One of the main features attributed to Warren Buffet is that his favourite holding period is forever.
Of course, when you analyse how long Berkshire Hathaway owns shares, there's a lot more portfolio turnover than you'd think. But, its main investments like Coca Cola are indeed very long-term investments.
Berkshire Hathaway would be a great business to hold forever, but sadly it isn't possible to directly invest in it on the ASX.
However, I think these three shares would also make very good long-term investments:
Washington H. Soul Pattinson and Co. Ltd (ASX: SOL)
Soul Patts is the closest thing we have to Berkshire Hathaway on the ASX.
Its management have been in the company for a very long time. Plus, management are heavily aligned with the success of the business because of how many Soul Patts shares they own.
Soul Patts has large investments in promising businesses like TPG Telecom Ltd (ASX: TPM), Australian Pharmaceutical Industries Ltd (ASX: API) and Brickworks Limited (ASX: BKW). It also owns a number of smaller businesses outright.
The management at Soul Patts have proven to be effective, long-term thinkers. It has increased the annual ordinary dividend every year since 2000.
Soul Patts is currently trading at 15x FY18's estimated earnings with a grossed-up dividend yield of 4.68%.
InvoCare Limited (ASX: IVC)
InvoCare is the biggest operator of funerals in Australia with its multi-brand strategy which includes White Lady Funerals.
The sad fact is that everyone dies at some point. Needing a funeral becomes more likely the older we get. The Australian Bureau of Statistics has predicted that the death rate is going to slowly but steadily increase for the next two decades. The number of deaths each year is expected to keep increasing for several decades.
InvoCare has been a fantastic investment since it listed, I think it could be one of the best buy-and-hold investments on the ASX for the next decade.
InvoCare is currently trading at 29x FY18's estimated earnings with a grossed-up dividend yield of 3.7%.
Ramsay Health Care Limited (ASX: RHC)
Ramsay Health Care is one of Australia's highest performing businesses. Its private hospitals make it a strong draw for patients.
The number of over-65s is on course to rise by 75% over the next twenty years. This is the age bracket that's most likely to visit a private hospital and therefore Ramsay could be in for a long growth runway.
Ramsay is currently trading at 23x FY18's estimated earnings with a grossed-up dividend yield of 2.86%.
Foolish takeaway
All three businesses should be long-term growers and beat the market. At the current prices I think InvoCare is a bit expensive, but I'd be happy to buy the other two.
