I think that one of the best ways for investors to beat the market over the long-term is to invest in quality shares with strong businesses and equally strong growth prospects.
The good news for investors is that there are a number of shares that tick these boxes right now.
Three ASX shares that I think would be great buy and hold options are listed below. Here's why I would buy them:
Bellamy's Australia Ltd (ASX: BAL)
If you're willing to be very patient, then I think this infant formula and baby food company's shares could be a good option. Bellamy's earnings growth is likely to be minimal at best in FY 2019 due to delays in gaining the SAMR accreditation required to sell its products in China. Unfortunately, I feel there is a danger that it may still be some time before it gains this accreditation, potentially meaning another disappointing year in FY 2020. But when its products are finally approved by Chinese regulators, I believe it will be the start of a major uplift in Bellamy's profits.
CSL Limited (ASX: CSL)
The CSL share price has come under pressure this week following the release of its half year results. Although the result was largely in line with market expectations, it appears as though an upgrade to its full year guidance was priced in. So with management only narrowing its guidance range upwards, some investors hit the sell button. I think this was an overreaction and has created a buying opportunity for investors. After all, the biotherapeutics giant is arguably the best buy and hold option on the local market due to its strong core business, lucrative pipeline of products, and quality management team.
Treasury Wine Estates Ltd (ASX: TWE)
Earlier this week this global wine company released its half year results and revealed a 16% increase in net sales revenue to $1,507.7 million and a 19% lift in EBITS to $338.3 million. The company's strong performance in the Asia market was a key driver of this record performance. It achieved EBITS growth of 31% to $153.1 million in the market, meaning it now accounts for 45% of total EBITS. Given the Asia market opportunity, the popularity of its brands, and its new distribution model in the United States, I believe Treasury Wine Estates is well-positioned to continue this strong form over the next decade.
