A slight head wind, page-7

Hi tanewi,

I actually do not look at what individual stocks LICs invest in. I look at data on several of their performance indicators in a few areas. I made the decision that judging individual stocks was too difficult just before the tech crash 1999 I think. It is much easier to track LIC performance and judge their ability to maintain a diversified portfolio and pick winners (or avoid crashes). ETFs have come on since then they also are very useful.

There is NTA performance and actual share price performance. Once I decide they know what they are doing (NTA performance) then its discount to NTA I am looking for which takes both data into account. Unfortunately I have been waiting for 15 years for a couple of good ones but still do not own them. There is always opportunity though. Also the ETF's (e.g. STW, VAS) have are bought and sold very close to NTA so do not forget them. ALF and WAM are two of the few LICS at actually outperform the index over very long periods (ten years).

I also like your choice in LICs. You may not know that ALF was originally called Wilson Leaders Fund and was promoted by Geoff Wilson to get started. I have followed WAM since 1999. That may be useful information in your diversification strategy. I am in hold mode on WAM and will buy back in ALF when their is an attractive discount to NTA, sometime in the next 5 years.

I have verbal diarrhea sorry.