Thoughts on FY24 Results, page-2

For the past 40 years, we only have seen declining interest rates....this is fundamentally changing, the role of low interest rate cannot be underestimated.

For the past 100 years, the index has returned around 10% P.A, this is enough to turn $1 to $15,000...today Sol patts can get equity type of returns from credit loans to corporations..... and returns from corporate loans are much safer than equity, credit ranks much higher than equity when the company goes bust...and if it goes bust, you get the company...where as equity holders gets nothing ....so you are getting equity type returns but taking a lot less risk.... I like that...

another point I like about sol patts is Millners kept on buying despite Sol SP trading above NTA... this shows their great confidence in the company...I don't care how much they are worth, their stake in Sol Patts is worth close to 1 Bil... this is not short change, it is the majority of their family wealth....

Their venture into the energy market is very much to be liked, I consider Sol Patts to be experts in the energy sector, they have been in this business for too long and some trends in energy consumption just simply cannot be stopped..... they don't need to dig for gold, they just need to sell the shovels.... much less risky play...

There are things not to be like, eg, their holding in TPG has underdelivered, Perpetual shares are in decline...but.... no company is perfect...and their return on TPG has been astronomical despite it performing badly since the merger with Vodafone....

Overall, they are delivering returns but taking on calculated risks.... Sol will probably only match the market during good times, maybe even lag...but will outperform during bad times....this to me is delivering value and it shows in their performance