LIC & LIT Washington H. Soul Pattinson and Co. (SOL)

Discussion in 'Shares & Funds' started by ChrisP73, 30th Sep, 2019.

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  1. ChrisP73

    ChrisP73 Well-Known Member

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    Hi all, not an owner but note that the share price has taken a beating this year. Interested in thoughts for and against.

    Seems aside from large holdings in new hope, TPG, brickworks etc SOL is active in the non listed investment space.
     

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  2. bobbyj

    bobbyj Well-Known Member

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    the dividends have been increasing every year for 18 years.
    One of the best dividend payers on the ASX.
    It's a long term hold kind of stock. Pretty boring to most.
     
  3. Redwing

    Redwing Well-Known Member

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    Had a good run up during 2018

    upload_2019-9-30_9-39-17.png
     
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  4. ChrisP73

    ChrisP73 Well-Known Member

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    Thanks, interested in the case going forward from a total return perspective too. Ive noted that the dividend payout ratio has reduced recently. What are the prospects for reinvesting this free cashflow in existing or new businesses at a capital growth rate greater than the asx200?

    Understand it's subjective and the future is unknown but thought someone might have some insight
     
  5. ChrisP73

    ChrisP73 Well-Known Member

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    Thanks @Redwing , kind of liking the subsequent rundown .... But yeah looks more like a regression to mean..rather than a raging opportunity. Just wondering what the future holds
    .
     
  6. SatayKing

    SatayKing Well-Known Member

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    Yep. Since it was around $3.50 in 2000.

    Ain't an LIC though - energy company classification.
     
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  7. Snowball

    Snowball Well-Known Member

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    I really think you’d have to just jump on for the ride and put faith in the management, history and culture of the company. They have long term runs on the board (40+ years) so that’s what we can go on.

    As for their growth prospects from here I have no insight, but I’d guess they could probably do a bit better than the market over the long term, even if outperformance is smaller.

    Wonderful dividend history. Small position for the bottom drawer would be suitable. Used to own but sold after the huge run up as it seemed overpriced, could sell tax-free and wanted to reduce number of holdings.
     
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  8. mdk

    mdk Active Member

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    Absolutely no idea on its future, but I do hold it. Reason's include it's dividend history, is active in a unlisted businesses too, no DRP, multi generational family involvement, I like it's story/history, etc.
    I understand there's a few biases there, but suits me.
     
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  9. Ariyahn2011

    Ariyahn2011 Well-Known Member

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    I sold it at $14 when I decided to move into LIC's and ETF's..... :|

    CAR, SEEK, SOL, S32, TME, and a handful of others got the flick. Most out performed the index! DOH!
     
  10. Fargo

    Fargo Well-Known Member

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    There is not much to dislike other than high capital concentration in a few large compaies, and perhaps coal and boring. It wont shoot the lights out. Things to like, proven track record and management a history of out performance, holding diversified quality attractive companies, Founders family have a lot of skin in it, continually increasing dividend, conservative and focused on value. The nearest thing Australia has to Berkshire Hathaway. If you could only hold one stock and are risk averse this would be one to give top consideration, a portfolio all in one to hold for the long term , at least while managed by the current family management, a change of management and long term focus maybe something to watch for in the future.
     
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  11. trinity168

    trinity168 Well-Known Member

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  12. Redwing

    Redwing Well-Known Member

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    From @Froxy just Below @Nodrog :)

     
  13. SatayKing

    SatayKing Well-Known Member

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    Should put this in BKW thread should one exist but SOL holds a swag of BKW.

    A little bit of hurt from BKW which has closed some non-essential business in the USA for the time being.
     
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  14. Silverson

    Silverson Well-Known Member

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    Yes, trying to work out why my portfolio has/is underperforming the index for the day(curiosity sake) and then saw SOL and BKW a little red!
    Great companies long term, have buy orders in on both
     
  15. SatayKing

    SatayKing Well-Known Member

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    Ah right. Didn't know about share prices. I only glance at ASX announcements unless I'm ready to buy. That ain't going to happen now until next month - and maybe not even then - as I have no spare cash or at least spare to the level I am prepared to commit over and above my estimated annual expenditure.

    Good stuff with your buy orders. Held SOL for many years but not any longer as part of the simplification process.
     
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  16. Omnidragon

    Omnidragon Well-Known Member

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    Tough one I feel there's an arb there with Brickworks but I can't remember how it works. But you can't unlock the arb anyway as the shares are locked up.

    From memory, if you cancel the Brickworks shares in Washington and bring the EV down correspondingly in proportion to what WSH owns in Brickworks, the remaining EV is lower than the sum of New Hope + TPG - net debt.