One of the best ways to improve your investment performance is to limit your investment activity and only invest in good shares, which is why I’m trying to invest in shares I could hold until I’m 100.
If you can reduce your trading to as little as possible then you will reduce your brokerage costs and capital gains tax events.
That’s why I like the idea of these three shares:
Washington H. Soul Pattinson and Co. Ltd (ASX: SOL)
Soul Patts is my favourite idea for an ultra-long-term investment. The fact that it’s an investment house means it can alter its holdings as the years go by, so its business won’t become irrelevant. The fact it has already been around for a century shows it has great staying power.
I like that it is a conservative and contrarian investor that is invested in businesses that I wouldn’t necessarily have in my own portfolio.
With a growing dividend and no balance sheet debt, I think Soul Patts is an excellent hold-forever candidate.
Rural Funds Group (ASX: RFF)
Rural Funds is a real estate investment trust (REIT) that invests in farmland. As we all know, farmland has been a useful asset for humanity for centuries, so I imagine it will continue to be a decent option for decades to come.
It owns a variety of farm types including cattle, poultry, macadamias, almonds, vineyards and cotton. Its farms are diversified geographically and by climactic type, which is good diversification.
The hunt for yield has boosted its share price, but I think it’s still a solid option to consider with a trailing distribution yield of 4.4%.
MFF Capital Investments Ltd (ASX: MFF)
There are plenty of opportunities to pick from outside of the ASX, which is why I like the idea of going with one of the best investment managers in Australia, Chris Mackay.
With a low cost structure and the ability to invest anywhere in the world, I think MFF Capital is well positioned to give investors attractive returns over the long-term.
Mr Mackay has so much money invested in MFF Capital shares – it’s getting closer to $200 million – that I’m sure MFF Capital won’t ever be exposed to too much risk because of how risk-aligned he is with other shareholders.
Each of these shares have their merits. At the current prices I think Soul Patts is probably my favourite choice. REIT values and US shares have both risen significantly in 2019, whereas Soul Patts still looks relatively good value.
Other shares which could make excellent long-term investments are these ASX stalwart shares.
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Motley Fool contributor Tristan Harrison owns shares of Magellan Flagship Fund Ltd, RURALFUNDS STAPLED, and Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia owns shares of and has recommended RURALFUNDS STAPLED and Washington H. Soul Pattinson and Company 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 Motley Fool's purpose is to help the world invest, better. Click here now for your free subscription to Take Stock, The Motley Fool's free investing newsletter. Packed with stock ideas and investing advice, it is essential reading for anyone looking to build and grow their wealth in the years ahead. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson. 2019