Home Sports I will never sell that share of ASX dividends. That’s why

I will never sell that share of ASX dividends. That’s why


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Legendary investor Warren Buffett once famously said that his favorite time to own a share is forever. This is a feeling with which this writer completely agrees. But the world is a complex and ever-changing place. Therefore, it is difficult to know for sure whether a company has a place in the portfolio forever.

In 1992, for example, Blockbuster Video might seem like a company that bought and held forever. Let’s move to the late 2000s, and it became clear that the future of Blockbuster looks increasingly bleak.

Even Buffett doesn’t keep putting his money where it’s in his mouth all the time. After all, he has sold many of his shares in recent years.

But in my opinion, Washington H. Soul Pattinson and Co. Ltd. (ASX: SOL) about as close as you can get to the “eternal share of ASX”. Here are two reasons:

Soul Patts has been succeeding for decades

Soul Patts has been around longer than ASX. It can trace its roots to the 19th century. In recent decades, the company has gradually evolved into a kind of investment house. It conservatively manages its capital in the long run for its shareholders, and the process is constantly improving.

But he did a pretty decent job of creating a long-term performance track record. У Company presentation in March, Soul Patts claimed that since 1981 its shares have averaged an annual return of 14.5%. Not many companies can boast of records of this length and caliber. What’s more, Soul Patts also gives to its investors annually dividend increases every year since 2000

An unusually diversified ASX stock

Most ASX shares are inherently non-diversified because they represent ownership of one business. But Soul Patts is different. He owns large chunks of many other ASX stocks in his investment portfolio. These include the TV channel TPG Telecom Ltd (ASX: TPG)coal miner New Hope Corporation Limited (ASX: NHC)and a building materials company Brick Factory Ltd. (ASX: BKW). Moreover, it also owns many unlisted assets, which further diversifies its portfolio.

Thus, Soul Patts is a diversified investment with a long experience of achieving the highest performance and dividend growth. That’s why I never plan to sell that share of ASX dividends.


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