There are at least two ASX shares in my portfolio that I plan to own until I’m 100.

I think owning shares for the ultra-long-term is the best way to invest, if you can find the right ideas. Less transactions means less brokerage costs and less capital gains tax events. You don’t want to hand over more of your compounding wealth to tax than necessary, if you can help it.

But you can’t commit to holding any random share for the ultra-long-term. It needs to be a business which has a sustainable long-term business model and has the potential to beat the market over many years.

These are (at least) two ASX shares that I can see myself holding for many years to come:

Rural Funds Group (ASX: RFF)

Rural Funds is an agricultural real estate investment trust (REIT). It owns a variety of farm types including almonds, macadamias, cattle, cotton and vineyards.

Farmland has been a useful asset for hundreds of years, I don’t think that’s going to change for the next few decades at least, unless technology somehow completely changes our food production.

The farmland landlord tries to lease its farms to high-quality tenants like Olam, JBS, Select Harvests Limited (ASX: SHV) and Treasury Wine Estates Ltd (ASX: TWE). It’s these large businesses that are the ones most likely to remain financially resilient and keep paying rent even during a recession. They also have the most resources to afford investing for growth, which will help Rural Funds charge higher rent in future years.

The ASX share has a diversified property portfolio, not just by the farm type but also geographically. Rural Funds’ farms are spread across different states and climactic conditions, which somewhat reduces the risks. The REIT owns a lot of water entitlements for tenants to use. 

Rural Funds is a good option for long-term income. It has rental indexation built into its contracts – the contracted growth is either a fixed 2.5% annual rise or it’s linked to CPI inflation, plus market reviews.

The REIT regularly invests in productivity improvements at its own farms, which should boost the value of its farm and lead to long-term rental growth.

Occasionally the ASX share will make acquisitions that diversify the farm’s holdings further and increase the earnings potential.

Management aim to increase the distribution by 4% each year. At the current Rural Funds share price the FY21 distribution guidance of 11.28 cents per unit equates to a forward yield of 5.4%.

Washington H. Soul Pattinson and Co. Ltd (ASX: SOL)

Soul Patts has already been listed on the stock exchange since 1903. I think it has a great chance of being around until at least 2103 because of how it operates.

It’s an investment conglomerate that invests in both listed and unlisted businesses. It can change its investments as the years go by. Each of its large equity investments were once a lot smaller and Soul Patts has benefited from their long-term growth.

Some of the ASX shares that Soul Patts owns are: TPG Telecom Ltd (ASX: TPG), Brickworks Limited (ASX: BKW), New Hope Corporation Limited (ASX: NHC), Bki Investment Co Ltd (ASX: BKI) and Clover Corporation Limited (ASX: CLV).

Soul Patts’ unlisted businesses include resources, agriculture and swimming schools. Soon it will be invested in regional data centres.

The management of Soul Patts try to invest in a contrarian fashion with a defensive focus. For example, swimming schools is one of those services you’d expect parents to keep using even during a recession. Though this COVID-19 pandemic brought up some difficult conditions.

The ASX share has outperformed the ASX index over the ultra-long-term and I think that could continue with its new investments like regional data centres and agriculture.

I also think that the ASX share is one of the best dividend shares. It has grown its dividend every year since 2000. It has paid a dividend every year since it listed in 1903. That’s a great, reliable record.

Soul Patts funds its dividend from the investment income it receives. In other words, the dividends and interest it receives from its assets. After paying for its expenses, it then pays out a large percentage of the cashflow as a dividend to shareholders. But that cashflow stream is steadily growing as Soul Patts’ investments grow their dividends.

At the current Soul Patts share price it offers a grossed-up dividend yield of 4.25%.

Foolish takeaway

Both of these ASX shares could be around for many decades to come. I think they can both deliver growing dividends and long-term capital growth.

More reading

• Why I would add Coles and this ASX share to my retirement portfolio
• 3 property shares I’d rather buy over an investment property
• 3 ASX dividend shares raising their dividends like clockwork
• Want to invest $3,000 into ASX blue chips?
• Buy these ASX dividend shares if the RBA cuts rates

Tristan Harrison owns shares of RURALFUNDS STAPLED and Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Clover Limited. The Motley Fool Australia owns shares of and has recommended Brickworks, RURALFUNDS STAPLED, and Washington H. Soul Pattinson and Company Limited. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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Although there have been a large number of dividend cuts and deferrals this year because of the coronavirus, there are still plenty of companies sharing their hard-earned profits with shareholders.

Two quality shares which continue to perform well and look set to pay dividends largely as normal over the next 12 months and beyond are listed below.

Here’s why I would buy these ASX dividend shares next week:

BHP Group Ltd (ASX: BHP)

The first dividend share to consider buying is BHP. I believe the mining giant is well-positioned to generate strong free cash flows in FY 2021 thanks to its world class and low cost operations and favourable commodity prices. In addition to this, the Big Australian has a number of growth opportunities that I’m confident could generate compelling returns on investment in the coming years. Another positive is the current iron ore price, which is trading comfortably above the US$110 a tonne mark. If it remains in or around this level throughout FY 2021, BHP will be printing money. And given the strength of its balance sheet, this could mean bumper dividends for shareholders. Based on the current BHP share price, I estimate that it will provide a forward fully franked ~4.9% dividend yield in FY 2021.

BWP Trust (ASX: BWP)

Another dividend share to consider buying is BWP Trust. It is a real estate investment trust and the landlord to 68 Bunnings Warehouse stores. Last week BWP released its full year result and revealed a 1% increase in profit (before gains on investment properties) to $117.1 million. But perhaps even more impressive was its result including the gains on investment properties. At a time when most retail property companies are marking down the value of their properties, BWP’s have appreciated in value. As a result, including property gains, BWP’s profit was up 24.4% to $210.6 million. I believe this demonstrates the quality of its portfolio and its positive outlook even during the toughest of economic times. With its full year result, management provided guidance for an FY 2021 distribution of ~18.29 cents per unit. Based on the current BWP share price, this represents a 4.7% yield.

More reading

• Ready for the “80% stock market crash”?
• Why BHP, Corporate Travel, Harvey Norman, & Nick Scali shares are pushing higher
• Is the BHP share price a good coronavirus hedge?
• Why I would buy CBA and this ASX dividend share
• This is the only ASX sector tipped to report earnings growth this reporting season

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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If you’re looking to construct a $100,000 share portfolio, you’ll no doubt be on the lookout for investment ideas.

To help you on your way, I have picked out a few shares from different areas of the market which I think could be excellent core holdings.

Here’s why I think investing some of the funds in these shares would be a very smart move:

Altium Limited (ASX: ALU)

In the tech sector you’ll find Altium. It is the electronic design software provider behind the Altium Designer platform. Demand for its platform has been growing strongly in recent years thanks to the growing Internet of Things (IoT) and artificial intelligence (AI) markets, which are causing a proliferation of electronic devices globally. In addition to this, the company has a number of other businesses supporting its growth including workflow solution platform NEXUS and electronic parts search engine Octopart. Given the favourable industry tailwinds and its leadership position in the electronic design market, I believe Altium is well-placed to achieve its revenue target of US$500 million in FY 2025. This compares to its FY 2020 revenue of ~US$189 million.

CSL Limited (ASX: CSL)

My favourite share in the healthcare sector is this biotherapeutics company. I think it would be a great option, especially after a recent pullback in its share price. As of Friday’s close, the CSL share price is trading 20% lower than its 52-week high. I see this is a buying opportunity for investors due to its very positive long term outlook. While plasma collection difficulties could weigh on the performance of its CSL Behring business in FY 2021, I’m optimistic that strong demand for vaccines will go some way to offsetting this. Beyond FY 2021, I believe CSL is well-positioned for growth. This is thanks to its lucrative portfolio of therapies and vaccines and CSL’s pipeline of therapies under development. Combined, this pipeline has the potential to generate billions of dollars in sales over the next decade.

Goodman Group (ASX: GMG)

Finally, in the property sector I would be buying Goodman Group. It has a focus on commercial and industrial property and appears very well-positioned for growth over the long term. This is due to the strength of its portfolio and future developments. I’m particularly positive on Goodman Group due to its focus on high-quality properties in key locations that it believes will deliver sustainable returns for investors. These include logistics and warehouse facilities which have exposure to the rapidly growing ecommerce market through agreements with Amazon, DHL, and Walmart.

More reading

• 2 of the best ASX shares to buy right now
• Ready for the “80% stock market crash”?
• Why I would buy and hold CSL shares today
• The best blue chip ASX shares to buy today
• Invest like Warren Buffett and buy these ASX shares

James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and recommends Altium. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of CSL Ltd. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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Investors don’t know whether to buy or sell their ASX shares right now.

Tech and gold are surging higher but we’re seeing many industries struggle. Hospitality, travel and real estate have been hit hard by the coronavirus pandemic.

But if you’re a long-term investor, you have to ignore the short-term noise. Here’s why I think it’s a good time to buy and hold ASX shares right now.

Why you should buy and hold right now

Many first time investors are trying their hand at investing this year. A sub-section of those investors have started day trading – buying and selling stocks with very short holding periods.

That’s not investing, that’s just gambling. While the S&P/ASX 200 Index (ASX: XJO) has generally trended up over time, day by day fluctuations are somewhat random.

History has shown us that a buy and hold strategy can pay long-term dividends. Even experienced investors have been spooked by the recent bear market and looming economic headwinds.

However, I think now is the time to hold. Of course, the benchmark index is down (6.2%) in 2020 and you might be wary of purchasing ASX shares right now.

But a worse strategy than buy and hold is market timing. If you try and time the market with your entry and exit then you’re playing a fool’s game. I think you’re more likely to get burned on the way down as you wait for the bottom and on the way back up as you wait for a strong bull run.

That means a buy and hold strategy is a sensible move right now despite the market volatility.

Which ASX shares are good to buy and hold?

Once you’ve decided on your investing strategy, you have to choose your ASX shares to buy.

As mentioned, both tech and gold have been doing well. I think Nextdc Ltd (ASX: NXT) is one to watch in the data storage space while Newcrest Mining Limited (ASX: NCM) is a top gold producer.

If you’re after non-cyclical earnings, I like Coles Group Ltd (ASX: COL) as a solid buy with strong supermarket earnings.

More reading

• 3 quality ASX shares for a beginner’s share portfolio
• These were the best performing ASX 200 shares last week
• ASX 200 falls 0.6%, REA Group reports
• Why the Coca-Cola share price and these ASX stocks just got upgraded by brokers to “buy”
• The latest ASX 200 stocks downgraded by top brokers

Motley Fool contributor Ken Hall has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of COLESGROUP DEF SET. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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Are  you starting an ASX share portfolio for the first time? If so, I hope you discover, like me, that share investing not only is enjoyable but can also be a great way to supplement your income.

Or, maybe you are looking for some good share picks to add to your portfolio?

Either way, here’s why I believe the following 3 ASX shares could be good options for you.

Woolworths Group Ltd (ASX: WOW)

It’s not surprising that Woolworths is a very familiar brand name in Australia. The grocery retail giant is now Australia’s second-largest company based on revenue.

Woolworths has been reasonably successful at winning back customers from its rival Coles Group Ltd (ASX: COL) over recent years, achieving this with a strategy focusing on quality, service and competitive pricing.

Unlike many other retail companies, Woolworths’ revenue stream has been very resilient throughout the coronavirus pandemic. Supermarket stores have remained open because they provide an essential service. And Woolworths also delivers consumers a competitive online offering.

Another benefit is that Woolworths pays investors a forward annual dividend yield of 2.6% that is fully franked.

Macquarie Group Ltd (ASX: MQG)

Macquarie Group is a global financial services business headquartered in Australia. The company’s strategy focuses on its international investment banking operations.

I think Macquarie has become a more balanced and diversified business over the past few years. Previously, it was too focused on a small product set and got into trouble during the 2008 global financial crisis. However, in the current crisis triggered by the coronavirus pandemic, I believe Macquarie is now better positioned to weather the storm.

Macquarie currently pays investors an attractive forward annual dividend yield of 3.5%.

Vanguard MSCI Index International Shares ETF (ASX: VGS)

My third recommendation is not an individual company, but what is referred to as an exchange traded fund (ETF). Vanguard invests in a broad basket of shares that are listed in range of overseas markets.

Vanguard’s 5 biggest listings include tech giants such as Apple Inc, Microsoft and Amazon. There is no doubt that the ASX offers investors lots of great options. However, by investing in this ETF,  you will get exposure to a broad range of quality shares that are not available on the ASX as individual listings.

Foolish Takeaway

I believe Woolworths, Macquarie Group and the Vanguard ETF are solid options for anyone starting their ASX share portfolio or building on previous investments.

Keep in mind, it’s a good strategy to expand your portfolio over time. This safeguard ensures that you have enough market diversification and not too much investment weighted on any individual listing.

More reading

• Why it’s a good time to buy and hold ASX shares
• Why the Coca-Cola share price and these ASX stocks just got upgraded by brokers to “buy”
• Ready for the “80% stock market crash”?
• Where will the Scentre share price close in August?
• Earnings preview: What to expect from the Woolworths FY 2020 result

Motley Fool contributor Phil Harpur has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Macquarie Group Limited. The Motley Fool Australia owns shares of Woolworths Limited. The Motley Fool Australia has recommended Vanguard MSCI Index International Shares ETF. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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I believe the tech sector is a fantastic place to look for long term investment ideas. At this side of the market I feel there are a good number of shares that have the potential to generate strong long term returns for investors.

Two ASX tech shares that I think could be strong buys right now are listed below:

ELMO Software Ltd (ASX: ELO)

At the small end of the market you’ll find ELMO. It is a cloud-based human resources and payroll software company. It provides a unified platform to streamline processes including employee administration, recruitment, on-boarding, and payroll. Demand has been growing strongly for its software over the last few years as businesses move to automated platforms. This led to the company reporting annualised recurring revenue (ARR) of $55.1 million and statutory revenue of $50.1 million in FY 2020. This was a 19.7% and 25% increase, respectively, year on year.

Pleasingly, management expects to grow its ARR organically to between $65 million and $70 million in FY 2021. This represents year on year growth of 18% to 27%. Importantly, this does not include the benefits of potential acquisitions ELMO could make over the next 12 months. The company has a cash balance of $140 million and intends to deploy the majority of these funds in FY 2021.

Xero Limited (ASX: XRO)

At the large end of the market there’s Xero. It is a global cloud-based business and accounting software provider from New Zealand. It has been an exceptionally strong performer over the last few years and this continued to be the case in FY 2020. For the 12 months, Xero delivered a 30% increase in operating revenue to NZ$718.2 million and a 29% jump in annualised monthly recurring revenue to NZ$820.6 million. This was driven by an increase in its average revenue per user metric and a jump in total subscribers by 26% or 467,000 to 2.285 million subscribers.

And while FY 2021 will have challenges because of the pandemic and its impact on small businesses, Xero’s long term outlook remains very positive. This is thanks to its massive global opportunity, strong pricing power, sticky product, and high quality platform. Combined, I expect them to result in strong earnings growth over the 2020s.

More reading

• Brokers name 3 ASX shares to buy right now
• Which 3 ASX tech shares are investing in long-term growth?
• Why Advance NanoTek, ELMO Software, ResMed, & Scentre shares are dropping lower
• 3 ASX tech shares to buy in FY 2021
• ELMO Software share price on watch after delivering more strong growth in FY 2020

James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and recommends Elmo Software. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Xero. The Motley Fool Australia has recommended Elmo Software. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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Many shares have rebounded after the recent stock market crash. This may cause some investors to feel that it is now too late to make a significant profit through buying equities, and that they should invest elsewhere to make a million.

However, some industries continue to offer wide margins of safety. Furthermore, the long-term recovery potential offered by the world economy, as well as the stock market’s past performance, could mean that now is the right time to buy a diverse range of shares to increase your chances of making a million.

Low valuations after the market crash

The stock market crash caused a wide range of shares to decline in value. While some of them have rebounded, a great many businesses continue to face an uncertain future. As such, their market valuations may be significantly lower than their historic averages in some cases.

This could present a buying opportunity for long-term investors. Certainly, sectors such as energy and retail could face continued challenges in the coming months as a weak economic outlook weighs on their prospects. However, through buying financially-sound businesses when their share prices include a wide margin of safety, you could generate high returns as they recover in the coming years.

Of course, the threat of a second stock market crash means that diversifying across multiple companies and industries is paramount to limit overall risk. Through building a diverse portfolio, you may also be able to access growth opportunities in a wider range of industries, which may further improve your portfolio’s prospects.

Economic growth potential

While the economy’s weak outlook may prompt a second market crash, its past performance suggests that it is likely to deliver a recovery over the long run. Certainly, there have been some major recessions over past decades. However, the world economy has never been in a state of permanently negative growth.

Therefore, a return to more favourable operating conditions seems likely for the vast majority of businesses. With monetary policy being very accommodative in many of the world’s major economies, and fiscal policy tools being used to stimulate a recovery, now could be the right time to buy stocks while they do not reflect the prospects of improving economic performance in the coming years.

Stock market track record

Many share prices may have rebounded from the recent market crash, but history suggests that a rally is set to follow the current period of uncertainty. Previous bear markets have often taken many months, and even years in some cases, to give way to a sustained bull market that can produce new record highs.

Therefore, with the stock market crash still being a recent event, investors can look ahead to likely growth from share prices. Over time, new record highs are likely to be made by indices such as the S&P 500 and FTSE 100, which could improve your chances of making a million. 

More reading

• Why it’s a good time to buy and hold ASX shares
• 3 quality ASX shares for a beginner’s share portfolio
• These ASX tech shares could be strong buys right now
• These were the best performing ASX 200 shares last week
• Got $3,000? Buy these 3 top ASX shares right now

Motley Fool contributor Peter Stephens has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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The S&P/ASX 200 Index (ASX: XJO) bounced back from a disappointing decline a week earlier to record a solid gain last week. The benchmark index pushed 1.3% higher over the five days to finish the period at 6,004.8 points.

A number of shares on the index climbed more than most last week. Here’s why these were the best performing ASX 200 shares over the period:

Mesoblast limited (ASX: MSB)

The Mesoblast share price was the best performer on the ASX 200 last week with a 16.4% gain. This latest gain means the shares of the allogeneic cellular medicines for inflammatory diseases are now up over 111% year to date. While there was no news out of Mesoblast last week, a broker recently highlighted the company as a strong buy. Lodge Partners is bullish on Mesoblast due to the potential of its Ryoncil (remestemcel-L) product candidate.

Incitec Pivot Ltd (ASX: IPL)

The Incitec Pivot share price wasn’t far behind with a sizeable gain of 15.5% over the period. This follows the release of a number of broker notes with bullish ratings on the industrial chemicals company’s shares. Morgans, Macquarie, Goldman Sachs, and Citi all have the equivalent of buy ratings on its shares. The former upgraded Incitec Pivot’s shares to an add rating with a $2.35 price target following a better than expected trading update.

Lynas Corporation Ltd (ASX: LYC)

The Lynas share price was on form last week and recorded a gain of 12.1%. Investors were buying the rare earths producer’s shares after it provided an update on its Malaysia Permanent Deposit Facility (PDF). According to an announcement, the Atomic Energy Licensing Board has approved the proposed site at Bukit Ketam, Malaysia for the construction of a PDF for Water Leach Purification residue. This remains subject to completion of relevant studies and final approvals by regulatory authorities.

News Corp (ASX: NWS)

The News Corp share price was a strong performer over the period and climbed 11.8% higher. A good portion of this gain came on Friday following the release of the media company’s full year results. Although News Corp recorded a net loss of $1.55 billion for FY 2020, this was largely attributable to $1.69 billion in non-cash impairment charges. These relate primarily to its Foxtel and North America Marketing segments.

More reading

• Why it’s a good time to buy and hold ASX shares
• ASX 200 falls 0.6%, REA Group reports
• Why the Coca-Cola share price and these ASX stocks just got upgraded by brokers to “buy”
• The latest ASX 200 stocks downgraded by top brokers
• Mesoblast’s share price gained another 16% in July. Here’s why.

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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