Luckily for investors the ASX is home to a good number of shares which I believe have the potential to grow strongly over the long term.
But which of these ASX shares should you buy and hold? Three top ASX shares that I think would be great long term options are listed below:
Altium Limited (ASX: ALU)
I believe Altium is a perfect share to buy and hold. This is due to the electronic design software company's exposure to two markets which are growing at an explosive rate – the Internet of Things and artificial intelligence markets. These markets are expected to underpin strong demand for its Altium Designer platform and cloud-based Altium 365 product over the 2020s. Management expects this to support very strong revenue growth over the next five to six years and for the company to achieve market domination.
Cochlear Limited (ASX: COH)
Another share to consider buying and holding is Cochlear. I believe the hearing solutions company is perfectly positioned for strong long term growth thanks to the ageing populations tailwind. By 2050 there are forecast to be 1.5 billion people over the aged of 65. This will be almost triple the number of over 65s in 2010. I expect this to underpin a sustained increase in demand for its cochlear implantable devices over the next few decades. Especially given its world class products and high level of investment in research and development.
REA Group Limited (ASX: REA)
A final buy and hold option is REA Group. It is a leading property listings company with real estate websites in Australia, Europe, Asia, and the United States. While trading conditions are not easy at present because of the pandemic, REA Group has still been a positive performer. I believe this demonstrates the strength of its business model. It also bodes well for the future and I expect its earnings growth to accelerate when the headwinds ease.
