Back in 2006 a retired couple unknown to me at the time, put $50,000 into a "set & forget" portfolio through a stockbroker.
So, what did they buy?
$12,500 into each of the following: Argo, Origin, Santos & Telstra.
Today, 2018, what's the portfolio worth? Well, $38,000 or a decrease of 24%!
Yes, dividends were received, but initial capital preservation was not.
They talk about the banking royal commission, well perhaps brokers & investor
apathy should be next.
Were there any "winners" from this quartet?
Yes, Argo returned 19% capital growth over 12 years or about 1.5%pa + dividends of around 5%pa. (the only "set & forget" proposition here)
Origin lost 27% in share value + dividends received.
Santos lost 60% in share value + dividends.
Telstra lost 32% in share value + dividends.
Had the initial $50k been put into WAM and according to their June17 annual report,
17.6%pa including capital gains & dividends would have been achieved for those
12 years.
I hold funds in various Listed Investment Companies and am happy to do so.
"Part time" investors should be full time investors in LICs for their financial health.
WAM Price at posting:
$2.39 Sentiment: Buy Disclosure: Held
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