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

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.

 

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.

 

Had a good run up during 2018

 

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

 

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
.

 

Yep. Since it was around $3.50 in 2000.

Ain't an LIC though - energy company classification.

 

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.

 

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.

 

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!

 

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.

 

Listed Investment Companies (LICs) 2019

@Nodrog - interested in your thoughts on SOL right now - still think young Milner has lost the plot?

Thank you.

 

From @Froxy just Below @Nodrog

 

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.

 

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

 

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.

 

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.

 

Down 15% YTD.

Not sure whether to buy or cry.

Thoughts?

 

Attempting to distil what SOL actually is can be confusing. I get it is now an investment house and has structured it's holdings in to discrete folios e.g. property folio, private equities folio and so on. Although as an aside its GICS is energy.

Probably depends how the market assesses each and then overall. It seems overall it is attempting to emulate Berkshire Hathaway of holding a viable stake in companies and then letting the management run it. Not surprising since the managers of BKI have, or at least did have, a tendency to attend BH annual meetings. Will be interesting to see how MLT travels as a subsidiary of SOL.

No longer hold SOL and sold MLT before the merger. SMSF took the same action.

 

MLT was the party and SOL is the hangover.

 

Down Down, prices are Down.

I'm not sure what to make of them other than I should have done the same and sold MLT before the merger.

Now that I'm stuck with SOL I'm tossing up whether to accumulate if the prices keeps dropping.

They were one of the first companies on the ASX with a long track record of out performance and dividend growth. Better track record than any LIC. I was happy to invest in MLT now SOL have got MLT PLUS everything else that has performed so well for them.

But still I'm hesitant and I dont know why. Price is still dropping so I guess I'm not the only one thats hesitant.