When it comes to building lasting wealth, few strategies are as powerful — or as simple — as buy and hold investing.
Instead of trying to time the market or jump in and out of ASX 200 stocks based on the latest headlines, buy and hold investors focus on finding great businesses, backing them with confidence, and letting time do the hard work.
However, not every stock is suited to a forever portfolio. The key is choosing companies with sustainable competitive advantages, strong balance sheets, positive long term growth outlooks, and talented management teams.
With that in mind, let's look at three ASX 200 stocks that I believe fit that description perfectly — companies you could buy today and hold forever without thinking twice. They are as follows:
First up is CSL. It is one of Australia's greatest corporate success stories.
CSL is a global leader in plasma therapies, vaccines, and kidney disease treatments, with operations across the globe and a history stretching back over a century.
What makes CSL such a powerful buy and hold candidate is its incredible moat. Collecting plasma at scale, processing it efficiently, and developing specialised therapies is no easy feat. CSL's infrastructure, regulatory expertise, and relationships with healthcare providers create massive barriers to entry.
And with the company tipped to go through a period of strong earnings growth and its shares still down in the dumps, now could be the perfect time to invest. Goldman Sachs thinks this is the case. It has put a buy rating and $307.30 price target on its shares.
Another ASX 200 stock to buy and hold is Pro Medicus. It is a health imaging software specialist that is rapidly becoming a global powerhouse.
Its flagship product, Visage, is used by leading hospitals and healthcare networks to manage and interpret massive volumes of diagnostic images faster and more efficiently than traditional systems.
What sets Pro Medicus apart is its razor-sharp focus on premium technology and its highly scalable, high-margin software-as-a-service (SaaS) business model. Once a major hospital network signs up, switching costs are significant, locking customers in for the long term and creating incredibly sticky recurring revenue.
Goldman Sachs is also very positive on this stock. It has a buy rating and $309.00 price target on its shares.
The third ASX 200 stock that I would happily buy and hold forever is WiseTech Global.
It is the company behind CargoWise, a logistics software platform used by some of the biggest freight forwarders and transport businesses in the world. As global trade becomes more complex and supply chains grow ever more intricate, demand for efficient digital logistics solutions is only going to increase — and WiseTech is perfectly positioned to capitalise.
One of WiseTech's greatest strengths is its dominant market position. CargoWise has become the gold standard in freight management software, and the company's relentless focus on innovation, integration, and global expansion continues to pay off. This bodes well for its long term growth.
Analysts at Macquarie are very positive on the company. They have an outperform rating and $152.70 price target on its shares.
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