2 buy and hold ASX shares that could help grow your wealth

These ASX shares could be good buy and hold options…

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One of the most popular and arguably effective investment strategies is buy and hold investing.

This strategy sees investors making investments into shares with a long term focus. The advantage of this is that it allows an investor to benefit from the power of compounding. This is interest on top of interest.

One legendary investor which is a big advocate of this strategy is Warren Buffett. Thanks to some highly successful long term investments over several decades, Mr Buffett has amassed significant wealth.

The good news is that there's nothing to stop regular investors from following in his footsteps. With that in mind, I have picked out two ASX shares that could be top candidates for a buy and hold investment. They are as follows:

Kogan.com Ltd (ASX: KGN)

The first ASX share to consider is this ecommerce company. While it has just completed a reasonably disastrous 12 months in FY 2021 and the start of FY 2022 has been soft, there's no doubting that its long term outlook remains very positive.

This is due to its sizeable customer base, strong market position, and the ongoing shift to online shopping. This leaves the company well-placed for growth over the next decade.

Analysts at Credit Suisse appear to believe it is worth looking beyond the short term pain and focusing on the potential long term gains. The broker currently has an outperform rating and $14.06 price target on its shares. This compares to the latest Kogan share price of $10.90.

Nearmap Ltd (ASX: NEA)

Another ASX share that could be a top buy and hold investment is Nearmap. It is a leading aerial imagery technology and location data company with operations in the ANZ and North American markets. While its growth has been a bit inconsistent in recent times, management appears confident it is back on track.

So much so, it is aiming to deliver annualised contract value (ACV) growth of 20% to 40% per annum over the long term. This is expected to be driven by new growth initiatives, geographic expansion, and the launch of new products.

The team at Morgan Stanley are positive on Nearmap. They currently have a buy rating and $3.20 price target on its shares. This compares to the current Nearmap share price of $2.04.

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of and has recommended Kogan.com ltd and Nearmap Ltd. The Motley Fool Australia owns shares of and has recommended Kogan.com ltd and Nearmap Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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