The idea for this lazy portfolio experiment was for it to track a portfolio that required little thinking and tinkering. In keeping up with the lazy theme I shall try and make this post relatively brief (well only in comparison to my last blog post anyway), as it is nearing Christmas and time for a break! To those who are not familiar with this hypothetical portfolio experiment, here is a link to the background for how it started.Continue reading “LAZY 2020 ASX LIC BASED PORTFOLIO – & reflecting on 2019”
In this post I am going to explore how I think about the new wave of ASX listed fixed income closed end funds (CEFs). To be clear, I am not referring to various fixed income ETFs that are open ended. Regarding the CEFs in this sector, I am not very optimistic from this point in time. Well that is unless you are the fund managers offering them. They are clipping some juicy fees and as a result appear addicted to issuing more shares.Continue reading “TIME TO BUY FIXED INCOME CLOSED END FUNDS LISTED ON THE ASX?”
I am not sure where I first read of someone describing a buyback of the “Claytons” variety, but ASX Listed Investment Companies are relevant to this topic. Perhaps I first read about Claytons buybacks here. Since then though it is always in my mind when I look at certain companies release their buyback announcements, especially LICs. Continue reading “ASX LICs and Claytons Buybacks”
Some strategies / aspects of investing that may feature more often here are deep value, activism, ASX LICs, special situation, FIRE, dividends, & global asset allocation. Continue reading “VALUE INVESTING READING LINKS FROM JANUARY”
A checklist for buying ASX Listed Investment Companies (LICs)
A list of 10 factors to check as a guide when to buy, scroll down for further explanations on each.
1) Discount / Premium to NTA
2) Management Expenses and ALL other costs
3) Performance Track Record
4) Investment Style
5) Alignment of management’s interest with shareholders
6) Ownership Structure
7) Investment Management Agreement (IMA)
8) Size of the LIC
9) Future Dividend Capacity
10) Marketing / Reporting of the LIC
When I look back at my investing mistakes, one common theme is rushing into a new purchase. I find I have usually done better when a number of months pass until I begin accumulating a position in a new idea.
When investing in LICs I try to make sure I have considered numerous factors first. That helps me avoid getting itchy fingers and hitting the buy button quickly. Continue reading “LIC Investing – 10 factors to check before buying.”
Advantages of these ASX LICs well documented from the likes of the Barefoot Investor and financial media in general.
The positives of the older, low fee ASX LICs I feel are very well known and covered. They have usually got a good run in the financial press from the likes of the Barefoot Investor and Peter Thornhill, and deservedly so. I personally think they have been excellent investment products for so many for such a long time. I particularly like the positive influence they have had on investors helping them with the behavioural aspects. i.e. sticking the course and seeing the benefits of compounding, highlighting dividend returns and benefits from not overtrading, including taxation benefits.
Now for the other side..
Now for the section where I might receive some negative feedback!