LIC & LIT Importance of NTA Discount/Premium Over the Long Term?

Discussion in 'Shares & Funds' started by izzy16, 22nd Feb, 2017.

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  1. izzy16

    izzy16 Well-Known Member

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    I'm keen to invest in some of the bigger LICs such as AFI and ARG but these guys are trading at a premium to NTA. My strategy is to buy and hold for long-term at least 20 years, so I'm wondering what sort of impact buying at a premium would have over such a time range with my core focus on dividend re-investment.

    If I bought as close as possible to fair value would this be better than waiting and waiting for a discount given the value of time?
     
    izzy16, 22nd Feb, 2017
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  2. Pier1

    Pier1 Well-Known Member

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    20 years, then this:
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    Pier1, 23rd Feb, 2017
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  3. Nodrog

    Nodrog Well-Known Member

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    With these older larger LICs probably not a great deal as NTA ups and downs even themselves out to a certain degree over time. Discounted DRPs and SPPs (brokerage free) also help in this regard.
     
    Nodrog, 23rd Feb, 2017
    #3
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