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Investment Portfolio Update: Mid-Year 2019

July 6, 2019


Half way through the year already!  Where the hell did that go?

With the end of the Financial Year behind us, I thought I’d provide an update on how our portfolio is going.

Not only that, but it’s tax time, which means I’m piecing together our income for the year.  And you’re probably getting ready to do the same.  So let’s celebrate with an extra update to keep you guys informed 🙂

 

Current Portfolio

Here’s the latest breakdown of where our savings are parked, at the time of writing.  This is ignoring Super and based in percentages, rather than numbers, for privacy.

 

Strong Money Portfolio Allocation

 

If you remember, the last update had an equal split between shares and property.  Now shares have taken over and become larger.  So what happened?

Well, we added to our shares and the market performed pretty well over the last 6 months or so.  But the main reason is, we sold another property, as part of our ongoing transition from property to shares.

What makes it messy is, we’re living off this portfolio as well.  Of course, there is also some part-time earnings coming in nowadays, which is handy.

But we plan in such a way that neither of us is required to work and can stop anytime.  That’s why there’s a decent amount of cash.  To cover our spending, pay ongoing property expenses and buy a few shares on a regular basis.

For more info on how we manage our cash in early retirement, and why we’re selling off our properties over time, rather than all-at-once, it’s detailed in the last update.

Another reason not mentioned, is because all but one of our remaining properties are in Perth, and I’m expecting (hoping?) the next 5-10 years looks better than the last!

Given the combo of reasons, the slow sell-off feels right for our situation.

 

Property Sale

As mentioned, we sold an investment property.  And incredibly, I think we managed to time the bottom of the (Melbourne) market perfectly, so that was nice!  I’m being sarcastic, of course 🙂

If you remember, things were looking quite bleak for real estate earlier in the year, with a raft of tax changes proposed by the sure-to-win Labor government.  And those changes would’ve hit housing pretty hard, which dampened sentiment quite a bit.

Clearly, the Liberals won and those changes never happened!  And now interest rates have fallen, and financial regulators (APRA) have softened their stance on lending and interest rate buffers for borrowers.

So today, the outlook for housing has arguably improved compared with 6 months ago.

It wasn’t until our property was on the market that we realised how soft the market was.  We could’ve taken it off the market and held on for a few more years.  But after a period of growth, there’s no guarantee that would’ve ended in a better result.

Anyway, we got a decent bit less than planned for this property.  But that’s okay.  We still managed to get some capital from the sale and this also lowers our ongoing expenses and simplifies our finances a little further.

Our first two property sales turned out much better than expected, so it kinda evens out.  Win some, lose some!

We’ll continue on with our plan to sell every couple of years, so that’s it for a while!

 

Other Properties

With the other real estate we own, there has been (more) small declines in Perth property values.

But on the other hand, building has more or less dried up, and the population is still growing, so this is bound to turn at some point.  The interest rate cuts and the regulator’s change in stance may help.

The rental market has improved over the last few years, with vacancy rates falling from 7% to around 3% today.  This is likely to continue, with modest population growth, low levels of investor interest and slow building, possibly leading to rising rents and prices over the next 5 years.

Perhaps I’m just being a little too hopeful?  But you’d have to say the worst has past, and by most measures, Perth property is incredibly affordable right now.

 

The ASX Ascent

Anyone who follows the sharemarket will know it’s been going up since the start of the year.  And like every year, people are saying this is the year we’ll have a crash, or a recession, and the world is going to end – you know the story by now!

So naturally I’m being cautious and waiting for a ‘better time’ to invest, right?

No!  Firstly, I haven’t the slightest clue what’s going to happen next.  The market might climb for another 5 years.  Or it might start falling tomorrow.  The only thing that makes sense for people building an investment portfolio is to keep buying.

So that’s what we’re doing – adding to our portfolio in small amounts on a regular basis.  While I wouldn’t mind lower prices and the higher dividend yields that go with it, we’re certainly not hanging around for some magic event like a crash.

The fact is, you’ll never end up with a large portfolio to live off if you wait for the perfect time to invest.  And you’ll never grow a healthy dividend income stream if your cash is just snoozing around in a bank account, with the rats of tax and inflation gnawing away at it.

So keep investing!  And use your dividends to buy more shares.  It’s the only way to make incredible progress.  When people talk like they know exactly what’s going to happen next, it drives me crazy.  Because nobody does.  It’s the future!

By investing a set dollar amount regularly, you’ll be scooping up more shares when the market falls, and less when it climbs.  All without even thinking about it!

There’s no need to keep cash sitting around hoping for lower prices.  If you’re on the road to Financial Independence, your savings rate will ensure you have access to investable cash on a regular basis.

If the market does fall considerably and you think it’s a great time to invest, try to save more than normal to buy extra shares.  Or even consider borrowing money (at a low interest rate) to invest with.

 

Share Purchases

So what have we been buying in the last few months?  We’ve been building our holding of VAS – the ASX 300 index fund.  The fund has recently reduced it’s management fee from 0.14% to 0.10%, so a few more dollars in our pocket each year!

In case you missed it, read how my thoughts on index funds have changed.

We’ve also topped up most of our other holdings too, including Argo, QVE and a couple of REITs we hold.

QVE is now trading at a discount to NTA of over 10%.  It’s fallen in popularity in recent years due to underperformance.  But I still believe in the manager and their investment philosophy so am comfortable with this holding.

QVE is a value manager.  And value investing has been underperforming since the GFC, as high growth and exciting momentum stocks have been flying and bid up aggressively in the market.  This may well continue, or not.  We’ll see.

My amateur view is when we have a downturn the companies with high growth expectations built into their share prices (sometimes with little earnings) will likely suffer the most.

This is what started to occur at the end of last year, before the strong market recovery until today.

Whatever happens, I’m comfortable where our funds are invested and it aligns with our personal goals.  Okay, here is our current portfolio…

 

Share Portfolio Breakdown

 

As you can see, it’s basically the same as last time.  The aim is, as always, to achieve a reliable and steadily growing income stream over time.

Speaking of which, let’s look at our portfolio’s income from the last 12 months.

 

Portfolio Income

Readers will know this is how I like to measure progress, rather than focusing on portfolio ‘value’.

So here’s our updated dividend income chart (including franking) for the 2018-19 Financial Year.

 

Investment Income Chart

 

Clearly it’s a fair bit higher than the year before.  About 30% higher in fact.  Most of our holdings paid higher dividends than the year before.

But this is overwhelmingly due to us buying more shares throughout the year.  Interestingly, this cashflow now covers close to half our yearly spending, which feels pretty cool.

In the next couple of years, our portfolio’s income is likely to grow slower as more cash is going towards principal and interest loan repayments.

We decided to do this earlier than planned because the interest rates were much more attractive, even though it hurts our cashflow in the short term.

I haven’t included RateSetter (peer-to-peer lending) interest in our income chart.  The reason is, the amount we had invested in lending in previous years was not going to be part of our long term portfolio.

So while it would have made the income chart look impressive, it wouldn’t have been an accurate measure of investment income, given we were spending the repayments.

Putting a lump sum into RateSetter did prove to be an effective way to spend down a lump of money, while keeping it productive.  I may do a post on this in the future.

Anyway, we plan to keep some funds invested in peer-to-peer lending, so long as the interest rates are attractive and we remain in a very low tax situation.

Next year, I’ll probably include RateSetter interest in our investment income, as the amount invested now is close to what I had in mind as an allocation.

But I’ll also separate dividends and interest so you can see exactly how our income-focused portfolio is going.

 

Tax Time and Sharesight

Luckily for us, franking credit refunds are here to stay in the short term.  Otherwise I might have been revising this income figure downwards!  The refunds certainly come in handy.

But if they were scrapped, we’d simply continue on with our strategy – it’d just mean good cashflow from Aussie shares, instead of excellent.

Anyway, we’re starting to pull stuff together for our tax returns.  To be honest, I’m a bit slack when it comes to record keeping and the like.  I’m not overly into spreadsheets, believe it or not!

So for the last few years I’ve been using Sharesight for record keeping.  I’ve found it extremely helpful to keep track of dividends and franking credits, as well as recording gains and losses on shares sold.  By the way it’s free for up to 10 holdings, so get onto it!

Now all I have to do is click a couple of buttons – Taxable Income Report, and Capital Gains Tax Report (if I’ve sold any shares during the year).  It looks like this…

 

 

Click the Taxable Income Report and it’ll spit out a report like the sample below…

 

 

And bang – the info you need is all there!  Same deal for the CGT Report.  It’s always worth checking it though, just in case.

And if you need step by step instructions for running the reports and doing your tax, Sharesight created a video and notes which you can find here.

Or you can simply send the reports to your accountant.  I do our tax returns myself so I find it pretty handy having some of the work done for me!

If you’re interested, you can sign up here, and it’s free for 10 holdings or less.  For those with bigger or multiple portfolios, you can sign up to a paid plan and get 2 months free using my link, which also comes with additional features.

Full disclosure: this blog receives compensation if you choose a premium plan – thanks in advance if you do!

But that’s not why I recommend it.  I do because I use Sharesight personally and find it super helpful – it saves me time and headaches!

 

Summary

Not a whole lot of excitement here to be honest.  Just steadily adding to our investments and watching the income creep upwards.

Even though our property sale didn’t turn out great, I’ve barely thought about it at all.  It feels great to have less expenses, less loans and less things to deal with.

Now we look forward to a decent tax return, and the upcoming dividend season!  With any luck, it’ll be another year of modest dividend increases, which I’ll be sure to let you know about in the next update, later in the year.

So how’s your portfolio going?  Did you earn more investment income this financial year compared to last?

Hopefully you did, and you’re heading in the right direction!  Let me know about your progress in the comments 🙂

54 Comments

54 Replies to “Investment Portfolio Update: Mid-Year 2019”

  1. That came around quickly! It’s great to have another portfolio update. It’s refreshing to follow a blog that isn’t incessantly posting monthly portfolio updates! Your content and style sets you apart from the crowd. Great progress Dave!

    1. I 2nd this.

      Dave’s down to earth blogs are so refreshing to the rubbish you see out there.

      As always, love your work Dave

  2. That’s a lovely linear trend there SMA! So by next year you might have around $25 k or so in passive income if it remains on trend? It’s great to see your income trends as I sit here finalising my own equivalent figures for a similar post.

    That’s an interesting way to use Ratesetter that you suggest, I hadn’t thought of that possibility. With the capital returns flowing in regularly, I can see how it could be done. I’ve been reducing my exposure just for asset allocation reasons.

    The change in stance from APRA could turn out to be very significant. With commodity prices higher, the Perth property might well outperform your expectations. 🙂

    1. Cheers mate!

      Yes I think that’s probably a fair guess for next year’s result. That RateSetter method is another eccentricity in my approach I guess, haha!

      Hope you’re right on Perth property, but won’t hold my breath on that one lol.

  3. Sounds like you’ve done very well – you are in a much better position than I was at your age.

    My portfolio has done well this year. My income has increased more than expected; this was mainly due to those special dividends from AFI, MIR, AMH and WES. Also, I still had a bit of cash from a 2018 property sale and I bought some more shares, including my first batch of QVE at 10% below NTA.

    A friend of mine is a big property investor, and he has had a good year too (he recently told me that investing in shares is like gambling at a casino, and he ain’t no gambler) . He’s a hands-on kind of guy with a background in property development and a long-term view, so his strategy works very well for him (I’m the opposite). Even in the investment game it’s horses for courses. But true wealth is usually attained with long-term investments.

    1. Thanks Robert. Absolutely – everyone’s different I guess, and sometimes it takes us a while to figure out what suits us best. Haha shame about the casino comment, that’s the default assumption I think.

      Great to hear your portfolio income is increasing nicely!

  4. Good stuff Dave. Hope next FY will be even better!

    With a lot of research pointing towards lump sum investing being better than dollar cost averaging, why did you personally choose to go down the DCA route?

    I share your sentiment about property prices, though I reckon we’ve got another quarter or two for Melbourne to stabilise before seeing a recovery.

    1. Thanks Ms FireMum.
      Fair question. Because we’re selling a property every couple years, and using the money for personal spending, investing, and property expenses, it gets a little tricky. So keeping the lump sum gives more flexibility. If we allocate a certain amount for shares at the start, that also means no purchasing for 2-3 years, which I’d find frustrating. I like to invest regularly as it keeps me engaged.

      With this approach, we can adjust things as we go – so if we get more property bills than expected, we can slow up on the share purchases, so the money doesn’t run out too fast. Or if we decide we’d like to keep the property an extra 6 months or a year, same deal. If we allocate the money straight away and invest the shares portion, we can’t do that.

      All cash is kept in an offset account, so it’s earning a comfy 4%. I would consider the RateSetter method again if we had a bigger lump. But I think we’ll spend this money before 3 years is up, and that also offers less flexibility too. Probably all sounds like a big mess, but it’s working for us. There’s a bit of a method behind the madness 😉

  5. Hey mate,

    Great blog and post. I have one question about sharesight.

    On your Taxable Income Report screenshot, your holdings are divided into non trust income and trust income. Just wondering why is that? I would appreciate if you could point me in the right direction. Thanks.

    1. Hi Lautaro, thanks for reading.

      The holdings are automatically separated by the software. Non-trust is simply any dividends earned from ‘Companies’. And trust income is any money earned from ‘Trusts’, which includes real estate trusts and also index funds as they operate as a trust structure for tax purposes. Hope that helps!

  6. I really love your Blog Dave. I’ve been following you now for about eight months after being introduced to Peter Thornhill’s work. I appreciate your common sense attitude and informative and personal writing style. My husband and I can relate to the FIRE lifestyle, having done the ‘retire early’, really early, after quitting our lucrative jobs and deciding to sell our assets in our then home in Scotland, UK to travel (he was 35 and I was 24 at the time). A couple of ‘planned’ years of travel stretched into 16 years as we chose to live our early retirement in inexpensive countries in Asia, with the purpose of pursuing a more simplistic and meaningful life. After living off savings all those years, we felt a need to top up the bank account once more so we moved to Perth, Australia a year ago to work and save hard. It feels like we’re making up for many years devoid of income! We feel genuinely grateful to have lived such a free and uncomplicated life during our most valuable years of our youth. Our only regret was not having the knowledge of investing for passive income many years ago when we set off on our journey. However, all our life experiences have lead us to where we are now and learning from hindsight helps us grow.
    This past year it’s been my responsibility to take care of our finances – understanding where invest our current (healthy) income and build our wealth for our future retirement. After extensive researching and learning, I’ve made three initial investments in ARG, MLT & BKI shares, with intentions to continue investing for dividend income in various assets over the coming months and years.
    I’ll continue to follow and learn from your work which is very inspiring. I really appreciate you putting out such valuable information that helps me and others on their journey to FI.
    Thanks and keep up the brilliant work!

    1. Wow, awesome comment Mrs Kiltie! Thanks for the kind words and for sharing your story 🙂
      I was actually born in Scotland by the way – came here when I was a few months old. And you’ve probably read I’m from Perth too!

      What a fantastic adventure you’ve been on! Sounds like you’ve learned a lot on the way. It’s quite funny how a simpler life is often more meaningful. I think most of us get sucked into thinking it works the opposite way.

      Thanks for being a regular reader – glad the blog is helpful and I appreciate this comment!

  7. Thanks Dave!
    It’s great to read something practical and actionable as well as easily understood by anyone of average intelligence. Also great not to encounter the usual request for three or four hundred dollars for access to your secret knowledge. great job mate! I have bought BKI shares and VHY and will probably buy Argo and VAS in near future. I’m a beginner but wondering why your not a fan of buying bank shares like NAB and WBC for the high yield which could run as high as 7 to 10 percent gross. would have thought the major banks were a pretty safe bet? Look forward to continuing to follow your blogs in the future.
    Thanks Dave from James

    1. Haha! Thanks James! No secret knowledge here mate – what you see is probably all there is 😉

      I’m not really a fan of buying bank shares individually, because by owning LICs and VAS, we already have large bank holdings! I have owned a couple in the past, but decided there is no real need to buy them separately. It does juice the yield a bit but it also adds more risk. They aren’t bad investments because they’re dominant and govt guaranteed, but I’m happy to own them inside the diversified funds and leave it at that. Those holdings are about 25% banks already, which is enough I think. And since I don’t bother with international diversification in our personal portfolio (have in super), I like to keep a reasonably diversified Aussie portfolio.

      1. Thanks Dave, fair points you make. As a beginner who has decided to pursue a “dividend investor” philosophy I’m led to chase after whoever offers the highest dividends. Hence BKI and VHY for example. Time will teach me, and I’m quite sure I have much to learn, which is why I appreciate your blog and your experience and opinion. Cheers Dave.

        1. One important lesson to learn is that it’s not all about yield – dividend growth is very important. A high income today is nice, but what we equally want is a high future income, which requires growth, so they’re both important. As an example, 4% dividend yield which grows at 4% per annum is better than a 7% yield which doesn’t grow at all. I wrote a little on this here. Don’t worry James, there’s just as much for me to learn! As long as we each get a little bit wiser as time goes on, we should be okay 🙂

  8. Awesome work Dave, thanks for the investment update, always great to hear how things are tracking.
    I love your F’hilosophy on predicting the future and ‘waiting’ for a crash – people love to speculate on this, and I can see why some people might be reluctant to add more funds, but your approach to this is very refreshing to hear.

    You’re also making great progress with the transition to dividend income – hitting half of your annual spending is a big achievement, and I can see that rapidly hitting 100% in no time. It’ll be a much simpler portfolio once the investment properties are gone!

    Cheers, Frankie

    1. Thanks Frankie!

      It sounds very smart to sit back (or sell) and then wait for the big crash and then buy up big. But for almost everyone, the idea in practice is ridiculous and frankly dangerous to their wealth. There are so many reasons why it doesn’t work, as you know.

      Dunno about hitting 100% ‘in no time’, it’ll take a fairly long while, but that’s okay. Happy to see it increase each year and see light at the end of the tunnel 🙂

  9. Thanks for sharing your portfolio updates Dave. Really enjoy following you on your journey.
    This year is going to be a big one for me as i’m planning on diversifying into shares 🙂
    Plan is to make it as simple as possible, LICs and ETF’s, start small and just keep on investing.

    Cheers again and hope you have a great Financial year ahead.

    Paul F.

    1. Sounds great Paul, I’m excited for you! Keeping it simple and regular investing is a perfect way to approach it!

      Thanks for reading mate, all the best with your new adventure into shares.

  10. The financial year seems to have turned out pretty well for you Dave.

    I just made a blog post looking at how some of the popular LICs fared. Those who held the Wilson stable or Platinum didn’t fare well price wise so seems like you dodged them. Then again probably not a big deal either way for those genuinely who are just looking at the dividend flow.

    Election result is probably handy for you in terms of looking to offload some more property. Is the property exit plan kind of like a dollar cost averaging approach in terms of selling property and buying shares? I think I read something to that effect but are you strongly committed to that approach? Or if you could get some good offers on your property and shares had a bit of a pull back would you potentially make the switch all at once?

    Hypothetical I guess. But if conditions suited for example sell one property early 2020 and one later in the year to be separate tax years?

    Cheers
    Steve.

    1. Thanks Steve, will check that post out now! I did noticed the premiums shrink on some of the Wilson funds.

      Yes essentially an averaging approach. Partly to do with tax, partly because it’s easier/simpler, and partly to try to improve the outcome since we aren’t rushed to sell. But we’re not wedded to a certain timeframe at all – just every couple years seems to be a smooth way to do it, working on my rough guesstimates. So if Perth property really takes off in the next few years for some reason, depending on the prices, we’d be happy to offload earlier than expected, for sure.

      Would be more inclined to do so if the sharemarket tanked, as that’d be a good opportunity. Happy for you to organise those twin events if you could Steve (Perth property boom and sharemarket downturn)? Haha thanks mate! 😉

      1. Yes sure just let me know which month you would like me to organise it all to happen!

        I think it’s sensible the way you have gone about it. Even if the last sale was a bit lower than you had in mind it makes sense from a risk management perspective. I imagine you feel more relaxed about the current asset exposures now as a result.

        1. Flick that switch whenever you like Steve!

          Thanks for that – it sounds a little messy but it makes sense in my head, so good to hear it sounds reasonable to others too. Yes it certainly feels good to steadily move in the right direction and simplify our situation over time with less debt and things to deal with. Still a long way to go, but getting there 🙂

  11. Reading about P2P lending and RateSetter on digital platform,I ear also about Brickx and Stake….What is your comment on these two,very appreciated…..
    Thank you for a very interesting read
    Cheers

    1. Hi Gerard, thanks for reading.

      Brickx is a residential real estate investing platform which I don’t like at all. From what I’ve read it has high fees and my opinion is it’s likely to offer poor long term returns. The main benefit of residential real estate is the ability to use high leverage, and without this it’s very likely to be a low returning asset.

      Stake I think is an online stockbroker which lets you buy shares in US companies directly and even fractional shares at little to no cost – they make money on converting your currency AUD/USD from memory. I don’t see any issues with using Stake if one wants to buy direct US shares – they just earn money differently from a regular stockbroker.

  12. Great Post Dave,

    I like your approach of recording the income as a benchmark of your progress, that way it ignores the ups and downs of the market and its effect on the value of your share holdings.

    Keep up the great work, your approach is very refreshing in the complicated financial world.

    Regards

  13. Hey Dave, in your Dividend Income Tracker, do you add the Total Payment + Franking Credits in your calcs? Thanks!

  14. Great post and well done on building your portfolio and income.

    I’m interested to see how your slow sell of properties into shares will go, hopefully well. Are you keeping any properties as investments or PPOR? I feel keeping at least property would be beneficial for peace of mind as well as accessing cheap credit.

    Keep up the great content!

    1. Thanks FFA 🙂 I hope so too!

      Won’t be keeping any properties, though we are likely to buy a home a bit later down the track. I’ll have more peace of mind having none, than keeping some lol. More peace of mind that my money is working harder, delivering much more cashflow, with much less expenses and headaches. So if we want to access cheap debt later, the PPOR can be used. Otherwise, being debt free would still be fine by me, after having large debt for a long time.

  15. Hi Dave

    Great blog, it’s great reading.

    I’ve just started my dividend investment journey at the age of 40. I’ve started with $30,000 invested in 3 stocks. BKI, SWTZ and a REIT. I’m going to add 2 more LIC’s soon also.

    I’m endeavouring it contribute to all investments as much as possible per annum and have set up full DRP for all of them.

    Thanks for the informative information, reading posts from like minded investors in inspiring.

    I’m hoping by the time Im around 60 I’ll have a good dividend income to live on comfortably.

    1. Thanks Benny, great to hear you like the blog!

      If you keep saving hard and adding to your investments, you should be in a pretty good spot by age 60. Keep it up mate 🙂

      1. Just a question Dave about sharesight. What do you do with the dividend reporting.?

        Under the holding settings of each stock (look right, drop down menu) there is an on and off button for auto dividend reinvestment, do you have that on or off? If you have it on what do you do? Could you help and explain the process please when you get payed a dividend and have a DRP through sharesight. Hope this makes sense as I’m trying to get my head around sharesight.

        Thanks.

        1. Hey Benny. If you are participating in a dividend reinvestment plan with one of your holdings, in Sharesight you simply set that holding to DRP ON. And it will record the little parcels of dividends that get reinvested, update your holding amount and record the cost too. We have this for one holding and it works quite well.

          If you haven’t setup a DRP with any of your holdings, simply ignore that option and you don’t need to do anything. Hope that makes sense.

          1. Yeah it does, thanks. So sharesight will also record the DRP price as well per share elected by the company? So what you are saying I just click to on and all is good?

            On another note, BKI is moving along nicely, great longterm investment for me…Paying good dividends for my DRP!

          2. Yes Sharesight will record the DRP price for the shares. Where it says AutoDividend Reinvestment Plan under Holding Settings (like you described to me), it’ll either be set to off or on – if you click this it will switch to On.

            Good stuff mate, I’m also not complaining about the fat dividends from BKI this year 🙂

          3. I’ve just setup my issuer IAG shares in Sharesight. I only started DRP in 2016. I found I had to edit a few of the Sharesight records for the number of shares I was allocated under the DRP – it didn’t seem to take into account the remaining $ from previous DRP that was less than the value of a full share so a couple of times I actually got 1 extra share than Sharesight told me I would have. Not a big deal as I could edit it – but worth double checking Sharesights calculations against your statements from the company.

  16. Hi Dave thanks for sharing. Was wondering if you could share your thoughts on Bki. Like yourself it’s one of my largest holdings. I’m enjoying the dividends and am happy with it. However not many people seem to have anything good to say about it. Are you planning on holding for the long term?

    1. I know a couple of fund managers, friends of mine. I won’t mention names for privacy but they tell me there are many investment managers sledging other LIC’s online anonymously all the time. Cut through industry now trying to increase investor base. BKI has nearly 18000 investors, they are doing something right! Big earner for me anyway. Just my thoughts.

      Starting to really enjoy this blog!

    2. I think the main gripe is with the capital raising (at a discount) they did last year, and that it was offered to the public as well as shareholders. That’s not great for existing shareholders, and I’ve told them personally that it shouldn’t have been done like that. Hopefully they think again before doing that in the future.

      Other than that, BKI should do fine over the long term and pay a good stream of income. I’m reasonably content and have no plans to sell, but if I change or simplify my portfolio over time, then anything is possible.

    1. Well, they mentioned the board of directors make capital raising decisions (not the portfolio managers), and the board thought it was a good time to raise capital etc, and that they will bring up the issue (and my message about it the way it was done) at the next meeting. They have hired a number of equities analysts to help with company research/selection, so you could broadly assume the raising was to help afford this.

  17. Great work on contacting BKI directly! It’s important that they know what their shareholders think. Keeps them accountable and honest! More shareholders should do this.

  18. Hi Dave,
    I am a regular reader of your blog. Just didn’t comment anything until now. Amazing work Dave and a great help for a rookie investor like me.. You explain things in simpler terms..I attended Peter Thornhill seminar as well after reading your blog..Can’t thank you enough for that.
    I have a question about Sharesight. I am currently manually entering trades and dividends in sharesight. Do I have to enter the brokerage that I pay with Selfwealth? When I do that, my portfolio doesn’t match with Selfwealth.
    Thanks in Advance
    Minu

    1. Hi Minu, thanks for the comment!
      Great to hear the blog has been helpful for you.
      Once you enter trades into Sharesight, it should automatically calculate dividends after that (you shouldn’t need to add dividends in manually, but if that feature is not working, just send them a quick message on the site – they’re pretty helpful). Hmm, not sure why your figures don’t match. Probably best you record the brokerage in Sharesight, so it correctly calculates your CGT later if you do sell. Hope that helps.

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