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Who else wants 2 special ASX share ideas?

At today’s prices, despite zero profits in sight, it could be time to consider XERO FPO NZ (ASX: XRO) shares and Freelancer Ltd (ASX: FLN) shares.

The obvious but secret investing strategy

You may not realise it at first but there is one super-attractive trait you and I have that gives us a great advantage over the pros, like fund managers and paid stock pickers. This trait is so obvious that it’s often forgotten.

It is, time.

As individual investors, we have time on our side. While professional money managers have to confront their investors each month with a set of results and performance — including excuses — you and I can afford to think in handfuls of years. Decades even.

Using some simple stock-picking rules and thinking 10 years ahead will give you the best chance of making great returns, in my opinion.

Sure, it’s no secret. But it may as well be — because few people actually think long-term.

2 stock ideas for 2017

Let me give you a prime example. 15 years ago almost everyone thought the CEO of Amazon Inc was crazy because his company didn’t make a profit. Instead, Jeff Bezos focused on providing a great service for users and invested in his business — although, he still generated positive cash flow. He thinks and invests in decades. Amazon is up 5,400% in 15 years and is one of the biggest companies on earth.

I’m not saying Xero and Freelancer are the next Amazon — far from it. However, they have unique features which may enable them to carve out a bright long-term future for shareholders, even though they are not making a profit. This type of growth takes time. Lots of it.

Freelancer has created a global marketplace for ’employers’ to connect with ‘freelancers’ around the globe. Mostly, its first-world employers hiring freelancers from developing nations to do things like software development, design, engineering, marketing, accounting, legal and more. It’s not the only company in the space, but it has a very big user base.

Xero is the accounting software provider. Its cloud-based accounting tools are accessible anywhere with an internet connection. The company runs at a loss but I suspect it could quite easily turn that around — if it wasn’t so focused on making Xero the best accounting software in the world.

Foolish Takeaway

It’s really easy to get caught up in the near-term and forget the best investing returns require time — and lots of it. Endowment funds, which have been used to fund universities for decades, have made use of an investment portfolio with ultra-long-term time horizons to fund their operations. 

Freelancer and Xero have been investing in their platforms for years, potentially forging their long-term success. They are two share ideas for 2017 and beyond.

A Big, Fat, Fully Franked Dividend

This company's dividend is almost the stuff of legends. Since it started paying dividends in 2007, it has increased its payout to shareholders every single year, a run that includes 21 consecutive dividend increases.

Based on the last 12-months of dividends, its shares are currently offering a fully-franked 4.8% yield, which grosses up to almost 7% when those franking credits are included. And in stark contrast to the likes of Commonwealth Bank and Telstra, this company just increased its dividend by over 13%, and guided for 2017 profits to grow by 20%!

Discover the name of this "new breed" of blue chip along with 2 others in our new FREE report "The Motley Fool's Top 3 Blue Chips Stocks For 2017."

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Motley Fool Contributor Owen Raszkiewicz does not have a financial interest in any company mentioned. Owen welcomes and encourages your feedback. You can follow him on Twitter @OwenRask.

The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of Amazon. The Motley Fool Australia owns shares of Xero. 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 Bruce Jackson.

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