How much higher can we go?, page-75

I think the BKW NTA gap will certainly narrow however it will never dissapear and mostly likely just revert to around the mean (and even if it does revert to mean you could still make a tidy profit at the current SP and bank decent dividends while waiting for that reversion in the mean time). I bought my first BKW parcel in the low 13s and topped up in the low 17s last week inspired by the valuation gap we've been discussing. I now have 35 percent of my portfolio between BKW and SOL (with a bigger weighting toward BKW) and am really comfortable at these levels. 

To give my thoughts on BKI/SOL I think there is certainly a big difference all though i would put them both in the broad category of a low risk income investment. BKI is a stock standard LIC with a broad portfolio of conservative income stocks very similar to an AFIC or ARG and is ultra low cost/low risk. SOL is much more high conviction and classifies itself as an investment house. It takes large (sometimes controlling) positions in a smaller number of companies (they currently have 7 investments they classify as major) which are generally cyclical (BKW/NHC and TPG to a lesser degree) and this means they can have big swings in the value of the total portfolio. 

Looking at the current SP you are going to get much better value and yield buying BKI (which has opened up a reasonable discount to NTA) however unfortunately their performance has been pretty average for quite a long while and they are actually under performing the benchmark