If you want to grow your wealth, then buying and holding some high-quality ASX shares could be the way to do it.
That's because by holding shares for a long period, it allows investors to benefit from the power of compounding to supercharge their returns.
Compounding is what happens when you earn returns on top of returns. It helps explain why earning a 10% return on $1,000 turns into $1,100 in one year but approximately $2,600 in ten years.
But which ASX shares could be good options right now? Here are three ASX shares to consider:
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CSL Ltd (ASX: CSL)
As arguably the highest quality company trading on the Australian share market, this biotechnology giant could be a great option for buy and hold investors.
It certainly has been in the past. Despite a recent blip, this ASX share has delivered a 15.8% per annum return over the last decade. And thanks to this blip, investors can pick up its shares at an attractive price today.
UBS currently has a buy rating and $330.00 price target on its shares. This offers almost 17% upside for investors from current levels.
Domino's Pizza Enterprises Ltd (ASX: DMP)
Another ASX share that could be a good buy and hold option is Domino's. It is of course Australia's leading pizza chain operator. In addition, the company has a growing network of stores across Asia and Europe.
It has been going through a tough period due to inflationary pressures and some poor choices from management. While this is disappointing, it could prove to be an excellent buying opportunity for patient investors.
Morgan Stanley believe this could be the case. It has an overweight rating and $68.00 price target on the ASX share. This suggests potential upside of over 55% for investors.
Lovisa Holdings Ltd (ASX: LOV)
Another ASX share that could be a great buy and hold option is Lovisa. It is a fashion jewellery retailer with bold global expansion plans.
It is because of these plans that the team at Morgans thinks investors should be buying and holding the company's shares. The broker has previously stated its belief that Lovisa "may prove to be one of the biggest success stories in Australian retail" and that "now is the time LOV steps up to become a global force."
Morgans has an add rating and $35.00 price target on its shares. This implies potential upside of 8% from current levels, but greater gains could follow as its growth continues.
