Own Soul Patts shares? Here’s what to look out for in FY 2023

a man surrounded by huge piles of paper looks through a magnifying glass at his computer screen.a man surrounded by huge piles of paper looks through a magnifying glass at his computer screen.

The financial year just gone wasn’t a particularly kind one to ASX shares and investors. Over FY 2022, the S&P/ASX 200 Index (ASX: XJO) dropped by a meaningful 10.19%. It wasn’t much better for the Washington H. Soul Pattinson and Co Ltd (ASX: SOL) share price. In fact, it was worse.

Soul Patts shares started the financial year at $33.73 each. But by 30 June last month, the industrial conglomerate finished up at just $23.54. That’s a drop of just over 30%, almost triple the losses of the ASX 200. Ouch.

But now that nasty year is out of the way, and we are well into FY 2023, what might the next 12 months hold in store for Soul Patts shares?

What will guide the Soul Patts share price in FY 2023?

Well, it’s hard to predict the movements of any ASX share, whether that be over a day, week, month or year. But it’s arguably even harder to assess what could happen to this particular company.

That’s because most of its value comes from the large share portfolio that the company holds within it – a share portfolio made up of dozens of other ASX shares.

Until October last year, Soul Patts only owned a relatively small number of ASX portfolio holdings, as well as some unlisted assets. These include positions in Brickworks Limited (ASX: BKW), New Hope Corporation Limited (ASX: NHC), BKI Investment Company Ltd (ASX: BKI), and TPG Telecom Ltd (ASX: TPG).

But in October, Soul Patts acquired the listed investment company (LIC) Milton Corporation. Milton already had a large portfolio of mostly ASX blue-chip shares, which is of course now owned by Soul Patts.

Almost half of the Soul Patts investment portfolio is still concentrated on its ‘strategic portfolio’, which includes the stakes in the companies listed above, but excludes the shares inherited from Milton.

So going into this financial year, it’s a fair bet that the Soul Patts share price will be guided by what happens to its largest holdings – mainly Brickworks, New Hope, and TPG.

If the entire ASX does well, it’s likely to lift up the Soul Patts share price even further, given the company still owns Milton’s ASX 200-aligned cache of shares.

But if you’re itching to watch how Soul Patts shares navigate the current financial year, make sure to keep an eye on those three companies.

 

The post Own Soul Patts shares? Here’s what to look out for in FY 2023 appeared first on The Motley Fool Australia.

“The worst thing you can do is nothing”

Motley Fool Chief Investment Officer says right now is not the time to sit on your hands…
As inflation eats away at cash balances Scott Phillips reveals three stocks for investors to consider that could help fight rising prices…
… And Washington H. Soul Pattinson And Co. Ltd isn’t one of them.

Learn More
*Returns as of July 1 2022

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#43B02A”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#43B02A”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#FFF”, ‘color’, ‘#fff’);
})()

More reading

Motley Fool contributor Sebastian Bowen has positions in Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Brickworks and Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia has positions in and has recommended Brickworks and Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia has recommended TPG Telecom Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

from The Motley Fool Australia https://ift.tt/eArO64d

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s