MFG Fair Value, page-86

Every investor should invest in MFG for a 10% yield - not too good to be true at all, especially when cash rates are at 0%.

Tragically, what you'll find is that because Magellan's payout ratio is tied to its earnings, the dividends will be far lower than they were given less fee revenue from the SJP mandate loss (and much more to come). The market has already priced this in, hence the share price got smashed.

You should be especially worried if Magellan decides to use its cash balance to pay out a high dividend rather than invest for growth. That means management thinks there is nothing they can do - no other line of business they can create - to drive higher future revenue, and so the share price will go even lower.

This is Magellan's Kodak moment. It got disrupted by passive and now has lost its brand premium.

The financially ruinous decision by investors on this thread continues to keep me in awe.

You could simply invest in Microsoft, Macquarie or the ASX 200 with surefire growth prospects. But let's pump money into something that none of you can even compute a thesis for.