If you’re looking to follow in the footsteps of Warren Buffett and make some buy and hold investments, then you might want to take a look at the ASX shares listed below.
Here’s why they could be long term market beaters:
CSL Limited (ASX: CSL)
If you’re looking for a buy and hold option, then this biopharmaceutical giant could be one to consider. Its shares have been market beaters over the last decade and have been tipped by many to repeat these heroics over the next 10 years.
This is thanks to the quality therapies and vaccines it has in its portfolio, the increasing demand for immunoglobulins, its expanding plasma collection network, and its investment in research and development. The latter will see the company invest in the region of US$1 billion in these activities in FY 2021. It is because of these investments that CSL has a pipeline of potential treatments which have market opportunities in the billions.
Analysts at UBS recently looked through its pipeline and saw enough in it to put a buy rating and $346.00 price target on its shares. This compares to the current CSL share price of $288.16.
NEXTDC Ltd (ASX: NXT)
Another option to consider as a buy and hold investment could be NEXTDC. It is a technology company that provides innovative data centre outsourcing solutions, connectivity services, and infrastructure management software.
Due to the ongoing shift to the cloud, demand for data centre services is expected to increase materially over the coming decades. This puts NEXTDC in a fantastic position to profit. Particularly given its partner ecosystem, which hosts Australia’s largest independent network of carriers, cloud, and IT service providers.
The company is also in the process of looking at an expansion into Asia and has opened up offices in Singapore and Tokyo. If it can repeat its success in this market, its growth could continue for a long time to come.
Analysts at Goldman Sachs are positive on its future. Last month they put a buy rating and $13.20 price target on its shares. This compares to the current NEXTDC share price of $12.25.