Where to invest cash in this market

It's fascinating reading some of the posts.

Link - Here

And if I am not mistaken our very own @Nodrog posted this

Did I just read AUI? .

Quote of the day goes to @Nodrog

Cheers to Passive Income ,
Oracle.

 

Yes as mentioned awhile back I’ve owned AUI twice over the years. First time purchased over three decades ago on advice from Daryl Dixon but sold it early on to fund in part my attempted get rich quick crack at trading. Purchased again at some stage and loaded up on AUI during the GFC where due to it’s poor liquidity (for distressed sellers) I was able to purchase it at a sizable discount. I also owned DUI.

Both were sold along with direct shares in recent years as part of reducing number of holdings overall. I chose to keep the larger more liquid LICs.

Bit truth be told I’m regretful of selling both. Took my simplicity thing too far.

Like Thornhill often says my biggest mistakes have been selling. And I need to heed his advice “if one gets the urge to sell then immediately take two aspirin then go lie down till the urge goes away”!

Re Somersoft it was a great forum also and an interesting time seeing the posts during the GFC. For me it was an incredible time of opportunity rather than panic. Was so excited in the earlier stages but admit I got concerned as it progressed and later despondent mainly because I didn’t think the market would go as low as it did and ran out of cash / leverage to buy anymore. But thankfully got a second opportunity around 2012 from memory when the subsequent bear market arrived and our cash / LOCs had been mostly replenished.

Gee how I dream of another opportunity like that. Bloody Elliot needs to his act together and get these waves / tsunami happening.

 

Meant to add that I can’t emphasise enough how the psychology behind investing for “passive income” helped me during the GFC. We’re all different of course but for me it made all the difference in not only surviving but also thriving during the GFC. When most others were in absolute panic about the dramatic collapse of the capital value of their portfolios all I could see was the dividends continuing to flow into our accounts and the massive opportunity to purchase future income streams at a huge discount.

 

Great stuff, like how they call the forum the "Coffee Lounge".

 

While the passive income aspect is true as far as I am concerned it is not advisable on a face-to-face encounter with others to sit with a big grin on you face while they bemoan their super dropping by $xx thousands.

Saying "Yeah, good times!" doesn't seem to go down well for some obscure reason.

 

That’s the only area we allowed to talk shares on that Property Forum.

 

Many on here regard you as an investing enthusiast and adored by many.
I wouldn't be to hard on your self regarding AUI, we all make these decisions with the best intent at the time.
Sounds like if there were buying opportunities would you consider adding to your portfolio (outside super) VAS & ARG?

 

I have never done this “face to face” with anyone. We’re on an anonymous forum of like minded people. Outside of my wife none of our friends / family have a clue about our financial position. I’m simply trying to convey the importance of mindset in all this.

Besides I make no apologies. My wife came from as poor a family as you could imagine in Australia both financially and health wise. Put herself through Uni working four part time jobs. My family had to sell the small diary farm for next to nothing when my mother had a nervous breakdown. My unskilled father found work where he could. We made our own way which later included being able to buy a house for and helping support my wife’s mother and father.

Of course some obstacles such as severe disability etc deserve our sympathy and support. But those who strive for a better life should never be made to feel guilty about it.

 

. But thank you. However for many longer term members here their view is more likely “bored / annoyed by many”. But after a recent event I don’t care anymore even if I end up talking only to myself. My wife has no interest in this stuff so I gotta talk to someone even if it is myself. Besides putting it in writing in a public forum helps get it clear in my mind.

Already have, QVE and PMC. I took simplicity too far in eliminating mid / small caps. But nothing to complain about given the price I previously sold QVE for in the SMSF mostly CGT free. Purchased again in both SMSF and own names (first time) recently even cheaper than previously.

I still like to buy something regularly but as a contrarian, Global Developed Index VGS does not meet my value criteria at this time. So despite its active management and high fee PMC being on the nose given it’s contrarian investing style is my choice at this time. I’ve held it for a long time in the SMSF. And it has a pretty good history of paying higher dividends. PMC may well continue to do poorly, continue its downtrend and even cut its dividend (reserves currently around 2.5 times from memory though) so be warned. I have lots more cash to add accordingly if this occurs.

Index investors will likely have much to complain about in regard to these choices but dare I say it “it’s all about me”.

Not advice.

 

Likewise about telling others. Not even my children now know my true financial position although they are aware in a general way. We were always open about investing. I feel in the immediate family you should be but not outside it.

Just realised I should have added to my previous post. Never the done thing to brag although I have met one or two who have which I thought was tacky.

Only once have I blown up when my approach to investing was denigrated. Was one of the "tacky" people.

Edit: Now, about World Indicies...

Spulling bad so you can guess what I'm using

 

Thanks for the link as it is a long read,and also the date today in history of the Great Fire of London that gutted London..I hope you keep posting as you don't focus on the small things..imho..

Quote..

Nassim Nicholas Taleb......

"Academia is to knowledge, what prostitution is to love"

 

Hey @Nodrog i thought I read from an older thread that you bought direct shares during the GFC. Is that right or was I dreaming? I did, but I didn’t understand the risks, alternatives or much about anything still I consider it worked out well for me

 

Yes. Fortunately the duds were a few smaller caps which were only a small part of the portfolio. Whatever possessed me to buy Pacific Brands I’ll never know. I suppose I was like @Redwing in that I liked Bonds. Then I found out I got the type of Bonds mixed up. Plenty of great performers since though including one of the last direct shares I sold awhile back being MQG.

 

Serious question. Do you regret selling the direct shares? I am referring to the ones which provide dividend income.

I did like having some of them especially those which paid dividends around Christmas or shortly after the end of the financial year. Slightly wacky I know as it shouldn't make any difference.

The one's I have sold (bank, AGL, WES, CSL, SOL and that) I haven't even bothered to look at them and for some reason (relief at not having to deal with them?) I don't care.

 

Absolutely not. No desire ever to own direct shares again.

When I talk about selling mistakes I’m only referring to LICs.

 

Doubtful there is much useful contribution I can add.

I’m at a loss with navigation on PC to find the content I’m interested in at best of times and the threads I was following have a lot of banter which I no longer wish to keep up with as I allocate time elsewhere, so finding a meaningful place to insert a post is difficult, especially if it is contrary to the accepted wisdom. Much more likely to cause annoyance and re-enforcement than the consideration that would be my motivation for posting.

I suspect my time here other than for an occasional superficial post has largely run its course. I have probably already annoyed too many dominant posters. SOR thread is the only thread I’ll keep as a watched thread, but that’s probably a bit esoteric for a Property forum to have much ongoing life, so I'm happy to drift away.

 

Dunno,there is nothing wrong with lobbing the first hand grenade to singe the dominant posters feet every now and again that brings out the openness to challenge in others who have strong existing views and win favour rather then the very few less likely to challenge and contradict ..

 

Please keep posting, your content is always brilliant. We all get annoyed / frustrated at times. I make the mistake at times of thinking others understand my warped sense of humour only then to realise it was taken the wrong way.

Surely amongst all the general light hearted chatter there is the occasional thing of interest?

The reality is if some activity including what others might think is rubbish doesn’t fill in the gaps then forums can do dead. Seen it happen all too many times. Which is why I do my best to create traffic here even if it is garbage some / a lot of the time.

Anyhow despite what it might seem at times I’m a huge fan of your posts. Views might differ at times but not as much as you think. It’s simply that I’m not wired for what’s required to achieve optimal so I do the best I can with what works the best for me.

In fact if anything the trend here appears to be headed away from my love of equity income toward indexing, asset allocation and capital drawdown. I’ve received plenty of grenades lobbed at me and despite being wounded occasionally I continue to hang around.

 

No not really. We indexers are also income investors and like to see a growing income stream outpacing rate of inflation.

Investing in LIC is not big no no the only issue is you are to an extent dependent on managers of those LICs to always act in best interests of shareholders. Most of the time my biggest concern is even if LIC manager is doing a fantastic job now what is the guarantee it will do so 10-15 years from now when the current management team is replaced with new one.

Index ETF do not suffer from this.

Having said that buying LICs when at good discount to NTA can be a good idea as I found with my purchase of AUI.

Cheers
Oracle