LIC & LIT Why the love for Mirrabooka Investments?

Precious metals? Property in Australia may be expensive but what about the rest of the world?

Disclosing that when I said market is overvalued it was a theory to explain the poor performance of "value". However, it could be entirely wrong and I am in no way trained to make such assertions. The cape data implies some of the markets, including Australia, are undervalued CAPE Ratios by Country (Global Shiller PE Ratios) , noting it is a figure derived by experts in the field and not a random internet nobody.

Discolaure: I am still buying into the global stock market, but less so than my plan requires, which is "use all available savings to buy equities". Instead I am offsetting a property loan that is charging 5%.

 

Listed Investment Companies (LICs) 2020 [LIC & LIT]

It's still true apparently.

Coffee loaded. Jindabyne awaits.

 

Nice work SK. We keep needing to be reminded....

 

I am off to Charlotte Pass at the end of February for 10 days. Will be packing the coffee

 

Mirrabooka holds firm on tech amid value rotation


Technology will deliver for investors in 2021 despite forecasts for a strong rotation to value, says Mirrabooka Investments managing director Mark Freeman, who believes the outlook for the sector remains strong despite lofty valuations

The small- and mid-cap listed investment company's portfolio returned 29.2 per cent last year, supported by tech stocks such as Xero, NEXTDC and Netwealth.

The company declared an interim dividend of 3.5¢, consistent with its dividend from the same period a year prior.

Given the outlook for companies exposed to the accelerated digitalisation trend and other structural tailwinds in technology, Mr Freeman said short-term swings in the market were likely to be overshadowed by results over a longer timeframe.

"A lot of [technology companies] do still have very solid growth outlooks but the multiples are very, very high," he said, highlighting the rise in growth company share prices in excess of earnings.

"We're long-term [investors] so we don't say, 'look, the price is up, let's get out'," he said. "We're trying to take a five- to 10-year view.

"If our stocks go out of favour for a bit, maybe the earnings need to catch up to the multiple bid. But that's OK because we just keep referring back to our 10-year numbers."




10 year

 

Nice, clear and warm at Thredbo. Miserable as all Hell on Mount Kosciuszko. Rain coming in sideways and stung like heck.

 

yep! often a different world at the top! Always amazes me the different people that head up the chairlift from Thredbo with their shorts and T shirts for the walk to Kosciusko with out having done any research. If you are still there hope you enjoy. Next few days are mostly fine 19/20 degrees at Charlotte

 

I've done the walk a few times and learnt my lesson the first time many moons ago. A 70 yo should have gained at least some wisdom in that period in order to reach 71.

We only went for two nights. And the chairlift prices are a rip off at $30 each even with a seniors discount and reduction for booking a week beforehand.

And, yes, quite bemused at those who were in shorts and T-shirts - and thongs for footwear.

 

Bet on value mean reversion?

 

Close to adding a little long term value exposure myself.

 

Yup. I own 7,000 odd stocks via VTS/VEU. But it's hard to consider that a diversified portfolio when I'm mostly at the hands of mega caps with high valuations and low expected return going forward. Happy to accumulate Small Value for the foreseeable future.

 

@mtat, If you are 50/50 VEU/VTS, FAANGT is about 10% of your portfolio. A lot better than most AU portfolios. Asset prices are inflated everywhere, Value and REITs may be the exceptions...or valuation may be fair...for REITs I’d suggest this is likely. For value the market thinks that tech has already compromised business models of your typical financials and industrials, but it seems this is not borne out by underlying company performance. Momentum also has a quality of its own which is self reinforcing, until it isn’t. Value has been on the wrong side of that. My feeling is that on balance there is better than even chance that the market is overly pessimistic on value factor, however I would not bet the house on it.

I personally prefer to segregate exposures so new money always finds somewhere to add to first, that being most underweight to SAA position - a bit of a psychological trick but works for me.

Recent months have had me considering adding global value for diversification benefit as I intend to slightly reduce overall AU exposure. When I look at exposures across the equities component of portfolio we will have some 60% in AU and Int’l developed cap weight (incl some hedged exposure) and remaining 40% of this component split approximately equally across AU Small Cap, Global Small Cap (DFA), Global Value (DFA), Emerging Markets and Global REIT. These are areas which have a higher expected return or lower correlation to the market, but I am very open to the likelihood that this doesn’t come to fruition, particularly given the added cost. The market doesn’t care what I want or the stories I believe.

 

Somebody has read the bloody thing.

"Dad, I've got $xx but.... Any chance of lending me $yy?"

Pfft, it's only money.

 

BPay's scheduled for 10 February.

 

It's less than $1k so may as well. I don't want it back so I'll view it as a Burns Night gift.

 

I guess some, apart from my self, are scratching their heads on how to include the shares issued under the SPP (under the ASX Code: MIRNA) will be accommodated in whatever software they are using.

One advantage of not bothering using these things is I don't have to care. When available, download the appropriate share allocation notice and then the relevant dividend statements. Simplicity itself.

 

I am tempted and seeking some clarification as existing holding was purchased using equity pull money and for SPP , I will need to use my savings so just wanna make sure no taxation/mixing issues.

I believe there wont be as I am just getting additional shares etc but I am mo Tax/Accountant expert

 

Had to do a double take on what you meant until I realised you're referring to deductability of interest. May be you will have to apportion it against the income from the original purchase versus the income from the additional shares. I've no idea obviously.

Debt. Frigging awful stuff in which to be involved.

 

My concern is on mixing of shares (initial lot bought using equity pull money that means interest is claimable and I will need to use my savings to take part in SPP )

Interest of borrowed money will be claimed as money was invested and I am getting divis, so no issues there and not sure why I was getting confised on mixing shares, all I nees to do is have good record of initial purchase and any additional purchases/SPP using my own money as loan in P+I

 

Cool. Good it's all sorted.

However, is "not sure why I was getting confised on mixing shares, all I nees" the problem?

Welcome to my world.