$3.00 NTA, page-22

cutty,

I grew up poor and I saw my parents struggle with
money. I actually think that has been a good thing
for me and I have always been fairly conservative
and planned for the unexpected. I have been
disciplined and reasonably successful given my
upbringing.
On the contrary I see many people that spend
beyond their means and think that the sun will
always shine. From an economic and market
point of view, and relative to LSF and other stock
holdings, we live in interesting times.
I think the economy will hit a brick wall at some
point , as some people who are over extended
slow their spending, the big question is when and
how much it slows.
I like to be optimistic but have started to be a lot
more cautious. I am investigating some unlisted
investments and still holding some LICs. I have
become a lot more active of late and will close
out positions if it looks shaky.
I am a big believer in things returning to their
mean average over time , so get nervous when
stocks have a good run and conversely excited
when a good manager has had a period of
under performance. Markets are never easy and I
personally believe people should always have a
plan in life if the weather comes in bad. I have a
plan and if I believe the tide is turning I will leave.
Until then I will try and use the volatility.
The interesting thing with LSF is it is trading at
discount while LICs that have far worse
performance are trading at ridiculous premiums.
If LSF declared a FF 6% yield dividend I bet it
would trade at a premium.