One of the simplest and possibly most effective investment strategies for investors to follow is buy and hold investing.
This strategy sees investors buy the shares of quality companies with solid growth prospects and then hold onto them for an extended period of time.
One of the biggest advocates of this strategy is legendary investor Warren Buffett. In fact, his view of an extended period is perhaps even longer than you would think. The billionaire investor has stated many times that his favourite holding period is forever.
Considering the success that Mr Buffett has had over several decades, I think it pays to listen to his advice.
Two quality ASX shares that I think Warren Buffett would buy and hold are listed below. Here's why I like them:
CSL Limited (ASX: CSL)
While Buffett might wait for a better entry point, I have no doubts that CSL would tick a lot of boxes for him. This is due to its high return on equity, talented management team, and long track record of generating strong earnings growth and returns for shareholders.
I believe the biotherapeutics company is well positioned to continue its strong form over the next decade due to its growing plasma collection network, strong core business, and high levels of investment in research and development.
REA Group Limited (ASX: REA)
This property listings company is another which I think that Warren Buffett might take an interest in. The operator of the realestate.com.au website has generated consistently high levels of return on equity over the last decade and looks well-placed to continue doing so over the next decade.
And while its near term growth will almost certainly be impacted by the coronavirus pandemic, I expect it to rebound strongly once trading conditions return to normal. This could make it well worth taking advantage of its recent share price weakness and buying shares with a long term view.
