The ASX 200 share I'd hold for 5 years: fund manager

Companies that can adapt to rapidly changing times could be well placed for future growth.

| More on:
a man in a business suit holds a piece of paper in front of him as if revealing information.

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The S&P/ASX 200 Index (ASX: XJO) is off to its second day of gains this week…barely.

The ASX 200 finished the day up a slender 0.03%, having earlier posted gains of 0.4%. That leaves the index up 0.2% over the last 5 days.

That's the combined share price movement of the largest 200 listed Aussie companies. And it's just a snapshot of 5 days of trading.

But what if you were asked which single ASX 200 share you'd choose to hold onto not for 5 days, but 5 years.

That's the question the Motley Fool posed to Andrew Martin earlier this month.

And Martin – principal portfolio manager of the Alphinity Australian Share Fund and Alphinity Concentrated Australian Share Fund – told us he had "the perfect" stock in mind.

The ASX 200 share to hold for 5 years

According to Martin:

Macquarie is one we've held for a while and we think they're just getting better. It's an incredibly adaptable company to the market conditions, and they've reinvented themselves a number of times. The operating environment we're in is fantastic for them. And demand for their services is better than ever at the moment.

As far as holding onto the ASX 200 share for 5 years, Martin added:

I think Macquarie is the perfect stock to own for the next 5 years. Ironically, if the ASX closed for the next 5 years, the demand for their services would probably go up.

A really interesting part of their business, which I think still isn't properly priced in the market, is their exposure to green energy. They're a developer, a manager, a funder, and an owner of green energy assets. And that area of the market is just getting bigger and bigger. Macquarie is right in the centre of being able to make money out of that [clean energy] transition.

How has Macquarie been performing?

The Macquarie share price has been on a tear this year, up 44% so far in 2021. That compares to an 11% gain posted by the ASX 200.

Macquarie pays a 2.4% dividend yield, 40% franked.

The Motley Fool Australia's parent company Motley Fool Holdings Inc. 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 has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on Financial Shares

Man with rocket wings which have flames coming out of them.
Financial Shares

Up more than 900% in 5 years, can this ASX All Ords financials stock go higher?

The share price of this company has left others behind in the dust.

Read more »

A man sits in deep thought with a pen held to his lips as he ponders his computer screen with a laptop open next to him on his desk in a home office environment.
Financial Shares

HMC Capital shares are down 50% in 2025, can they turn around?

HMC Capital shares have plunged more than 50% this year, but with solid investments in energy, private credit, and data…

Read more »

Modern accountant woman in a light business suit in modern green office with documents and laptop.
Financial Shares

Forget the Big 4 banks and buy these 2 compelling ASX 200 financials stocks

The Big 4 banks might be steady, but if you’re after real growth in financials, here are two modern, scalable…

Read more »

A woman sits at her computer with her chin resting on her hand as she contemplates her next potential investment.
Financial Shares

Buy this surging ASX 300 stock before the next interest rate cut

A leading fund manager expects more upside from this surging ASX 300 stock.

Read more »

woman talking on the phone and giving financial advice whilst analysing the stock market on the computer with a pen
Financial Shares

Why this ASX All Ords stock surged yesterday

Investors sent this ASX All Ords stock flying higher. But why?

Read more »

Young woman thinking with laptop open.
Financial Shares

Does Macquarie tip more upside for Suncorp or IAG shares?

Macquarie analysed the outlook for both Suncorp and IAG shares in the year ahead.

Read more »

A woman sits at her computer with her chin resting on her hand as she contemplates her next potential investment.
Financial Shares

Why this $2 billion ASX 200 stock looks undervalued today

A leading expert believes this ASX 200 company is poised to ‘unlock some decent value’.

Read more »

A woman smiles at the outlook she sees through binoculars.
Financial Shares

Here's the earnings forecast out to 2030 for Macquarie shares

What’s expected of investment bank Macquarie?

Read more »