3 long-term investment ideas for every portfolio

Warren Buffett is famous for how long he likes to hold stocks, which is hopefully forever.

It’s almost impossible to say that an investor could hold a stock forever, that could be over 70 or 80 years. However, here are three shares that an investor could own for at least two or three decades and probably generate market-beating returns:

InvoCare Limited (ASX: IVC)

InvoCare is the market-leading funeral operator in Australia with around a third of the market.

The number of deaths is expected to steadily rise over the coming decades as the ageing demographics play out. As morbid as it is, there is an inevitable number of deaths each year which provides InvoCare with defensive revenue and earnings.

InvoCare has different brands to advertise to different price points of the market with its White Lady Funerals and Simplicity Funerals brands.

It could be one of the best buy and hold investments on the ASX. It’s currently trading at 27x FY17’s estimated earnings with a grossed-up dividend yield of 4.22%.

Ramsay Health Care Limited (ASX: RHC)

Ramsay is the largest private hospital operator in Australia and one of the largest in the world.

The number of retirees visiting a hospital is expected to steadily increase over the next two decades as the elderly population increases.

Ramsay has been one of the best growth stocks on the ASX over the last 15 years and I expect it will be one of the best large caps over the next 15 years too. It’s currently trading at 27x FY17’s estimated earnings with a grossed-up dividend yield of 2.5%.

Washington H. Soul Pattinson and Co. Ltd (ASX: SOL)

Soul Patts has been one of the safest investments for any shareholder over the last few decades.

The business is an investment conglomerate with large investments in businesses such as TPG Telecom Ltd (ASX: TPM) and Bki Investment Co Ltd (ASX: BKI).

I’d much rather own shares of Soul Patts, than the other top 10 companies or Australian index funds.

Soul Patts is currently trading at 15x FY17’s estimated earnings with a grossed-up dividend yield of 4.44%

Foolish takeaway

I’m a fan of all three businesses, which is why I’m a shareholder of all three. None are very cheap at the moment but Soul Patts probably offers the best value currently. However, InvoCare is my favourite of the three because of its defensive earnings and ultra-long-term prospects.

If these businesses don't offer enough growth or big enough dividends then these dividend shares could be exactly what you're after.

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Motley Fool contributor Tristan Harrison owns shares of InvoCare Limited, Ramsay Health Care Limited, and Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia owns shares of TPG Telecom Limited 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 Bruce Jackson.

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