The ASX 200 share I’d hold for 5 years: fund manager

Companies that can adapt to rapidly changing times could be well placed for future growth.

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The S&P/ASX 200 Index (ASX: XJO) is off to its second day of gains this week…barely.

The ASX 200 finished the day up a slender 0.03%, having earlier posted gains of 0.4%. That leaves the index up 0.2% over the last 5 days.

That’s the combined share price movement of the largest 200 listed Aussie companies. And it’s just a snapshot of 5 days of trading.

But what if you were asked which single ASX 200 share you’d choose to hold onto not for 5 days, but 5 years.

That’s the question the Motley Fool posed to Andrew Martin earlier this month.

And Martin – principal portfolio manager of the Alphinity Australian Share Fund and Alphinity Concentrated Australian Share Fund – told us he had “the perfect” stock in mind.

The ASX 200 share to hold for 5 years

According to Martin:

Macquarie is one we’ve held for a while and we think they’re just getting better. It’s an incredibly adaptable company to the market conditions, and they’ve reinvented themselves a number of times. The operating environment we’re in is fantastic for them. And demand for their services is better than ever at the moment.

As far as holding onto the ASX 200 share for 5 years, Martin added:

I think Macquarie is the perfect stock to own for the next 5 years. Ironically, if the ASX closed for the next 5 years, the demand for their services would probably go up.

A really interesting part of their business, which I think still isn’t properly priced in the market, is their exposure to green energy. They’re a developer, a manager, a funder, and an owner of green energy assets. And that area of the market is just getting bigger and bigger. Macquarie is right in the centre of being able to make money out of that [clean energy] transition.

How has Macquarie been performing?

The Macquarie share price has been on a tear this year, up 44% so far in 2021. That compares to an 11% gain posted by the ASX 200.

Macquarie pays a 2.4% dividend yield, 40% franked.

Should you invest $1,000 in Macquarie right now?

Before you consider Macquarie, you'll want to hear this.

Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now... and Macquarie wasn't one of them.

The online investing service he’s run for nearly a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

*Returns as of August 16th 2021

The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Macquarie Group Limited. 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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