Ann: Funds Under Management - November 2021, page-117

“but if the SP falls to below $20 it's because earnings are sinking too and the dividend will fall as well. to me thats clearly the implication of the SP now and that seems to be what the smart money is betting on”

You’re dead right - that’s what the sp down in the $20’s and falling is saying. Whether it’s the ‘smart’ money sending it down there can’t really be determined until next year or even several years after.

Very unfortunate timing the CEO/Hamish news this week - completely left-field developments that have taken the stock price down another leg.Prior to this I thought MFG was consolidating nicely in the low 30s and offering good buying.

Still, markets are looking like returning to normality. The easy money over the last 18 months e.g. from the likes of Bitcoin,Tesla Afterpay etc has been seriously drying up and in fact for those late to the party losses are beginning to mount (all of the above down 20% in very recent times)This sort of unravelling can’t be a bad thing longer term for a more conservative investor like Magellan.

Maybe we’ll look back on mid Dec 2021 as the time the ‘smart’ money was actually buying MFG.

Whilst I haven’t been quite brave enough to buy this latest dip in the sp I think there is now far too much pessimism priced in to be selling.

I’m a long term holder and will ride this one out now.