Hi its a sum of the parts using market price for shares and an updated unlisted shares process. Really strangely enough its always popped a valuation of between $4,5 billion and around $5 billion but in effect the gap has mostly been in the discount and not the share price. Recently the underlying discount disappeared but now its building again.
So you just lookup the last financials and record all the listed shares they hold update the price from then to now and then take off sales and try to keep a handle on the unlisted portfolio. You have to use their financials less sales plus purchases because of their holding in PCG forcing them to reflect indirect influence.
Yes sorry their own business for BKW being near the top of the cycle.
I don't like breaching copyright but here is my summary from that article.
The Article was in the Australian in 2015 they suggest:
Change happens slowly at Washington H. Soul Pattinson.
In 113 years, Australia's second-oldest public company has moved office only once
Todd Barlow came from Pitt Capital Partners a small boutique arm of SOL.
Unsurprisingly Barlow is not proposing a radical shake-up of the way things are done. After working with the group for 11 years and understanding their investments and the way they invest I dont see any real need to change.
The approach that they take in having a flexible investment strategy and investing for the long term and investing in anything that makes sense, they seem like pretty good strategies to me so hopefully we can just continue to let that run.
Robert Millner says he is looking forward to injecting more youth and new ideas into the business, where he has been chairman since 1999.
Pitt Capital is one of the smaller businesses inside the Soul Patts empire, it may yet prove to be the ideal background for an incoming chief executive of a self-confessed opportunistic investment empire.
Barlow worked on about 80 deals totalling more than $9bn in value in his time at the boutique advisory, including a stint in its now closed Hong Kong office.
The company gets 10 pitches a week from entrepreneurs and companies attracted by its cash pile and who are looking for capital to grow their business without losing control.
"This is one of the unique things about this business, it doesn't put constraints on itself about how it is going to construct a portfolio, it doesn't look to hug an index, it just looks at good investments and there is no time horizon, either. The longer term the better" Said Barlow.
"That flexibility is one of the reason why we get presented with so many opportunities. There is a gap in the market between portfolio managers who are out in the market buying large blue chips and private equity guys who want to own 100 per cent of companies"
It is the enduring cross-shareholding with Brickworks which owns 44 per cent of Soul Patts that has ensured the company's longevity.
Its an article from 2015 and would allow me to share it via a few formats so I think I have been fair to all interests.
SOL Price at posting:
$16.73 Sentiment: None Disclosure: Held
(20min delay)
