I continue to believe that one of the best ways to create wealth is to buy quality shares and hold them for the long term.
This is a strategy that has been used by legendary investor Warren Buffett. And you can't argue with his track record, can you?
With that in mind, here are three top ASX shares that I think would be quality buy and hold options:
Altium Limited (ASX: ALU)
One share that I think would be a great buy and hold option is Altium. The printed circuit board (PCB) design software provider looks set to be a big winner from an Internet of Things (IoT) market which is forecast to grow from US$212 billion in 2019 to US$1.6 trillion in 2025. This is because almost all IoT/connected devices have a PCB inside them. Given the meteoric rise of the overall market, demand for its award-winning PCB design software platform looks set to grow rapidly over the next decade and drive strong earnings growth.
Domino's Pizza Enterprises Ltd (ASX: DMP)
Another buy and hold option to consider is Domino's. I believe it has the potential to double in size over the next decade thanks to its international expansion plans and same store sales growth targets. Domino's recently reiterated its aim of growing its store network by 7% to 9% per annum for the next 3 to 5 years. It is also targeting same store sales growth of 3% to 6% per annum over the same period. I expect this to lead to strong profit growth for a number of years to come.
Xero Limited (ASX: XRO)
A final buy and hold option to consider is Xero. I think the leading provider of business and online accounting software has the potential to grow very strongly over the next decade. This is thanks to the continued shift to online accounting by small businesses, the quality and stickiness of its product, and its global expansion. Xero recently revealed that it has broken through the 2 million subscriber mark. Whilst this is a large number, it is still only a fraction of its global market opportunity.
