I think that one of the best ways to grow your wealth is through buy and hold investing.
This strategy sees investors buy high quality shares and then hold onto them for the long term, allowing their returns to compound.
Some of the world's richest people, such as legendary investor Warren Buffett, have used this strategy to build their fortunes and I see no reason why the average investor can't do the same.
With that in mind, here are three shares that I think would be fantastic buy and hold options:
Altium Limited (ASX: ALU)
I think this printed circuit board-focused design software company would be a great buy and hold investment option. Especially after a sharp pullback in its share price last week. Altium's shares came under pressure after it warned that it was likely to hit the low end of its guidance range in FY 2020. This was due to the impact of the coronavirus and a softer performance by its Octopart business in the first half. I believe this is a buying opportunity, especially with management reiterating its confidence in achieving its FY 2025 target of market dominance and revenue of US$500 million. Given its exposure to the rapidly growing Internet of Things market, I believe the company can achieve its targets and generate strong returns for investors.
Domino's Pizza Enterprises Ltd (ASX: DMP)
Another buy and hold option to consider is Domino's. Although the pizza chain operator's performance over the last couple of years has been a touch underwhelming, it appears to have returned to form after a very strong first half of FY 2020. Pleasingly, the second half has started even stronger, leading to solid growth in same store sales financial year to date. Beyond FY 2020, I believe the company is well-positioned for long term growth thanks to its plan to grow its global store network by 7% to 9% per annum over the next five years.
Webjet Limited (ASX: WEB)
Another buy and hold option to consider buying is this online travel agent. As with Altium, I think a recent pullback in its share price has created a buying opportunity for investors. This pullback has been caused by concerns over the coronavirus impact and the impact of Google Travel on its business. Pleasingly, I believe the former will be a short term headwind and the latter has been comprehensively denied as a threat by management. In light of this, I think investors should focus on the future and particularly the enormous potential of the WebBeds business.
