I think that one of the best ways to generate wealth is to invest with a long-term view.
Proof of this can be seen in research by Fidelity which shows that the Australian share market has generated an average return of 9.1% per annum over the last 30 years.
This means that a single $10,000 investment would now have grown to be worth $135,000 if it earned the market return over the last three decades.
With that in mind, here are three top shares that I think would be great buy and hold investments over the next decade:
Cochlear Limited (ASX: COH)
Cochlear manufactures and distributes industry-leading cochlear implantable devices for the hearing impaired globally. I think it could be a great long-term investment due to its position as a leader in a structural growth market which has high barriers to entry and attractive demographics. Overall, I feel this has positioned the company to continue being a market beater over the next decade.
Nanosonics Ltd (ASX: NAN)
I think this leading infection control specialist could be another great buy and hold investment option. Nanosonics has been experiencing strong demand for its industry-leading trophon EPR disinfection system for ultrasound probes in recent years, leading to strong sales of both the product and the consumables that it requires. Given its large market opportunity, the quality of the product, its high levels of recurring revenue, and management’s plan to launch new products targeting unmet needs, I believe it is well-placed to continue its impressive growth for many years to come.
REA Group Limited (ASX: REA)
This property listings company could be a great long-term investment. I have been very impressed with the way REA Group has continued to deliver solid profit growth during the housing market downturn. I feel this bodes well for the company in the future, especially with the housing market showing signs of recovery. This could put REA Group in a position to grow its earnings at an above-average rate for a number of years from FY 2021 onwards.
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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 Cochlear Ltd. and Nanosonics Limited. The Motley Fool Australia has recommended Cochlear Ltd., Nanosonics Limited, and REA Group Limited. 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.