why such a discount?, page-11

Here are some bear points re Milton corp which may have effect of SP

- an overzealous adherence to the buy-and-hold philosophy also indicates weakness in the sell discipline. So if the company has deteriorated they are slow to sell

- Fund managers rely on broker research rather then in house modeling (which i believe is figuring out cashflow, eps etc) to determine value

- They are not marketing that i am aware of so not many people know about it (financial planners etc)

- overweight one sector (financials) increasing risk

-Overreliant on historical data when assessing future earnings potential


Thats what i've identifed from reading

also other risks = always trading at a discount to NAV (which i sappose isn't that bad at the end of the day if you are long term forever holder, because in the end its the reliable income steam u are aiming for) and fraud by the fund manager (a risk with any managed fund)


Some pro points are

- Management expense ratio is very low i think 0.17 of asset val vs arg/afi which is around the same, impressive when u consider arg/afi have double the market cap of MLT, but they don't have the same amount of staff of AFIC or ARG

- No debt from what i can see on the shareholder report and 140mill in cash?

I'll be adding to the position myself personally