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Listed Investment Companies (LICs)

Discussion in 'Other Asset Classes' started by The Falcon, 21st Jun, 2015.

  1. scoobie27

    scoobie27 Active Member

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    Exactly as per above, no regrets at all buying MIR. I knew there was a premium when I bought it. Also same with ARG and AFI, if I were to wait for the premium to disappear I would be waiting a loooonng time and still be waiting today. Would not have participated in their share price rises and dividends. Buying on dips and small corrections was more of what I was looking for. Premiums and discounts will always be there
     
  2. scoobie27

    scoobie27 Active Member

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    I'm more concerned with the current overall market euphoria than any premium or discounts, preventing any new purchases.
     
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  3. austing

    austing Well-Known Member

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    Very good. I'm a lot more prepared to pay an NTA premium when the market has tanked. In theory the LIC mgrs are hopefully picking up bargains for us shareholders at these times.
     
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  4. Barny

    Barny Well-Known Member

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    So from what I have been reading lately I've done my head in and I give up with lic's.
    Discounted NTA are good but not if markets hot, slight premium is ok if markets falling, market euphoria at the moment so I guess don't buy, some Focus on the amount of shares which means you must buy in at a lower share price but share price isn't something you should focus on....omg. No wonder people buy houses instead.
     
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  5. Pier1

    Pier1 Well-Known Member

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    All of the above is just trying to optimize it.
    Keep eye on the plan;
    Spend less than you earn,
    Borrow less than you can,
    Select your chosen LIC/s of choice,
    Buy what you can when you can,
    Reinvest all the dividends,
    Participate in SPP where offered,
    Pin the ears back buying when the market collapses,
    Never sell :)
     
  6. scoobie27

    scoobie27 Active Member

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    Yep, I prefer buying when the overall market is depressed. Its is difficult for me to buy now despite some advocating regular purchases. After buying, I am not fussed if prices rises or drops. Please note I am not copying anyone here but just feel comfortable with what I am doing now from reading these non advisory threads. To think just 18 months ago in was too scared to own shares. Now I just need to be tested by a GFC type event:confused:
     
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  7. austing

    austing Well-Known Member

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    Probably the best post in this whole thread, pin it next to your bathroom mirror so you see it everyday. It should be a sticky at the top of the LIC thread followed by a warning that reading any other posts is only for enthusiasts:eek:. Sensible investors who don't want their brain to explode won't bother reading any further:). Will probably also mean I won't get anymore PMs from confused readers and can finally have a holiday:D. Thank you @Pier1.
     
    Last edited: 9th Jan, 2017
  8. Barny

    Barny Well-Known Member

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    It's the 'buy what you can when you can' that's confusing after reading So many different opinions.
    So I ask. 100k to spend now. Arg, whf, bki and mlt chosen lic's.
    Do you spead 100k today on them?
    Arg 2.2% discount
    Bki 1% premium
    Whf 7.7% discount
    Mlt 2.2% discount.
     
  9. Anne11

    Anne11 Well-Known Member

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    You are so wise Pier1. It is so simple right? One of the best posts here.
     
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  10. Anne11

    Anne11 Well-Known Member

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    I was in this situation few over a year or two ago. I set a target allocation for each LIC, then started to buy the LICs with bigger discount. In this example, I would buy WHF then MLT and ARG. ( Just my choice only, i am a beginner as well).

    Just keep it simple i think will make it easier, and the key thing is to take actions.
     
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  11. Pier1

    Pier1 Well-Known Member

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    It is all in the post. it is up to you.
    Your earning capacity
    Your spending habits
    Your borrowing appetite
    Your chosen LIC/s

    Stop looking at the chart from left to right and start looking at the chart only on the rhs, chances are that the price on the rhs of the chart today will be substantially lower than the price on the rhs of the chart in 10, 20, years.

    No that wise Anne11, like most have chased the Get Rich Quick until the true wisdom kicks in: COMPOUNDING

    If there haven't been enough hints yet, as suggested numerous times here, get yourself a copy of Motivated Money by PT and work out what you want.
     
  12. pippen

    pippen Well-Known Member

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    Great response particularly in regards to the looking at the chart from right to left! Read this segment in motivated money this afternoon and struck a chord with me!
     
  13. Barny

    Barny Well-Known Member

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    I was fine until I read everyone's differing opinions. Ok thanks everyone, back to buying more. I'll stop reading this thread as it might give me other ideas when someone gives another opinion and stuff up the long term game.
     
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  14. Pier1

    Pier1 Well-Known Member

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    Literally what I have done, laminated and posted to bathroom mirror, cant go wrong.
     
  15. austing

    austing Well-Known Member

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    You've done it now @Pier1. Forum guru status has now been bestowed upon you:). PMs to me have ceased since your post. May your PC inbox overflowith:D:D. I'm finally free, amateur status reinstated, the shackles have been removed:cool:.
     
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  16. Il Falco

    Il Falco Well-Known Member

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    @austing i'll still send you some spam.
     
  17. austing

    austing Well-Known Member

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    What the ..., who is this @Il Falco? With such a sinister name (rumour is he's the Ring leader of the Market Mafia) I'm very concerned:eek:. In fact terrified, spam to my inbox with evil intent maybe even booby trapped to self-destruct:eek::eek:. That's it, I'm going into hiding:cool::cool:.
     
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  18. willair

    willair Well-Known Member Premium Member

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    It's always a lot safer on the back deck with a home brew and unlinked..
     
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  19. austing

    austing Well-Known Member

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    Sorry @Pier1, this to me is now the new number one post here.

    @willair what a brilliant idea, damn how come I didn't think of that. There's always a solution to every problem:).
     
  20. OscarBravo

    OscarBravo Well-Known Member

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    This is such a great post!
     
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