LIC & LIT Listed Investment Companies (LICs) Q1 2018

There have been a few posts here about AMH but I'm still a bit confused about this LIC. It seems like stable dividend income is a secondary concern for this LIC (primary being CG). Further it also owns resources.

Originally I was thinking of buying MIR however the premium is still relatively high at 8% whereas AMH is at 7% discount. Would long term dividend investors (@Nodrog @Hodor to name a few) consider AMH a good quality LIC? 10 yr performance seems pretty solid but it has significantly underperformed the index in the last year (so is MIR).

 

AMH aims to run a concentrated portfolio, which is likely to make it more volatile and less index hugging. You need to have faith in management. It has often traded at a discount, with the current LIC market it is hard to say if 7% is good value. It is a satellite type holding to satisfy my collecting nature.

To be clear, I don't think I fall into this category, here is a brief history of me in equities. All has been posted in various places.

I have held tiny amounts of dividend shares for a long time with money I literally made with a paper round, before I reached my teens. For various reasons I became discouraged. At times a hot pharma or mining share got me excited and I lost money. I recognised the GFC as a great opportunity, but had little money or education, it got me started in the right direction again. Only recently have I become increasingly focused and had means to do anything semi meaningful.

 

Reminds me of someone speaking of FGG/X

 

Dispicible remark. And here I am trying to be a charitable person. I also like the focus on mental health charities given that everyone thinks I’m mad. So shame on you.

What was I talking about.

Oh that’s right. Where’s @Ianvestor, I need some charitable support here in defence of FGX/G.

I do continue to like FGX/G though and have no intention of selling them. My SANF wouldn’t be there if I only owined Index / Index like stuff. Concentration risk in ASX, Tech bubble building overseas. Index mania helping it along.

One has to be happy with what he/she holds regardless of what others say.

 

Yup. Plus boring is good sometimes.

I do feel a little guilty in that regard when the FP sends me a "performance" report in respect of the various portfolios. Part of the job I guess but I don't really want to get involved as all that although I do respond. Probably frustrating to some extent but I reckon it's better than those clients who ring every day fretting over changes in prices.

 

I was curious about the name changes to include '2017' etc!

Simon's got plans it seems.... he's started something with unexplained name changes

 

Hey don’t discount your humble beginnings. I heard of another bloke over in Omaha who started investing with paper-round money and he ended up doing alright for himself...

 

Just for the heck of it as some people love measuring how their shares are going, here is a website so youse can work out the CAGR, IRR, etc, etc. I'm sure there are many other similar sites.

The Calculator Site - financial calculators, metric conversions and more

 

Oh joy of joys. MLT reports on 25 Jan. Can hardly wait. I lurve the reporting season.

 

Show me the money

Cheers,
Oracle.

 

Well I haven’t had time to look thanks to @SatayKing.

Motivated by @SatayKing going paperless I decided to do same cleaning out our old tax / other records and scanning stuff etc. My wife thought good let’s clean out the entire house, garage and garden sheds also.

Working my way through hundreds upon hundreds of old cooking mags / books, CD / DVD collections just for starters.

Oh let’s see what we can sell on gumtree.

I feel a bit like this bloke:

 

I almost feel guilty for being the catalyst of your workload. But in reality I don't.

Get on with it. He he

And by the way, while due to your location it may not be suitable, when I cleared out my property I was contemplating a lot of what you are doing @Nodrog but finally decided it wasn't worth the effort. A 6 cubic meter skip was however. The poor planet.

 

Well my, my. Interesting announcement to the ASX today.

 

I’ve been following AMH for a little while now and just bought a parcel of it for the same reasons. It released its Dec NTA yesterday and it’s now trading at over 8% discount, which is historically high, at least over the last 5 years. Run by pretty much the same people as AFI and MIR, and the small cap stocks it holds are very similar to those held by MIR, yet MIR is at an 8% premium. Really not sure why the difference in premium/discount between the two is so big.

 

Me too.

There can be some pretty good bargains when good companies post a reasonable profit and a healthy (and often growing) dividend but investors due to their ultra-high expectations mark them down mercilessly. Share prices can tank as the market over-corrects with disappointed investors pulling out and can be a wonderful opportunity to snap a bargain. Once the "panic" has died down, the share price usually springs right back up.

 

The same here: you could almost classify it as an arbitrage vs AMH or AFI.

 

Hi

Yep, still here and lurking around
I am looking to expand my LIC portfolio and so looking at where value may be at the moment.
In terms of discount, improving performance, performance fees [or not] and dividends am I missing something in thinking the following are currently in buying range?
MLT
WHF
DJW
PIA [HHV] -- I gather there were issues here but perhaps being overcome?
Unlicensed commentary welcome.
Regards
Rick

 

Shhh, if Wilson smells the arbitrage he’ll be all over it. Discount gone.

 

Couldn't see the article due to paywall, but I saw that Ross Barker is leaving AFIC, he had been at the helm since 2001

Also chanced upon this

Australian Foundation Investment Company Limited
Monthly Net Tangible Asset Backing Per Share and Top 25 Investments

 

Yes, Mr Barker's retirement was flagged by the companies in September last year.

Regarding the NTA as the marker rises so it does, depending on what the dudes have bought or sold, and as the market falls, so does the NTA, depending on what the dudes have bought or sold. I rarely, if ever, get it right when I plonk my money down on black.