Peter Thornhill 2018

Is anyone licenced to give these seminars?

 

Already done! I spent pretty much all day Thursday and Friday reading the thread right from the start. Did it start prior to 2016?

 

I think we would call these a 'two day talkfest' no advice given... Each morning would start with the same disclaimers as here DYOR

 

But is that enough? I would have thought that anyone teaching shares would need to have a financial services licence or at least be a representative of an AFSL holder.

 

The question is then is it factual advice? A presenter would have to be very careful not to recommend investing in LICs or shares even.

Even general advice would require an AFSL.

I would be surprised if Peter T isn't licensed as he has been in the industry for ages.

Someone saying something like "I suggest you invest in LICs" would be general advice and needing an AFSL, a disclaimer such as 'do your own research' wouldn't change things.

Someone saying something like 'look into LICs' might be ok (i am not sure)

Its a fine line and each person should consider what could happen if they cross it.

 

By that token saying to someone to "invest in property" would be general advice and would require an AFSL? Where do we draw the line? Are you saying we should shutdown this forum because people are giving general advise all the time and it is not allowed since you need AFSL?

Sometimes getting an advice/suggestion from someone with AFSL but no experience could cost you more than getting an advice/suggestion from someone without AFSL but plenty of experience having travelled the same path you want to travel.

Successful investing is the only field where someone without any qualification can outperform someone with Phd qualification in finance.

Cheers,
Oracle.

 

I think if he talks about what he has done, his experience of what he has invested in. Why he chose LICs over direct shares. How industrial shares have performed since 1979 compared to the all ords, property, fixed interest, etc.

He's not telling or suggesting what people should do as such not advice, just sharing what he's done and why.

 

2 points
1. property is not a financial product and a licence is not needed by anyone advising on one.

2. Someone with an AFSL would have experience in advising, but not necessarily experience in recommending what they suggest. But this still doesn't give someone the right to give financial advice if they are not licenced but have experience.

 

Yes, if it is just factual information he would probably be ok.

 

I don’t know why anyone would want a seminar / gathering anyhow especially given we’re located all over the country. Easy enough to just ask questions / discuss whatever here on PC.

If we ended up at a gathering I’d be wanting to discuss home brew, @The Falcon Red wine and @SatayKing Gin. If any investing topics did end up getting discussed nobody would remember anything the next day anyhow.

 

I should think it would be nothing more than a general meetup, like we do for property. It is mostly people talking about what they have done & why they have done it that way, they also talk about all sorts of other 'stuff'. Sometimes it's just a case of putting a name to a face, to know that you are talking to a real person.

None of what is talked about is advice & I'm sure you'd have to be pretty naive to presume that it was.

 

Three reasons why current dividends matter - Cuffelinks

 

thanks for the link..
Quote..
Once shares in quality companies fall to a level where the dividend yield is attractive, long-term investors buy these shares to ‘lock in’ attractive dividend yields, despite a volatile sharemarket.

 

If you can establish a sizable enough portfolio there’s no doubt that living off the natural yield of a portfolio is very satisfying.

Income vs Capital (what a contrast):

Chart 1: volatility of returns of capital and income of the S&P/ASX 300 over 20 years

 

I am intrigued by your ideas and would like to subscribe to your newsletter.

 

And would attend all meetings

 

The meetings are known as AA. Been around for a very long time.

 

I read that part. No sure if it is true. Dividends from STW (ASX200 ETF) are still lower than what they were in 2008 pre-GFC when the index was 6700.

Gross dividends in calendar year 2008 = $4.1563

Gross dividends in calendar year 2009 = $1.8497 (55.5% drop from 2008)

Gross dividends in calendar year 2017 = $2.5155 (40.5% lower than 2008)

Data obtained from dividends.com.au - STW

Now, I do not have data on how much capital gains component was part of any of the above distribution amount. But the volatility in dividend income is not small.

Cheers,
Oracle.

 

I’ve seen that figure before when looking at STW. There must be more to it.

I don’t think it’s the case that on average dividends are 40% lower than a decade ago.

If that was true there’s no way the LICs would still be paying roughly the same or higher dividends now than they were back then.

That would be 10 years of LICs paying massive amounts from dividend reserves and would suggest payout ratios still way over 100% today which we aren’t seeing.

Unless I’m missing something...