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Grow your wealth with these top buy and hold ASX shares

Arguably one of the best ways to generate significant wealth is to buy quality shares and hold them over the long term.

Some of the world’s richest people, such as legendary investor Warren Buffett, have used this investment 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 quality buy and hold options:

Altium Limited (ASX: ALU)

I think Altium is one of the best buy and hold options on the Australian share market. This is because of the strong growth potential of its printed circuit board (PCB) design software platform, Altium Designer. This platform is exposed to the rapidly growing Internet of Things (IoT) market. As the vast majority of IoT devices have PCBs inside them, Altium looks set to benefit greatly. Management certainly believes this to be the case. Earlier this year it revealed that it is aiming to grow its revenue to US$500 million by FY 2025. This compares to FY 2019’s revenue of US$171.8 million.

Appen Ltd (ASX: APX)

Appen is a global leader in the development of high-quality, human annotated datasets for machine learning and artificial intelligence. Strong demand for its services from many of the world’s biggest tech companies has led to it delivering explosive earnings growth in recent years. This has continued to be the case in FY 2019, with management recently upgrading its full year guidance. It now expects underlying EBITDA to be in the range of $96 million to $99 million, which implies year on year growth of 34.6% to 38.8%. Due to the expected strong growth of the AI and machine learning market, I believe it can continue this strong form long into the future.

REA Group Limited (ASX: REA)

A final share to consider is REA Group. I think the owner and operator of the website could be a great long-term investment. Especially given the recent uptick in the Australian housing market. This could soon lead to a significant and sustained rise in listings volumes. Which, combined with recent price increases and its new revenue streams, could put the property listings company in a position to deliver strong earnings growth over the next decade.

Where to invest $1,000 right now

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

Scott just revealed what he believes are the five best ASX stocks for investors to buy right now. These stocks are trading at dirt-cheap prices and Scott thinks they are great buys right now.

*Returns as of June 30th

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of Altium and Appen Ltd. 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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