There's one particular S&P/ASX 200 Index (ASX: XJO) share that I'm expecting to buy lots of in 2024: Washington H. Soul Pattinson and Co. Ltd (ASX: SOL).
I've written plenty of articles about why I like this investment house. It has excellent underlying diversification, a flexible investment mandate and a track record of dividend growth and long-term capital growth (though that's not guaranteed).
It's not the sort of business that is growing revenue by over 20% year after year. But, there are a few key reasons why I'm expecting to make multiple investments this year into the ASX 200 share.
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Regular investment strategy
Firstly, I'll point out that my financial strategy involves regularly putting money into the market every month.
Each month I invest, I'm looking for an opportunity that seems like the best idea at the time. Sometimes I'll revisit the same ASX share again and again with my investment money because I like its long-term prospects and the valuation.
I'll probably write an article about my latest investment when I've actioned something.
Why Soul Pattinson shares?
The ASX 200 share is already one of the biggest investments in my portfolio, and I want it to stay that way. I believe its organic capital growth can help my portfolio value, but regularly adding to my position will help ensure it stays a large position.
I think Soul Pattinson has shown a long-term track record of delivering good investment performance and achieving outperformance.
I'm not sure what the ASX 200 or the Soul Pattinson share price are going to do in 2024, but I believe the defensive setup of the company will enable it to outperform if the ASX 200 falls, and I think the business is capable of outperforming over the long-term.
Its ability and freedom to change the portfolio as time goes on means that it can future-proof its business operations and make acquisitions/sales.
I think it's the sort of business I could be holding in five years, ten years or even 40 years. Holding for the long term can unlock excellent compounding, and mean that I don't need to activate a capital gains tax (CGT) event. The less portfolio value that's lost to the ATO unnecessarily, the better it is for my wealth-building.
With the ASX 200 share's regularly-growing dividend, it means I can access some of the growth of the underlying business without having to sell any shares and it results in franking credits coming my way as well.
I'm not expecting Soul Pattinson shares to 'shoot the lights out', but it could be a steady long-term compounder for my portfolio, which is largely why I expect to invest more this year.
