AFIC serves a purpose for different people with different needs at different stages of life. Truth is, AFIC underperforms. I often wonder what effect Scott Pape has had on the persona of AFIC. I've held AFIC for many years. But like I've previously posted, I haven't purchased AFIC shares for my children and I no longer purchase shares for myself. I'd rather that my children own Wesfarmers directly, rather than completely miss out any on future capital returns that were invested 'god knows where' by this particular Listed Investment Company with not a single cent returned to shareholders.
The stealth promise of consistent, fully franked dividends that make some sort of insinuation that being invested in an underperforming LIC (with sub-par portfolio management) backed by a price performance that doesn't even match the XJO and comes nowhere near meeting the cost of inflation as some sort of security against peoples own insecurity, is a fanciful marketing ploy. Sure, great if you're Peter Thornhill earning 400k/p.a. in dividends alone and crave the benefits that fully franked dividends provide.
As for your comments in relation to CIN. SOL and BKW have totally outperformed and they're much cheaper than say...CIN. But if someone is happy to pay for a LIC trading at 21x earnings, then each to their own. Something to be said for creating your own market and increasing dividends year on year rather than just investing in listed equities. At least CIN appear to have a focus on raising their dividends instead of remaining impotent.
A shout out to the AFIC Portfolio Managers; David, Brett, Andrew, Rosie and Kieran. I am forever indebted to you guys. Had it not been for you guys dumping a fast growing company in Altium, in a fast growing industry with fast growing dividends, I may never have purchased the chunk of shares that I did. I was so incensed that you guys were so short sighted (for a company who market their own long term, stable & secure long term investment horizon), that I took it upon myself to hedge against you guys and went all in on Altium. So thank you. I'm more than happy to buy you a beer. But you can pay for your own god damn Domino's Pizza.
AFI Price at posting:
$7.35 Sentiment: None Disclosure: Held
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