I don't own many S&P/ASX 200 Index (ASX: XJO) shares in my portfolio, but I do plan to own some for a very long time, potentially forever.
Investing should be a long-term endeavour in my opinion. But, how long is long-term? For some investors, it could be a three-year or five-year time horizon. Other investors may think a decade ahead is long-term.
I don't like thinking about selling. It's tricky to do. I'd prefer not to sell when share prices have fallen. Plus, what if that investment goes on to achieve good things in the future? Some winners do keep on winning. If the investment has gone well, selling could also mean losing some of the gains to tax.
So, finding good ASX 200 shares that we can own for a very long time could be beneficial.
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Washington H Soul Pattinson and Co Ltd (ASX: SOL)
Soul Pattinson is one of the oldest businesses in Australia. It has been listed since 1903. I think it has already demonstrated strong staying power.
It's not specifically a bank, telco, supermarket, miner, or anything. The company operates as an investment business. In other words, its job is largely to invest in other businesses and assets.
I think the ability to change its portfolio over time means that the company can adjust and ensure it's invested in assets that have good outlooks for the foreseeable future.
Some of the ASX shares that it's invested in include TPG Telecom Ltd (ASX: TPG), Brickworks Limited (ASX: BKW), BHP Group Ltd (ASX: BHP), Tuas Ltd (ASX: TUA), Macquarie Group Ltd (ASX: MQG), Wesfarmers Ltd (ASX: WES) and BKI Investment Company Ltd (ASX: BKI).
One of the most useful things to me about this ASX 200 share is that the company's management wants to grow its dividend each year for shareholders. It has grown its dividend every year since 2000. The business is regularly investing in new opportunities, such as its recent investment in more agriculture assets.
I think Soul Patts can deliver a good mixture of dividend growth and capital growth over the long term. That's why it's my biggest ASX 200 share investment.
Fortescue Metals Group Limited (ASX: FMG)
I think investing in commodity businesses can be tricky, particularly if they regularly go through negative conditions.
The iron ore price can regularly go down. I have used past instances of a weak iron ore price to buy Fortescue shares at a cheaper price. Investing at that lower level has meant I have been able to benefit from a very high dividend yield from Fortescue. Iron ore, particularly 'green' iron ore, could be in demand for many years to come.
But, the reason why I might hold this ASX 200 share forever is because of its efforts to help the world decarbonise with green energy. As the world moves away from fossil fuels, it's still going to need energy. Green hydrogen, a key focus for Fortescue, could become the new fuel source for heavy machinery, boats and planes.
The world will continue to need energy, and Fortescue could play a part in that as it builds a global portfolio of energy production locations.
