It's no secret that the ASX stock market has had a shaky month or so. Despite the rip-roaring week many ASX shares have had this week, the ASX 200 still remains a long way off of its all-time highs of more than 7,600 points that we saw back in 2021.
But don't despair. The ASX 200 has never failed to surpass a previous all-time high in all of its hundred-year-plus history. And there's no reason to believe this time will be different. So it's not a matter of if the next bull market is coming, but when.
But while we wait, we have the chance to pick up additional shares of our favourite companies before they get even more expensive.
So let's talk about one ASX stock I would be happy to buy today and hold forever – Warren Buffett's favourite timespan to own a share.
It's MFF Capital Investments Ltd (ASX: MFF). MFF Capital is a listed investment company (LIC). This means it doesn't function in the same way as your Coles Group Ltd (ASX: COL) or Telstra Group Ltds (ASX: TLS). Instead, it invests in shares and other assets itself, on behalf of its investors.
Unlike some other LICs on the ASX, MFF Capital doesn't indulge in flashy marketing and showy publicity. But that's exactly why I like this company. Every dollar it makes is used for the benefit of its shareholders. MFF is run by Chris Mackay – one of the most well-regarded fund managers in the country.
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One ASX stock I would buy and hold forever
Mackay is perhaps most famous for his role in co-founding Magellan Financial Group Ltd (ASX: MFG) and recently stepped in to help his old company during the tumult of the past few years. Mackay is an unabashed Warren Buffett fan, and emulates Buffett's style of finding the world's top companies, buying in at a great price, and holding for the long term.
That's why many of MFF Capital's top portfolio holdings have been present for years.
MFF Capital usually only invests in US shares. In its portfolio, you'll find famous names like Microsoft, American Express, Visa, Asahi, Bank of America, and Alphabet.
These are unquestionably some of the best names in investing, and I'm delighted that investing in MFF also means I'm investing in names of this calibre.
But let's get to the meat and potatoes: performance.
By this writer's calculations, MFF shares have returned an average of 9% or so per annum in capital growth alone over the past ten years. Including dividend returns, this rises to almost 12% per annum.
So with this LIC, you are getting inbuilt diversification, thanks to its large portfolio of US shares. You are also getting an investment run by one of the best investing minds in the country. Not to mention one that has delivered ASX-crushing returns over a long period of time.
That's why I would be happy to buy this ASX stock and hold it for the next bull market and well beyond.
