LIC & LIT Listed Investment Companies (LICs) 2019

No need for crystal balls. I like the advice from Will Rogers:

Don’t gamble! Take all your savings and buy some good stock and hold it till it goes up, then sell it. If it don’t go up, don’t buy it.​

 

Any decimal figure not ending in 0 or 5 is known to bring bad luck.

 

A big hole in that chart he presented is that it seems to be a price index chart, which means it does not include dividends - very misleading and only tells half the story.

Now people should be under no illusion that there will be periods of negative real returns of an index fund, and plan for it accordingly (hence the thread of SORR).

The TINA (There Is No Alternative) principle also applies here. If one could choose an investment with the returns of a stock but without the risk then everyone would. But there isn't such a thing. Therefore even heading into a lower return environment which I agree with, I still believe in buy and hold AND continue buying.

I agree with the rest of what he says apart from this one "buy low / sell high". Everyone knows about it but no one can do it consistently, and on average you will fare much worse. Of course there will be many people that claim they can do it and charge you to try though...

 

WAM are hoping to raise $1m for Australians affected by fire and drought.

$1 million to make a difference for Australians affected by bushfires and drought — Wilson Asset Management

They are matching donactions made. Details in the link.

 

Ive long followed PW and been a fan.

He seems to have been changing his stripes very recently in following/mentioning what would be called a ‘Dogs of the World’ strategy. That is investing in the most out of favour market ETFs from the last few years and waiting for reversion to the mean to kick in.

He’s mentioned doing this with Greece Turkey and Pakistan in recent times I believe.

While I don’t discount that it’s possible to pull this off, I just don’t buy that it’s easy and when considering the buying/selling, CGT and activity/monitoring/research involved, not to mention conviction needed to hold these ETFs, I’m not sure it’s a good idea for most people.

When I interviewed him on the blog he was all about ‘accumulating’ - buying property, LICs and index funds. Lately he’s been mentioning he has a huge cash position waiting for developed markets to fall and has been following this approach along with direct out of favour stocks like a Russian gas producer of all things.

He seems to have really ventured into a style of global value investing with his new business partner.

So it’s all a bit unusual (seemingly out of character) and even intriguing, but I won’t be changing investment style. Anyway he’s a smart cookie so I’m sure he knows what he’s doing. In the meantime I continue to enjoy his regular updates on the economy

 

Snowball i first heard of him from your interview and an interview he did on rask finance. I liked his common sense approach.

Went back to his blog for the first time in months and its like his a different person recruited into a cult. WTF!?!?

 

Picture of recent ARG AGM. Going by the top of their heads it doesn’t look like there were many attendees under 70:

 

LICs in the spotlight over returns

 

Yeah it happens. As long as we are smart enough to understand the motives it all makes sense. He is flogging “next level” coaching, to take your wealth “to the next level” !!! There is also another book coming in 2020, stay tuned !

This is the secret sauce that you are paying for. Contrarian ETF investing yeeehaaaaaa and some EM direct stocks to keep it spicy.

 

About bloody time!

 

Are LICs “dead in the water”? - Switzer Report

 

Only noting a fact.

 

WAM incurred expenses of $22 million for staff, rent, administration and depreciation.

AFI 2019

Rental costs: $695k
Employee Benefit Expenses: $8,039m
Depreciation: $0
Other Admin: $5,575m

ARG 2019

Employment benefits: $5,297m
Depreciation: $168k
Other: $3,069m

Couldn't be bothered to go into that detail for others but broadly the Admin expenses of some other LICs are

MLT: $4,220m
AUI: $1,273m
DUI: $1,256m

 

I am so under 70 , just had a hard life that's all

 

Not hard enough it would seem.

 

Now,now be nice

 

Never heard of him until now. Then I don't follow commentators or 'spurts. Maybe I need to get a life, read all these dudes have to say and then become totally confused which would be appropriate given my age bracket.

 

Nup. I'm a geriatric remember and we aren't known to be nice.

 

I think what we were previously hearing is where he parks his money after it is accumulated (LIC's/ETFs and Property). What we are now explicitly hearing for the first time is the active side of his business/approach (and lets be quite clear, he is running several businesses that generate income). Wealth is created actively as well as passively - and whilst we all here subscribe to the get-rich-slowly mantra, I doubt the entrepreneurial side of PW would buy that as his only accumulation strategy.

With several years of blandness ahead of us (presumably) Pete is now sharing some other of his activities to entice new customers to his business. Nothing wrong with that per se. there is more to PW than great market analysis and lovely books. He's a business man first and foremost.