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Buying and holding these ASX shares could be the key to becoming wealthy

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I believe that the best way to generate significant wealth is to buy quality ASX shares and hold them for the long term.

It is worth noting that some of the world’s richest people, such as legendary investor Warren Buffett, have used this investment strategy to build their fortunes and there is nothing to stop readers from following suit.

With that in mind, here are three ASX shares that I think would be quality buy and hold options:

Altium Limited (ASX: ALU)

The first option to consider buying and holding is Altium. It is a printed circuit board-focused design software company which I believe is well-positioned to be a market-beater over the long term. This is because the company’s award-winning platform is exposed to the rapidly growing artificial intelligence and Internet of Things (IoT) markets. In respect to the latter, according to a recent presentation, global technology spending on IoT is expected to reach US$1.2 trillion in 2022. As the majority of IoT devices have printed circuit boards inside them, Altium appears well-placed to benefit.

REA Group Limited (ASX: REA)

Another ASX share to consider buying and holding is REA Group. I think the owner and operator of the realestate.com.au website could be a great long-term option due to its dominant ANZ market position and growing international operations. In addition to this, cost cutting, price increases, and new revenue streams appear to have positioned the company perfectly for growth once the COVID-19 crisis eases.

SEEK Limited (ASX: SEK)

A final buy and hold option to consider is SEEK. The job listings giant has been investing heavily in future growth opportunities in recent years. Whilst this has been limiting its short term profit growth, I believe it has set up the company for strong long term growth. Combined with the job-focused Federal Budget and its rapidly growing China-based business, I believe SEEK’s outlook is looking very positive. Overall, I believe the SEEK share price could generate market-beating returns over the next decade and beyond.

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Returns as of 6th October 2020

James Mickleboro owns shares of SEEK Limited. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of and recommends Altium. The Motley Fool Australia has recommended REA Group Limited and SEEK Limited. 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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