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Listed Investment Companies

Last week I mentioned LIC’s and in particular the two companies that have dominated this rather bare landscape for many decades.

If you want to spread your investing over a range of companies (a very good idea) the least expensive way of doing so is by means of using either LIC’s or managed funds, either of which will ensure that your portfolio (i.e. theirs) is both chosen and managed by professionals.

The vast majority of personal investors have limits to time, money and research facilities. The most important of these is “research”, which includes the capacity of a professional to obtain reliable (not secret) information from a reliable source, thus assisting them to do the job of managing an investment portfolio.

The first time I heard of the existence of LICs – and there were only two of them in Australia at that time – was at a presentation where a very distinguished member of the funds management community suggested to a room full of investment advisors that they should look closely at LICs when advising their clients.

I’m very glad that I followed his advice in respect of my own portfolio of investments.