Recent content by oracle

Now that you have established my ignorance and utter disregard for all the numbers I have presented in my previous posts while you have yet to explain me anything of any value except trying to ridicule me and somehow pretend what an investment guru you are. Please enlighten me on concept of net...

AFI is not an index fund. Yes, it is index hugging investment company. The reason why AFI is priced at P/E of 25 with yield of 4% is because the market believes AFI will be able to deliver the 4% or 22 cents FF dividend. Its valuation is based on market expectation on it meeting that...

Thank you! I know what equitymate is trying to say. He is saying the P/E ratio will basically be determined based on the yield the LIC is providing. If the yield changes to 4% P/E jumps to 25. My point is in terms of earnings and dividend growth it has not done much better than the long...

That is exactly right, we are all entitled to our own reasoning for why our investments are less risky or more risky. The point you are missing is LIC are run as a company where the buying and selling is determined by the person running the LIC. To disregard fundamentals of LICs (EPS, P/E ) and...

I like to keep it simple as well. Irrespective of what stocks you hold, the P/E ratio is price your stock trades at vs the EPS you report on your annual statement. That currently is at 25. Not much room to move higher IMHO from here. Any share price increases from here will have to come from EPS...

Would just like to add. If you were to value AFI from fundamental analysis point of view it is currently trading at P/E ratio of 25. BHP trades at 17 while CBA trades at 16. EPS growth since 1997 (10.4 cents) to 2014 (24.3 cents) is 5.1% pa. Similar to what you expect the index to return over...

Fair enough, yes looks like AFI has significantly outperformed the index over the past 20+ years. That is very good. I still have my doubts about outperformance continuing forever. But that is just me. I am just happy to stick to more conservative index fund investing. Cheers, Oracle.

Falcon, I would be very interested in concrete proof of this outperformance. I have gone through share price history and dividend history for whatever data was available on major LICs website and cannot come to this conclusion. Hence, my aversion towards investing in LICs. I am genuinely...

I started investing in shares about 5 or so years ago. Initially, I used fundamental analysis to pick individual companies to build portfolio of stocks that I believed would outperform the market over the long term. Around 2-3 year mark I started to realise even though I am doing better than the...

Yes, GoAnna, that is how I would like to have everything setup in the end. I am still in my mid 30s so will take my time to move my property assets into stocks. Don't want to rush into it and pay heaps of tax right now as I am already on high tax bracket from my day job salary. You might want...

+1. Agree The effort still feels justified when prices are rising but it really stinks when prices stagnate or go backwords which can easily happen with property. Again +1. Agree I try to make it even more simpler by holding only low cost index funds. Both domestic and international for...

Very true. My stock portfolio is 100% Australian Index right now. But that will change come 1st July (new FY). I am all cashed up and will start buying US Indexes to diversify. Cheers, Oracle.

The highlighted bit is the most important. It might be safer for an ageing/retiring US baby boomer but for someone still far from ageing/retiring almost all commentators strongly recommend having portfolio with large portion invested in stocks (>= 80%). There is no doubt that over the long term...

Loans.com.au to pass on full rate cut Link here I also have loans with CBA and not really happy that they only passed 20bps whereas loans.com.au have passed on the full rate cut. My current rate with loans.com.au will have a 3 in front of it. Not bad! Cheers, Oracle.

The best definition I found that makes perfect sense to me is from Ben Graham This to me should leave no doubt between the difference of investing vs speculating. Cheers, Oracle.