If you're looking for buy and hold options, then I think the tech sector would be a great place to start.
In this sector I believe there are a number of companies which have the potential to grow materially over the 2020s and beyond.
Three fantastic ASX tech shares that I feel are standout buys are listed below. Here's why I like them:
Altium Limited (ASX: ALU)
I think Altium shares could smash the market over the next 10 years. This is because the electronic design software company has exposure to the fast-growing Internet of Things (IoT) and artificial intelligence (AI) markets. These markets are driving the proliferation of electronic devices, which in turn is driving strong demand for its software subscriptions. Combined with the benefits of scale and its other growing businesses, such as NEXUS and Octoport, I believe Altium is well-placed to deliver on its FY 2025 revenue target of US$500 million. This compares to Altium FY 2020's expected revenue of ~US$189 million.
Kogan.com Ltd (ASX: KGN)
Another tech share to consider buying is Kogan. I believe the rapidly growing ecommerce company has the potential to grow materially over the next decade. This is thanks to the growing popularity of its website and the accelerating shift to online shopping. As of 2019, just ~10% of consumer spending was being made online. I expect this to grow significantly in the future. So with this tailwind in its sails and acquisitions in its sights, I think Kogan has a bright future ahead of it.
Pushpay Holdings Ltd (ASX: PPH)
A third tech share that I would buy and hold is this donor management platform provider. Pushpay has been benefiting greatly from the shift to a cashless society. Gone are the days of churches passing around a bucket, now they can use Pushpay's app to donate. Adoption of its platform has been increasing rapidly, leading to the company's revenue and operating earnings growing at an explosive rate. The good news is that Pushpay still has a very long runway for growth. It is aiming to win a 50% share of the medium and large church market, which represents a US$1 billion revenue opportunity. This compares to the US$127.5 million operating revenue it recorded in FY 2020.
