While it can be tempting to try and get rich quickly by day trading shares such as BrainChip Holdings Ltd (ASX: BRN), Novonix Ltd (ASX: NVX), and Piedmont Lithium Ltd (ASX: PLL), it’s worth remembering that it is also a quick way to lose a lot of money.
Statistically, day trading has been proven to create far more losers than winners. An estimated 90% of day traders lose money, with 9% believed to do a little better than break-even, and just 1% actually making real money.
In light of this, I think investors interested in building their wealth should consider a more prudent investment strategy that involves buying and holding shares over the long term.
With that in mind, here are two ASX shares that I believe investors should consider:
I think CSL is easily one of the best buy and hold options on the Australian share market. CSL, which was previously known as the Commonwealth Serum Laboratories, was founded all the way back in 1916 to service the needs of a nation isolated by war. Since then it has become one of the world’s leading biotherapeutics companies with a market capitalisation of $135 billion.
Arguably the key to the company’s success has been its investment in research and development (R&D). Every year CSL invests somewhere in the region of 10% to 12% of its sales revenue back into its R&D activities. This has helped ensure that CSL is at the forefront of innovation in the industry and has led to it developing a wide portfolio of therapies and vaccines generating billions of dollars of sales each year. Looking at its current portfolio and burgeoning R&D pipeline, I’m very confident there will be more strong growth over the 2020s and beyond.
Domino’s Pizza Enterprises Ltd (ASX: DMP)
Another ASX share that I think would be a great buy and hold option for investors is Domino’s. It is the master franchise holder in Australia, New Zealand, Belgium, France, the Netherlands, Japan, Germany, Luxembourg, and Denmark.
Although it has been growing its store network materially over the last decade and now has a total of 2,668 stores, management isn’t anywhere near stopping there. It has set itself a target of more than doubling its network to 5,500 stores by 2033. If it achieves this and can continue to deliver same store sales growth, then I expect its earnings growth over the 2020s to be very strong. This could lead to the Domino’s share price smashing the market.
These 3 stocks could be the next big movers in 2020
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James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of CSL Ltd. The Motley Fool Australia has recommended Domino’s Pizza Enterprises 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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