No. of Recommendations: 2
I've been talking the CEF stew for several years now. The discount to NAV is still 22.5 %, the yield is about 4.5 %.
The control family owns about 40 % so an activist can't force the fund to make moves to reduce the discount. However, the family might be thinking the political winds are blowing, they better make moves into the current tax regs before it's too late. I suspect Buffett has expedited his selling in part with the current tax laws in mind. Selling assets with huge untaxed cap gains, tax free vis the foundations may be coming to an end.
This would be a small, odd lot deal for Brkb , but STEW should offer to sell the fund to brkb at a 7-9 percent discount to NAV. The family can get ahead of potential tax law changes and brkb would love STEWs portfolio anyway. STEW may also increase the div and realize additional cap gains in brkb and other holdings in that way.
Me, the kids, grandkids and our IRAS and 401ks, are all long stew so I'm talking my book.
Go GREG!!
