I believe that one of the best ways to generate market-beating returns and grow your wealth is to make long-term investments in high quality companies with strong business models and positive outlooks.
With that in mind, here are two top shares that I think would be great buy and hold investments:
a2 Milk Company Ltd (ASX: A2M)
One top option for a buy and hold investment is this fast-growing infant formula and fresh milk company. Traditional cow’s milk contains two main types of beta casein proteins, A2 protein and A1 protein. Whereas a2 Milk Company’s milk comes only from cows selected to naturally produce the A2 protein type. This is believed (but not necessarily scientifically proven) to be better for people who experience challenges drinking conventional cow’s milk. This point of difference has proven very popular, especially in the China market, and has helped drive strong earnings growth over the last few years. I expect more of the same in the coming years which, combined with the growing footprint of its fresh milk business, bodes well for its shares.
REA Group Limited (ASX: REA)
The Australian housing market traditionally moves in cycles and right now we appear to be coming to an end of a downturn. Which could mean that the owner and operator of the realestate.com.au website is about to experience a significant and sustained rise in listings volumes. Combined with recent price increases and its new revenue streams, I believe that this property listings company is well-positioned to deliver strong earnings growth over the next decade. This could make it a great option for a buy and hold investment. And while the same drivers are likely to be positives for rival property listings company Domain Holdings Australia Ltd (ASX: DHG), I think REA Group is the superior option in the industry for investors.
5 stocks under $5
We hear it over and over from investors, "I wish I had bought Altium or Afterpay when they were first recommended by The Motley Fool. I'd be sitting on a gold mine!" And it's true.
And while Altium and Afterpay have had a good run, we think these 5 other stocks are screaming buys. And you can buy them now for less than $5 a share!
*Extreme Opportunities returns as of June 5th 2020
Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of A2 Milk. The Motley Fool Australia has recommended 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.
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