LIC & LIT Whitefield Limited SPP

Discussion in 'Shares & Funds' started by SatayKing, 7th Nov, 2018.

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  1. Nodrog

    Nodrog Well-Known Member

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    New LIC investor calculating if it’s worth participating in WHF’s SPP:):

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  2. pippen

    pippen Well-Known Member

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    I thought the
    Spot on!

    Spend less than you earn
    Borrow less than you can afford
    Select your lic/etf fund or what have you
    Buy when you have the cash
    Particpate in your chosen spp and rights offers
    Back the truck up in times of gloom

    It was supposed to be this easy wasnt it? o_O
     
  3. Ianvestor

    Ianvestor Well-Known Member

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    I just find it a little strange how I read many comments on one hand excited about no brokerage to pay on a SPP. Then also excited about potentially the MER of a LIC drifting lower by a few basis points as they expand the fund size. This is all relevant and good but..

    Yet when it comes to dilution I mostly read comments of don’t worry about the small stuff. The pros and cons work both ways. Potentially some factors outweigh the others. If you have $1k in a LIC and want to throw $15k in the SPP then you may not care so much about the dilution. If you have heaps already invested and another $15k is just a minor top up you may look at it differently.

    On the topic of SPPs though I have left some tiny holdings in PMC, PAI & WAX in some accounts to potentially play the SPP game in 2019. Let’s see if they get tempted next year, it all adds up!
     
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  4. Nodrog

    Nodrog Well-Known Member

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    Please note my previous silly post was not meant to be having a go at anyone. For some understanding the detail and positives / negatives is important. I just have a warped sense of humour and given my aversion to maths nowadays I couldn’t resist:).
     
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  5. Pleep

    Pleep Well-Known Member

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    This is good, thanks everyone.
    So as a smaller holder, I plan to participate enough so I will get opposite of dilution. Trusting the dividend reliability it’s 4.6% yield plus franking.
    So it really comes down to how confident I am in WHF ability to do well enough in the long term.
     
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  6. SatayKing

    SatayKing Well-Known Member

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    Oh the angst. Some crazy, twisted fool on this forum once implied "Investing is all about ME."

    I like it.
     
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  7. unwillingwillis

    unwillingwillis Well-Known Member

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    We HAVE to over analyse this SPP, if we don’t what else is there to talk about. I’m not a WHF shareholder and I’m unlikely to ever be. However if I were, I’d certainly be participating in this SPP.

    Don’t over think it! Just buy a low cost LIC/ETF whenever you have the spare cash to do so. I’ve pumped a mountain of cash into LICs this year (best year ever)!
     
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  8. Pleep

    Pleep Well-Known Member

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    Haha! Yes!
     
  9. Gockie

    Gockie Life is good ☺️ Premium Member

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    Agree. It's the only way to make this thread more than 1 page long.
     
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  10. Nodrog

    Nodrog Well-Known Member

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    @SatayKing and I could easily make this more than one page long but it’s unlikely to help you with WHF’s SPP:). But party pooper Sim won’t let us anymore:(.

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    Last edited: 10th Nov, 2018
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  11. Hodor

    Hodor Well-Known Member

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    Perhaps the idea is to ensure an ongoing NTA discount which is beneficial for all the accumulators out there. WHF can also demonstrate that real investor returns based on SP exceed index returns even if portfolio returns under perform.

    It is all very clever.

    There was the perfect solution in a 500 page LIC thread/cage. So it's all Sim's fault :p
     
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  12. SatayKing

    SatayKing Well-Known Member

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    Bloody typical. Try and place the blame elsewhere. I do.*

    The varying points of view is really good stuff. The ability to go into the detail I find absorbing and informative.

    In the end, like many others, will do what I want. Whatever the outcome, I own it.

    *See above
     
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  13. Nodrog

    Nodrog Well-Known Member

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    The motives are far more sinister. The LICs know that when (not if) Labor get in and when franking credit refunds are removed very few will be interested in LICs anymore. So they’re trying to lock in as much FUM (fee income) as they can before this happens.

    Mawhawmawhawhawhawhaw ...

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    Last edited: 10th Nov, 2018
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  14. Pleep

    Pleep Well-Known Member

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    WHF has done this every 14-16 months for the last 5 years or more.... they are good, VERY good!
     
  15. Nodrog

    Nodrog Well-Known Member

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  16. Ouga

    Ouga Well-Known Member

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    Great post, thank you
     
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  17. Nodrog

    Nodrog Well-Known Member

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    Agree. @dunno’s posts are exceptional, very lucky to have him here. Hope he decides to come out of his box more often:).
     
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  18. dunno

    dunno Well-Known Member

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    So, some simple addition and division to see if management is acting in shareholders’ best interest is viewed as rocket science that should be avoided in the name of simplicity?

    Robust simplicity stands up to scrutiny.

    Ignoring scrutiny in the name of simplicity allows …..………

    [​IMG]



     
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  19. Nodrog

    Nodrog Well-Known Member

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    But somehow Trump managed to get very wealthy:). Therefore the conclusion is “facts” are dangerous in the pursuit of wealth:D.

    And ironically there are countless wealthy investors / retirees out there who mostly invest in LICs but wouldn’t have a clue about NTA etc. In fact it could be said that ignorance is bliss. Whilst some of us enthusiasts are forever reading, analysing, participating in forums, fiddling trying to optimise returns etc others out there ignorant about all this are just adding to their LICs when they have cash then forget about it whilst fully focused on enjoying life in general.

    Getting back to SPPs they are more frequent. But there are also periodic Rights Issues where the larger investors disadvantaged by potential SPP dilution get an opportunity to potentially even the score.

    Personally I’ve tended to avoid most SPP offers as I often find better opportunity on market over time.

    But you are right of course in that there is potential for better performance by doing a bit of analysis involving a few calc etc. Trouble is the more attention one gives this it increases the chance of wanting to fiddle / over optimise.

    Sounding like a broken record but in order of importance is psychology first, choice of product / analysis a distant second.
     
  20. orangestreet

    orangestreet Well-Known Member

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    In fairness to @Nodrog, he did mention that the post was tongue in cheek (see above). He has also been very supportive of forum members presenting different points of view and from what I can recall, very appreciative of @dunno 's excellent posts picking apart the dogma.
     
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