There aren't too many single ASX shares out there that I would recommend as an investment to set one up for life. But Washington H. Soul Pattinson and Co Ltd (ASX: SOL) is an exception. Washington H. Soul Pattinson, or Soul Patts for short, is one of those ASX shares that I think offers a unique opportunity for Australian investors.
This opportunity comes in two forms: inherent diversification and outstanding returns.
To address the first of those, Soul Patts shares are a rare ASX investment that offers an enormous level of diversification. This is only possible thanks to its nature as an investment house. Soul Patts doesn't function as a normal ASX share.
Instead of producing and selling a good or service, Soul Patts owns and manages a vast portfolio of underlying assets on behalf of its shareholders. These include major stakes in other blue chip ASX stocks, as well as investments in the private credit, venture capital and unlisted assets spaces.
It is also intending to merge with Brickworks Ltd (ASX: BKW) later this year. If that goes ahead, the company will be able to add some substantial property assets to that list, too.
Thanks to this diversification, owners of Soul Patts shares can sleep soundly at night knowing their wealth is spread between different companies and asset classes.
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Soul Patts shares: A winner that might keep on winning
But let's talk about returns. Soul Patts has more than a century of history as an ASX share. During this time, it has habitually delivered market-beating returns to investors, including through dividends.
For one, it has the longest streak of delivering annual dividend pay rises on the ASX, with more than 25 years of dividend increases under its belt (including in 2025).
For another, overall returns have also been impressive. Back in June, the company revealed that shareholders enjoyed a cumulative return of 2,055% (assuming reinvestment of dividends) between 30 May 2000 and 30 May 2025. That more than tripled the performance of the broader market, which returned 682% over the same period.
Now, past performance is never a guarantee of future success. But this company's track record gives me as much confidence as one can enjoy that this ASX share will continue to be a market-beater.
Foolish takeaway
Given the inherent diversification of Soul Patts shares, as well as its impressive dividend and overall performance history, I think any long-term investor can buy this share today and prosper as a result. It's a core holding of my own portfolio, and my only regret is that I don't own more of it.
