Livewire article - VG1 - Ouch!, page-25

Hi nailsnglue, we have similar feeling. However, not accounting earnings but free cash flow that matter. Pins’ price per free cash flow are keep improving that is a positive sign. Also the concentration of PINS are because they growth too quick, actually vg1 has built their position at nearly 20 dollar per share, based on 13F reports.

I must mention that do not forget franking credit. Compare with those without any franking credits, it means a 30%increase of the profit which is hold at ATO and is not include in the NTA. therefore a 25% profit is actually 35%, and it is hold by ATO therefore will be paid to you eventually.

the share repurchase is stoped simply because they will release their annual report soon. We need to know a nearly 10M dividend reinvestment and performance fee reinvestment will bring liquidity too.

Yes I believe the US markets may have bubble now. However hold a fund with discount and short position are far more better then hold those with premium.

last two years VG1’s performance is worse than the market index, so do Berkshire and Megellan, bridgwater, is that means these funds are managed by bad managers too?

For the statement cutty made, “it will experience capital outflow if it is an ETF” I must say it is true, because retail investors like to relocated their position based on their short term judgement. Let’s think about VGI master fund holders, Wilson’s WAR, and the us fund which build position last year, those wealthy and experienced investors are still holding. The retail investors are usually not the final winner. Despite we hold different view on VG1, I hope we can exchange our thought and become wealthy. To achieve that, think as those wealthy think is a good way.