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  #401  
Old 19.06.2019, 08:10
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Re: Investment fund

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Thank you, Dr. Mick. My main issue with non-accumulating funds is the insatiable appetite of Swiss banks to collect fees. My current portfolio is on avg 7 yrs old, I am the archetype of buy-and-hold investor. Receiving yield would mean my desire to systematically reinvest will cause me to get charged fees multiple times annually (once at receipt of yield, then at time of reinvesting). This may (or likely not) be a rational behavior but reflects my current state of mind.

If I remember correctly, also at receipt of dividend, I will be taxed whereas if accumulating that only happens at cashout.

Are these sufficient reasons to stay away from dividend-paying ETF or insignificant to said decision?

I don't know your personal situation, however as I wrote before I would not worry too much about it:
- a 1.15% yield means ~$250 quarterly dividends on a $100K investment. VUG price is currently ~$160.
- if are worried about taxes/commissions, then you should probably change broker. Interactive Brokers is a good option
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  #402  
Old 01.07.2019, 11:09
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Re: Investment fund

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I don't know your personal situation, however as I wrote before I would not worry too much about it:
- a 1.15% yield means ~$250 quarterly dividends on a $100K investment. VUG price is currently ~$160.
- if are worried about taxes/commissions, then you should probably change broker. Interactive Brokers is a good option
Given my profile of buy-and-hold - do you have recommendation on broker (Swiss or otherwise)? I am currently with TradeDirect, where custody costs me fixed CHF10/month...
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  #403  
Old 01.07.2019, 11:22
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Re: Investment fund

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Given my profile of buy-and-hold - do you have recommendation on broker (Swiss or otherwise)? I am currently with TradeDirect, where custody costs me fixed CHF10/month...
IMO, if you have >$100k invested (above which IB do not charge their minimum fee), then IB is a no-brainer.
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  #404  
Old 01.07.2019, 14:26
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Re: Investment fund

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IMO, if you have >$100k invested (above which IB do not charge their minimum fee), then IB is a no-brainer.
Agree about IB

Some friends use Degiro which apparently is also cheap. Haven't checked myself, I'm happy with IB.
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  #405  
Old 01.07.2019, 16:26
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Re: Investment fund

When Woodford started out on his own in 2014, he mainly invested in large, liquid stocks. Over time, he slowly shifted into smaller and smaller companies, dramatically shifting the makeup of the portfolio. Nearly 97% of the assets in his flagship fund at the end of May were allocated to micro, small and mid-cap stocks, up from 40% in January 2016, according to Morningstar data. Some of the companies, including Industrial Heat and Benevolent AI, weren’t even listed on major exchanges.

https://www.bloomberg.com/news/artic...premium-europe
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  #406  
Old 01.07.2019, 20:01
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Re: Investment fund

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IMO, if you have >$100k invested (above which IB do not charge their minimum fee), then IB is a no-brainer.
Given that TradeDirect charges him 10 chf/month Interactive Brokers is a better choice IMHO, no matter what the portfolio size is.
I doubt TradeDirect charges $0.38 per trade
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  #407  
Old 02.07.2019, 10:18
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Re: Investment fund

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When Woodford started out on his own in 2014, he mainly invested in large, liquid stocks. Over time, he slowly shifted into smaller and smaller companies, dramatically shifting the makeup of the portfolio. Nearly 97% of the assets in his flagship fund at the end of May were allocated to micro, small and mid-cap stocks, up from 40% in January 2016, according to Morningstar data. Some of the companies, including Industrial Heat and Benevolent AI, weren’t even listed on major exchanges.

https://www.bloomberg.com/news/artic...premium-europe
Imagine FMF's outcry, who says all his financial investements are in Fundsmith, if he had picked Woodford instead.
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  #408  
Old 02.07.2019, 10:35
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Re: Investment fund

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Imagine FMF's outcry, who says all his investements are in Fundsmith, if he had picked Woodford instead.
I would not have picked Woodward as I don't like his investment style, the a high concentration of illiquid stocks & it's purely a UK fund. At the time of suspension about 90% of the portfolio was illiquid yet the fund trades daily.

Interestingly I told my wife's financial advisor to put her pension 100% into Fundsmith, he maintained that was too risky so went 25% Fundsmith 25% Woodfood & 50% in loads of other crap. We sacked him in December at that point Fundsmith was up 23.4%. Woodward down 15.2% The portfolio as a whole gained 3%, i.e. the average of his choices money weighted lost money.

First 6 months after movie to Hargreaves Lansdown at the beginning of the year Fundsmith up 23.9% & Woodford down 21% only difference is there is no holding in Woodford.

Diversification is only helpful if you don't have to resort to lower quality investments to achieve your aim, which is precisely why Fundsmith has a small investable universe.
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  #409  
Old 05.07.2019, 00:27
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Re: Investment fund

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I would not have picked Woodward as I don't like his investment style, the a high concentration of illiquid stocks & it's purely a UK fund. At the time of suspension about 90% of the portfolio was illiquid yet the fund trades daily.
You started buying FS some five years ago, right? According to Phil, at that time Woodward was mostly large liquid stocks.

What I'm saying is, it's simply too risky to put everything in one basket, at least once you're past 40 or so. It doesn't matter what vehicle that is.
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  #410  
Old 05.07.2019, 08:39
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Re: Investment fund

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You started buying FS some five years ago, right? According to Phil, at that time Woodward was mostly large liquid stocks.

What I'm saying is, it's simply too risky to put everything in one basket, at least once you're past 40 or so. It doesn't matter what vehicle that is.
I looked at Woodford a year after launch & compared it with the Perpetual fund he left behind, it clearly was not Perpetual on Steroids but something very different. Being a UK only fund, I wound never make a substantial investment as the UK is tiny in world stock market capitalisation

Fundsmith only owns totally liquid stocks average market cap of £115 Billion, very different to owning 'mostly liquid stocks'.

Since the launch of Smithson, I passed 30% holding in June, this will double if a prospective property purchase goes ahead as it will be purchased with the sale of Fundsmith.
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  #411  
Old 05.07.2019, 10:14
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Re: Investment fund

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Since the launch of Smithson, I passed 30% holding in June, this will double if a prospective property purchase goes ahead as it will be purchased with the sale of Fundsmith.
do you mean you have >30% in Smithson now?
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  #412  
Old 05.07.2019, 15:14
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Re: Investment fund

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do you mean you have >30% in Smithson now?
Yes, I picked up 15% last year & have been adding over the last 3 months paying 20% more than my original stake.
30% is pretty much optimal as it reduces volatility & increases gains.
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Old 08.08.2019, 10:22
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Re: Investment fund

I have posted back a few pages, but only today went through the whole thread, which is a treasure trove for normies - if we are humble to read and understand... Big thank you to the active members sharing knowledge, FMF, Phil_MCR, Urs_Max, Dr. Mick, the rest... THANK YOU.

My IB account is finally up and running - transferring from TradeDirect is next. Naturally, while the account is yet empty, I explore around... I tried the QuickTrade interface, so I dip my toes in the coming investments... The fact FundSmith sold some holdings and bought some new ones (Feb2019) only reinforces my desire to hold the fund, versus stocks directly but this is fear being worked upon, gradually.

Newbie here puzzled by the following:
- cannot find BRK B listed in Stocks
- cannot find FundSmith (but this is a documented issue, workaround is to hold directly the stocks)
- cannot find Smithson - what's the answer to that, direct hold?
- how do I educate myself on the basics (which tab to use when, stocks, funds; which ticker symbols to use, ISIN or other).




EDIT >> will I be able to move my current FundSmith and Smithson holdings to IB? If yes, and I decide to sell in the future - how do I go about doing that seeing they are not listed/supported?

Last edited by defcon3; 08.08.2019 at 10:35. Reason: added questions at the end
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  #414  
Old 08.08.2019, 13:47
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Re: Investment fund

Berkshire class B stocks trade with the symbol BRK B
You can use the search function at https://www.interactivebrokers.eu/fr/?f=463

Contract Information
Description/Name BERKSHIRE HATHAWAY INC-CL B
Symbol BRK B
Exchange NYSE, AMEX, ARCA, CHX, DRCTEDGE, IEX, ISE, ISLAND, NYSEFLOOR, PHLX
Contract Type Stock
Country/Region USUnited States
Closing Price 198.21
Currency U.S. Dollar (USD)


Regarding your last question instead, have you tried the web UI?
https://www.interactivebrokers.co.uk/sso/Login?RL=1

TWS help: https://www.interactivebrokers.com/e...s/twsguide.htm


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I have posted back a few pages, but only today went through the whole thread, which is a treasure trove for normies - if we are humble to read and understand... Big thank you to the active members sharing knowledge, FMF, Phil_MCR, Urs_Max, Dr. Mick, the rest... THANK YOU.

My IB account is finally up and running - transferring from TradeDirect is next. Naturally, while the account is yet empty, I explore around... I tried the QuickTrade interface, so I dip my toes in the coming investments... The fact FundSmith sold some holdings and bought some new ones (Feb2019) only reinforces my desire to hold the fund, versus stocks directly but this is fear being worked upon, gradually.

Newbie here puzzled by the following:
- cannot find BRK B listed in Stocks
- cannot find FundSmith (but this is a documented issue, workaround is to hold directly the stocks)
- cannot find Smithson - what's the answer to that, direct hold?
- how do I educate myself on the basics (which tab to use when, stocks, funds; which ticker symbols to use, ISIN or other).




EDIT >> will I be able to move my current FundSmith and Smithson holdings to IB? If yes, and I decide to sell in the future - how do I go about doing that seeing they are not listed/supported?
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  #415  
Old 08.08.2019, 14:02
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Re: Investment fund

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I have posted back a few pages, but only today went through the whole thread, which is a treasure trove for normies - if we are humble to read and understand... Big thank you to the active members sharing knowledge, FMF, Phil_MCR, Urs_Max, Dr. Mick, the rest... THANK YOU.

My IB account is finally up and running - transferring from TradeDirect is next. Naturally, while the account is yet empty, I explore around... I tried the QuickTrade interface, so I dip my toes in the coming investments... The fact FundSmith sold some holdings and bought some new ones (Feb2019) only reinforces my desire to hold the fund, versus stocks directly but this is fear being worked upon, gradually.

Newbie here puzzled by the following:
- cannot find BRK B listed in Stocks
- cannot find FundSmith (but this is a documented issue, workaround is to hold directly the stocks)
- cannot find Smithson - what's the answer to that, direct hold?
- how do I educate myself on the basics (which tab to use when, stocks, funds; which ticker symbols to use, ISIN or other).




EDIT >> will I be able to move my current FundSmith and Smithson holdings to IB? If yes, and I decide to sell in the future - how do I go about doing that seeing they are not listed/supported?
if you are a noob, you might want to use IB's android app instead. it is much more user friendly (and quicker).
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  #416  
Old 11.08.2019, 13:13
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Re: Investment fund

Is there any information if Smithson will be available for purchase outside of UK in the near future?
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Old 11.08.2019, 13:15
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Re: Investment fund

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Is there any information if Smithson will be available for purchase outside of UK in the near future?
It's traded on the London Stock Exchange, it's an investment trust not a fund. Anyone can trade on the LSE
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  #418  
Old 11.08.2019, 13:37
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Re: Investment fund

Thanks FMF, because the web page is limited to people from the UK I assumed that it can only be purchased from UK.
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Old 11.08.2019, 13:39
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Thanks FMF, because the web page is limited to people from the UK I assumed that it can only be purchased from UK.
That was the IPO, you can't buy shares from Smithson, only trade listed shares on the LSE
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Old 19.08.2019, 22:06
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Re: Investment fund

Current status with IB > Smithson is available and listed but Fundsmith is not? I have opened a ticket, asking to have it added. The first reply came back with "don't have it, sorry", so I called the phone support which followed with "it's probably too cheap and not listed on Bloomberg"??? As per their advice, I have since reopened the ticket requesting clarity on how to proceed. Find myself in an interesting situation where I'm stuck with a third-tier broker because it holds Fundsmith and the new shiny contender doesn't. To be continued...
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