Motivated Money by Peter Thornhill... Shares for Property Investors!

[equitymate]

Bell Potters latest LIC research worthy of a read for anyone interested.

http://wamfunds.com.au/WAM/media/WA...tter-LIC-Research-March-Quarter---18-4.12.pdf

 

[redwing]

Hi JIT

Bouncing back on this thread as I just read a link you posted on InvestED some years back ('07).

Why L-I-Cs can be D-U-Ds - Eureka Report Article

What made you change your mind to LIC's rather than the previous interest in Index Funds?

Looking at one of the better LIC's, ARG hasn't seen $8.00 for a while as mentioned in the article, it actually got up to around $9.00 and is now training at around $5.22, which actually looks appealing

 

[JIT]

That's an old article, I don't give it too much credit now, he only looked at one 5 year period I think.

As for why LICs vs. index funds, I've posted about this a few times in the past, I tried a search but couldn't find the post...

But basically because they can be low-cost (cheaper than index funds and even ETF's, depending on which LICs you use), diversified, good long-term performance records, better after-tax returns than index funds/ETFs due to their structure/nature, more stable and less volatile (and growing) dividend income stream as this is actively managed (important for retirement), buy-in timing is easy if you use discount to NTA's (ie. buy a $1 worth of shares for 80 cents), plus you get to go to AGM's and Investor Briefings which can make you feel good!

I would still use index funds/ETFs for diversification though.

Hi JIT

Bouncing back on this thread as I just read a link you posted on InvestED some years back ('07).

Why L-I-Cs can be D-U-Ds - Eureka Report Article

What made you change your mind to LIC's rather than the previous interest in Index Funds?

Looking at one of the better LIC's, ARG hasn't seen $8.00 for a while as mentioned in the article, it actually got up to around $9.00 and is now training at around $5.22, which actually looks appealing