If you want to invest like Warren Buffett, then I believe you need to think long term. After all, Mr Buffett has famously stated many times before that his favourite holding period is forever.
But which shares can you buy on the Australian share market if you want to follow Mr Buffett’s lead?
Two quality ASX 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. I estimate that CSL will invest somewhere in the region of US$900 million into its research and development activities this year. Not only do I expect this to generate a compelling return on investment, but also cement its position as a leader in its field.
SEEK Limited (ASX: SEK)
SEEK is an owner and operator of online employment sites in Australia and numerous international markets. For the majority of Australians, SEEK is the first place that businesses and job seekers go to for job listings. I see this market domination as a bit of a moat, which I think is something that Warren Buffett would find attractive. Another positive is its massive opportunity in the China market with its Zhaopin business. It has been growing at a rapid rate in recent years and looks set to underpin strong sales and earnings growth over the next decade. This could make it an excellent buy and hold option.
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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James Mickleboro owns shares of SEEK Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of CSL Ltd. The Motley Fool Australia has recommended 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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