Many investors like to buy Australian stocks with the hope and expectation of never having to sell them. After all, finding the right company and working out the right price to pay for its shares is hard enough. Why throw the additional burden of working out when and how much to sell it at, too?
But of course, this is easier said than done. So today, let's go through three Australian stocks that I think make for fine candidates for investments you can buy and hold for a lifetime.
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Three Australian stocks I would buy and hold forever
Wesfarmers Ltd (ASX: WES)
First up, we have the sprawling conglomerate Wesfarmers. This blue-chip Australian stock has been on the ASX for decades and has repeatedly demonstrated an ability to deliver lucrative returns for its investors.
I like Wesfarmers for its inherent diversity. Sure, it earns most of its money from its crown jewel, Bunnings Warehouse. But Wesfarmers' other operations are also highly successful. These include retailers like OfficeWorks, Kmart, and Target, as well as its divisions like Wesfarmers Chemicals, Energy and Fertilisers, Workwear Group, and Priceline Pharmacies.
This means Wesfarmers has exposure to a broad range of industries within the Australian economy, making it an extraordinarily resilient, high-quality investment. As such, I would be happy to (and indeed have) buy it and hold on forever.
Coles Group Ltd (ASX: COL)
Next up, we have Coles, an Australian stock that was coincidentally owned by Wesfarmers for many years until its 2018 spinoff. The appeal of Coles as a buy-and-hold-for-a-lifetime-investment is obvious – this company sells food and household essentials at very competitive pricing. As such, demand for its products is highly likely to remain stable for decades to come.
Selling consumer staples makes Coles resistant to inflation, recessions, and most other kinds of economic maladies. As such, I think it's a great long-term investment idea.
I find Coles more appealing in this endeavour than its arch-rival Woolworths Group Ltd (ASX: WOW). Woolworths is a more complex company, given its lacklustre Big W arm and New Zealand operations. In contrast, Coles just has its Australian supermarkets, in addition to its smaller Liquorland bottle-shop chain.
Washington H. Soul Pattinson and Co Ltd (ASX: SOL)
Finally, let's talk about Soul Patts. Soul Patts is a diversified investment house, owning a massive portfolio of assets that it manages on behalf of its shareholders. This portfolio includes other Australian stocks, as well as private equity and venture capital-style investments. If its proposed merger with Brickworks Ltd (ASX: BKW) goes ahead as planned, it will also add property to that mix.
As I've documented here before, Soul Patts is my favourite ASX stock on our market. It has a decades-long track record of delivering market-beating returns. The company also has a distinguished history of delivering dividend increases, with Soul Patts increasing its annual dividend every year since 1998.
All of these factors add up to a perfect buy-and-hold investment, in my view.
