Peter Thornhill approach - who's used it?

Discussion in 'Share Investing Strategies, Theories & Education' started by KayTea, 23rd Mar, 2017.

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  1. KayTea

    KayTea Well-Known Member

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    I've been reading Peter's book, and I'm going to his workshop in Brisbane next month, but I'd love to hear from people who have employed his investment strategy.

    Such as:
    How did you decide which shares to buy?
    Do you still hold any shares that don't meet his criteria for purchasing (ie. historical performance and dividends)?
    Do you wait till share prices drop before buying in, or do you just 'buy when you've got some spare cash'?

    TIA,
    KayTea
     
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  2. Hodor

    Hodor Well-Known Member

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    The book doesn't go much into this other than highlighting the impressive performance of the broad industrial sector and to get professional help if needed. Peter is a fan using Listed Investment Companies (at least a select few) from my reading.
    I implemented an industrial tilted portfolio with Listed Investment Companies (LICs). Whitefield (WHF) is a pure industrial LIC and some others have an industrial tilt VS the ASX200. A low Management expense ratio and no performance fee (below 0.5%, ideally near 0.2%), a long history and regular growing dividends were some other criteria. These will align with what I understand to be Peter's approach. Before understanding and more clearly defining what I was trying to achieve I made some "mistakes" in buying a few LICs with higher MERs, performance fees and high NTA premium, these were early purchases and minority.

    The Bell Potter LIC report is a good resource to get an overview of the LICs out there https://cuffelinks.com.au/wp-content/uploads/LIC-201606-1.pdf
    It is released every quarter.

    I buy as cash becomes available. What I purchase is based on which LIC on my target list appears to be the best current value based on current vs historical NTA, price to 12 month high and low, asx200 movement.

    I have almost entirely "cleaned" my portfolio. I dropped mining stocks and moved funds to LICs. I still have legacy holdings in a few individual companies, they would all be considered good dividend plays with either or both high yield and dividend growth. My focus is on LICs however.

    I differ from Peter in that I have some international exposure and small cap exposure through various LICs and ETFs.

    Realistically keeping things simple (maybe less than five LICs) is likely to yield very similar results.
     
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  3. Kat

    Kat Well-Known Member

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    This thread on Property Chat may be of interest to you: Peter Thornhill
     
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  4. KayTea

    KayTea Well-Known Member

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    Thanks, @Hodor.

    It's always interesting to see how other people take what they've read/learned, and implemented it. I think that some people follow it to the letter, whereas others like to 'blend' what they've come across with their own current strategy etc.
     
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  5. Nodrog

    Nodrog Well-Known Member

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    I think I've heard of this bloke:).
     
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