One of the most successful investors in modern history is Warren Buffett. Over several decades the American billionaire has consistently generated market-beating returns.
Mr Buffett has achieved this despite using a relatively simple investment strategy – buy and hold investing.
This strategy sees an investor buy shares in companies with strong business models, management teams, and long-term outlooks. They then hold onto the shares over a long period of time and let the power of compound interest work its magic.
If you want to grow your wealth, then I would suggest you look at replicating Warren Buffett's methods.
Three top buy and hold shares that I think could be great options right now are listed below:
Altium Limited (ASX: ALU)
The first buy and hold option to consider is Altium. It is a printed circuit board-focused design software company which I believe is well-positioned to be a market-beater over the next decade. This is thanks to its award-winning Altium Designer platform which is exposed to the rapidly growing Internet of Things (IoT) market. According to a recent presentation, global technology spending on IoT is expected to reach US$1.2 trillion in 2022. So with the vast majority of IoT devices having printed circuit boards inside them, Altium appears well-placed to benefit.
NEXTDC Ltd (ASX: NXT)
Another company which I think could be a great buy and hold option is NEXTDC. I believe the data centre operator is perfectly positioned to capitalise on the cloud computing boom which continues to accelerate. This is because as cloud computing usage increases, demand for its innovative data centre outsourcing solutions and connectivity services is likely to increase with it. This has been evident over the last few months. In fact, demand has been so strong the company is building a new data centre in Sydney to capture it.
SEEK Limited (ASX: SEK)
A final share to consider as a long term option is SEEK. Thanks to its market-leading position in the ANZ market, its growing international operations, and its high level of investment in growth opportunities, I believe this job listings giant can deliver strong sales and earnings growth over the next decade. Management certainly appears to believe this will be the case. Whilst the coronavirus pandemic could push it back a touch, SEEK has an aspirational revenue target of $5 billion by FY 2025. This will be a material increase on the revenue of $1,537.3 million it recorded in FY 2019.