Picking the right ASX stocks for our share portfolios is always a tricky task. After all, there are hundreds of individual ASX shares on our local share market alone to choose from, and even more opinions to sift through if we need some inspiration or advice.
But if I had to choose one ASX stock above all others to invest $1,000 in today, there would be no competition for which company I'd pick.
That ASX stock would be Washington H. Soul Pattinson and Co Ltd (ASX: SOL).
Washington H. Soul Pattinson, or Soul Patts for short, is an ASX stock I've written extensively about in the past. It remains a major core holding in my own portfolio and is a stock I'd recommend to any investor today.
This company is difficult to concisely describe. It's not really a traditional ASX share in the sense that it doesn't rely on selling goods and services to customers directly, as most ASX shares do. Instead, it functions more like a managed fund or listed investment company (LIC), curating and managing a portfolio of underlying assets on behalf of its shareholders.
Soul Patts has evolved considerably in recent years in how it approaches this task though. Not too long ago, its primary investments were a handful of major stakes in prominent ASX companies. These include TPG Telecom Ltd (ASX: TPG), New Hope Corporation Ltd (ASX: NHC), Brickworks Ltd (ASX: BKW) and Tuas Ltd (ASX: TUA).
The company still holds these investments, which form a core component of its overall portfolio.
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An ASX stock with diversification and performance
However, Soul Patts expanded this portfolio substantially a few years ago by acquiring the old Milton Corporation. This allowed Soul Patts access to a huge portfolio of diverse blue chip ASX stocks, including everything from Commonwealth Bank of Australia (ASX: CBA) and BHP Group Ltd (ASX: BHP) to Telstra Group Ltd (ASX: TLS) and Woolworths Group Ltd (ASX: WOW).
As such, an investment in Soul Patts shares today is really an investment in both this 'strategic' and concentrated portfolio, as well as the 'large cap' portfolio.
Additionally, Soul Patts invests in other assets to balance its portfolio. These include private credit investments, venture capital, and various unlisted assets. This diversity is one of the reasons I would recommend this ASX 200 stock as the ultimate $1,000 investment today.
The other is performance. Soul Patts has one of the best long-term track records on the ASX. Back in May, the company confirmed that its investors have enjoyed an average total return (share price growth plus dividends) of 12% per annum over the 20 years to 30 April 2024. That beats the broader Australian market by 3.3% per annum.
What's more, Soul Patts also has the best dividend streak on the ASX right now. This company has delivered an annual dividend pay rise (fully franked too) every single year since 2000. That's 24 years and counting.
So if I were looking for the ultimate ASX share to invest $1,000 in right now, I would look no further than Washington H. Soul Pattinson stock.
