Peter Thornhill 2018

thanks for the link..
quote..
With dividend season again approaching I look forward with mindless anticipation to watching the cheques roll in. It seems like only yesterday that the dividends from the previous reporting period stopped. Maybe that is a sign of age (or failing memory!).

 

Thornhill's event this month is now sold out. There's a second session happening in September now, too.
Motivated Money - Peter Thornhill Wealth Inspiration Event

 

Ran into Peter Thornhill just now at a botanic gardens exhibition. Very friendly and open to have a chat. He has great energy and conviction, loves to tell a story too!
Glad I could thank him in person for giving me a long term mind set to investing (amongst other things).
I had read hi book but never met him or contacted him.

 

Had a bit of an evening re read of some old PT 'my says'. One of them caught my eye where he mentions between January and December 2008 he made a staggering 70 purchases!!!

Now that's good going!

I got a quick query to the experienced campaigners, I read that PT during market corrections and dips has his SMSF portfolio as well as non super portfolio held in individual names where he mentions that he tops up and basically double dips and gets for example Milton when it announces a capital raising via rights offer or SPP for 15k in each persons name and then also in the SMSF so all entities can take advantage of it.

Wondering if other forum members have the same lic in multiple accounts (ie in each partners name) to take advantage of such event????

Cheers

 

Yes, I hold MLT inside and outside of super as does my wife. That's 4 dips for us.

 

Yep me too,MLT & others.

 

At one stage we owned the same LICs in my name, wife’s name, Family Trust and SMSF and took advantage of the most attractive of SPPs / Rights Issues. But now we have simplified our structuring to just joint personal and SMSF portfolios. Disc trust will hopefully be wound up in the next one or two FYs. After having dealt with a couple of deceased estates we value simplicity even more.

You can take this even further as per a discussion I had with Peter. From what I understand for example you, your partner and SMSF participate in the same SPP then in-specie transfer the allocation in personal names to SMSF (lower tax environment). This is not a normal contribution but a sale of shares to the SMSF. End result is all three SPP allocations in a low / no tax SMSF environment with no / minimal brokerage cost involved.

Tax is often neglected by many and can eat a big hole in investment returns so best to seek out ways to minimise it. It can make a significant difference.

Not advice.

 

You can buy up to $15,000 each if you have holding in separate names. (not joint names)

You cannot legally buy in both SMSF, Family trusts, multiple custodian accounts etc and individual name.

You will probably receive separate offers for each holding but check the fine print because as part of applying you will be agreeing that you are abiding by the law which limits SPP to $15,000 per company in a 12-month period per beneficial owner.

You will possibly/probably get away with multiple applications but I suspect breaking the law and the potential ramifications especially on a SMSF tax status is not worth the risk.

Not advice - Below is the relevant ASIC Regulatory Guide for you to make up your own mind.

https://download.asic.gov.au/media/1240637/rg125a.pdf

 

Hmmm interesting. I could have sworn PT does this. Off to check this out some more.

 

As well as my core of MLT, ARG, AFI, inside Super, I also hold much smaller amounts of holdings in CKF, IVC, BOQ, IFL, RHC, BKW, CCP, PPT, CGF, SOL, BGA, API, ARB, SEK.

Outside of Super I hold MLT and BKI

(I also hold some ETF's in a separate portfolio but irrelevant to this thread)

Is this drifting too much away from PT's model? I know PT holds about 50 stocks as well as his core LIC's

 

Not if it works for you.

Many of those stocks are pretty good dividend payers with solid track records. So seems to match up well enough with the dividend growth approach

 

This is me having some fun building my own little portfolio of fully franked div stocks that seem like they are growing their dividends. Each one represents far less than 1% of my entire portfolio. I tell myself holding these direct stocks helps off set the small fees of the LIC's (not strictly true I know but that;s my story ..... ;-) )

 

Peter T’s story was that it diluted the Resource holdings held by his favoured LICs.

 

Ha ha, well they do that too. I'll change my story then ;-)

 

I tabulated the dividend stream of AFI and ARG against CBA for the last 15-20 yrs.

Result: Div growth averages at 3.5%-3.9% pa for the LICs. CBA averaged a whopping 6.5% pa.

I get that LIC's are 'safer' than going direct but damn, its a big diff.

 

Something else, over the last year 15 months or so the LICs share prices seemed to grow a little.
Argo up 5.1%.
BKI down 5.4%
Milton up 5.6%
Whitefield up 7.3%

But my direct shares seemed to do amazing.
APT - Afterpay touch (only owned for 4 weeks) up 28.5%
CSL up 87%
Cochlear up 67.1%
CBA down 7.7%
A2Milk up 69.9% (bought last November)
SOL up 23.3%
WOW up 13.2%.

I think I should be able to access a APT capital raising at a discounted price (they are expanding into the UK), so that should allow me to buy more.

 

I take this is just the growth in share prices. Are you able to include the growth rates including dividend returns? Please refresh my memory - are CBA dividends ff'ed?

 

No, my list shows the growth in div payouts each yr...which is what PT bangs on about as the holy grail.

 

Haven't looked at this aspect for Heaven's knows how long but what are the payout ratios involved with say AFI, ARG or some direct shares?

 

Large LICs are paying out 95-100% of post tax earnings. Among direct stocks, typically only banks running payout ratios that high.