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Get rich buying and holding these fantastic ASX shares

I believe that one of the most effective investment strategies is buy and hold investing.

This strategy sees investors buy the shares of quality companies (with positive long term outlooks) and hold onto them for as long as the investment thesis remains intact.

But which shares would make good buy and hold options? Luckily there are a plethora of ASX shares which I believe could generate strong returns for investors over the long term.

Three that tick a lot of boxes for me right now are listed below. Here’s why I rate them highly:

Altium Limited (ASX: ALU)

The first buy and hold option to consider is Altium. It is a software-as-a-service company that provides an award-winning printed circuit board (PCB) design platform. PCBs are the small boards you find in almost all electronic devices. Given the proliferation of electronic devices because of the Internet of Things and artificial intelligence markets, demand for its software has been growing at a very strong rate in recent years. The good news is that management doesn’t expect this demand to ease any time soon. In FY 2020, it expects to have just over 50,000 software subscriptions. It is then targeting market domination and 100,000 subscriptions by FY 2025. 

Nearmap Ltd (ASX: NEA)

I think Nearmap could be a great buy and hold option. It is a leading aerial imagery technology and location data company that gives businesses instant access to high resolution aerial imagery, city-scale 3D datasets, and integrated geospatial tools. This helps users conduct virtual site visits, which enables informed decisions, streamlined operations, and ultimately significant cost savings. Although FY 2020 has been a bit of an underwhelming year for Nearmap, I believe this is just a temporary hiccup and its long term potential remains extremely positive. Especially given its industry-leading software in a highly fragmented market.

ResMed Inc. (ASX: RMD)

Another ASX share to consider buying and holding is ResMed. It is a sleep treatment-focused medical device company which has delivered consistently strong earnings growth over the last decade. Pleasingly, I’m very confident this positive form can continue over the next decade. This is thanks to its high quality masks and software solutions and its massive market opportunity. On its investor call last week, management noted that there are 936 million people with sleep apnoea globally. There are also over 380 million people who suffer from chronic obstructive pulmonary disease (COPD) and over 340 million people living with asthma. This gives it a huge runway for growth over the next decade.

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In this FREE STOCK REPORT, Scott just revealed what he believes are the 3 ASX stocks for the post COVID world that investors should buy right now while they still can. These stocks are trading at dirt-cheap prices and Scott thinks these could really go gangbusters as we move into ‘the new normal’.

*Returns as of 6/8/2020

James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of and recommends Altium. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of Nearmap Ltd. The Motley Fool Australia has recommended Nearmap Ltd. and ResMed Inc. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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