The only ASX stock that is sort of comparable to SOL is WES, however, Sol is way more flexible in terms of capital allocation and has a huge inside ownership, which makes you sleep a little better a night...
I have been holding SOL for many years now and I know it is over valued at times (i.e. trading at good premium to NTA) and there are a few reasons I didnt sell. 1. Capital Gains Tax 2. It has and will most likely be trading at premium in the past/future 3. Good insider ownership which means Millners' interests are tied with ours 4. Proven to be ultra long term investor with piles of cash and the unparallel flexibility to allocate these cash at any time to generate excellent returns 5. Very patient investor that can sit through cycles and give us an ever increasing dividend, remember NHC holding onto 1 bil cash and then bought assets at bottom of the cycle ? 6. Diversified, which means you are investing in a broad range of companies, there will always be the huge winners and losers, but I think they are pretty decent at seed investing and grow.... often they have lost some money in investments, but thats the game of investing, no one can win 100% of the time, its the size of winners/losers that counts. 7. I can't see better alternatives on the ASX then SOL, I already own Lics and index, SOL to me the best alternative to these. I agree, there are and will always be companies trading at much much cheaper valuation... but many many years of investing has taught me that I'm not a good stock picker and even if I do pick the winning stock, I cannot hold on for the 20x or 30x gain.... Better to focus on better things in life and let these guys do the work for me. 8. Their recent results has impressed me, investments in coal and holding on despite 99% of society is against them is a huge confidence for me and the EOS investment looks brilliant....
If one day SOL trades at huge premium and at ridiculous price, I will probably sell, but not when it is 10% premium....
SOL Price at posting:
$33.92 Sentiment: Hold Disclosure: Held
A personalised tool to help users track selected stocks. Delivering real-time notifications on price updates, announcements, and performance stats on each to help make informed investment decisions.
(20min delay)