I'm a big fan of buy and hold investing and believe it is one of the best ways to grow your wealth.
But which ASX 200 shares would be great options for a buy and hold investment? Listed below are two shares that have been tipped to grow strongly over the long term. Here's why they could be buys:
Breville Group Ltd (ASX: BRG)
The first ASX 200 share that could be a top buy and hold option is kitchen appliance manufacturer, Breville.
It has been growing at a solid rate for a decade thanks to growing demand for its products. This has been underpinned by the popularity of its brands, its global expansion, and its investment in research and development.
Goldman Sachs is positive on the company's outlook thanks to its strong market position, particularly in the coffee machine market. It said:
Breville EBIT growth is expected to growth by 17.7% in FY23 and 11% in FY24 largely on robust topline [..] Reiterate Buy on strong premium coffee in-home consumption trend and competitive advantage in premium brand and product.
Goldman currently has a buy rating and $24.70 price target on its shares.
TechnologyOne Ltd (ASX: TNE)
Another ASX 200 share to buy and hold is TechnologyOne.
It is an enterprise software provider to the government, local government, financial services, health & community services, education, and utilities and managed services markets.
Analysts at Bell Potter are very positive on the company's outlook. This is thanks largely to its shift of focus from a licence model to a software-as-a-service model that generates recurring and higher margin revenues.
The broker recently commented:
The migration [to a fully integrated SaaS solution] is now around three quarters complete and Technology One is starting to reap the benefits of greater recurring revenue and a higher margin. This combination will in our view drive double digit earnings growth for years to come and, as the migration of customers approaches 100%, we expect the multiple to rerate to that of a pure SaaS company.
Bell Potter has a buy rating and and $14.25 price target on the company's shares.
