Update No. 208 – 27/03/15

Our run of consecutive positive weeks ended this week at 14. We declined by 0.04% this week, the benchmark fell by 0.91%.

On this day 4 years ago, if you purchased 1 share each of the ‘Big 4’ Aussie banks, you acquired an investment costing $124.03 cents, which had generated $9.65 in after tax earnings in the prior 12 months. Your purchase traded on 12.85x trailing twelve month earnings, or an ‘earnings yield’ of 7.78%.

If you made the same purchase today, for $209.17, you get TTM earnings of $12.52. Your investment has an earnings yield of 5.98%, and trades at a P/E of 16.71x.

Perhaps a better way to think about it is that your earnings have appreciated by 6.73% annually and the capital value of those earnings has appreciated by 13.96% over the 4 years.

I won’t labour the point I’m trying to make. Suffice it to say that the capital value can’t grow at twice the rate of any given earnings stream for very long – Tony Hansen 27/03/2015



Apr 1st 2011

Jul 1st 2014

Current Price

Since July 1st 2014

Since Inception

EGP Fund No. 1












EGP Fund No. 1 Pty Ltd. Up by 6.43%, trailing the benchmark by 7.19% since July 1st 2014. Since inception, EGP Fund No. 1 Pty Ltd is Up by 81.33%, leading the benchmark by 34.68% all-time (April 1st 2011).

*1 after 31May 2013 dividend of 2.333 cents per share plus 1.000 cent per share Franking Credit & 31 May 2014 Dividend of 7.000 cents per share plus 3.000 cent per share Franking Credit