The Motley Fool

3 ASX shares I’d buy for my children for the long-term

Investing in ASX shares for the long-term future of my children sounds like a great idea.

I certainly wouldn’t want to pick a ‘hot’ stock or a cyclical resources business for them. I want to choose ASX share ideas that reflect my own investment thinking, that could be held for decades and would generate solid compounding returns for my children.

With the above in mind, here are three ASX share ideas:

iShares S&P 500 ETF (ASX: IVV)

My favourite investor, Warren Buffett, has often said that people would do well by just investing in a S&P 500 fund. This is certainly advice I can get behind.

This ETF that you can buy on the ASX invest in 500 of the largest businesses listed in the US, but they earn money from across the globe, so think of them as global businesses. You are investing in high-quality international businesses like Microsoft, Amazon, Apple, Berkshire Hathaway and others when you pick this ETF, which are likely to be top performers for quite a while, unless they’re broken up.

It has an annual management fee of only 0.04% per annum, which is exceptionally cheap.

As long as capitalism is the way of doing things on Earth then this ETF will be (at least) a decent long-term investment.

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

Soul Patts has been operating for over a century. The fact that it’s an investment conglomerate and can adjust its underlying assets to the businesses of the future gives me confidence Soul Patts will be around for many decades to come. ‘Optionality’ is very important.

Management are big shareholders themselves, so they are very shareholder aligned and are unlikely to take unnecessary risks.

Soul Patts has an impressive market-beating record over the long-term and I hope it can continue to do well with its newer investments. I’m also attracted to its steadily-growing dividend which has increased every year since 2000.

Future Generation Investment Company Ltd (ASX: FGX)

This is a listed investment company (LIC) with a big difference compared to most other LICs.

It doesn’t charge any management fees or performance fees, instead it donates 1% of its net assets each year to youth related charities. It invests in the funds of Australian fund managers who work for free for Future Generation, which is a great initiative.

With Future Generation, I like that it is supporting disadvantaged youth whilst also aiming to grow the dividend for shareholders.

It currently has a grossed-up dividend yield of 5.9%.

Foolish takeaway

I think all three of these shares would be great to own for at least the next decade. The S&P 500 ETF might be the ‘safest’ over the long-term with how technology focused it is, but it may fall the most during shorter-term market dips relating to recessions.

These great ASX shares could also be solid performers over the long-term for capital growth and income.

Top 3 ASX Dividend Bets For 2019

With interest rates likely to stay at rock bottom for months (or YEARS) to come, income-minded investors have nowhere to turn... except dividend shares. That’s why The Motley Fool’s top analysts have just prepared a brand-new report, laying out their top 3 dividend bets for 2019.

Hint: These are 3 shares you’ve probably never come across before.

They’re not the banks. Not Woolies or Wesfarmers or any of the “usual suspects.”

We think these 3 shares offer solid growth prospects over the next 12 months. The first two currently offer fat, fully franked yields. The last is a surprising REIT offering you the benefits of being a landlord with none of the hassle! You’ll discover all three names and codes in "The Motley Fool’s Top 3 Dividend Shares for 2019."

Even better, your copy is free when you click the link below. Fair warning: This report is brand new and may not be available forever. Click the link below to be among the first investors to get access to this timely, important new research!

The names of these top 3 dividend bets are all included. But you will have to hurry. Depending on demand – and how quickly the share prices of these companies move – we may be forced to remove this report.

Click here to claim your free copy right now!

Motley Fool contributor Tristan Harrison owns shares of FUTURE GEN FPO and Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia owns shares of and has recommended 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 Scott Phillips.

NEW. Five Cheap and Good Stocks to Buy in 2019…

Our Motley Fool experts have just released a brand new FREE report, detailing 5 dirt cheap shares that you can buy today.

One stock is an Australian internet darling with a rock solid reputation and an exciting new business line that promises years (or even decades) of growth… while trading at an ultra-low price…

Another is a diversified conglomerate trading near a 52-week low all while offering a 2.8% fully franked yield…

Plus 3 more cheap bets that could position you to profit over the next 12 months!

See for yourself now. Simply click the link below to scoop up your FREE copy and discover all 5 shares. But you will want to hurry – this free report is available for a brief time only.