I think that one of the best ways for investors to beat the market over the long-term is to invest in shares which have strong businesses and equally strong growth prospects.
The good news for investors is that there are a large number of shares that currently tick these boxes.
Three ASX shares that I think would be great buy and hold options are listed below. Here's why I would buy them:
Coles Group Ltd (ASX: COL)
I think this supermarket giant could be a great buy and hold option. This is largely down to its focus on automation and expansion opportunities. In respect to the former, I believe the automation of its warehouses and the appointment of Ocado for its online shopping business will lead to solid margin improvements over the next decade. If the company can continue growing its sales at a solid rate, it should result in above-average earnings and dividend growth over the long term. Furthermore, I think its shares are trading on a very attractive valuation in comparison to rival Woolworths Group Ltd (ASX: WOW).
ResMed Inc (ASX: RMD)
ResMed is a leading developer of products that treat sleep apnoea, COPD, and other chronic respiratory diseases. I think it would be a great buy and hold option due to its leadership position in a sleep treatment market which has been tipped to grow strongly over the next decade. Increasing demand for its products and services has led to the company growing its sales at an impressive rate over the last few years. This has continued to be the case in FY 2019, with ResMed recently releasing its third quarter update which revealed quarterly revenue of $662 million. This was a 12% increase on the prior corresponding period or 15% on a constant currency basis.
SEEK Limited (ASX: SEK)
Another top buy and hold option in my opinion is SEEK. The job listings giant has been investing heavily in future growth opportunities this year. Whilst this is limiting its profit growth in the near term, I believe it is setting up the company for strong long term earnings growth. Because of this, I think it is well worth sticking with the company during this investment phase, especially with management aiming to double the size of the business over the next five years.
