Fund Manager Summary on Washington H. Soul Pattinson and Co Ltd (ASX:SOL)
In March 2026, Plato Investment Management commented that Washington H. Soul Pattinson and Co Ltd (ASX:SOL) is a long-standing, reliable dividend payer with proven capital allocators, a flexible platform able to invest across the capital stack, the Brickworks deal being value-accretive and giving management greater flexibility to reshape the portfolio, and scope for dividend growth despite a modest ~3% fully franked yield and a strong balance sheet. Across fund manager commentary the consensus is that SOL’s simplified structure following the Brickworks transaction and related capital raisings materially improves capital flexibility and liquidity, supporting a potential re-rating and creating optionality to deploy net cash into accretive opportunities; managers emphasise structural tailwinds from expected RBA rate cuts that should aid SOL’s property-exposed strategic portfolio and private equity holdings, while the large-cap and emerging equities portfolios are expected to track or outperform the market. Key opportunities flagged include value release from the unwinding of long-standing cross-shareholdings, index-driven demand, and the ability to invest up and down the capital stack; salient risks are concentrated exposures to property and long-duration leveraged assets (eg TPG), commodity and mining operational exposure via holdings like New Hope, market valuation sensitivity and execution risk around integration, capital allocation and any further corporate actions. Actionable considerations for investors are to monitor interest-rate direction, progress and terms of the TopCo integration and capital raises, changes in exposure to Brickworks/TPG/New Hope, management’s deployment of net cash and dividend trajectory, and potential shifts in investor demand linked to index inclusion and simplified corporate structure.
Commentary From The Managers
There are 8 insights from 8 fund managers regarding their investment in Washington H. Soul Pattinson and Co Ltd (ASX:SOL) available on Thesis Tracker.
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Updates are made available to members within 12 hours of being released. The completeness, accuracy or current status of the investments referenced are not guaranteed.
Commentary From The Managers
Plato Investment Management
2 Mar 2026
$37.93
Summary
- Plato Investment Management believes Washington H. Soul Pattinson & Co Ltd (Soul Patts) remains attractive and continues to hold because of its exceptional dividend record, proven capital allocation, flexible investment platform and strong balance sheet.
- Dividend heritage: paid a dividend every year for ~120 years and has increased the dividend for 27 consecutive years.
- Capital allocation: the management team is highly rated by Plato and has a long track record of allocating capital effectively.
- Long-term orientation: the ability to take a multi-decade view is increasingly valuable in a market focused on short-term outcomes.
- Platform versatility: capacity to invest up and down the capital stack enables underwriting of value where specialist managers may be constrained.
- Brickworks transaction: last year’s deal is considered value-accretive and gives the team greater flexibility to reshape the portfolio and redeploy capital.
- Income and growth outlook: yield is ~3% fully franked, but there is significant scope for dividend growth supported by a robust balance sheet.
Airlie Funds Management
30 Sept 2025
$38.49
Summary
- Washington H. Soul Pattinson (SOL) is viewed by Airlie Funds Management as Australia’s own mini-Berkshire Hathaway.
- SOL invests permanent capital for the long term across various sectors, including large caps, emerging companies, unlisted property, private equity, and private credit.
- Currently oversees a diversified portfolio with a net asset value of A$13.2 billion.
- Founded in 1903, SOL has a rich history starting as a pharmacy operator.
- Expanded into building materials and resources in the 1960s and 1970s through investments in companies like Brickworks.
- The acquisition of Milton Corporation in 2021 significantly increased SOL's assets by A$3.7 billion.
- Since 2000, SOL has achieved a compound total return of 13.4% p.a., outperforming the S&P/ASX 200 (8.6% p.a.) and Berkshire Hathaway (11.2% p.a.).
- SOL's portfolio is focused on defensive, cash-generative businesses, aiding performance in down markets.
- The recent merger with Brickworks has simplified SOL's structure and improved its financial position.
- Post-merger, SOL maintains a net cash balance sheet, allowing for potential accretive investments.
- Airlie Funds Management has high confidence in SOL's ability to generate shareholder returns due to its stable investment team.
- The combination of permanent capital, a proven team, defensive focus, and simplified structure positions SOL for attractive long-term returns.
Ausbil Investment Management
9 Sept 2025
$44.30
Summary
- Ausbil views Soul Patts as the market’s next Berkshire Hathaway.
- The merger with Brickworks simplifies the structure and unlocks index buying.
- This transformation positions Soul Patts as a $14 billion investment house.
- It is beginning to resemble investment giants like Berkshire Hathaway and Blackstone.
- Ausbil highlights it as a unique can-invest-through-the-cycle vehicle.
- The company offers liquidity and potential for a higher valuation.
Oracle Advisory Group
30 June 2025
$42.01
Summary
- Oracle Advisory Group highlights the effectiveness of sharp management in capitalizing on market conditions.
- Soul Patts has utilized its overvalued shares to acquire Brickworks at a low point in the property cycle as interest rates decline.
- A merger between Soul Patts and Brickworks is set to unwind a crossholding established in 1969.
- Soul Patts holds a 43% share in Brickworks, while Brickworks holds 26% in Soul Patts.
- A new holding company, tentatively named “TopCo”, will be created post-merger.
- Share distribution in TopCo: 72% for Soul Patts shareholders, 19% for Brickworks shareholders, and 9% for new TopCo shareholders.
- Share exchange ratio: 1 TopCo share for every 1 Soul Patts share and 0.82 TopCo shares for every 1 Brickworks share held at the Record Date.
- TopCo will be capitalized by at least 34 million new shares, equating to approximately $1.35 billion at the recent share price of $39.78.
- A fully franked Final Dividend for FY25 will be paid by Soul Patts.
Perpetual Asset Management
30 June 2025
$42.01
Summary
- Perpetual Asset Management reports a positive contribution from its overweight position in Washington H. Soul Pattinson (SOL) during the June quarter, with a performance increase of 22.6%.
- The share price has benefited from the ongoing strength in SOL's investment portfolio and the announced sale of its strategic stake in Brickworks.
- The $2.7 billion deal marks the end of over four decades of cross-ownership between SOL and Brickworks, which was well-received by the market.
- Proceeds from the sale are expected to enhance capital flexibility and simplify the group's structure.
- SOL retains significant property exposure through its Brickworks holding, resulting in a cleaner investment structure while maintaining access to high-quality assets.
- With a diversified portfolio and a proven track record of disciplined capital management, Perpetual Asset Management believes SOL is well-placed to deliver long-term value.
Ausbil Investment Management
19 June 2025
$40.74
Summary
- Washington H. Soul Pattinson is identified as a stock that has flown under the radar.
- The company has a strong track record in growing cashflow and distributions.
- Ausbil highlights a highly rated management team leading the company.
- Washington H. Soul Pattinson features a unique business model encompassing private equity, listed equities, private credit, and direct investments.
- A potential separation of the historic cross-share ownership structure with Brickworks could significantly enhance value.
Oracle Advisory Group
31 Mar 2025
$34.69
Summary
- Soul Patts (SOL) is considered fairly valued, yet many key stocks within the strategic portfolio are nearing yearly lows.
- The RBA rate cuts are expected to boost segments in the portfolio, specifically those with high property exposure.
- Brickworks derives approximately 40% of its earnings from property and an additional 10% from building materials.
- TPG is identified as a leveraged long-duration asset, with very limited hedging.
- New Hope holds an 80% stake in the Bengalla mine and full ownership of the New Ackland mine.
- The Large Cap Equities (20% of NAV) and Emerging Companies portfolio (9.1% of NAV) are expected to perform at least in line with the index.
- The private equity portfolio (15.7% of NAV) is anticipated to benefit from declining interest rates.
- Oracle Advisory Group reports strong performance with a 15.9% return for FY24 and a 3-year return of 20.3% per annum.
Yarra Capital Management
30 June 2024
$32.92
Summary
- Yarra Capital Management does not hold a position in Washington H Soul Pattinson (SOL).
- They see better direct investment opportunities available compared to SOL’s diverse investments.
- SOL's investment sectors include telco, mining, manufacturing, healthcare, and funds management.
- Yarra remains cautious about SOL’s exposure to thermal coal.
- The company's significant 38% stake in coal miner New Hope (NHC) raises concerns.
The completeness, accuracy or current status of the investments referenced are not guaranteed.
Frequently Asked Questions
Who is investing in Washington H. Soul Pattinson and Co Ltd (ASX:SOL)?
Fund managers including Oracle Advisory Group, Ausbil Investment Management, Yarra Capital Management, Perpetual Asset Management, Airlie Funds Management and Plato Investment Management have invested in Washington H. Soul Pattinson and Co Ltd (ASX:SOL).
Why do fund managers invest in Washington H. Soul Pattinson and Co Ltd?
Fund managers invest in Washington H. Soul Pattinson and Co Ltd due to its diversified investment portfolio, which includes significant property and mining assets, contributing to stable cash flows. The recent merger with Brickworks simplifies the corporate structure, enhancing capital flexibility and potentially unlocking further value. The firm has a strong track record of shareholder returns and disciplined capital management, making it an attractive option for long-term growth amidst a favorable risk/reward profile.
What happened to Washington H. Soul Pattinson and Co Ltd (ASX:SOL)?
Fund managers view Washington H. Soul Pattinson (SOL) as a strong long-term investment, likening it to a mini-Berkshire Hathaway due to its diversified holdings across large caps, emerging companies, and unlisted assets. With a history of delivering superior returns—13.4% p.a. since 2000, outperforming both the S&P/ASX 200 and Berkshire Hathaway—SOL's defensive portfolio is geared towards cash-generative businesses, making it resilient in down markets. The recent merger with Brickworks has streamlined its structure and enhanced its balance sheet with net cash, enabling further accretive investments. This foundation of permanent capital and a proven management team contributes to fund managers' confidence in SOL’s ability to generate attractive long-term shareholder returns.
What is the short interest in Washington H. Soul Pattinson and Co Ltd (ASX:SOL)?
The short interest in Washington H. Soul Pattinson and Co Ltd (ASX:SOL) is 1.92% which makes it the 135th most shorted stock on the ASX. Of the 379.9M shares that Washington H. Soul Pattinson and Co Ltd has on issue, 7.3M have been sold short.
What does Washington H. Soul Pattinson and Co Ltd (ASX:SOL) do?
Washington H. Soul Pattinson & Co. Ltd. engages in the ownership of shares, coal mining, distribution and retail of pharmaceutical products, and manufacture of building products. It operates through the following segments: Strategic Portfolio, Large Caps Portfolio, Private Equity Portfolio, Credit Portfolio, Emerging Companies Portfolio, and Property Portfolio. The Strategic Portfolio segment focuses on significant investments in largely uncorrelated listed companies, generally with board representation. The Large Caps Portfolio segment is involved in listed equities generating consistent income and capital growth over the long term. The Private Equity Portfolio segment includes long-term investments in unlisted companies to support their future growth. The Credit Portfolio segment refers to the investments in different types of credit related financial instruments across an investee's capital structure aimed at optimizing the portfolio's risk adjusted returns. The Emerging Companies Portfolio segment represents the exposure to faster growing companies often benefitting from structural changes and trends in the domestic and global economy. The Property Portfolio segment managed Australian property investments as well as investments in property development joint ventures. The company was founded by Caleb Soul in 1872 and is headquartered in Sydney, Australia.