If this star investor is buying TPG Telecom Ltd shares, should you?

Washington H. Soul Pattinson & Co. Ltd (ASX: SOL) is moving full steam ahead with its shares of TPG Telecom Ltd (ASX: TPM).

Who cares?

If you find an investor that has an exceptional long-term track record, it’s worth paying attention to what they are doing.

Long-term, meaning at least five years of investing track record – preferably 10+ years. Exceptional, meaning above-market performance — not every year, but on average.

We have all heard of the USA’s Warren Buffett and Peter Lynch. But there are some great local investors that deserve your attention.

Washington H. Soul Pattinson (WHSP) is a local conglomerate business, meaning it buys large chunks of other companies and holds on for the long-term.

WHSP’s track record is exceptional:


Washington H. Soul Pattinson half-year media release (2017)

And that is just its 15-year track record. Over 40 years, WHSP shares have returned an average of 16.8% – $1,000 invested would today be worth $507,000.

WHSP owns a big stake in TPG Telecom. In fact, earlier this year, WHSP agreed to buy an additional $101 million of TPG Telecom shares during its capital raising. TPG Telecom Chairman David Teoh added to his portfolio with a further $138 million investment.

In total, WHSP owns more than 25% of TPG Telecom – worth more than $1 billion.

Robert Millner is Chairman of WHSP and deputy chairman of TPG Telecom. He’s been at the helm of WHSP for many years.

Foolish Takeaway

As I recently wrote here, TPG Telecom shares appear to be compelling value today. While no investment is risk-free, at the very least if you buy shares in TPG Telecom you’ll be in good company.

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Motley Fool Contributor Owen Raszkiewicz does not have a financial interest in any company mentioned. You can follow him on Twitter @OwenRask.

The Motley Fool Australia owns shares of TPG Telecom Limited and Washington H. Soul Pattinson and Company Limited. 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.

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