I have often heard that you are or can be punished by your...

I have often heard that you are or can be punished by your success. SOL is a case in point. they have made outstanding investments NHC being one of them so it has done exceptionally well. Now management are to be criticized for investing so much in resources.

Sorry but I don't get it - Its breeds mediocrity - they are in two cyclical or a few cyclical businesses and they are large but they got there by being exceptional performers.

I dont invest in BHP because I dont understand mining well enough to understand the value but I do invest here because they seem to have a good track record in mining so i am exposed but not overexposed.

As regards cross holdings: well why doesn't anyone track the performance of Sir Ron and perpetual against SOL - I have and sorry I will stick with my SOL shares. The so called discount IMO is really not a discount but a buffer because SOL is continually looking for more investments. If you took out the cross holdings its my belief that those individual companies would have a higher risk profile and may well drop in value. part of values in the underlying investments relates to the strength of their major or significant shareholder.