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3 ASX shares I’d buy for my kids today

Investing in the stock of great companies and holding for many years is a fantastic way of building wealth for your children. When you buy shares of companies with good returns on invested capital and hold them for a long time, compounding of your wealth can have meaningful results. This is especially so for your children by the time they reach adulthood.

Here are three stocks I’d buy for my kids today, and hold for many years. 

Flight Centre Travel Group Ltd  (ASX: FLT)

Flight Centre provides travel retailing, wholesaling and corporate travel management services. The company is led by a great founder, and has a strong presence in India where an expanding middle class could provide significant tailwinds. Its online presence and corporate travel management operations have also been strengthened and this augers well for the company. At an enterprise multiple of 7.9 I think this is a wonderful company at a reasonable price.  

Ramsay Health Care Limited (ASX: RHC)

Ramsay Health Care is a healthcare service provider and operates primarily through the operation of over 220 hospitals in Australia, France, the United Kingdom, Indonesia and Malaysia. Its healthcare services include day surgeries, rehabilitation services, maternity services, and psychiatric services. The company is set to benefit from an expanding and ageing population, which should provide tailwinds for years to come. Ramsay has recently appointed an experienced CEO from within, and looks to be very well run. At the current share price, this is a great business at a fair price.  

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

Washington H. Soul Pattinson is a diverse company that has interests in coal mining, distribution, and the retail of pharmaceutical products. The company also holds shares of other companies. Washington H. Soul Pattinson has demonstrated itself to be a strong company over many years, and some consider it an Australian version of Warren Buffett’s Berkshire Hathaway. Soul Patts looks to be a strong compounder of invested capital over many years, and at the current share price it looks to be another wonderful company at a fair price. It currently trades at an enterprise multiple of 7.8. 

Foolish takeaway

Flight Centre, Ramsay Healthcare, and Washington H. Soul Pattinson are strong companies that can provide fantastic returns over the long run. I’d buy the stock of these three companies for my kids, and hold for many years to come. 

3 More ASX Blue Chips To Buy In 2018

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Each one pays a fully franked dividend. Each one has not only grown its profits, but has also grown its dividend. One increased it by a whopping 33%, while another trades on a grossed up (fully franked) dividend yield of almost 7%.

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Motley Fool contributor Stewart Vella owns shares of Ramsay Health Care Limited. The Motley Fool Australia owns shares of and has recommended Flight Centre Travel Group Limited and Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia has recommended Ramsay Health Care 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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