LRF

If you don't want the stress of investing in resource stocks, LRF is the one for you. For a long time and even today, it is grossly under-rated as a fund manager. Just look at their top 5 investments and you will realise that it is much more astute than those big fund managers.

The discount to NTA is falling but at 26% in the report, it is still very high for a well-managed stock. Why no one wants to buy LRF is beyond my understanding. And some years, the dividend is great because of capital gains generated. I am pleased that I have been topping up at mostly around 45c and 67c in the last 2 years. It is around $1 now.

LRF is also in a privileged position of being about to collect options and placements. It has even offered loans to mining companies, with the debt convertible to shares at very favourable rates. It has taken a long time for LRF to get back to base value because of the GFC and market sentiment against it.