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Peter Thornhill

Discussion in 'Other Asset Classes' started by Redwing, 10th Apr, 2016.

  1. austing

    austing Well-Known Member

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    And unlike other anynomous clubs such as AA there's bound to be plenty of home brew at club meetings:cool:.
     
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  2. Barny

    Barny Well-Known Member

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    Just finished michael's book and have to agree, well worth a read, I think it's excellent and one of the best books I've read.
    Gives many examples on tax and structures, and those that aren't near retirement how to structure depending on your earnings, transitioning to smsf at a later stage etc etc.
    He was also a massive property investor until he learnt about shares and Peter thornhills approach, and from what I understood he would take thornhills approach any day over property for dividend returns.
     
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  3. Hodor

    Hodor Well-Known Member

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    I've gotta sell Rio before I apply. Looking at the run it is having today might be the day
     
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  4. austing

    austing Well-Known Member

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    Just reposting this article (with local images) so it never gets lost:
     
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  5. austing

    austing Well-Known Member

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    And reposting this one also ( with local images) for safekeeping:
     
  6. austing

    austing Well-Known Member

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    I imagine that'll be a relief and milestone for you when RIO's gone. No more lead in the saddlebags as Peter would say. Listed funds are such wonderful things for those of us who don't want to be burdened with the time, stress and effort involved in managing a portfolio of direct shares. Only a small number of direct shares left in our portfolio now but thankfully no direct resource holdings.

    You will be a welcome member of this exclusive investing club:). We eagerly await your inauguration:). A secret ritual involving home brew whilst chanting "gimme income or get stuffed":D.
     
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  7. BKRinvesting

    BKRinvesting Well-Known Member

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    What if you don't drink?
    :eek:
     
  8. austing

    austing Well-Known Member

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    Who said anything about drinking it:). It's a secret ritual! Just like Shares, expect the unexpected:eek:!
     
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  9. RenegadeDom

    RenegadeDom Well-Known Member

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    At least you're addicted to LIC's, I'm still at the stage where I'm addicted to reading about them haha
     
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  10. Barny

    Barny Well-Known Member

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    Just to highlight the dividend returns for com bank if you purchased at the peak, and through the gfc till today, which shows me that trying to time the Best Buy in is to hard, but as Austing and everyone has stated, buy up when it does fall.

    Peak oct 07, share price 61.17
    Today's price, 83.45

    Total share price return 36.42% since peak

    Dividend returns if you purchased at the peak oct 07, 100% franked...

    2007. 4.18%
    2008. 4.34
    2009. 3.72
    2010. 4.74
    2011. 5.23
    2012. 5.46
    2013. 5.95
    2014. 6.55
    2015. 6.86
    2016. 6.86
     

    Attached Files:

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  11. BingoMaster

    BingoMaster Well-Known Member

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    No, no, this definitely qualifies! Haha. I was addicted to reading about them, not buying them.

    Because to be addicted to buying them constantly, I suppose you'd need a large and constant supply of money. Most people are investing in LICs in order to achieve this income stream, they don't have it quite yet, I'd say.
     
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  12. austing

    austing Well-Known Member

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    Very good comment.

    Peter's writings appear to suggest that those interested in buying LICs do the following:

    0. Choose from low fee older style LICs such as ARG, MLT, BKI, WHF.
    1. Ignore LIC NTA.
    2. Avoid market timing.
    3. Buy regularly when you have the cash including taking advantage of discounted Share Purchase Plans.
    5. Have borrowed funds available for major opportunities such as share market crashes.

    A more advanced strategy using leverage is attached but you must know what you're doing and be aware of the risks involved!
     

    Attached Files:

    Last edited: 17th Jan, 2017
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  13. RenegadeDom

    RenegadeDom Well-Known Member

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    My copy of Motivated Money arrived yesterday, time to ingest some more reading :D
     
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  14. Anne11

    Anne11 Well-Known Member

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    Mine will get picked up today.
     
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  15. orangestreet

    orangestreet Well-Known Member

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    I bought Super Smart Money by Michael Holmes yesterday. It has been an interesting read so far:)
     
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  16. Barny

    Barny Well-Known Member

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    Good to hear your feedback once read.
     
  17. mcr

    mcr Member

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    A newbie question for @austing and the other gurus:

    Given that the large cap ASX consists of a relatively small group of shares, if we invest in multiple LICs with the same philosophy (e.g the ones listed above), aren't we just investing in largely the same core basket of shares with some differences at the edges ?

    So buying the banks, industrials, insurance companies etc multiple times in the various proportions of each LIC, and then paying brokerage and management fees for each LIC ?

    Would it make more sense to just pick one or two older style, low fee LIC that match a preferred style (e.g. no resources/property) and accumulate those ?

    How much of any potential gain from a manager's stock picking magic in a different LIC might be evened out by the costs associated with 'diversification' inside the relatively narrow ASX ?
     
  18. austing

    austing Well-Known Member

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    As discussed numerous times in the LIC thread it has very little to do with mgr skill. The reason for owning a few different LICs is that it increases the opportunity to participate in "discounted" share purchase plans and to potentially buy a LIC on market at a discount to the underlying assets ie NTA. That is, when you have new cash to invest choose the one that's trading cheapest to its underlying assets.

    Also remember that discounted DRPs and SPPs are free of any brokerage / transaction fees. Fees across a number of the LICs are similar so is owning a few really such a big deal? More brokerage free options through DRPs and SPPs to top up your holdings rather than buying on market with brokerage fee. Plus some investors just feel more comfortable spreading their risk across multiple Mgrs.

    By all means if you want to keep it simple just own one or two LICs and forget about so called optimising. Peter would probably suggest this option especially to start with.

    New to LICs, start here:
    Listed Investment Companies (LICs)
     
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  19. Mac Fields

    Mac Fields Well-Known Member

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    Happy Australia Day 2017 (there's a way to date stamp this post on p21!)

    Just signed up for the Peter Thornhill seminar at Sydney Uni on 25 Feb - Understanding Investing for Long-Term Gain Course

    Tell me if you want me to say hi, ask anything on your behalf, or if you're heading there too.
     
  20. BKRinvesting

    BKRinvesting Well-Known Member

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    I wonder if he knows he has 20 pages of people talking about him on a forum called "property chat" - despite his stand on property :D
     
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