Peter Thornhill 2017

Yes you should listen to @BingoMaster as I hear he was formerly a hairdresser. Here's one of the enthusiastic LIC investors from this thread who kept "fiddling" with their hair then went to @BingoMaster expecting him to fix it. It was too late the damage had already been done:

 

Spot on! What was that article I have at home the enemy of a good plan is the dream of a perfect plan!??!!

I'm sure many ppl have had and I actually know several older ppl who just had 400k in argo and their other half had 300 to 400k in Milton and they live fine no dramas this is outside of Super and they live their lives happy and with conviction they never sold and im sure if I ask them about nta growth and 5 year returns and mid small cap exposure they will probably think I'm speaking Japanese!

They just treated these two funds like an unlisted fund or a savings account/mortgage hardly borrowed yet the magical thing is they spent less than they earn and invested the rest sometimes a lot other times not as much as life happens!

They didn't change their game plan every 6monthly.

Bought more stocks when prices were low to get the magical number of shares they wanted to reach X amount of divs!

Even they admit it's not perfect but they always told me try and get an index proxy fund and if you want more money get more skills!

Better paying job and or improve education to improve future cash flow!

 

I I really like that style I might give that a go next time round!

 

You will be paying royalties as I have already patented it .

 

Also note the enlarged eyes from researching too much resulting in confusion leading to brain about to explode.

Given the current discussion surely it must be time for @Il Falco and the grenade brigade to do their thing:

 

I was thinking each grenade was a lic and the one that's gets thrown the most is the one we are supposed to allocate more money too! New age way of asset allocating!

 

Be warned - here's a picture of me, the result of years of excessive LIC researching:

 

Bad data. You can't rely on this free stuff.

If MLT had done 20% pa for 30 years it would be the biggest LIC in Australia by a huge margin! Frank Gooch would be a household name. That's Berkshire Hathaway level performance.

 

Given that LICs are such a great, proven way for share investing, do we see a day when everyone wakes up to themselves and convert ALL of the shareholdings to LICs only?

I realise this would probably be the death knell of this thread .

 

Cheers,
yes, it becomes complex but going for simple. so no fancy trust/company structures for me.
not after dividend income at present so thinking a reasonable strategy would be invest in the 2 LICs offering BSP (AFI, WHF), use the untaxed dividend substitution to compound growth. When income needed suspend BSP and revert to dividends... of course bearing in mind the CGT implication, but if planning on never selling, does it actually make any difference?

badger

 

Geezus H Christ this industrials stuff is getting out of hand. You know how backtesting works right???

 

No way. It's like indexing will probably reach 50% of total cap. Hope springs eternal and humans don't want to be average

 

Ah, so LICs aren't the be-all and end-all for all?

I was starting to get that impression .

 

No what I am saying is most people kid themselves about their ability (me included) and think they can do better long run with much more exciting strategies than LICs or Index investing. It's human nature

It's so easy to sell a dream in funds management.....that won't change. It's like shooting fish in a barrell !

 

To add to the madness with accurate data:


Ok getting back to being serious I doubt you'll see the same growth in the future especially with AFI / ARG / MLT simply because they've gotten too large. Frank Gooch from MLT admitted in a recent interview that due to it's size it's difficult for MLT to add new dividend growth stocks in enough quantity to make a meaningful difference to performance.

So although size can give the perception of safety it may come at the expense of future growth resulting in these LICs being more like the index.

In theory WHF being much smaller should be able to add meaningful positions in mid / smaller Industrials but doesn't seem to take advantage of this choosing to be more Industrial Index like.

So one should avoid having unrealistic expectations. A more likely result is that similar to index returns perhaps with a more reliable and consistent dividend plus the added benefit of occasional discount opportunities which may provide some outperformance.

 

Crickey you're using the multi-grenade launcher today, I'm shell shocked.

 

And another chart using "accurate" data showing the All Ords index:

 

Sometimes it all comes back to pattern recognition and once you can teach yourself about that aspect that not many look into sometimes till it's too late,because all the indicators to someone like myself and a few other outside this site think we are outside the 7-9 year blow up range as nobody ever gets the feeling when a market hits the top then the market will enter a market decline of staggering proportions when markets becomes oversold..

Not a problem if you have 500k to buy back in when not if the everything hits the high speed fans ,that "Ultimately" as has happened every time the decline leads to the best 50% from the previous high to some of the best buying investment opportunities ever..

Sometimes from history the start of the blow up starts in june ,then any day in October the **** hits the high speed fans..


Spoofing (finance) - Wikipedia

Gloom Boom Doom by Marc Faber

 

Any idea what happened to WHF during the GFC Austing? It's share price appears to have been hit harder than the index? More exposure to financials and reits or did it have individual positions in train wrecks like ABC learning centres,Centro, Babcock & Brown etc?