One of the simplest investment strategies that investors can use is the buy and hold strategy.
The idea behind the strategy is simply that investors buy high quality shares that have solid long term growth prospects and hold onto them for long periods of time.
Many renowned investors such as Warren Buffett use the strategy and have generated significant wealth from doing so.
With that in mind, listed below are three quality shares that I think would be great options for buy and hold investors:
Cochlear Limited (ASX: COH)
Cochlear is one of the world's leading hearing solutions company. Demand for its hearing implants has been growing strongly over the last decade and I expect this to remain the case over the next one. This is because as people grow older their hearing will invariably deteriorate. And with populations around the world ageing, the market opportunity for Cochlear's leading hearing solutions products is increasing significantly. Pleasingly, thanks to its wide distribution network, I believe it is well-positioned to capitalise on the increasing demand.
Domino's Pizza Enterprises Ltd (ASX: DMP)
Although its shares are likely to be reasonably volatile in the short to medium term due to being a target of short sellers, I believe in the long term its shares are destined to climb notably higher due to its bold expansion plans. Last year management reaffirmed its target of growing its store network to 4,650 stores by 2025. This compares to 2,393 stores at the end of FY 2018.
Webjet Limited (ASX: WEB)
Another great buy and hold investment option could be this online travel agent. Over the last decade the online travel agent's shares have provided an average annual total return of approximately 32%. Although a return of this level over the next decade is unlikely, I believe the strong growth potential of its B2C and B2B brands have positioned it to be a market beater. This year Webjet's management has provided EBITDA growth guidance of 26% excluding the contribution of its recently acquired Destinations of the World business.
