RAC - Charts & Price Action, page-4028

Another interesting question!

The answer is a qualified yes, but the background on this is important.

Our house is effectively paid off, it's not our first in sequence but it is the only real estate that our nuclear family owns. Retail super provides a conservative back stop for our later years (touch wood), with annual contributions between 50% and 100% of the limit, the total value is on track to sit comfortably within the limits currently in place for the standard tax treatment in the future when we should have access to it. Our other investments include ASX stocks and private companies.

Our holding in Race now makes up ~20% of our net worth, the investment was around 5% of our net worth at the time, but the RAC value and the total value have both progressed since then. If it fails and everything else holds up we'll still have 80% of our current position and we'll only be out of pocket 5% in cash.

The cash for investments has been sourced by drawing against the mortgage, always conservatively and always well covered by income and assets. At this stage the investment cost of our investments is approximately equal to the value of the investment loans mortgaged against the house. My, overall very reasonable, spouse has often lobbied against the amount drawn down against the house, however, at this time the draw down is a comfortable proportion of total net position.

The investment was moved into Race progressively, in agreement with my spouse other shares and investments were sold to provide the funds as the certainty improved. Spare cash was put against the mortgage and then redrawn when the RAC price was too compelling!

So, effectively, yes the money was sourced from a mortgage (loan), but it was a relatively small amount overall and didn't put our family at risk in the scenario that the worst might happen.

As far as I can tell, no one has the exact number of RAC shares that they want, even DrT has expressed that he wanted more back in mid-2019! I sort of wish we had more but then maybe I'd never do anything other than check our position and read HotCopper! ... careers are long, life is short and it's about balance, spend less than you earn and invest the rest - see Scott Galloway.