CSL Behring and Seqirus businesses. I believe both have outstanding long-term growth potential thanks to their high quality product portfolios, lucrative product pipelines, and talented management and research teams. Overall, I believe this has put CSL in a position to continue growing its earnings at a strong rate long into the future.
Nanosonics Ltd (ASX: NAN)
Another quality buy and hold option could be Nanosonics. It is the infection control specialist behind the trophon EPR disinfection system which is used for ultrasound probes. I'm a big fan of the company due to the quality of this product and the lucrative recurring revenues it generates from consumables sales. Thanks to the product's large market opportunity and management's plan to launch several new products targeting unmet needs in the near future, I believe Nanosonics is well-placed to continue its strong form for a long time to come.
