Although the S&P/ASX 200 Index (ASX: XJO) is having a strong day on top of a strong week today, I'm not yet convinced we have seen the last of any share market volatility that may relate to the coronavirus.
We're far from looking at this dreadful time in the rearview mirror, and so I'm investing very cautiously in the current environment.
Specifically, that means concentrating on shares that I have a fair expectation will come out the other side of this tough time fully intact and ready to benefit from a re-opened economy.
Here are two such ASX shares that top my list so far (the rhyming ticker symbols are a coincidence!).
Coles Group Ltd (ASX: COL)
Coles is one company that I'm fairly confident isn't struggling in the current Brave New World of the coronavirus. Yes, Coles was caught flat-footed by the sudden change in grocery consumer behaviour that we've been seeing in recent months. But the company has been rising to the challenge very well in my view, increasing supply chain responses and replenishing in-demand items more effectively.
I've also been pleased to see the level of community engagement from Coles with the introduction of safety measures at its supermarkets as well as initiatives like the 'Community Hour' designated shopping time for disadvantaged persons. This not only is the right thing to do, but also fosters customer loyalty and is a good move for the Coles brand.
At the end of the day, Coles is an essential business whose role we'll always need fulfilled in the market. Therefore, it's an ASX share I'm watching carefully in this crisis.
Washington H. Soul Pattinson and Co. Ltd (ASX: SOL)
I already own shares in 'Soul Patts', but it's a position I'm very comfortable with and could even add to during this pandemic. This company is one of the oldest and most diversified businesses in Australia. It owns large stakes in several defensive businesses, including TPG Telecom Ltd (ASX: TPM), Brickworks Limited (ASX: BKW) and BKI Investment Co Ltd (ASX: BKI).
This broad investment platform gives this company great resilience and earnings stability, which I think is a very desirable attribute to have right now. Soul Patts has lived through the Great Depression as well as both World Wars, so I know its investment philosophy is battle-hardened. I also love that it's one of the only ASX shares to have increased its dividends every year since 2000.
