Peter Thornhill 2019

Compared to the rest of my portfolio over the same 2 years.

 

figures are the Compound annual growth rate (CAGR).

 

Does anyone know if Peter Thornhill posts within this site as some people drop his name quite often, but the only item I can't understand about people like this is why are they not retired and living the simple dream?.

 

I understand PT doesn't.

In regard to the matter you raise, he probably is but according to his parameters and not those of others.

 

I think PT is that rare individual....
An educator who likes to educate. Some people ( myself included but on a different topic) love the interaction, the fun of teaching.

You don’t have to agree with him. Thats not the point. He loves what he does and wants to share his opinion. Wheter you agree with him or not is almost irrelevant. One gets the feeling it’s irrelevant to him. He enjoys the transfer of knowledge.
He loves the teaching.
Otherwise he would charge megabucks for his courses. And he doesn’t.

Just my opinion. I’ve never met him but I’ve read him for years. I’ve never paid for his services but I’m grateful to him for his views.

I too run courses in my chosen field. I charge to break even. I just really enjoy it.

 

Some people’s ideal lives include some type of ‘work’, so when they’re wealthy enough to not have to work, they instead live their life as they please which includes activities which bring them enjoyment like teaching others or giving back in some way.

Depending on what it is, it probably looks and sounds like work to others, but the money isn’t important, it’s the satisfaction of doing it.

I always thought (rather foolishly) that it would be great to be able to do nothing all day... and now that I can, it’s not appealing at all - productive stuff is more enjoyable, at least some of the time.

 

Fair enough post. However judgement based on 2 years performance is hardly fair. Investing is a long term pursuit and performance should be judged accordingly. Additionally what’s it your after, relatively reliable dividends, maximum total return or a blend of both?

Even though I have great respect for PT and have followed his writings for a couple of decades I don’t agree with him on everything. He appears to be quite stubborn in some respects. But one thing you can’t criticise is that he sticks to his plan and the end result has been extraordinary. Of course naysayers will put it down to luck. But the end result is all that matters and I can’t help but think that he gets a giggle when all these younger armchair critics with a fraction of his wealth are suggesting he’s an idiot on forums or wherever.

However he has done more in Australia to open investor’s minds to what shares have to offer than anyone else I know. For that he should be applauded. In particular his teaching of the two dimensional aspect of shares (capital vs income) is a revelation to many. Those that have always feared the capital volatility of shares become much more comfortable investing in shares once they realise there is a much less volatile component being the dividends.

But variations in opinions are important in all aspects of life. The above is not meant to be negative but simply my opinion. And according to my wife it’s always wrong and should be disregarded.

 

Meant to add for those who think he’s just being greedy out to make a buck from his books / courses nothing could be further from the truth. Apart from the fact PT loves to educate others he is a also great believer in philantrophy. Any relatively small additional income he receives from such endeavours will likely in no small way benefit various charities upon his and his wife’s passing.

 

PT preaches taking the market return and saving money as far as I know. This is not rocket science you don’t need Gann and the other
rubbish old books. What is the issue? Understand equity risk premium, this is not rocket science. You make out like the outcomes are amazing. It’s very simple

 

PT is data mining to come up with a story to sell. Save money / equity risk /
Premium / tax effect etc is all good and focus on that.

 

Hi Shady,
I wouldn't sell.
They are great LIC's.
Invest for the long term.
Keep buying additional shares.
The dividends will keep increasing and bring a smile when they arrive in your bank account.
Don't be concerned with the share price, just the number of shares = dividends.
Never sell.
As a suggestion have a simple written financial plan so you have discipline.

 

I never said anything about outcomes just a simple question does he post within this site..

 

He emailed me quite awhile ago thinking of joining the PC forum but decided not to proceed. I don’t blame him.

 

My understanding from his many interviews etc is that he is living the relatively simple dream travelling overseas a lot he is not running his courses like a full time business like many of the property gurus who have "retired" from full time work to open a buyer agency/property advisory etc (??!!)

He posts on Cuffelinks both articles and replies to articles.

Like many here I don't agree with all his views especially around ETF's and also might seem a bit simplistic for some but the core message for me has been invaluable same as Saint Jack..

 

Why?.

 

It kind of defeats the purpose of investing if you have to keep buying more shares. So effectively you take your dividend add some more money and buy more shares. It is total return and future earnings that is important, It is very silly to ignore falling share prices and ignore why. MLT, BKI, ARG, WHF, is a waste of capital the yield doesn't cover interest cost, no capital growth even after a bull run.There has been huge opportunity cost holding these. What makes these great LIC's.

 

Please see above LOL

 

So what are you saying?

He won’t join because he doesn't want to talk to anybody that would contest his beliefs?

A forum can be a confronting place to have to justify your beliefs. But there is great value in doing so both for yourself and others.

I think I’m a better investor for participating here and I think he would be also.

 

While I obviously can't speak for Mr. T but I might take an educated guess since his philosophy is living off the natural dividend income that his portfolio produces he might not want to or find it the best use of his time to debate the merits of investing in his beloved (?) LICS v short term trading or finding long term companies that will compound over years or any other way of investing/speculating in the markets based on what I have read that is partly why he quit the industry as this mantra is what was and is still being pushed? rightly or wrongly this is again all guesswork on my part.... @Nodrog or @Snowball might be better placed to answer given they have both spoken to him before...

I like you am a MUCH better investor for participating in THIS forum since a forum is only as good as its members..not sure I perhaps would have learnt as much if I had been spending time time on other forums...! (HC anyone??)

 

Not sure the why matters. It's the gentleman's choice and one which has been exercised.