When most ASX investors buy a share on our stock market, they are probably hoping that they won't need to sell it anytime soon. Many investors do try and make a quick buck with so-called 'swing trades'. However, most investors recognise that simply buying and holding a quality company for as long as possible is the best way to invest.
That's certainly the view that I take. Legendary investor Warren Buffett once said that his favourite holding period is 'forever', and I tend to humbly concur.
Of course, it doesn't always work out this way. I have bought many shares in the past, only to go on to sell them (sometimes at a loss) when things didn't work out as expected.
Having said that, I have other successful positions that I have owned for years and that I will hopefully never sell out of, thanks to their enduring quality as investments. Here are two of them.
Two magnificent ASX shares that I will never sell
Washington H. Soul Pattinson and Co Ltd (ASX: SOL)
Washington H. Soul Pattinson, or Soul Patts for short, is a stock I've owned and loved for many years. My plan is to buy as much of this company as I can for the rest of my days. You won't see me ever selling a Soul Patts share.
Why this confidence? Well, Soul Patts has proven that it has been a successful manager of its investors' capital for more than a century. This investing house manages a portfolio of investments on behalf of its shareholders. These investments consist of major stakes in other ASX shares, as well as broad, diversified portfolios of other assets, including blue chip stocks, private credit, venture capital and property.
Last month, Soul Patts confirmed that, as of 31 July, its investment portfolio had returned an average of 11.7% per annum over the previous 20 years. That beats the broader market by 3% per annum – a significant outperformance.
What's more, Soul Patts also holds the record for the longest streak of annual dividend pay rises. Shareholders have enjoyed an annual dividend increase every year since 2000, including in 2024.
For all of these reasons, I see no cause to sell a single share of Soul Patts going forward.
MFF Capital Ivnestents Ltd (ASX: MFF)
Next, we have listed investment company (LIC) MFF Capital. MFF is another long-term investment in my portfolio that has done exceptionally well in recent years.
Even so, I'm also never going to sell out of this position. MFF is similar in nature to Soul Patts in that it owns a portfolio of underlying investments that are managed on shareholders' behalf.
In MFF's case, these investments are quality, large-cap American shares like Amazon, Google-owner Alphabet, Visa, American Express and Mastercard.
MFF's portfolio manager, Chris Mackay, is a student of Warren Buffett and likes to buy and hold quality companies for as long as possible. This is an approach that I love, and thus, I am happy to have MFF share in my portfolio in perpetuity.
