Washington H. Soul Pattinson and Co. Ltd (ASX: SOL) stock, also called Soul Patts, would be the one. If I had to choose a single investment this year, I'd want to buy and hold Soul Patts no matter what happens.
There's certainly a lot that could happen this year. There could be some big changes in political direction in the US, central bank interest rate movements are uncertain, and a recovery for the Australian and the global economy is unclear.
I believe Soul Patts is well-placed to deliver relatively good returns in the short and long term. Let's get into why.
I love this ASX stock for the short-term
The company has deliberately built its portfolio to be defensive and focused on investments that generate cash flow even if the broader economy goes through a rough patch.
It's invested in sectors such as telecommunications, resources, agriculture, swimming schools, financial services, electrification, property, and bonds/credit. The largely uncorrelated nature of many of its assets helps.
In a year when volatility could pick up, I think the stability of this investment house could be very useful and possibly help the company outperform the S&P/ASX 200 Index (ASX: XJO) in the short term.
I'm interested to see if the company makes any new significant investments this year.
I also like this ASX stock as an option this year for passive income. The business has been listed for 120 years and has paid a dividend every year since then, thanks to its resilient cash flow. While past performance does not indicate future outcomes, I think the dividend record shows the company's priority and ability to reward shareholders through bumps like wars, pandemics, and recessions.
Long-term ability to thrive
I'm a long-term investor, so I wouldn't just invest in Soul Patts shares for 12 months. The company has already proven it can survive, but I think it can thrive in the coming years.
It's invested in some businesses I believe I have exciting futures, such as Asian telco Tuas Ltd (ASX: TUA), Canadian uranium miner Nexgen Energy (Canada) CDI (ASX: NXG) and Brickworks Ltd (ASX: BKW) (with its large industrial property holdings).
In my view, one of the best reasons to like Soul Patts is the investment mandate to invest in virtually any industry and asset that the investment team likes. This flexibility means the ASX stock can pursue opportunities and growth across different investment themes and establish excellent diversification.
This investment flexibility allows the business to future-proof itself because it's not stuck as a miner, bank, telco or any sector. It can move into and out of whichever industries it wants to where it sees opportunities.
I believe this is the type of diversified ASX stock I could buy in 2025 and own for the rest of my life. It helps that the business is growing its dividend yearly – it has grown its ordinary dividend yearly since 2000 – though, as we know, this isn't guaranteed to continue. I can just sit back and watch the dividends roll in every year.
