I firmly believe that one of the best ways to generate significant wealth is to buy quality shares and hold them over the long term.
This is an investment strategy used by many of the world's richest people, including legendary investor Warren Buffett.
If you want to follow in their footsteps and grow your wealth, I think the three shares listed below could help you. Here's why I think they would be quality buy and hold options:
Afterpay Ltd (ASX: APT)
One top option for a buy and hold investment could be Afterpay. Due to the increasing popularity of its buy now pay later platform, Afterpay smashed expectations in FY 2019 with stellar underlying sales and customer growth. The good news is that this momentum has carried over into the new financial year. It recently provided an update on its performance during the Black Friday sales event. That update revealed records underlying sales and further strong customer additions. As a result, it looks well positioned to deliver another impressive result in FY 2020. Beyond FY 2020, I think the future is very rosy. A potential launch into continental Europe could be a major boost to its growth in the medium term.
Cochlear Limited (ASX: COH)
I think Cochlear could be another great buy and hold option. This hearing solutions products specialist's shares have generated market-beating returns for investors over the last decade. Pleasingly, I believe the company is well-placed to do the same over the next decade. This is due to its position as a leader in a hearing solutions market that looks set to grow materially over the next few decades. According to the World Health Organization, it has forecast there to be 1.5 billion people over the age of 65 by 2050. This will be almost triple the 524 million over 65s recorded in 2010. Given how hearing invariably fades as people age, I feel this bodes well for Cochlear's growth.
SEEK Limited (ASX: SEK)
Another share that I think could generate strong returns over the long term is SEEK. Thanks to its market-leading position in the ANZ market, its growing international operations, and its high level of investment in growth opportunities, I believe the job listings giant can deliver strong sales and earnings growth over the next decade. Management certainly agrees with this view. It recently reiterated its aspirational revenue target of $5 billion by FY 2025. This will be a significant increase on the revenue of $1,537.3 million it recorded in FY 2019.
