Search results

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...