2 safe shares to shelter from the volatility

These 2 shares could be the safety you need.

| More on:
a woman

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The ASX share market has fallen nearly 2.8% today, marking one of the worst days for years.

I can understand if you're feeling a bit unsettled by the sudden disruption to the calm period we've experienced over the past couple of years.

However, shares weren't always going to be calm. If you don't think you have the right temperament for this, or your shares are the wrong ones, it may be worth owning businesses that should be able to sail through this.

Of course, any share price can fall, but it's the underlying operations of the business that counts.

Here are two ideas:

Duxton Water Ltd (ASX: D2O)

Duxton Water owns water entitlements and leases them to agricultural businesses. The Duxton Water management believe the returns offered by water entitlements are essentially uncorrelated to other assets.

There is a limited amount of freshwater in the world, particularly in Australia. In a dry year farmers will pay what it takes to make sure their crops have the required amount of irrigation.

The Duxton Water share price is supported by the underlying value of its water portfolio and the lease income.

It's one of my favourite 'alternative' investment ideas compared to a typical growth company.

Washington H. Soul Pattinson and Co. Ltd (ASX: SOL)

Soul Patts is an investment conglomerate that has been operating for over a century. It has a long-term investment focus and picks companies it thinks will be solid performers for years ahead.

Some of its main investments include Brickworks Limited (ASX: BKW) and TPG Telecom Ltd (ASX: TPM).

It has had a great run over the past year, but the growth of its underlying assets has justified the increase. Winners, like Soul Patts, usually keep winning over the long-term.

If I had to let all of my money be managed by someone else, Soul Patts would be one of the main contenders.

Foolish takeaway

I'm glad I own both of these shares in my portfolio, although I wish I had bought more Soul Patts shares when they were under $17! At the current prices I'd go for Duxton Water.

Motley Fool contributor Tristan Harrison owns shares of DUXTON FPO and Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia owns shares of and has recommended Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia has recommended Brickworks and TPG Telecom Limited. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Share Market News

a woman holds a facebook like thumbs up sign high above her head. She has a very happy smile on her face.
Broker Notes

Morgans says these 3 ASX 200 shares are buys

If you are looking for some new ASX 200 shares to buy, then read on! That's because the three named…

Read more »

The silhouettes of ten people holding hands with their arms raised against the sky, as the sun rises or sets in the background.
Share Market News

Here are the top 10 ASX 200 shares today

ASX investors pushed the markets higher once more today...

Read more »

Three happy office workers cheer as they read about good financial news on a laptop.
Cheap Shares

These ASX 200 shares keep smashing new highs. Too late to buy?

Finding cheap shares is hard, but not impossible, right now.

Read more »

A woman smiles as she sits on the bus using her phone and listening to music through headphones.
Opinions

2 compelling ASX shares on sale right now

These stocks could be trading at bargain prices.

Read more »

A young woman lifts her red glasses with one hand as she takes a closer look at news about interest rates rising and one expert's surprising recommendation as to which ASX shares to buy
Broker Notes

5 ASX stocks for $5,000 investments in December

Let's find out which shares brokers are tipping as buys right now.

Read more »

A woman wearing a yellow shirt smiles as she checks her phone.
Broker Notes

Top brokers name 3 ASX shares to buy today

Here's what brokers are recommending as buys this week.

Read more »

Man pointing at a blue rising share price graph.
Share Gainers

3 ASX All Ords shares rocketing over 10% today

Double-digit gains anyone?

Read more »

A young woman holds an open book over her head with a round mouthed expression as if to say oops as she looks at her computer screen in a home office setting with a plant on the desk and shelves of books in the background.
Share Fallers

Why GQG, Novonix, Silex, and Vulcan Energy shares are sinking today

These shares are having a tough time on hump day. But why?

Read more »