One of the most successful investors in history has been Warren Buffett.
He has managed to beat the market over countless decades thanks to some reasonably simple investment strategies.
One of these is buying shares and holding onto them for long periods of time and only selling them if the investment thesis is broken.
The good news is that this strategy is easy to replicate and there are plenty of candidates for investors to choose from on the Australian share market.
Two shares that I think are perfect to build your wealth with are listed below. Here's why I think they are great buy and hold options:
Altium Limited (ASX: ALU)
Altium is the software company behind the Altium Designer platform. This is an award-winning printed circuit board design software platform which has been experiencing very strong demand thanks to the rapidly growing Internet of Things market. Unfortunately, the pandemic has disrupted its growth in FY 2020, but I'm confident this is just a short term headwind which will ease in the coming months.
In light of this and the forecast growth of the Internet of Things market, I believe Altium is well-positioned for strong long term growth. Especially given that its other businesses, such as Octopart and Nexus, also have the potential to grow strongly over the next decade. This could make it well worth taking advantage of the recent pullback in its share price to invest at more attractive price.
CSL Limited (ASX: CSL)
Another share to consider as a buy and hold option is CSL. I think the biotherapeutics giant is the highest quality company on the local share market due to its world class CSL Behring and Seqirus businesses and their portfolio of life-saving therapies and vaccines.
Another reason I'm a big fan of CSL is its high level of investment in research and development (R&D). The company consistently invests somewhere in the region of 10% of its sales into R&D activities. This has been a successful strategy which has cemented its position as an industry leader and filled its pipeline with a number of therapies that have the potential to generate billions of dollars of sales over the next decade.
