One notable advocate of buy and hold investing is legendary investor Warren Buffett.
Mr Buffett has famously stated that his favourite holding period is forever. And given the success he has had over several decades, it can pay to listen to his advice.
Three quality ASX blue chip shares that I think Warren Buffett would approve of are listed below. Here’s why I think they could be top buy and hold options:
CSL Limited (ASX: CSL)
I think this global biotech company would tick a lot of boxes for Mr Buffett. CSL has a high return on equity, talented management team, and long track record of generating strong earnings growth and returns for shareholders. It also has a very positive long term outlook thanks to its in demand therapies and its high level of investment in research and development.
REA Group Limited (ASX: REA)
Another company which I think could be a Buffett share is REA Group. It is the leading property listings company in the ANZ region and has a number of growing businesses in other regions. While its performance is likely to be impacted by a reduction in listings because of the pandemic, I’m confident that this is just a short term headwind and its growth will accelerate once the crisis passes. So with its shares down 10% from their high, now could be a good time to consider a long term investment.
SEEK Limited (ASX: SEK)
A final share which I think could interest Mr Buffett is SEEK. This is due to the job listings company’s dominant position in the ANZ market and its growing China-based business. I believe these businesses have positioned SEEK perfectly to grow its earnings at a very strong rate over the next decade. Management certainly sees things this way. It has set itself an aspirational revenue target of $5 billion later this decade. This will be a massive increase on the revenue of $1,575 million it expects to report in FY 2020.
Where to invest $1,000 right now
When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*
Scott just revealed what he believes are the five best ASX stocks for investors to buy right now. These stocks are trading at dirt-cheap prices and Scott thinks they are great buys right now.
*Returns as of June 30th
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Motley Fool contributor James Mickleboro owns shares of SEEK Limited. The Motley Fool Australia has recommended REA Group Limited and SEEK Limited. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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