Here’s why I’m holding Veda Group Ltd for the ultra-long term

I bought a stake in data analytics business Veda Group Ltd (ASX: VED) last week at $2.07 per share. Even though it has fallen marginally in price since that day, I’m not concerned in the slightest because I intend on holding the stock for years to come – maybe even the next decade (or more).

And truth be told, it’s not even trading at a bargain price. At $2.06, it is trading on a forecast P/E ratio of 23.4 (which is certainly higher than the average stock from the S&P/ASX 200 Index (Index: ^AXJO) (ASX: XJO)) and doesn’t yet offer a dividend (although it will in the years to come).

But I’m okay with that – as Charlie Munger taught investing great Warren Buffett, sometimes you just have to pay up for a quality business…

One of the reasons I like Veda Group so much is that it has delivered revenue growth every single year since FY1993. As if that wasn’t convincing enough, that growth has been at a compounded annual rate of 14.6%… Not bad considering that timeframe even included the GFC.

What’s more, some forecasts are even suggesting that Veda’s earnings per share (EPS) could increase by more than 15% between 2014 and 2015.

With such strong resilience, as well as a number of steady tailwinds (think stricter credit reporting standards and low interest rates helping to boost consumer confidence), Veda Group could be a real winner for investors who choose to buy today.

Don’t take that as me saying it won’t fall any further in the short-term – it very well could! But I wanted to buy my position just in case the stock never did fall in price, because I didn’t want to miss my opportunity.

Another ASX growth stock I'm bullish on

Veda is a quality company but it's price might be enough to deter some investors. There is another ASX growth stock which I am also incredibly bullish on, and it is trading at a much more reasonable price...

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Motley Fool contributor Ryan Newman owns shares in Veda Group Ltd.

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