There aren't many ASX shares that I think every investor should own.
Many businesses aren't "great" businesses. For plenty of shares it's hard to be quite certain about their long-term growth prospects. There's a lot of change and disruption happening out there all the time due to competition and the ongoing coronavirus pandemic.
But there is a small group of shares that I could see weathering most problems, including the current issues. These shares have long-term growth prospects, great management and operate in reliable industries.
Here are two of my favourite ASX shares that I think every investor should own:
Washington H. Soul Pattinson and Co. Ltd (ASX: SOL)
I believe that Soul Patts is one of the best shares on the ASX. It's an investment conglomerate that has been going for over a century. I think it could go for another hundred years because of its style of operations.
It's invested in a variety of different shares in different industries like TPG Telecom Ltd (ASX: TPM), Brickworks Limited (ASX: BKW), Clover Corporation Limited (ASX: CLV) and Palla Pharma Ltd (ASX: PAL). It also owns plenty of unlisted businesses outright like resources, agriculture and swimming schools.
It has been recently reported that it's going to start investing in regional data centres alongside a business called Leading Edge Data Centres.
Soul Patts is diversified, it's long-term focused and it has a growing dividend. There's a lot to like and it's one of those ASX share ideas you can own for a very long time.
Altium Limited (ASX: ALU)
I believe that Altium is one of the best ASX growth shares around. It's a world leader in providing electronic PCB software to help engineers design the devices, items and vehicles of the future.
It already has an impressive list of clients using its software including Amazon, Microsoft, Google, Disney, John Deere, Tesla, Space X, NASA and so on.
Over the past several years it has been steadily growing its profit margins thanks to its operating leverage and growing scale. That's the advantage of a software business – once you've developed the software there aren't many more costs, it mostly falls to the profit lines. That's a sign of a great ASX share.
Altium has an ambitious goal of 100,000 Altium Designer subscribers and US$500 million revenue by 2025. These are large goals, particularly under the current circumstances. But its cloud offering of Altium 365 could be perfect to convince potential clients to switch over in this period of disruption.
The company's balance sheet is great because it doesn't have any debt and its cash balance is steadily growing despite paying (attractive) growing dividends each year. This growing cash pile can be used for bolt-on acquisitions or simply to ride out tougher times like this.
Altium's share price has performed strongly since 23 March 2020. It's not cheap, but it could be one of those long-term winners.
Foolish takeaway
I think both of these shares could be some of the best ASX shares out there.
At the current prices I'd go for Soul Patts. Altium may have recovered too strongly (in the short term) given the uncertain economic circumstances. However, with interest rates now at very low levels, both of these shares look very attractive compared to holding cash or even bonds.
