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$1.71 bki investment company limited

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WangChung

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12/07/24

15:46

Post #: 74729664
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Originally posted by timbowls ↑

I actually just finished a really good book along these lines called "The most important thing" by Howard Marks and he articulated risk management really well in that and got me thinking a bit differently about it. He basically said that if you are managing money conservatively then your goal should be to try and capture most of the gain in a bull market (accepting you won't fully be able to keep up with it) and then massively outperform in a bear market because you are holding stocks that are significantly more solid financially than average.

Another point he made is that in bull markets we just purely look at raw returns whereas very few people actually consider the risk taken to achieve those returns as it's hard to quantify. So looking at it through that lense would mean that if two funds returned 10 percent then realistically the one that took less risk has outperformed the other.

I can remember being a shareholder in AFIC at the time of the GFC (that was my very first share purchased in 2007 and actually a great way to learn about financial markets) and they managed to hold their dividend steady right through that period.

At that point they were highly rated by the market and traded at a reasonable premium so it's been quite amazing to watch sentiment towards the whole sector decline so much.

I think the next time we get a protracted bear market might be a make or break moment for the LIC sector where they either remind everyone of their value or fall just as much as everything else and potentially then go into a permanent decline.

Interestingly if you look at what Bill Ackman is launching over in the US there is clearly still some appetite for close ended funds that are well marketed (and in this case connected to a bit of a celebrity fund manager which has it's own drawbacks).

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I think there’ll always be a place for large, diversified, low cost, liquid LICs, of which there are less than a handful in the Australian market.

But I’m not at all confident about the plethora of sub-scale, high cost, illiquid LICs.

BKI Price at posting: $1.72 Sentiment: Buy Disclosure: Not Held
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(20min delay)
Last $1.71		Change 0.000(0.00%)		Mkt cap ! $1.380B

Open	High	Low	Value	Volume
$1.72	$1.73	$1.71	$271.3K	158.1K

Buyers (Bids)

No.	Vol.	Price($)
4	40672	$1.71

Sellers (Offers)

Price($)	Vol.	No.
$1.73	32171	4

View Market Depth

No.	Vol.	Price($)
4	40672	1.705
7	92973	1.700
3	54000	1.695
4	17839	1.690
2	55000	1.685

Price($)	Vol.	No.
1.730	31738	3
1.735	10733	2
1.740	22062	3
1.745	5000	1
1.750	105962	4

Last trade - 16.10pm 13/09/2024 (20 minute delay)

BKI (ASX) Chart

what am I missing?, page-5

Olam Agri raises Namoi takeover offer to 75 cents a share and receives shareholder backing

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what am I missing?, page-5

Top Stories

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Metals Australia kicking off plant study at Lac Carheil; Canadian tariff tailwind potential

Week 37 Wrap: HotCopper likes Cuban oil; markets shrug debate off for Putin; firebrand quant says social media a market threat

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Antipa divests its Citadel interest to JV partner Rio for A$17M, refocuses on Minyari Dome

Utah authorities sign off on Anson's lithium extraction plans at Green River

Dale Gillham's weekly wrap: US fracking support boosts outlook for Australian gas stocks

Featured News

Buyers (Bids)

Sellers (Offers)

Featured News