One notable advocate of buy and hold investing is legendary investor Warren Buffett.
Mr Buffett has famously stated that his favourite holding period is forever. And given the success he has had over several decades, it can pay to listen to his advice.
Three quality ASX blue chip shares that I think Warren Buffett would approve of are listed below. Here's why I think they could be top buy and hold options:
CSL Limited (ASX: CSL)
I think this global biotech company would tick a lot of boxes for Mr Buffett. CSL has a high return on equity, talented management team, and long track record of generating strong earnings growth and returns for shareholders. It also has a very positive long term outlook thanks to its in demand therapies and its high level of investment in research and development.
REA Group Limited (ASX: REA)
Another company which I think could be a Buffett share is REA Group. It is the leading property listings company in the ANZ region and has a number of growing businesses in other regions. While its performance is likely to be impacted by a reduction in listings because of the pandemic, I'm confident that this is just a short term headwind and its growth will accelerate once the crisis passes. So with its shares down 10% from their high, now could be a good time to consider a long term investment.
SEEK Limited (ASX: SEK)
A final share which I think could interest Mr Buffett is SEEK. This is due to the job listings company's dominant position in the ANZ market and its growing China-based business. I believe these businesses have positioned SEEK perfectly to grow its earnings at a very strong rate over the next decade. Management certainly sees things this way. It has set itself an aspirational revenue target of $5 billion later this decade. This will be a massive increase on the revenue of $1,575 million it expects to report in FY 2020.
