Over the weekend I demonstrated how buy and hold investing can generate significant wealth for investors.
With that in mind, here are three shares which I think have the potential to be market beaters over the next decade, making them great buy and hold options today:
I think Altium is one of the best buy and hold options on the ASX. This is because of the strong growth potential of its printed circuit board (PCB) design software platform, Altium Designer. This platform has exposure to the fast-growing Internet of Things (IoT) market. As almost all IoT devices have PCBs inside them, I feel this bodes well for subscriber numbers in the future. Management certainly believes this will be the case. It is aiming to grow its revenue to US$500 million by FY 2025. This compares to Altium FY 2019’s revenue of US$171.8 million.
I think that this global biotherapeutics company could arguably be the best buy and hold option on the Australian share market. Over the last 10 years the CSL share price has provided investors with an average total return of approximately 24.45% per annum. Pleasingly, I believe that its shares could continue to provide outsized returns for shareholders over the next decade. This is thanks to the quality of its products, management team, and lucrative research and development pipeline.
A final buy and hold option to consider is ResMed. It is a leading developer of products that treat sleep apnoea, chronic obstructive pulmonary disease, and other chronic respiratory diseases. According to management, approximately 1 billion people are estimated to be impacted by sleep apnoea worldwide. The vast majority of these people are undiagnosed and at risk of life-threatening conditions such as chronic daytime fatigue, heart disease, stroke, type 2 diabetes, and depression. With education around the condition increasing, I expect more and more people to be diagnosed over the next decade. This is likely to lead to increasing demand for its industry-leading products and services.
Where to invest $1,000 right now
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Scott just revealed what he believes are the five best ASX stocks for investors to buy right now. These stocks are trading at dirt-cheap prices and Scott thinks they are great buys right now.
*Returns as of June 30th
James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Altium and CSL Ltd. The Motley Fool Australia has recommended ResMed Inc. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.