Peter Thornhill

AFI, AUI, DUI tend to have higher Resource exposure. MIR would come under the category of too active and fee too high for Peter I'm assuming.

 

Just bought 5k each in BKI, whf, arg, MLT. I'm down 11 bucks already, this is not a good start. Should I sell out now
To all that helped, appreciate the guidance.

 

Good luck with it!

 

Does anyone hold direct bank shares as well?

 

I have some WBC, CBA and ANZ. WBC was the first share I ever purchased (as bank of melb) CBA and ANZ followed many years later.

Direct shares still interests me, however I don't feel I have the knowledge or time to make the most of them. Sold out of FMG and BHP a weekish ago, tried to sell RIO too (hit my sell price but my order wasn't processed ), been cleaning up these past mistakes in favour of LICs.

 

Will you hold onto the bank shares? Looking at buying all 4 and perhaps Syd airport as the dividend returns seem great. Not sure if overvalued or not as yet, can't seem to locate the nta to work it out

 

I will hold what I have, no plans to actively increase the holdings. Those four LICs you just got have about 25% of their cash in the big 4. Do you feel you need more exposure there?

Beware the yield trap - Welcome - Motivated Money - Video #5 by the man himself. Yields mentioned are spot yields (last dividend on current price), I want to buy companies that are likely to increase their yield over time (also tends to increase the price), LICs have a great track record here.

Since 2000 NAB's div has increased by around 50%, WBC has increased it's div by almost 400%, this is reflected in their prices. I based my bank purchases of 3 of the big 4 on things in the media rather than solid analysis, luck as much as anything. I prefer to leave it up the LICs these days.

Can't comment on their valuations, LICs publish NTA based on share prices of the stocks they hold, easy. Valuations of a specific company is complex.

 

Was reading it's good to have some shares just for the cheap spp that is sometimes offered. Buy it, and sell it off for profit, reinvest it back into lic's. . Not a good strategy?

 

Barny,

You're confusing direct shares with LICs

Perhaps stick to KISS for a wee while until it all makes sense.

 

Ok, I'm running without crawling first. Cheers

 

Found nice video on youtube this morning in regards to Peter Thornhill,

Just type in: Investing and Shares Peter's Story.

Cheers

 

Hi Pippen,

Thank for posting that. I saw it awhile back via her website (sugarmamma TV) but obviously forgot to post it. Great that it's up on YouTube. To make it easier to access here's the link:

 

Haha yeah great job posting it, my smartphone is not really acting like a smartphone lately! Hence the old school type the link in!

 

Actually I remember now why I didn't post it initially. Sugarmamma had split it in two parts and hadn't uploaded the second part at that stage. So well done @pippen.

It really is worth watching as it is a reminder that Peter was not born into wealth, spent a significant part of his life on a modest income and raised three children. His dividend income in 1988 was $941, it's now just under $400k. The real story is that of saving (regardless of income), shares for income and the incredible power of compounding through reinvestment of dividends.

Can't resist, the yellow line (Industrials) is what's behind Peter's success:

 

Anybody know how old Peter actually is and did his wife work at all? Cant seem to recall?!

 

Don't think I've asked him. Anyhow I just sent him an email wishing him a merry Xmas etc, encouraged him to write another "My Say" article and asked a few questions. Meant to do this a week ago but got busy and forgot. The above might be considered personal but will see what he says. He travels a lot overseas so not sure if he's here at the moment.

 

Yes fully understandable, just wondering at his age in the year 1988 when he posted his $941 dividend payment! Im guessing he is in his 60's!

 

According to his CV this is the first position listed so he would have at least been 15 (born in 1950 or earlier) or more at that stage:

So in 1988 he would have been at least 38 years of age when his dividend income was $941 pa.

 

Unreal work yet again @austing jus goes to show people you dont have to be 20 or so years of age to start although it would help!

Really highlight the importance of saving and investing and reinvesting the dividends for the very long term to get that compounding flywheel time to do its thing!

 

He stated that he never knew about dividend investing until he started with a Fund Mgr in the U.K. That would be Hendersons again as per his CV:

That puts him in his early to mid thirties before he even began to learn about dividend investing. And raising a family (3 boys) would have made saving harder earlier on. Hence it doesn't surprise me that he really didn't get to save more aggressively until in his late thirties and beyond.

He still owns the LICs from when he worked for Hendersons. There are some excellent listed Trusts in the U.K. similar to our older style LICs in Australia. I've discussed these at length with Peter and would love to own the ones he does but broker and tax wise it doesn't make sense unfortunately.