results, page-6

Joewolf/Tinwins,

I think I probably should have elaborated as to the point I was trying to get across.

As I said before I tend to think of SOL and BKW as one group. Also, I tend to think of MLT, BKI as quasi cousin LIC's that are also more or less in the fold. Same with, TPG, NHC and now Execo.

There is massive income and dividend flow up to the mothership from these companies, we all would know that.

My comment about being resource heavy is a comment about SOL and actually about all LIC's in general. Argo, AFIC all of them. MLT and BKI and SOL directly are no exception. They all hold bucketloads of BHP RIO etc. etc. These companies while blue chips and are behemoths, merely dig stuff up and sell it (mainly). They do not add much value to the stuff they sell. Compare say CSL. It takes raw incredients, applies massive amounts of skill, expertise etc and then sells blood produicts and medical marvels to the world. The value add is massive. The margins are therefore commensurately better and the dividend growth from stocks such as these is measurably superior. Resource stocks have grown their dividends it is true but if they were not so Capital and Capex hungry their dividends would have grown substantially more.

Looking at the SOL/BKW mothership, if their direct equity holdings of all resource stocks including Execo and NHC were unloaded, if MLT and BKI also sold off their resource stocks and all the funds were ploughed into solid industrials with good dividend payout ratios and reasonable capex, the company would be even stronger and even more bullet proof.

I have charts that show the growth over time of the all ords (which includes the big resource stocks), specifically the accumulation index which adds capital growth and dividends together and compares this with the all industrials accumulation index (which EXCLUDES resource stocks). The all industrials accumulation index performance eclipses the all ords simply because it does not hold resources or property.

Just some thoughts. I really love this company SOL/BKW. I want it to get even better.

The Clover Corp stuff and some of the venture capital work done within the group I am not fussed about. They use basically not even the interest earned on cash to play in this space. Its no big deal.