This blog post is referring to a very old study of Closed End Funds (CEFs) that I read this year. CEFs are the equivalent of what Australian investors usually refer to as ASX Listed Investment Companies (LICs). The study discusses in detail the typical life cycle of CEFs. It talks about why they often swing from premium to discount, and then back to NAV in a fickle manner.
(post written first in 2019 and updated slightly for 2021, maybe the lessons are still not being learnt!)
Continue reading “Have We Learnt Nothing from Investing in Closed End Funds / ASX LICs in the Last 30 Years?”
Should I buy the Future Generation Investment Company (ASX:FGX)?
- I shall later note how the Future Generation Investment Company Ltd (ASX:FGX), can be a cost efficient way in getting exposure to Australia’s best fund managers.
- The management expense ratio is effectively very close to a maximum of 1%. The fund managers therefore stand a decent chance of outperforming after fees in this vehicle.
- You can expect a fully franked yield of circa 4% and a steadier ride compared with most equity funds.
Continue reading “AVOID ASX LIC IPO CONFLICT OF INTEREST & BUY FGX ASX?”
Is there even such a thing as a simple passive investment strategy?
Before rushing into ASX index ETFs or index hugging low fee LICs, there are many behavioural biases to think about. I will explore below what you should think about first to better equip yourself to this popular strategy.
Firstly, let’s get started early with the obligatory Warren Buffett reference you always come across from any financial article in the media. (Hey at least I didn’t put it in the headline with a huge picture like most do). I consider a key driver behind the popularity of ETFs in recent times is due to media attention given to Warren Buffett’s Berkshire letter in 2013 that discussed a strategy for the trustee for his wife’s inheritance. Continue reading “ASX INDEX ETFs, LOW FEE GRANDFATHER LICs SIMPLE NOT EASY.”
Most investors probably have an inkling that active fund managers are not doing a stellar job when it comes to outperforming the S&P 500 of late. Sometimes a chart is worth a thousand words, and the above one ought to grab the attention of those with a penchant towards a mean reversion, contrarian and cyclical approach to their investing.
This post will predominately be for those that subscribe to the theory that active managers may be in store for some sort of return to favor over the next few years, and potential implications of this for some LICs.
Continue reading “TIME FOR GLOBAL ACTIVE MANAGERS TO OUTPERFORM & COMMON CATALYSTS FOR LICs.”
What are the best value investing books in 2021 for learning?
If I could pick out 5 or so investing books for a value investor earlier on in their journey to sink their teeth into I would nominate the following. In fact, they are good reads for investors of varying levels of experience. The investment philosophies touched on are relevant for investors all across the globe as well as Australian share market investors.
Top 5 value investing books for 2021
- Intelligent Investor – Benjamin Graham
- You can be a Stockmarket Genius – Joel Greenblatt
- Margin of Safety – Seth Klarman
- Deep Value – Tobias E. Carlisle
- The Smart Money Method – Stephen Clapham
Some may argue these are not necessarily the best books around and I won’t necessarily disagree. I just thought these 5 offered a good all-round backdrop for someone that has recently developed a strong interest in value investing. Plenty to sink your teeth into.
I thought I would throw in number 5 above for something new that not everyone may have come across. I haven’t updated this blog post for a few years so at the very end you can see my comments about this and another new book that came out in 2020.
Below is the original blog post I had here all the way back around 2016 where I thought it would be interesting to list a few dozen investing books or so that have helped me over the years..
Continue reading “Some recommended value investing books”