new thread, page-63

Sorry, I missed that one earlier.



"What would the rule of thumb be? The ATO would have to see the companies assets (other entities shares held) on its register and determine if the time period held has been one forever or merely for spec gain. And if there are a 'mix' of shares say 20 of which 15 are tightly held and 5 have been purchesed based on a spec gain for say 13 months?"



Most of the old style LICs make a declaration such as 'The Company is a long-term investor and does not intend disposing of its long-term investment portfolio'.
For instance, I just had a quick look at what AUI have been doing in the past 4-5 years, and other than the compulsory acquisitions (TAB, FOA etc) they have only sold out of FGL (cant blame them). Similarly with ARG, although I noticed they got out of SGW and ION well before there was any sign of trouble in the market. Those guys seem to have their ear to the ground, what can I say ?




"I dont think bnb are a mini mbl. But yes I see the point. What I wanted to know in your opinion would you consider them a buy or add them on as drp, current environment?"


Yes, why not ?
The same rule applies to all investments. If you like the company and its long-term prospects you buy in all markets, timing makes little difference. Admittedly MBL tend to do better in markets where there is an abundance of M&A activity etc, but they do have a steady fee and commission income, they always seem to hit 20% ROE, therefore the current PE of 16-odd isnt that expensive.
Alternatively you can buy indirect in MBL via ARG as it represents 10% of their portfolio. Good excuse to get started with ARG if you havent already done so.