The shares of Washington H. Soul Pattinson and Co. Ltd (ASX: SOL) continue to climb, the Soul Patts share price just hit a 52-week high after hitting $27.81.
A quick refresher about Soul Patts
Soul Patts is an investment house that has investments in a variety of listed and unlisted businesses.
It has large positions in companies like TPG Telecom Ltd (ASX: TPG), Brickworks Limited (ASX: BKW), Australian Pharmaceutical Industries Ltd (ASX: API), Tuas Ltd (ASX: TUA) and Clover Corporation Limited (ASX: CLV).
The company also has positions in unlisted businesses like resources, agriculture, financial services, swimming schools and a business called Ampcontrol.
It has actually been listed in Australia since 1903.
What has been going on?
The entire share market has been rising after the recent news of promising news about the BioNTech – Pfizer vaccine.
Global news media reported that the vaccine being produced could be 90% effective at stopping COVID-19. Around 44,000 people had been given a trial of the vaccine, and the results are promising when looking at the 94 people who have been infected by COVID-19, according to early results.
The Australian government is interested in this vaccine, it has signed an agreement to gain access to this one as well as ones from the University of Queensland and Oxford University. Federal Health Minister Greg Hunt said: “The data on our vaccine candidates continues to be positive. We will examine the evidence carefully but the latest results are heartening news.”
There are still several steps to bring the vaccine to public, but Pfizer hopes to start production of the vaccine as soon as it can.
But the Soul Patts share price was going up before then
Soul Patts shares may have gone up 9% since 4 November 2020 – being around the time of the US election – but it has actually risen by 32% over the past two months.
Changes in the share prices of Soul Patts’ investments will increase (or decrease) the book value of the Soul Patts share price. The book value is what some people focus on.
Since 4 November 2020, the TPG share price has risen by around 10.6%. TPG is the largest position in the portfolio. Since 30 October 2020, the Brickworks share price has gone up 12%. The New Hope Corporation share price has also gone up around 10% over the past week as well.
Many of Soul Patts’ other positions are going up as the overall S&P/ASX 200 Index (ASX: XJO) climbs. Over the past week the Milton Corporation Limited (ASX: MLT) share price has risen 4.4% and the Bki Investment Co Ltd (ASX: BKI) share price has gone up 4.2%.
The business has increased its dividend every year since 2000 and it has paid a dividend every year since it listed in 1903.
The Motley Fool Dividend Investor service still rate the Soul Patts share price as a buy.
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Tristan Harrison owns shares of Washington H. Soul Pattinson and Company Limited. 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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