I'm a big believer in the philosophy of long-term investing. If you can hold your shares through volatile times, then you're very likely to beat the market by some distance.
In my opinion, one of the best buy-and-hold choices on the ASX is Washington H. Soul Pattinson and Co. Ltd (ASX: SOL), also known as 'Soul Patts'.
Soul Patts is one of the oldest companies in Australia, having been founded in 1903.
However, its age isn't one of the main reasons why I like Soul Patts. Here are three reasons why I really like the business:
Management
Soul Patts isn't like your typical ASX company where the management come and go every few years. A lot of the management include members of families who have worked there for several generations.
The company has been served by five generations of the Pattinson family and three generations of the Dixson, Spence, Rowe and Letters families.
Management are aligned with shareholders because they themselves own large stakes in the business and want to achieve long-term success.
Diverse portfolio
Soul Patts is an investment conglomerate that owns large stakes in many businesses and owns others outright.
Some of the businesses it has large stakes in include TPG Telecom Ltd (ASX: TPM), Brickworks Limited (ASX: BKW) and Australian Pharmaceutical Industries Ltd (ASX: API).
These may make up the bulk of Soul Patts' shareholdings, but it regularly buys substantial stakes in other businesses on the ASX. National Veterinary Care Ltd (ASX: NVL) is the latest share Soul Patts has invested money into.
Dividend strength
Soul Patts has paid a dividend every year for many decades, including through wars and economic crashes.
Shareholders of Soul Patts can be very confident of an increase to the dividend each year. Soul Patts has increased its annual ordinary dividend every year since 2000, including through the GFC. In FY17 it grew its dividend by 3.8%.
Foolish takeaway
Soul Patts is currently trading at 15x FY18's estimated earnings with a grossed-up dividend yield of 4.66%. This price isn't a screaming buy, but long-term investors could make a decent buy today. I'd rather buy when the share price is near $16.
