LIC & LIT Maximum $ amount invested in LIC's per trade?

What's the maximum $ amount any of you would buy your chosen LIC's per trade? e.g. is buying in 50K (or larger) lots going to miss some cheaper offers despite having cheaper brokerage? (I use NABTrade). I currently do 5K or 10K amounts regularly during the year but have often wondered about the effects of doing larger sums and at what point do larger sums run into issues that smaller buys do not. I'm not talking about the pros and cons of DCA, but rather wondering if a larger lump sum buy inside any of the big old LIC's reduces the ability to pick up reasonable prices from sellers. Interested in those that trade larger sums and their observations please.

 

I’m no expert but my understanding is that 90+% of the time you are best off investing as and when you have the $$ available. Over time this will DCA by default.
Waiting for the ‘opportunity’ will just see you looking in hindsite at the one you’ve just missed.

I know I had the opportunity some months ago to pick up SOL at $18 but didn’t jump in as I thought it was expensive.
It’s now $25 and has paid at least 1(maybe 2?) divs since then.

If you’ve got the cash make the decision, file the paper work and go do something else.

Blacky

 

Generally, but it's no hard and fast rule, I tend to buy in $10K lots. Habit probably. However, if I hold an odd number of shares in an LIC, I also round the stuff up to the nearest 1,000.

It's how you want to do it really as I don't consider there is one particular approach which fits all.

 

My minimum buys are in 10k parcels. This is when I am just slowly adding/accumulating. I do buy in 25k parcels too if I am wanting to increase my holding in a stock I am under weight and I think price is a good opportunity.

 

My trades have ranged from as little as $5K up to $250K. Wouldn’t worry too much about brokerage given how small it is nowadays. I’m also with NabTrade. Prior to retirement I generally purchased shares when cash was available. When excellent opportunities arose I would tend to draw on our LOCs for these then pay back ASAP. Liquidity of the some LIC can be an issue with larger trades. AUI and WHF have been problematic at times.

As for maximum amounts assuming good liquidity I don’t get concerned about amounts. I purchased some ARG recently ranging from $150 - 200K parcels with no problem.

So whatever you feel comfortable with is likely the answer.

 

Good thoughts there from @Blacky, @Islay and @Nodrog.

I'd add one thing which is don't short change yourself in an effort to place funds in the share market.

Yes you may have funds which are surplus to your essential needs. However, sometimes depending on how you feel it can be just as worthwhile to spend the money on yourself. For example, I spent a fair amount on some art which I like rather than invest, bought another guitar and amplifier (I hate my neighbours and I'll make sure they will hate me. Not true actually,) gave some dosh and goods to a few charities who need it badly - around this time of year in particular. Whatever floats ya boat.

Money is nothing more than a tool to use in my simplistic view. I've said elsewhere it don't love you, it don't know you, it don't even know you exist.

Dang I should have a few Four Pillars as it's better this stuff is PWP than sober.

 

100% agree @SatayKing. Money does not love you back. The market is a bit shaky at the moment too and not somewhere I am putting new money either. Happy to just live of the dividends of already invested funds

 

No worries on that front - Mrs is really good at spending on good quality experiences and good quality purchases. We travel o/seas twice a year and drive nice (but not flashy) cars and live in a lovely lakeside suburb and have everything anyone could possibly need - so definitely not miserly.

I am hopeless at spending so we are a good match/balance.

 

Ah - good observations. Thank you.

Currently I am siphoning plenty into AFI and WHF and using DSSP on both for tax benefits whilst we are both working. We have recently inherited a reasonable sum (very grateful) and fully intend to follow suit with this same investment plan but had never traded big amounts before. So it seems like AFI won't be an issue but I may have to take smaller chunks at WHF.

 

You mean to say that your neighbors listen to really good music... if they like it or not

 

My maximum is limited by my measley income and asset allocation. I generally buy a minimum of $10k for brokerage considerations.

PS forgot to mention I buy FGG and FGX in $1k parcels as they have free brokerage for commsec customers.

{Note from mods - discussion about free brokerage split to here: FGG and FGX free brokerage for Commsec customers}