Investing in the Australian share market could be one of the greatest decisions you ever make, and one that your children and grandchildren might thank you for in the years ahead. By investing in high quality Australian businesses with a long-term perspective, you can not only plan for an early retirement but also for a secure financial future for younger family members.
However, once a decision has been made to invest in the market, it can be difficult knowing which shares to buy. As such, I've compiled a list of five companies which I believe are fantastic long-term buy-to-hold opportunities which I would want to leave for my grandchildren.
- Coca-Cola Amatil Ltd (ASX: CCL) could right now be one of the best buy and hold stocks available. Coca-Cola has been described by legendary investor Warren Buffett as a "forever brand" and although the company might be facing some strong headwinds right now, I believe investors willing to remain patient will reap the rewards in the long-term. Especially with the stock expected to pay a 42 cent dividend per share in 2015, giving it a yield of 4.7% (franked to 75%).
- Given its small market capitalisation, Nearmap Ltd (ASX: NEA) is a riskier option than Coca-Cola Amatil, but its future is also looking very promising. The company's ultra-high resolution mapping technology is proving incredibly useful across various Australian industries and an expansion into the United States also looks promising. Although it doesn't yet offer a dividend, investors might see strong capital gains in the years ahead.
- Cover-More Group Ltd (ASX: CVO) is Australia's leading travel insurance company with an estimated 46% share of the market. Despite its enormous market share strong growth is anticipated to continue over the coming years. Especially with strong rates of international travel expected to be maintained.
- Veterinary services provider Greencross Limited (ASX: GXL) could be one of tomorrow's blue-chip corporations. Although it might not appear cheap at today's price of $9.86, it is targeting a 20% share of the Australian pet market, up from today's estimated 7.5% share. In addition, it pays a 1.8% grossed-up dividend which is also expected to continue climbing in the years to come.
- Finally, Washington H. Soul Pattinson and Co. Ltd (ASX: SOL) is also a solid long-term bet. The company is similar to Warren Buffett's Berkshire Hathaway empire in that both are run by world-class management teams and both have a strong reputation for investing in quality companies early in the game. Although Soul Patts' performance has been impacted by its exposure to the coal industry recently, it has proven its resilience over the years and should deliver strong returns over the coming decades.
One more ultra-promising ASX stock to buy today
As attractive as all of the companies mentioned above are right now, there is one more stock which steals the show. The Motley Fool's top analyst recently uncovered another stock with fantastic growth potential and a fat, fully franked dividend which I would more than happily leave for the grandkids.
