If you’re interested in growing your wealth, then investing with a long term focus could be a great way to do it.
This is because investing in this way allows you to benefit from compounding. This is interest on top of interest.
One legendary investor that has used compounding to his advantage is Warren Buffett. Thanks to some astute investments over several decades, Mr Buffett has amassed significant wealth. And positively, there’s nothing to stop regular investors from following in his footsteps.
With that in mind, I have picked out three ASX shares that could be top candidates for a buy and hold investment. Here’s why they could be worth researching further:
Cochlear Limited (ASX: COH)
Cochlear is one of the world’s leading hearing solutions companies. It has a global distribution network and some of the highest quality products on the market. Combined with its high level of investment in research and development, this leaves it well-positioned to benefit from the ageing populations tailwind.
NEXTDC Ltd (ASX: NXT)
NextDc is one of the Asia-Pacific region’s leading data centre operators. It has a growing number of world class centres in key locations across Australia. Demand for capacity in these centres is growing at a rate that has led to management having to bring forward expansion plans. The company is also looking to expand its footprint into Asia, which would provide it with a significant growth runway.
Zip Co Ltd (ASX: Z1P)
Zip is the buy now pay later (BNPL) provider behind the eponymous Zip brand and the US-based Quadpay brand. It has also recently acquired a couple of smaller but established BNPL providers in Asia and the Middle East. Given its global expansion, the growing popularity of the payment method, and the decline of credit cards, it appears well-placed for growth over the next decade.