Woodford Concerns

Brian65

itwasntme001 wrote: »

why would you issue debt ......) when cutting dividends is more tax efficient?????

Ask Sir Philip Green who took the biggest dividend in British Corporate History, rasing the debt owed to Arcadia Pension fund. The sum he took out of BHS approximately coincided with the debt BHS owed to its pension fund.
Or Privatised Utilities who have accumulated a mountain of debt to pay high dividends, making themselves less attractive for Nationalisation.
Or Tesco who even fiddled the accounts to maintain the dividend and director's bonuses.

talexuser

redux wrote: »

Straight away I can think of 4 or 5 other less fashionable investment trusts on such discounts that I'd consider before this one,

Be genuinely interested in your suggestions, maybe because I might already actually have one or two

Scarpacci

Linton wrote: »

Also agree. He was supposed to be running an "Equity Income" fund. Nothing wrong with running a small company high risk fund if you have the skills to do it but that is not what his customer base thought they were buying.

I saw a quote supposedly from Warren Buffett, although so many of these quotes tend to be apocryphal, that said "You can hold a ballet and that can be successful and you can hold a rock concert and that can be successful. Just don't hold a ballet and advertise it as a rock concert." Woodford should perhaps have heeded that advice.

cogito

itwasntme001 wrote: »

Care to explain why?

Because as you yourself said, the share price fell in anticipation of the dividend payment. When a company pays you a £1 dividend, that £1 simply comes out of the value of your holding. It’s a transfer of value - it's not value creation.

Linton

cogito wrote: »

Because as you yourself said, the share price fell in anticipation of the dividend payment. When a company pays you a £1 dividend, that £1 simply comes out of the value of your holding. It’s a transfer of value - it's not value creation.

And in a years time you get another £1 with no further contribution from yourself. Your argument applies to buying a share just to get a dividend and then selling, but not to long term holding.

aroominyork

I'm looking forward to seeing if Nick Train says anything in Lindsell Train UK Equity's next factsheet, given 1) the fund is almost 9% invested in HL and 2) he seems to have a similar relationship with HL as Woodford has/had: a much promoted star investor.

Johnnyboy11

aroominyork wrote: »

I'm looking forward to seeing if Nick Train says anything in Lindsell Train UK Equity's next factsheet, given 1) the fund is almost 9% invested in HL and 2) he seems to have a similar relationship with HL as Woodford has/had: a much promoted star investor.

I bought the Global variant, up 160% in 5 years

redux

Scarpacci wrote: »

I saw a quote supposedly from Warren Buffett, although so many of these quotes tend to be apocryphal, that said "You can hold a ballet and that can be successful and you can hold a rock concert and that can be successful. Just don't hold a ballet and advertise it as a rock concert." Woodford should perhaps have heeded that advice.

And Rick Wakeman, King Arthur on ice, etc

Filo25

aroominyork wrote: »

I'm looking forward to seeing if Nick Train says anything in Lindsell Train UK Equity's next factsheet, given 1) the fund is almost 9% invested in HL and 2) he seems to have a similar relationship with HL as Woodford has/had: a much promoted star investor.

To be fair unlike Woodford he has the recent track record to back that up

Beenie

We attended a very interesting seminar at lunch time. It was billed as Hargreaves Lansdown Investment in Retirement, and we did indeed get an excellent presentation from one of their staffers. However, the beginning of the meeting was entirely taken up with Woodford questions. I think they are back-pedalling to cover their embarrassment as we were told that they knew Woodford was performing badly two years ago but couldn't take him off the Wealth 50 list as it would have spooked the market and we would have the situation we have now (with suspended dealing) but two years earlier. I didn't know about Terry Smith's comment that you paid to be on the list, and HL certainly didn't mention it. They have come out of this badly tainted imo.