As I mentioned here earlier, one of the best ways to grow your wealth is to invest in the share market with a long term view.
This is because by investing over a long period, investors can take advantage of compound interest.
Compound interest is the interest that you earn on interest.
It explains why a $50,000 investment generating a 9.5% return would turn into ~$125,000 in 10 years.
It also explains why this investment would grow by a further $185,000 to ~$310,000 during the next 10 years and then finally by another $450,000 to ~$760,000 over the following 10 years.
With that in mind, here are three ASX shares which I think would be great buy and hold investments:
a2 Milk Company Ltd (ASX: A2M)
I think a2 Milk Company could be a great long term investment option for investors. It has been growing at a very strong rate over the last few years and shows no signs of slowing. Especially given the increasing demand for its infant formula in China and the growing footprint of its fresh milk.
Altium Limited (ASX: ALU)
Another buy and hold option to consider is Altium. It is an award-winning printed circuit board (PCB) design software provider. Over the last few years it has been growing at a rapid rate thanks to the proliferation of electronic devices. This is because almost all electronic devices have PCBs inside them. And with the Internet of Things boom still accelerating, the future looks very bright for Altium.
Kogan.com Ltd (ASX: KGN)
A final share to consider as a buy and hold investment is Kogan. It is a growing ecommerce company which is benefiting greatly from the structural change that is happening in the retail industry. This change has been accelerated by the pandemic and looks set to drive strong earnings growth for Kogan over the next decade and beyond.
