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 of my favourite buy and hold investment options on the ASX is Afterpay. I believe it has outstanding growth potential due to the increasing popularity of its buy now pay later platform with consumers and merchants. This has supported some stellar underlying sales growth over the last few years and FY 2020 looks set to be no different. In November Afterpay achieved $1 billion of monthly underlying sales. This represents the highest monthly performance since inception and contributed materially to total underlying sales of $3.7 billion achieved in the first five months of FY 2020. I expect more of the same in the second half and beyond. Especially if Afterpay expands into continental Europe in the near future.
NEXTDC Ltd (ASX: NXT)
Another company which I believe has strong long term growth potential is NEXTDC. I believe the data centre operator is perfectly positioned to capitalise on the cloud computing boom which continues to accelerate. This is because as cloud computing usage increases, demand for its innovative data centre outsourcing solutions and connectivity services is likely to increase with it. I expect this to drive strong earnings growth as it scales.
REA Group Limited (ASX: REA)
A final buy and hold option to consider is this property listings giant. I continue to believe that REA Group would be a great long-term investment due to its dominant position in the ANZ market and its growing international operations. Especially after the recent rebound in the Australian housing market. I expect this to give its earnings a big boost in the medium term thanks to increasing demand for listings, price increases, and new revenue streams.
