One of the most successful investors in modern history is Warren Buffett.
Through his multinational conglomerate, Berkshire Hathaway, the American billionaire has consistently generated market-beating returns over several decades.
The amazing thing about Mr Buffett’s success is that he doesn’t use complex formulas or technical analysis. He uses a relatively simple investment strategy that anyone can use – buy and hold investing.
This simple strategy sees investors buy the shares of companies with strong business models, talented management teams, and positive long-term outlooks.
They will then hold onto the shares over a long period of time (unless the investment thesis breaks) and let the power of compound interest work its magic.
How can you invest like Warren Buffett on the Australian share market? I think the two shares listed below are the type of shares that he would buy and hold. Here’s why:
Goodman Group (ASX: GMG)
One top option to consider for a buy and hold investment is Goodman Group. It owns, develops, and manages industrial real estate across 17 countries. I like the company due to its diverse portfolio and exposure to markets with strong growth potential. The latter includes its exposure to ecommerce through its relationships with Amazon, DHL, and Walmart. Combined, I believe it is well-placed to deliver strong returns for investors over the long term.
REA Group Limited (ASX: REA)
I think REA Group would be a great buy and hold option for investors. I’m a big fan of the property listings company due to the resilience of its business model. I’ve been very impressed with the way the company can still grow its earnings even in the most difficult trading conditions. Furthermore, the tough trading conditions it is experiencing right now will soon ease. This should lead to an acceleration in its growth in the coming years.
And here are five dirt cheap shares which I suspect Warren Buffett would be loading up on if he knew about them…
5 cheap stocks that could be the biggest winners of the stock market crash
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Courtesy of the crashing stock market, these 5 companies are suddenly trading at significant discounts to their recent highs… creating what could be incredible opportunities for bargain-hungry investors.
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More reading
- Which is the best ASX entertainment media share?
- 3 strong ASX 200 shares to buy for a retirement portfolio
- 2 quality ASX shares to buy for long-term growth
- Is the REA Group share price a buy?
- 3 super strong ASX 200 blue chip shares to buy right now
Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia has recommended REA Group 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.
The post Invest like Warren Buffett and buy these ASX 200 shares appeared first on Motley Fool Australia.
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