Two simple ways to beat the market

Financial journalist and commentator on 3AW and Sky Business
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Self-managed super fund (SMSF) proprietors looking to get an edge on the stock market can look within it at the two largest listed investment companies (LICs), Australian Foundation Investment Company (AFIC) and Argo Investments Limited.

To many investors, LICs are the tortoises of the sharemarket. But that is not necessarily an insult: in fact, the LICs do a very good job of their stated mission, which is compounding share price rises and dividend income to generate long-term capital growth.

AFIC, the largest LIC on the Australian Securities Exchange – it is capitalised at $5 billion – was founded in 1928 by the JBWere group, while the second-largest, Argo Investments ($3.9 billion) was founded in 1946 in Adelaide by a group of stockbrokers that included Sir Donald Bradman.

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