Stock investment resources

Nodrog this is excellent! Summarises the main points of ETFs vs LICs, optimisation, and other questions I still had bouncing around inside my newbie head. Thank you.

Can I suggest you copy/paste the text as a new thread in order to make it more visible for others?
Really deserves its own place for further commentary : )

 

I liked the cautious undertones with which he discussed ETF popularity

And his description of trader psychology around Bitcoin

Good stuff, thanks for sharing

 

Thread posts have a character Limit so the document would end up split across many posts making it unworkable especially with diagrams / charts etc.

I was going to update / expand the document as I think a few things come across incorrectly such as Share Purchase Plans where from memory I didn’t make it clear about dilution impact when there’s an NTA discount vs premium. But I haven’t bothered given there are blogs around now with part of the theme being dividends and LICs.

Also the interest doesn’t appear to be here anymore as there is only so much the same poster can write before it becomes repetitive and others tire of it. Additionally I also tire of repeating stuff. Hence I don’t really have the motivation anymore so again I leave it to the bloggers where there appears to be much larger interest and audiences. Good to see as I and others have been harping on about this sort of stuff for nearly a couple of decades on various forums and yet it now seems like Thornhill, Dividends and LICs are a new discovery to many because I think Blogs and the like reach a much larger audience. And of course the bloggers are likely doing a much better job of communicating the message.

I did originally create a thread based around this document. The first and second versions of the document were quite short. Here’s the thread:

Beginner's Guide to Investing in Listed Investment Companies

 

"Credit where credit's due"

i'm sure i speak for many.
your efforts are greatly appreciated

 

I read many of your posts before I joined propertchat earlier this year @Nodrog . Even as a long term investor of a similar vintage to you I enjoyed them. When we were first investing information was very hard to find. Blogs are a new way of communicating but the information is the same. Everything old is new again. I do not have your skill with words or the files of resources at my finger tips you seem to have and so willing share. Hope to read more of your posts in the New Year. Cheers Islay

 

Thanks mate.

There also appears to be more and more a financial motivation to start a blog. Some bloggers are genuine but others create a Blog about how to retire early with the hope of financing in part their longer term lifestyle from the eventual Blog income / benefits. Good on them but I do think it can give some false hope.

Of course it’s easy to pull information together from various sources nowadays and claim it as your own regardless of experience. But @Islay as you would well know at our investing vintage there’s a big difference over the long term which includes crashes, bear markets, life upheavals, **** happens etc between talking the talk and walking the talk.

 

Exactly. Now, if I had the words that's what I would have said! Your information and a few other very helpful people here give your time and experience for free with no strings attached, take it or leave it so to speak. If people don't want to read it they can just scroll past. No problem. If I am reading the market right I think there might be a few nervous nellies out there next year looking for a bit of hand holding but happy to be wrong.

 

Update ;

Book's I would strongly recommend :
Common Sense on Mutual funds, John Bogle
Unconventional Success, David Swensen
Devil take the hindmost, Jonathan Chancellor

More advanced reading :
Rational Expectations, William Bernstein

 

Sounds interesting, what did you find most useful in this one?

 

History of market euphoria, great stuff. There are a few books on this theme, I also have Galbraith's book on the crash of '29 but doesnt read as well. This time is never different. An ideal stocking stuffer for the $BTC crew in Christmas '17. As an aside, when Ben Carlson and Josh Brown @ Ritholtz jumped on $BTC in late 2017 (with small amounts mind you) driven by tidal wave like FOMO, that was the canary in the coal mine for me.....the last marginal buyer has been found! Books on financial history give your reference points to assess market behaviour and check your own impulses.

 

I suppose I’m lucky nowadays in that I don’t have even the tiniest bit of gambling desire in me. Even my friends here over Xmas, they couldn’t go to the pub without spending ages on the pokies. Then it’s keno, bets on the horses. .... In the meantime we’re bored ******** waiting for them.

As for Bitcoin I still don’t really know much about it other than it had all the signs of a classic bubble.

Although I’d be lying if I didn’t admit to getting greedy when sensible investments tank. That said, in extreme times like crashes there’s still an element of fear beneath the greed. That’s where a knowledge of market history and / or having experienced previous crashes / bear markets is invaluable in being able to feel the fear but buy anyway. Corny remark sorry.

 

I remember in Dec ‘17 seeing news websites with 4 out of 5 articles relating to bitcoin. Not to mention the highly active threads here on it full of optimism. It was pure mania!

 

The Retirement Gamble | FRONTLINE

Including an interview with the late Jack Bogle.

 

36 Obvious Investment Truths from Ben Carlson

 

Good viewing. Really enjoyed that. I’m convinced more every day that index is the way to go.

 

You've been brainwashed by the bogleheads in record time. Congratulations.

 

I didn’t really watch it but I was hoping someone would summerise it for me.

When skimming through it though I thought the comment on professional Mgrs advising clients to invest in actively managed funds but who actually invest in index funds themselves was entertaining.

 

Why thank you.
Might be more than just watching this video that has me convinced. I have been discussing the merits of index vs active management for the last few weeks now in a number of threads on here.

At the same time in the short 3 years I have been in actively managed funds most have underperformed to the comparable index’s.

In saying that at this point in my journey I’m still a believer in a mix of active and passive. For now anyway. Another few years of underperforming and I could be 100% index.

 

Watched 3/4 of the way. Pretty much follows the story of a few US Investor’s who hold mutual funds in there 401k who come to realise that they are paying ridiculous fees in these funds. They interview a few of these mutual fund managers who as expected disagree that index investing is superior and that there active approach has its place in the market. But funnily enough they can not argue with the fact that most active fund managers can’t outperform the index. And they show you a graph that shows how 2% of a 7% annual return that gets lost in fees will take something like 2/3 of your returns away over 50 years.
Morale of the story. Invest in index funds and stop lining the pockets of fund managers.

 

Marks and the tax system explained in beer - Cuffelinks

Howard Mark’s latest memo:

https://www.oaktreecapital.com/docs.../political-reality-meets-economic-reality.pdf