Whenever I buy ASX stocks, I try and think of the teachings of legendary investor Warren Buffett. Buffett has long espoused the value of long-term investing, once famously remarking that his favourite period to hold a stock is "forever". While this isn't always practical (Buffett himself has often sold his own shares), I think this idea is still a fantastic north star for any investor to keep in their view.
So today, let's discuss two magnificent ASX stocks that I think are fantastic choices to own for the long haul.
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Two magnificent ASX stocks that I would buy and hold
L1 Long Short Fund Ltd (ASX: LSF)
The L1 Long Short Fund is a listed investment company (LIC) that I've had my eye on for a while now. Like most LICs, the Long Short Fund holds an underlying portfolio of shares and investments that it owns and manages on behalf of its investors.
Unlike most LICs, though, the Long Short Fund employs short selling, as well as traditional 'long' investing (hence the name). This it has done to great effect, for this company's portfolio has returned an average of 18.2% per annum over the past five years (as of 30 November). Some of its best positions in recent months have been Light & Wonder Inc (ASX: LNW), Viva Energy Group Ltd (ASX: VEA), and a short position in Commonwealth Bank of Australia (ASX: CBA).
This LIC doesn't come cheap, with L1 charging an annual management fee of 1.44% per annum. However, if it keeps on delivering those outsized returns, it might be a price well worth paying.
MFF Capital Investments Ltd (ASX: MFF)
Onto another magnificent ASX stock and LIC, we have MFF Capital Investments. MFF is a more traditional LIC, only holding investments. In this case, those investments are mostly American shares.
Like Warren Buffett, MFF prefers to invest in well-positioned companies at compelling prices and hold them for the long term. Many of MFF's largest positions have been portfolio stalwarts for years. These include Amazon, Visa, Alphabet, Mastercard, and American Express.
MFF has a long track record of delivering sizeable returns for investors. By my calculations, its shareholders have enjoyed an average return of about 15.7% per annum over the past 15 years. MFF also has an attractive dividend growth policy, having raised its payouts from 2 cents per share in 2017 to 17 cents per share investors bagged in 2025 (an annual growth rate of over 30%). Those dividends come fully franked too.
All in all, I believe MFF is another magnificent ASX stock, one that I personally own for the long haul.
