LIC & LIT Listed Investment Companies (LICs) 2020

Hmm, I wouldn't go so far as to infer they are naught but spin doctors. That's Boglehead talk.

To each their own.

Don't sweat it @monk. Buy other LICs which hold CSL. Or the index. Do both. Best of both worlds.

 

Remembering that PT is a holder of BKI, (so said @Nodrog I think), so hopefully can't be too bad (?)

 

Yes, smart move.

I hold LICs because they are active. I hold index ETFs cause they’re not. These are long term holdings. None of the lower cost LICs are bad investments and even with recent portfolio changes are still very low turnover for active fund Mgrs. They have to be as their CGT discount tax status demands that. I couldn’t care less about what LIC’s are doing in regard to banks etc, that’s what I pay them for so I can forget about it. Of course someone will as usual jump in finding fault with them but that’s simply diverting attention from the main game which is low cost, long term investing in a well diversified portfolio of equities.

Stressing about this stuff is a waste of time. Ignore the nit-pickers and just get on with it.

 

Oi, you slackers. BKI has reported and @Starbuck001 has mentioned MLT. That must mean....

What gives with no one dissecting the MLT gizzards, er, report?

 

@SatayKing hopefully some divvies will come your way soon & you'll some money to invest, that should make you feel better

 

You've made my day @monk. Really all I need to know. Right click, Save as. Very stressful work for an unemployed person.

PS: As for money to invest, action already taken wit h that. Rest is "live on" funds.

 

Suggested by Snowball over on his blog:
Peter Thornhill on LICs, Dividend Investing and Other FAQ - Strong Money Australia %

How many LICs do you think one should own?
Peter Thornhill: No strict rules. We have 4 which is more than enough.
(We can likely tell from Peter’s previous articles and comments that these LICs are Argo, Milton, BKIand Whitefield or AFIC. All focus mostly on dividend-paying industrial companies, holding few or no resources)

 

I attended a PT seminar last year - he confirmed then that his holdings were Argo, Milton, BKI and Whitefield.

 

Haha that just reminded me of his face when people mentioned VAS and he did the spit on the floor motion.

 

He still doesnt have much love for etfs or managed funds these days hey!

 

I reckon the best part of MLT reports used to be the 2-page takeaway menu...

Now that it's replaced by 8 -page glossy brochure i've stopped reading it, too many words.

 

Could be the result of legislation requiring full disclosure. Wouldn't surprise me.

 

Pt said

 

I doubt it. BKI paid out 108% of earnings last year in dividends. Looks like they’re going to continue to use a little cash and their franking balance to top up the dividends until their portfolio income catches up.

If they were going to cut they probably would’ve done it already. That’s unless things get much worse from here now of course.

 

Thornhill responds on dividends and Buffett

Thornhill also has number of individual shares, don't forget in his writings he oft touts CBA and WES and above CSL and COH





in response to the above he sent in the following additional comment on the performance of three Australian LICs vs Berkshire Hathaway

Australian LICs versus Berkshire Hathaway

 

Yes it would appear.

Well I suppose he’s able to do one thing that most investors can’t and that is to stick with his strategy no matter what. The end result speaks for itself. I don’t agree with everything he says but his emotional intelligence, philosophy on life and how investing fits into it is something I greatly admire.

 

That’s it I’m selling.

 

Pity the cleaner..

 

Doesn't fit his Paradigm

 

Re index ETFs in part it used to be his concern about counter party risk but mostly it’s his hatred of resource stocks. He’s not that thrilled either with some resource exposure in three of his LICs but takes a pragmatic view on it. The local index is a stretch to far however.