There are some top ASX growth shares that I don't think you should ever sell.
By 'never' I don't necessarily mean you'll be holding it until you're 100. But I do mean for the foreseeable future. Don't sell during the rough the coronavirus period. Hold with at least a decade in mind.
Here are three of those picks:
Altium Limited (ASX: ALU)
Altium is one of the best companies on the ASX in my opinion. I've written many times about its growing profit margins, its strong balance sheet, its quality management and so on. The growing dividend is also pretty good.
The company is worth holding onto because of its importance to the global technological changes going on. When you look at its client list you can see many of the global companies and organisations making big changes to the world – Tesla, Space X, Google, Amazon, Disney, Apple, NASA and so on. They couldn't do what they do without Altium's software playing its part.
Altium is aiming to become the global leader in the electronic PCB software space. Technology is only going to become even more important in our society as time goes on. Altium is an essential business for making this happen, I want to be along for the ride.
It's currently trading at 38x FY22's estimated earnings.
A2 Milk Company Ltd (ASX: A2M)
A2 Milk is another of the best companies in my opinion. It has managed to turn a portfolio of staple products into what's thought of as a premium range.
It's one of the few companies on the ASX to have a very large cash balance and no debt. The company has been very focused on growth and expanding into new geographies. Its US growth is still young but it's very promising with a growing store footprint.
The thing to keep in mind is that in new markets it will take a while for people to become aware of A2 Milk and even longer to choose it. Even with just today's store numbers, there will be more growth to come.
It has recently agreed a deal to expand into Canada – another large market. There are plenty of other countries that A2 Milk can also be sold in.
Unless consumption and nutrition fundamentally change, A2 Milk is something I can see being in demand for beyond the foreseeable future.
It's trading at 31x FY22's estimated earnings.
Betashares Nasdaq 100 ETF (ASX: NDQ)
You may get your exposure to the top western technology shares a different way – I do – but however you get that exposure I think you need to keep it for a long time.
This ETF gives exposure to 100 of the biggest shares on the NASDAQ, which is dominated by US tech shares like Amazon, Alphabet (Google), Apple, Microsoft, Facebook, Netflix and so on.
The tech shares are just getting stronger and stronger as time goes on with harder-to-beat market positions, safer balance sheets and new services. The best way to make good returns is to own the winners, the ones changing the world and making more revenue.
It's impossible to predict which business will be the next big thing, but in the western world there is a high chance that it will be listed on the NASDAQ.
Foolish takeaway
I wish I had been a long-term investor of all three of these shares, but I'm very glad I own Altium shares. I'm going to hold my Altium shares for a long time to come. The less decisions and transactions we do the better off we'll probably be.
