The 1 ASX share I’d buy to navigate the tech wreck

The last few months have hit the tech share space hard because of AI worries. Amid all the volatility, there’s one particular ASX share I think that’s very well suited to succeed during a period like this.

Don’t get me wrong, I do think a number of the ASX tech shares that have been sold off could be an attractive buy. I’m intending to invest in two this week.

But, there is one ASX share that looks like it could be a clear buy to traverse this difficult period, in my view. It’s investment house Washington H. Soul Pattinson and Co. Ltd (ASX: SOL). There are a few reasons why I think it’s a great investment.

Not significantly exposed to the tech sector

The tech selling has been widespread and indiscriminate, plenty of which may have been overdone.

Soul Patts has not suffered a huge decline. In-fact, at the time of writing, the Soul Patts share price is slightly up in 2026 to date.

The investment house owns a large portfolio of assets across a range of sectors including resources, telecommunications, industrial property, building products, swimming schools, agriculture, water entitlements and a lot more. Tech isn’t a significant part of the portfolio.

The diversification is a strong part of the strategy, meaning the business is protected against the risk of being too exposed to any particular industry in its portfolio.

Can invest in opportunities

Soul Patts’ investment portfolio isn’t a fixed list of assets of businesses. It can sell something if it wants to.

More importantly, the ASX share can decide to invest in opportunitiesif the investment team like the look of a possible pick.

Soul Patts has shown skill and bravery at investing during rough times and taking advantage of lower prices.

I don’t know what Soul Patts is planning to invest in this year, but I reckon any investments will boost diversification and increase the earnings power of the business over time.

Over the last five and ten years it has significantly boosted its diversification and the ability to earn cash flow during all economic environments.

Great long-term return

I think the Soul Patts set up is quite similar to Berkshire Hathaway, though it hasn’t performed as well as Warren Buffett’s incredible long-term investment track record. 

But, the Soul Patts portfolio has performed solidly for investors, delivering a double-digit return.

According to CMC Invest, Soul Patts has delivered an average total shareholder return (capital growth plus dividends) of 12.2% over the past decade, outperforming the S&P/ASX 200 Index (ASX: XJO).

Past performance is not a guarantee of future returns of course, but I think the track record is promising and shows the type of compounding results that can be produced by the ASX share.

The post The 1 ASX share I’d buy to navigate the tech wreck appeared first on The Motley Fool Australia.

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• 2 ASX dividend shares raising dividends like clockwork
• Is this the right time to invest in ASX defensive shares?

Motley Fool contributor Tristan Harrison 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 Berkshire Hathaway and Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia has positions in and has recommended Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia has recommended Berkshire Hathaway. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.