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Peter Thornhill - Dividend Investing

Discussion in 'Investing Strategies' started by austing, 19th Sep, 2016.

  1. austing

    austing Well-Known Member

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    Start with the following link where I've posted lots of stuff in the past BUT PLEASE CONTINUE FURTHER DISCUSSION HERE ON INVESTCHAT:

    Peter Thornhill
     
    Last edited by a moderator: 19th Sep, 2016
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  2. austing

    austing Well-Known Member

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    Excellent videos thanks to @El Caballo.

    1)

    2) Video | Switzer Daily

    Linked above are the two interviews I have seen.

    At approximately the 6 mins 50 seconds mark of the second one, Thornhill compares buying CBA shares to a $1.8m dollar property purchase, during the nadir of the GFC.
     
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  3. austing

    austing Well-Known Member

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    In the second video above I find it amusing where Thornhill say he holds 4 LICs as a core and 40 direct stocks which "STUPIDLY" replicate most of the companies in his LICs. His rationale being it reduces the tiny LIC fees even further across the entire portfolio. Essentially as Switzer suggests they're both holding direct shares because that's what they "like" to do. In other words in Thornhill's case LIC's alone would get the job done if one didn't enjoy holding direct shares.
     
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  4. Hodor

    Hodor Well-Known Member

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    I would be interested what kind of criteria Peter applies to his individual holdings given his 50 year rule with LICs. All that springs to mind is industrial's as a broad sector and div cutting as a sell signal.
     
  5. austing

    austing Well-Known Member

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    That would appear to be the case although nowadays with issues like mortality infocus as age creeps up I think he might take more advice from his planner. When I spoke to him recently he mentioned the importance of having a planner he could trust (a former work colleague) if he passed away and the portfolio needed to be managed for his wife. He said otherwise your typical planner would take one look at 100% share portfolio and be trying to get his wife to diversify into bonds and other rubbish.

    Also in relation to my previous post Thornhill actually told me the direct share holdings were held to water down the resource exposure in his LICs. It wasn't so much about fees. Taking awhile for my memory to kick in this morning.
     
    Last edited: 23rd Sep, 2016
  6. austing

    austing Well-Known Member

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    This old My Say from Peter will give you some insight into his stock picking approach:

    Welcome - Motivated Money (DO AS I SAY; NOT AS I DO - MY SAY No 31)
     
  7. Hodor

    Hodor Well-Known Member

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    I do like that Peter shares his successes and failures.

    Currently I am tossing the idea in my head about selling some individual holdings - BHP, RIO and FMG, all were post GFC purchases, 2-3 years post. Looking back i make myself cringe
     
  8. austing

    austing Well-Known Member

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    Shame on you:eek:. Your membership of Income Investors Anonymous has been suspended:D.

    Although years ago Peter told me he held on to his small holding in BHP (purchased during a bout of stupidity) to remind him never to do it again. His idea of perpetually punishing himself:). Everytime he looked at his portfolio there was BHP STARRING BACK AT HIM:(.
     
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  9. Hodor

    Hodor Well-Known Member

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    I have neu as a reminder, was given a tip over 10 years ago. It doesn't pay divs and has lost over 90% on what I paid. BHP is the only loosing position I think, Rio is around even and fmg is up, not sure if I need more reminders or not. And I started so well with my first purchase been bank of Melbourne
     
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  10. austing

    austing Well-Known Member

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    :eek:, even worse. At this rate you'll be banned from Income Investors Anonymous. You broke our club's number one rule "gimme income or get stuffed":).
     
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  11. twisted strategies

    twisted strategies Well-Known Member

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    does anyone understand why i declined financial advice from the CBA in 2010 ???

    i wasn't in the market in the GFC , all i lost was a bit of mismanaged compulsory super .

    and liquidating my holdings at retirement is an abhorrent thought to me ?

    just invest ( say ) $2 m quickly and earn a liveable income that will sustain you for your entire remaining life

    absolute rubbish

    i am aiming at establishing an income stream NOW ( not after i need it )

    boy am i glad i wasted 5 years dodging high school and trying out this concept of real life

    did he advise Malcolm Turnbull ??
     
  12. twisted strategies

    twisted strategies Well-Known Member

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    i inherited some Poseidon Nickel certificates ( and some other shares )

    so i framed one and hung it up

    it looks at me and SCREAMS .... DON'T BE GREEDY

    now that is a lesson ! (lol)
     
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  13. austing

    austing Well-Known Member

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    As Pauline Hanson would say "Please Explain!"??? I'm having trouble relating this back to Peter Thornhill?
     
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  14. twisted strategies

    twisted strategies Well-Known Member

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    you have this super/retirement fund ( supposedly yield positive after fees and charges ) but as soon as you stop injecting cash regularly you should liquidate it ????

    ... why ? are they worried you will acquire the records of your super fund and peruse them yourself ?

    do they think you are automatically so inept you can't handle a pre-established portfolio ( tweaking to make it fit you better )

    now apart from Switzer and Thornhill basically doubling up on major stocks ( both investment gurus by the way ) and calling that diversity ?

    say CBA plus CBA PERLS , i can see the rationale ( even did it myself with MQG , MQCPA and MBLHB )

    but heck i worked this out as a 6 month market novice

    so Thornhill will have CBA directly say ARG , and 3 other LICs heavy in XJO constituents

    when a started i bought WBC , VAS ( and the MacQuarie trio ) but the LICs focused on small and mid/caps
     
  15. austing

    austing Well-Known Member

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    Peter also has UK listed Investment trusts (mostly Henderson), 4
    Aussie LICs and around 40 ASX direct industrial stocks. At last guesstimate his income in low / no tax environments is well in excess of $500K pa!

    A lifetime working in funds management alongside some of the best investors around such as Anton Tagliaferro has taught him a thing or two.

    Sometimes the lesson is "simple is best". Each to their own but we're also living a wonderfully comfortable retirement which would have taken a lot longer to achieve if we hadn't followed a similar strategy to Thornhill.

    As for Thornhill's earlier pre-GFC articles it was a different world back then. Even the best of investors got caught out. What the experts thought were moaty businesses turned out to be just the opposite. More recent investors will look back thinking how stupid some were at that time. But it's a bit like the "armchair warrior" analogy. It's a very different story when one is actually having to navigate through the fires of hell as opposed to newcomers looking back and judging!
     
  16. twisted strategies

    twisted strategies Well-Known Member

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    when my rellie died i inherited 4 shares one has been exited another ( top 20 ) share is struggling ,

    but lets look at the two ugly ducklings

    CSR was topped up @ $1.68 ( in 2012 ) currently up 107%

    APE was topped up @ $2.09 ( a new share in 2011 ) currently up 405%

    ( on MY buying prices )

    now this is just the last 5 years of a holding that has been in the family for decades

    the original holder had little education until reaching/passing grade 10 as a middle-aged student
     
  17. twisted strategies

    twisted strategies Well-Known Member

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    i don't think my generation of retirees ( the victims of 2020 ???) will have a simple , comfortable retirement at all ,

    i can see them beset with various on going problems , and financial complications ,

    i think it will be case of the wealthy like our PM and the 'so sads ' like my former co-workers who had their super raped by company and manager ( $12K payout after 12 years ???) all under the vigilant eye of the regulators ( smirk ). and you bet i used a convenient moment to liberate that cash to invest effectively ( and attracting no ongoing frees and charges ).

    and that is not even factoring in a market correction in a low interest scenario ( i wonder if divs are covering fees and charges currently ???)
     
  18. branson

    branson Member

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    Thanks for the link,.
     
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  19. twisted strategies

    twisted strategies Well-Known Member

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    PS , it seems our glorious benefactors ( caustic sarcasm ) has changed my target date for me to 2021 .

    what a mob shift time-limes like their backbones .

    plan your retirement ? bah humbug !!
     
  20. austing

    austing Well-Known Member

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    Young @twisted strategies, not a happy Chappy by the sounds of it. The rellie's giving you a hard time again?