There are numerous potential choices on the ASX and some of them are very appealing.
Warren Buffett and many other legendary investors have made light of the fact that investing for the long-term is usually the best way to go.
Perhaps investing in a company with the idea of holding for decades (or even forever) could make for stronger investment returns and easier investing. If you want to take that approach, here are three of the best choices in my opinion:
Washington H. Soul Pattinson and Co. Ltd (ASX: SOL)
Soul Patts is one of the oldest companies in Australia having operated for around a century already.
It operates by making long-term investments in companies that should have steady growth over the years ahead, such as TPG Telecom Ltd (ASX: TPM).
Its management are very shareholder-aligned because they themselves are large shareholders.
Soul Patts has increased its ordinary dividend every year since 2000. It's currently trading at 15x FY18's estimated earnings with a grossed-up dividend yield of 4.24%.
InvoCare Limited (ASX: IVC)
InvoCare is the largest funeral operator with a market share of around a third.
Sadly, the death rate in Australia is expected to keep increasing over the next two decades because of Australia's ageing population.
InvoCare's earnings are very defensive and consistent because a certain number of people need a funeral each year. It has different funeral brands to appeal to different budgets.
InvoCare is currently trading at 26x FY18's estimated earnings with a grossed-up dividend yield of 4.2%.
Ramsay Health Care Limited (ASX: RHC)
Ramsay is one of the largest private hospital operators in the world and has been one of the best blue chips to own over the last 15 years.
The demand for healthcare services increases every year as the population grows and gets older. Ramsay is adding more hospitals to its global network and could see strong growth for at least the next decade.
Ramsay has grown its dividend every year since 2000. It's currently trading at 25x FY18's estimated earnings with a grossed-up dividend yield of 2.43%.
Foolish takeaway
All three businesses are great options for long-term investing but none of them are cheap at the moment. I think Ramsay has the best chance of out-performing the other two at the current price due to its expansion plans.
