The best holding period for ASX shares is forever, when possible. Warren Buffett certainly thinks so.
The more that we change our holdings the more that we pay brokerage fees and, if we've done well, the more tax we'll end up paying.
Imagine if you could invest in something that you'd hold for the rest of your life. You could build huge paper gains and not ever trigger a capital gains tax event.
But there aren't many shares on the ASX that you could comfortably say it would be a good idea to own forever, or at least for many years.
Here are two ASX shares to hold forever
Washington H. Soul Pattinson and Co. Ltd (ASX: SOL)
Past performance is not normally a reliable indicator of the future. But the fact that Soul Patts has been around for over a century shows that it has excellent longevity and could be around in another 100 years.
It's an investment house that invests in listed and unlisted businesses as well as other asset classes like real estate, loans and so on. The ability to invest in anything means that it can change its investments over time and shift towards future growth if a particular holding doesn't seem to have good prospects.
Some of its current largest holdings include TPG Telecom Ltd (ASX: TPM), Brickworks Limited (ASX: BKW) and Clover Corporation Limited (ASX: CLV).
Soul Patts' management themselves invest for the long-term within Soul Patts, which positions the share well as a long-term idea.
It's times like this coronavirus period where Soul Patts really comes into its own. A lot of its holdings offer defensive earnings and it's very willing to invest in any opportunities that it can see.
Its share price is now attractively lower than a couple of months ago.
Rural Funds Group (ASX: RFF)
Farmland has been useful for humanity for many centuries. I don't think that's going to change in our lifetime. Indeed, with the growing global population and the degradation of some farmland globally, existing farms could become even more valuable.
Rural Funds Management, the operator of the farmland real estate investment trust (REIT), has been going since 1997.
Rural Funds owns a variety of farm types including almonds, macadamias, cattle, cotton and vineyards. This is useful diversification because it lowers the risk of owning just one or two types of farms. It also allows Rural Funds to look wider for acquisition opportunities.
The REIT has done a good job of finding a strategy that works well to drive its rent and value higher. That strategy is identifying farms where Rural Funds can invest in productivity improvements to increase the rental value of the farm.
It aims to increase its distribution by 4% every year, which it has done successfully since listing.
A bonus is that it currently offers a forward distribution yield of 5.8%.
Foolish takeaway
I think both of these shares are great long-term options. But I prefer Soul Patts for its better diversification and Rural Funds is trading at a noticeable premium to its net assets. They aren't the only long-term shares out there.
