I think that one of the best ways to generate wealth is to invest with a long-term view.
After all, over the last 30 years the Australian share market has generated an average return of 8.76% per annum according to research by Fidelity.
This means that a single $20,000 investment would now have grown to be worth almost $250,000 if it earned the market return over the last three decades. I believe this demonstrates the power of investing with a long term view.
With that in mind, here are two top ASX shares that I think would be great buy and hold investments:
Altium Limited (ASX: ALU)
I think that Altium is one of the best buy and hold options on the Australian share market. This is because I believe the electronic design software company is well-positioned to grow its earnings at an above-average rate for a long time to come thanks to its platform's exposure to the Internet of Things and AI booms.
But Altium certainly isn't a one trick pony. In addition to its design software, the company has a number of other growing businesses such as Nexus and Octopart. The latter business in particular appears underappreciated by the market. Octopart is a search engine for electronic and industrial parts which aggregates parts from distributors and manufacturers online. This makes them easy to search for and purchase. It has a large market opportunity and could be a key contributor to its revenue growth over the 2020s.
Nearmap Ltd (ASX: NEA)
Another ASX tech share to consider buying is this aerial imagery technology and location data company. Nearmap has been growing at a very quick rate over the last few years thanks to the increasing demand for its services in both Australia and North America. And while its performance in FY 2020 was a touch underwhelming because of a large customer churn event (not competition related), I'm confident that this was just a one-off and out of Nearmap's control.
Looking ahead, given the launch of several new products and potential expansions into new markets, I believe the company is well-placed for strong growth over the next decade. This could make it a great buy and hold investment option for investors.
