I believe one of the most effective investment strategies is the humble buy and hold investment strategy.
This strategy essentially means that investors buy shares in quality companies and hold onto them for many years, or even decades, ignoring short-term fluctuations in their share prices.
Whilst this doesn't necessarily mean buy and forget, as long as the investment thesis is intact, investors ought to just sit back and let the gains build.
Three shares which I think are worth considering as buy and hold investments at the moment are listed below:
Altium Limited (ASX: ALU)
The majority of connected devices require printed circuit boards inside them in order to connect to the internet. Due to the rise of Internet of Things the number of these devices is expected to increase exponentially over the next decade, leaving Altium in a great position to profit thanks to the growing popularity of its leading printed circuit board design software.
Domino's Pizza Enterprises Ltd. (ASX: DMP)
Due partly to a sharp drop in its share price this year, I think Domino's shares are priced perfectly for a long-term buy and hold investment. Although the pizza operator has grown its store network substantially over the last decade, the company has plans in place to more than double its current footprint over the next eight years. Domino's is also working hard to use technology to improve its margins and expects to see them improve across all its segments in the next few years.
XERO FPO NZX (ASX: XRO)
Earlier this year this cloud-based accounting software provider announced that it had surpassed one million subscribers. Whilst this is a large number, the majority of these subscribers come from the Australia and New Zealand market. I believe this demonstrates the sizeable global opportunity ahead for the company, particularly in the European and North American markets.
