Peter Thornhill 2020

A broad church catering to all beliefs. How else can she sell whatever that is?

 

So much for leading by example, then again she has succeeded by making investing complicated.

 

He he true but some may consider complicated is normal.

I've reached a stage where I don't care with these things but I'm a simple person.

What I have taken from Peter Thornhill, not matter what others think of him or his approach, is don't fall in love with money for the sake of money; spend less than your income, borrow only within reason (zero in my case) and keep investing no matter what.

When stripped down to those basics I don't see what is complicated but, as I said, I'm a simpleton.

A highly important event has now occurred. Time for breakfast and another cup of coffee.

 

Quite some time ago I saw a client portfolio recommendation from Canna Campbell in her capacity as a FA. From memory the equity component consisted of VTS, VEU, a couple of LICs and around a dozen or so direct ASX dividend payers such as the Banks, WES etc.

 

Peter has always held a large number of direct dividend focused shares, over 70 holdings earlier on in addition to his core LICs. It’s only in recent years he’s been more aggressively focused on reducing the number of direct shares and placing proceeds in his LICs. Like a lot of us as we age and concerns for our beneficiaries there can be a desire to want to simplify one’s financial affairs.

 

To answer your previous question on which extra LICs PT was referring to, in the Firebug podcast he mentioned SOL/BKW AFIC so some of those would be my guess.

 

Ah yes I remember that now thanks. I’m pretty sure PT already holds BKW / SOL. He considers Brickworks and SOL given some diversification as LIC types. But you have to wonder about his love affair with Milner clan holdings (MLT, BKI, BKW, SOL) plus there’s so much in the way of cross holdings. Maybe PT’s paranoid about having a defence against corporate raiders.

 

I think those with a DB are avoiding the pain the rest of us must share. Shall write a strong letter to the Government about this suggesting an immediate and retrospective reduction to these pensions by, oh I don't know, say 30%?

Fair shake of the sauce bottle.

SK skedaddles very quickly.

 

Did you open your bowels? I know its important for geriatrics to remember this stuff!!

 

With a possible TP shortage are you kidding me?!

 

I've always wondered how a FA can recommend individual shares? Do they then have to continue to research those individuals shares to then advise when to sell them? Heaven forbid the shares drop 10% and clients will be screaming why didn't you tell me to sell *insert ticker here*. What level of research do they need to do to recommend an individual company. Micro analysis? Macro analysis? Consult the tea leaves? Seems a lot of work to recommend an individual stock "taking into account my personal financial situation"?

 

@Nodrog has some pretty fluffy looking chickens he could lend you

 

I thought you would have figured out by now that @SatayKing can’t possibly drink the amount of coffee he buys. He uses much of it for a far more important purpose:

 

Cruelty to chickens.

 

Not in my opinion. If needs must......

 

Often a concentrated bet in the hunt for yield. Many direct shares pay higher dividends than the index but many investors who take that path fail to understand the risk.

 

Or in PT’s case his paranoia about mining companies / Areits so direct Industrial holdings diluted those sectors held by his LICs

 

Yeah it’s BS. They add individual positions for a psychological reason...it’s the “secret sauce” you get so you feel like you are getting some unique insight / advantage and see value in the service offering. When doesn’t work sell those positions to buy recent winners. Rinse / repeat.

 

This is pretty common and I suppose not the worst asset allocation provided the direct positions are satellite. I think the direct positions may give typical clients comfort in that they are names they know and seem more tangible than funds? This is based around psychology more than anything.

His advisor is close to the Milners, and PT knows them as a result.

 

Just remembered another LIC PT owns that might surprise some being Global LIC MFF.