I think the best way to invest is to invest in shares that require as few investment actions as possible. Finding shares we can hold until we’re 100 would be a great way to invest.
Less brokerage costs, less decision making and less capital gains taxation events. You don’t want to pay tax to the ATO unnecessarily.
These are three of my shares that I plan to hold until I’m 100:
Rural Funds Group (ASX: RFF)
Land ownership has been one of the best things to do with your money for centuries. Farmland has always been a useful asset because we all need food. And farms could become even more important if there is a food shortage at the end of the decade, as some experts predict.
Rural Funds is a farmland real estate investment trust (REIT) that owns a variety of farm types including cattle, cotton, vineyards, almonds and macadamias.
Management are steadily investing in productivity improvements at existing farms, which forms a large part of why the REIT is predicting it can grow the distribution by 4% per annum, along with contracted rental growth. Farms should be good assets as long as humans eat food that is naturally produced.
Magellan Global Trust (ASX: MGG)
The best businesses usually end up producing the best returns over the long-term. Whilst the ASX does have a lot of quality businesses, many of the great global blue chips are based overseas in North America and Europe.
It’s these high-quality global shares that Magellan Global Trust targets such as Microsoft, Alphabet, Visa, MasterCard and LVMH.
I’m not advocating that every holding within its portfolio should be held until you’re 100, but I think Magellan Global Trust’s portfolio will continue to own the best shares in the world over the coming years and decades, which should do well as a group.
The 4% distribution yield is a very pleasing bonus.
Washington H. Soul Pattinson and Co. Ltd (ASX: SOL)
I think Soul Patts is the individual company with the best chance to be around in another century on the ASX, it is already over 100 years old.
How is it able to stay relevant for so long? It’s an investment conglomerate, meaning that it has a diversified portfolio of different businesses operating in different industries. Some of its largest holdings include Brickworks Limited (ASX: BKW), TPG Telecom Ltd (ASX: TPM) and Australian Pharmaceutical Industries Ltd (ASX: API).
As time goes on it can invest into new industries and also sell out of positions that don’t appear to have a compelling future any more. It seems like New Hope Corporation Limited (ASX: NHC) is facing difficult times right now, but its other positions are making up for that.
These three shares are three of the biggest positions in my portfolio because of the long-term conviction I have in them. At the current prices I’d go for Soul Patts because of its defensive record, but if the global share market were to drop I’d say Magellan Global Trust could be the better choice.
Buying these long-term share ideas could be some of the best ways to increase your portfolio size.
Income-seeking investors like you won’t want to miss out on this timely opportunity… Here’s your chance to discover exactly what has got our dividend expert analyst all fired up about this under the radar business that’s currently throwing off gobs of cash!
But here’s the really exciting part…
This stock’s earnings are growing gangbusters, they recently reported an almost 40% growth in operating earnings, and when you find dividend stocks with that sort of growth, you know you’re potentially holding a dividend machine in your hands.
Our analyst expects that the industry tailwinds behind this business could be practically gale-force, meaning if all goes to plan, this stock could continue to deliver increasing dividends at a strong growth rate, not to mention potentially huge capital appreciation.
With shares still changing hands at what he believes is a good valuation, now could be the ideal time for patient, income-seeking investors to start building a long-term holding.
— and we’ll tell you the name of this Top Income Share… free of charge!
As of 13/2/20
Motley Fool contributor Tristan Harrison owns shares of MAGLOBTRST UNITS, RURALFUNDS STAPLED, and Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia owns shares of and has recommended RURALFUNDS STAPLED and Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia has recommended Brickworks. 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.