LIC vs Index

Discussion in 'Share Investing Strategies, Theories & Education' started by Big Al, 21st Jan, 2019.

Join Australia's most dynamic and respected property investment community
  1. Redwing

    Redwing Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    3,005
    Location:
    WA
    [​IMG]
     
    Nodrog likes this.
  2. dunno

    dunno Well-Known Member

    Joined:
    31st Aug, 2017
    Posts:
    587
    Location:
    .
    Investment process should be specific to your circumstances – age, wealth, family status etc. to this extent I agree “its all about me.”

    You can select inferior investment assets/processes for your circumstances and justify it based on your ability to stay the course – but to me, at this point “it’s all about me” becomes detrimental.

    Better to work on yourself through gaining knowledge to be comfortable staying the course of a superior asset selection and investment processes.

    If I used "its all about me" to satisfy my natural instincts as an Investor, I would be crap, chopping and changing at every new development or personal discovery and acting with the crowd based on fear and greed.

    Actually when I started that’s exactly what I did and I slept like a baby because I didn’t know any better until I got blindsided by reality, I think they call that experience. On that basis I’m not much a fan of the Sleep at Night Factor (SANF) as a catch phrase for investment justifications either.

    You can sleep well at night because you understand and accept the risks and they are appropriate for your circumstances, or you can sleep well at night because you are unaware you are taking inappropriate risks for your circumstances until you are rudely awoken.

    Whether I walk my talk and have an efficient asset mix and process to suit my circumstances or I’m a victim of my own instinctive biases would require a complete layout of my circumstances for other to make a judgement. Perhaps I should do one of those “thoughts on my investment strategy threads” and lay it all bare.

    Probably shouldn’t derail this thread further. Maybe your fascination of psychology also deserves its own thread.
     
    Last edited: 23rd Jan, 2019
  3. Nodrog

    Nodrog Well-Known Member

    Joined:
    28th Jun, 2015
    Posts:
    7,970
    Location:
    Me Me Me
    I must be a very slow learner. Three decades plus and I’m still in kindergarden:confused::cool::).
     
    Ynot likes this.
  4. dunno

    dunno Well-Known Member

    Joined:
    31st Aug, 2017
    Posts:
    587
    Location:
    .
    Last edited: 23rd Jan, 2019
    Anne11, Ynot, sharon and 1 other person like this.
  5. Nodrog

    Nodrog Well-Known Member

    Joined:
    28th Jun, 2015
    Posts:
    7,970
    Location:
    Me Me Me
    Ynot and Hosko like this.
  6. Ynot

    Ynot Well-Known Member

    Joined:
    22nd Nov, 2017
    Posts:
    95
    Location:
    Sydney
    Ha perhaps more like Christopher Skase hehe
     
  7. Ynot

    Ynot Well-Known Member

    Joined:
    22nd Nov, 2017
    Posts:
    95
    Location:
    Sydney
  8. Redwing

    Redwing Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    3,005
    Location:
    WA
    [​IMG]
     
    Zenith Chaos, sharon, Hosko and 3 others like this.
  9. Zenith Chaos

    Zenith Chaos Well-Known Member

    Joined:
    10th Jul, 2015
    Posts:
    1,142
    Location:
    Sydney
    The other day AFI announced a special dividend and the price went up on sentiment. To me that's the type of arbitrage that can be taken advantage of with a LIC - because I don't see how the value of the LIC has changed. Very happy to be corrected.

    Unfortunately I'm too time poor to analyse and not knowledgeable enough to have certainty about my decision making. So I'm happy to announce I'm still a "sell virgin" and hope to stay that way until at least closer to when the franking credits / discretionary trust saga gets decided.
     
    SatayKing and Terry_w like this.
  10. SatayKing

    SatayKing Well-Known Member

    Joined:
    20th Sep, 2017
    Posts:
    2,794
    Location:
    It's all about ME!
    This plus:

    https://www.sciencedirect.com/science/article/pii/S2214635018302417?via=ihub#bb11
     
    Zenith Chaos likes this.
  11. Nodrog

    Nodrog Well-Known Member

    Joined:
    28th Jun, 2015
    Posts:
    7,970
    Location:
    Me Me Me
  12. Zenith Chaos

    Zenith Chaos Well-Known Member

    Joined:
    10th Jul, 2015
    Posts:
    1,142
    Location:
    Sydney
    Derail away @dunno. I don't think I've read a post of yours that wasn't insightful.

    I however, would never derail a thread with ridiculous stories and diatribe. o_O

    Back to the point: everyone can sing along to this with the music from "All about that bass"
    It's all about the stats, 'bout the stats, 'bout the stats... because that is the only way to play the investment game, lose all your money and still have no regrets.

    Investing is a game of chance. We are all trying to play the best game, which is possible, but being a game of chance you can play the perfect game and still lose. People need to accept that. And when I say lose I mean not having as much as you'd planned for. The longer you play the game the more likely the size of your money pot converges to your end goal. Someone may make a million dollars betting on red at the casino, but you didn't lose to them.
     
  13. Big Al

    Big Al Well-Known Member

    Joined:
    18th Nov, 2018
    Posts:
    396
    Location:
    Australia
    Agree. Great post from @dunno.
     
  14. SatayKing

    SatayKing Well-Known Member

    Joined:
    20th Sep, 2017
    Posts:
    2,794
    Location:
    It's all about ME!
     
    Nodrog, paulF and Zenith Chaos like this.
  15. Silverson

    Silverson Well-Known Member

    Joined:
    11th Jun, 2016
    Posts:
    458
    Location:
    Melbourne
    Another vote here for @dunno to post a thread outline his portfolio!

    I too have a heavy heavy tilt toward aus individual stocks, admittedly however this is slowly changing towards a more etf/lic portfolio, I will not however sell my individual holdings (tax nightmare I know holding all these diff stocks) because I promised myself I would never sell a stock unless I was in dire straights, if I break the promise and sell then where does it stop, crap I might even start trading