Insights

How to invest like Warren Buffett with ASX shares

Want to invest like Warren Buffett? Altium Limited (ASX:ALU) and this ASX share could be great buy and hold investments…
The post How to invest like Warren Buffett with ASX shares appeared first on The Motley Fool Australia. –

asx investor daydreaming about US shares

One of the ways that legendary investor Warren Buffett has generated wealth over decades of investing is by buying and holding the shares of quality companies. This investment strategy is highly successful due to the power of compounding.

Compounding is interest on top of interest, or returns on top of returns for investments. It explains how an investment earning a 10% per annum return will double in value in a little over seven years.

With that in mind, listed below are two ASX shares that could be quality candidates for a buy and hold investment. Here’s what you need to know about them:

Altium Limited (ASX: ALU)

Altium is an award-winning printed circuit board (PCB) design software provider. PCBs are the circuit boards you find in almost all electronic devices. 

Given the proliferation of electronic devices globally and their complex designs, demand for its software has been growing very strongly over the last few years.

And while COVID-19 is hampering Altium’s growth and recently led to discounting, demand is expected to pick up again once the pandemic passes. 

Looking ahead, management continues to target subscriptions of 100,000 and revenue of US$500 million by FY 2025/26. This will be a big increase on FY 2020’s ~51,000 subscriptions and revenue of US$189.1 million.

Citi is positive on the company. It recently retained its buy rating and $33.50 price target on Altium’s shares.

Domino’s Pizza Enterprises Ltd (ASX: DMP)

Another quality candidate for a buy and hold investment could be Domino’s.

This is due to its talented management team and their long-term thinking. Domino’s may be smashing expectations in FY 2021 with some very impressive sales and profit growth, but that doesn’t distract it from thinking about the next decade.

Domino’s finished the first half of FY 2021 with a network of 2,800 stores. It is now aiming to double this by 2023 in its existing markets. Management is also looking for acquisitions and could expand into new territories in the future. This would give it an even longer runway for growth.

Morgans is very positive on the company’s future. The broker currently has an add rating and $119.00 price target on its shares.

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.

See The 5 Stocks

*Returns as of February 15th 2021

More reading

James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. recommends Altium. The Motley Fool Australia owns shares of Altium. The Motley Fool Australia has recommended Dominos Pizza Enterprises Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

The post How to invest like Warren Buffett with ASX shares appeared first on The Motley Fool Australia.

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Share on facebook
Share on twitter
Share on linkedin

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;


To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.


An active and funded account with a positive trading balance is required to continue to have access to the tools;


Although the tools are available to you indefinitely, Monex Securities may at it’s discretion disable access to the tools in the future;


Monex securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

Important Notice
iOS & Android App - 12 International Markets & Over 70% Global Market Cap. $0 Brokerage On US Trades. Click Here!