LIC & LIT Reading LIC share value...

Geez i can't give tips, but I'd take Watsa off your list maybe...his macro calls have been diabolical. The closest in style to BRK id say is MKL but much smaller. Those two would be the only I'd be comfortable with now. ....but I think in terms of asset alllcation these days not stocks. The whole exercise was about thinking about divs, capital, home bias and some other ways of thinking about return not advocating "compounders" per se, they just provide a very clear/stark difference to discuss.

 

Locally I suppose MFF is a potential candidate.

 

Yes close to. There are others of course. just a matter of DYOR.

 

of course, i was being cheeky.

 

So - for those in the top tax bracket - is it good (or not) to borrow money (say through a Debt Recycling Method against your house - so the debt can't be called) and use that money to buy shares? The idea being that you loose money through the interest rate of the borrowings. It would reduce your taxable income - no? So if you borrow enough - it might drop you down a tax bracket?

Specifically - I need to drop my income by around $3k this financial year to qualify for around $6k of rebates. If i borrow enough and drop it into WHF (which has a dismal dividend yield at the moment) then the dividend will not cover the cost of the investment (the interest on the loan). It will drop my taxable income? And then one day (in a year or so) when WHF does increase the dividend - I can then use that money to pay down the loan when I no longer need it to reduce my taxable income.

Am I thinking along the right lines - or totally off course?

 

Imagine when 10 year charts start at the bottom of the GFC

 

yeah thats the wait bit.

OMG Shares we should so do this !!!!!!!!!!!!!!

 

Hi Wombat, what is this Facebook group you speak of?

 

Old post I know. But usually rebates are calculated on adjusted taxable income (ie

 

Yeah what facebook group ?

 

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Fairly sure this is it.