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2 leading ASX 200 shares I’d buy right now and hold for years

There aren't too many ASX 200 Index (ASX:XJO) shares that I'd gladly buy for my portfolio. But I'd go for the two in this article.

There aren’t too many ASX 200 Index (ASX: XJO) shares that I’d gladly buy for my portfolio.

I’m looking for businesses that I could buy for the long-term and benefit from compounding over the years.

I don’t think that many financial businesses or resource shares can deliver strong long-term growth due to their size and/or cyclicality. Obviously, most businesses do suffer from the occasional decrease in profit or the share prices.

But, I do think that the two ASX 200 shares I’m about to tell you about could be excellent businesses for many years to come.

Wesfarmers Ltd (ASX: WES)

I think Wesfarmers is a great business. It owns a number of market-leading businesses including Officeworks, Kmart and Bunnings.

Bunnings may well be the best retail business in Australia, it’s worth owning a part of it in my opinion.

There are other businesses inside the Wesfarmers portfolio like Target, Catch, Priceline and many other industrial businesses. One of the most interesting elements about Wesfarmers is its desire to expand into new industries.

It’s developing a lithium project called Mt Holland. Wesfarmers also recently acquired an ASX-listed business called Australian Pharmaceutical Industries (API) which operates Priceline and Clear Skincare Clinics.

API is going to be the start of a new Wesfarmers Health division. Healthcare is a huge potential industry for the company to tap into with long-term growth potential thanks to the ageing demographics.

Don’t forget, the ASX 200 share also pays a dividend every six months to investors as well, boosting returns.

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

This business is even more diversified than Wesfarmers.

It has a portfolio of businesses that it owns outright or has a stake of.

Some of the private businesses and industries it’s invested in includes agriculture, swimming schools, electrical parts and financial services.

In terms of the ASX 200 shares it’s invested in, it is invested in large caps like BHP Group Ltd (ASX: BHP), Commonwealth Bank of Australia (ASX: CBA), Macquarie Group Ltd (ASX: MQG), Wesfarmers, CSL Limited (ASX: CSL) and Transurban Group (ASX: TCL).

Some of its biggest investments include Tuas Ltd (ASX: TUA), TPG Telecom Ltd (ASX: TPG), Brickworks Limited (ASX: BKW) and New Hope Corporation Limited (ASX: NHC).

It’s not just invested in businesses, but it’s also invested in property and ‘structured yield’ (across the capital structure).

WHSP has increased its dividend every year for more than two decades. I like the long-term growth potential of the portfolio value and dividend.

$50,000 per year in passive income from shares? Yes, please!

With interest rates UP, now could be one of the best times to start earning passive income from a portfolio. Imagine earning 4%, 5% — or more — in dividend passive income from the best shares, LICs, or ETFs… it’s like magic.

So how do the best investors do it?

Chief Investment Officer Owen Rask has just released his brand new passive income report. Owen has outlined 10 of his favourite ETFs and shares to watch, his rules for passive income investing, why he would buy ETFs before LICs and more.

You can INSTANTLY access Owen’s report for FREE by CLICKING HERE NOW and creating a 100% FREE Rask Account.

(Psst. By creating a free Rask account, you’ll also get access to 15+ online courses, 1,000+ podcasts, invites to events, a weekly value investing newsletter and more!)

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Information warning: The information on this website is published by The Rask Group Pty Ltd (ABN: 36 622 810 995) is limited to factual information or (at most) general financial advice only. That means, the information and advice does not take into account your objectives, financial situation or needs. It is not specific to you, your needs, goals or objectives. Because of that, you should consider if the advice is appropriate to you and your needs, before acting on the information. If you don’t know what your needs are, you should consult a trusted and licensed financial adviser who can provide you with personal financial product advice. In addition, you should obtain and read the product disclosure statement (PDS) before making a decision to acquire a financial product. Please read our Terms and Conditions and Financial Services Guide before using this website. The Rask Group Pty Ltd is a Corporate Authorised Representative (#1280930) of AFSL #383169.

At the time of publishing, Jaz owns shares of WHSP.
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