Who else wants 4 free investment ideas from a master investor?

By analysing the holdings of investment powerhouse Washington H. Soul Pattinson and Co. Ltd (ASX:SOL), Foolish investors may find some new ideas for their portfolio…

| More on:
a woman

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

Washington H. Soul Pattinson and Co. Ltd (ASX: SOL) (WHSP) could be considered the closest thing to Berkshire Hathaway available on the ASX. They are both large, diversified conglomerates with a focus on long-term investments in high-quality businesses. Listed in 1903, WHSP has never raised additional capital nor missed a dividend payment and is still run by descendants of the founding Pattinson family.

The exceptional performance of the business could be largely attributed to the stability and long-term vision provided by its history of ownership, similar to Berkshire Hathaway which has had Warren Buffett at the helm for over 40 years. Current Chairman Robert Millner is the fourth generation of the extended family to lead WHSP and has been a director of the company since 1984.

The company has a good track record of making profitable long-term investments. The market value of its listed equity investment portfolio was $4.3 billion at the start of 2015 and was acquired at a cost of $866.7 million. For new investment ideas, it would be wise for Fools to analyse the holdings of WHSP now and into the future.

Some of the WHSP's current holdings worthy of further consideration include:

TPG Telecom Ltd (ASX: TPM) – This fast growing telecommunications company is aiming to become a dominant player in the industry with its acquisition of iiNet Limited (ASX: IIN) likely to be approved in the near future. The long-term growth outlook for the telecommunications sector remains strong with increasing volumes of data being required for an increasing array of technological uses.

Brickworks Limited (ASX: BKW) – Owner of some of the best known bricks-and-masonry brands in Australia, Brickworks also owns a 42% cross-holding in WHSP. Its main business lines of building products and land development result in company profit being subject to the property cycle, however, it's holding in WHSP will smooth out returns during the tougher years.

Australian Pharmaceutical Industries Ltd (ASX: API) – One of Australia's largest pharmaceutical wholesalers, API also operates the chain of Priceline stores and the original Soul Pattinson pharmacies. This business is rapidly expanding its store network and dividends are following suit.

Lindsay Australia Limited (ASX: LAU) – A company most people may not be familiar with, Lindsay is a transport and logistics group focused mainly on the food and agriculture industry. Increasing demand in Asia is expected to drive the growth of the Australian agriculture industry for decades to come. The increasing volume of produce coming from rural Australia will require transport to reach export locations.

WHSP's history of investment performance provides additional merit to long-term investing in high-quality businesses and Foolish investors should pay attention to its investment decisions.

Warren Buffett is another advocate of this investment style.

Here Are 2 Top ASX Shares Warren Buffett Would Love…

Motley Fool contributor Mitch Sonogan has no position in any stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on ⏸️ Investing

Close up of baby looking puzzled
Retail Shares

What has happened to the Baby Bunting (ASX:BBN) share price this year?

It's been a volatile year so far for the Aussie nursery retailer. We take a closer look

Read more »

woman holds sign saying 'we need change' at climate change protest
ETFs

3 ASX ETFs that invest in companies fighting climate change

If you want to shift some of your investments into more ethical companies, exchange-traded funds can offer a good option

Read more »

a jewellery store attendant stands at a cabinet displaying opulent necklaces and earrings featuring diamonds and precious stones.
⏸️ Investing

The Michael Hill (ASX: MHJ) share price poised for growth

Investors will be keeping an eye on the Michael Hill International Limited (ASX: MHJ) share price today. The keen interest…

Read more »

ASX shares buy unstoppable asx share price represented by man in superman cape pointing skyward
⏸️ Investing

The Atomos (ASX:AMS) share price is up 15% in a week

The Atomos (ASX: AMS) share price has surged 15% this week. Let's look at what's ahead as the company build…

Read more »

Two people in suits arm wrestle on a black and white chess board.
Retail Shares

How does the Temple & Webster (ASX:TPW) share price stack up against Nick Scali (ASX:NCK)?

How does the Temple & Webster (ASX: TPW) share price stack up against rival furniture retailer Nick Scali Limited (ASX:…

Read more »

A medical researcher works on a bichip, indicating share price movement in ASX tech companies
Healthcare Shares

The Aroa (ASX:ARX) share price has surged 60% since its IPO

The Aroa (ASX:ARX) share price has surged 60% since the Polynovo (ASX: PNV) competitor listed on the ASX in July.…

Read more »

asx investor daydreaming about US shares
⏸️ How to Invest

How to buy US shares from Australia right now

If you have been wondering how to buy US shares from Australia to gain exposure from the highly topical market,…

Read more »

⏸️ Investing

Why Fox (NASDAQ:FOX) might hurt News Corp (ASX:NWS) shareholders

News Corporation (ASX: NWS) might be facing some existential threats from its American cousins over the riots on 6 January

Read more »