Legendary investor Warren Buffett is a big advocate of buying and holding shares. It is a strategy he has used with great effect to amass his vast fortune over the last six decades.
The good news is that there is nothing to stop readers from following in his footsteps and replicating his investment style.
But which shares would be good buy and hold options? Listed below are two to look closer at:
Domino's Pizza Enterprises Ltd (ASX: DMP)
This pizza chain operator is targeting strong growth over the long term. At the end of FY 2020, the company was operating 2,668 stores across Australia, New Zealand, Belgium, France, the Netherlands, Japan, Germany, Luxembourg, and Denmark.
While this might sound like a huge store network, management believes it still has a significant runway for growth in the future. The company is aiming to more than double its network to 5,500 stores by 2033. It is also aiming to grow its same store sales by 3% to 6% per annum over the medium term.
If it successfully delivers on these objectives, then the combination of organic and inorganic growth could underpin solid sales growth over the long term.
Goldman Sachs currently has a buy rating and $88.00 price target on its shares.
Zip Co Ltd (ASX: Z1P)
Zip has been a very strong performer in 2020. It has delivered very impressive sales, customer, and merchant growth over the last 12 months. This has been driven by its successful international expansion, the growing popularity of buy now pay later as a payment method, declining credit card usage, and the seismic shift to online shopping.
In addition to this, the company has supported its growth through the expansion of its product offering. This includes launching Zip Business and its Tap & Zip product. It also just raised $120 million via an institutional placement to support its growth.
One broker that appears very positive on the company's future is Morgans. Its analysts recently reaffirmed their add rating and put a $8.89 price target on its shares.
