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Where I’d invest $1,000 into ASX shares right now

If I had $1,000 to invest into ASX shares right now, I’d go for Washington H. Soul Pattinson and Co. Ltd (ASX: SOL). The Soul Patts share price looks really good to me right now.

About Soul Patts

Soul Patts is an investment conglomerate that has been going since the early 1900s. It’s invested in a variety of different industries and businesses such as TPG Telecom Ltd (ASX: TPM), Brickworks Limited (ASX: BKW) and Clover Corporation Limited (ASX: CLV).

It’s also invested in a number of unlisted businesses such as swimming schools, agriculture and resources. I really like that it may be about to expand into data centres.

Why I’d invest $1,000 at this Soul Patts share price

There are not many investments listed on the ASX that have outperformed the ASX index as consistently over the long-term as Soul Patts, when you look back at previous reporting dates. Its investment diversification strategy has been very good. It means that management can look at almost any potential investment.

At the time of writing the Soul Patts share price is down by 23% since 20 February 2020. I think that’s a sharp fall for a business that’s defensive and has a promising long-term future.

I’m a big fan of the company investing in small caps on the ASX. Its investments in shares like TPG and New Hope Corporation Limited (ASX: NHC) were tiny at the start, but they have grown tremendously. Soul Patts may be able to find the next opportunity with these investments.

I think it’s important to remember that interest rates are now incredibly low. With share prices a lot lower I think it makes sense to invest in shares. Soul Patts has a grossed-up dividend yield of 4.8% and it has increased its dividend every year since 2000. 

At this share price, I think Soul Patts looks like a very solid buy under $18. I’ll probably be buying shares next time trading rules allow.

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Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of Clover Limited. The Motley Fool Australia owns shares of and has recommended Brickworks 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 Scott Phillips.

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