Hi, Shrewd!        Login  
Shrewd'm.com 
A merry & shrewd investing community
Best Of MIBest OfAll BoardsThe Shrewd’m WeeklyLearn to InvestHow to Become Shrewd
Search
Shrewd'm.com Merry shrewd investors
Search
Best Of MIBest OfAll BoardsThe Shrewd’m WeeklyLearn to InvestHow to Become Shrewd


The week's question
In December 2024, in the thread "Re: BRK: Why Not XOM?", BreckHutHigh asked the members: "What about the long road trips with kids?" This week it is put to everyone again. The button below opens the small thread re-asking it - read what others have said so far, then give your own answer as an ordinary reply.
Answer this questionContinue to Shrewd'mThis note won't appear again
Investment Strategies / Mechanical Investing
Unthreaded | Threaded | Whole Thread (19) |
Author: rayvt 🐝  😊 😞
Number: of 6132 
Subject: Re: A change in market direction
Date: 08/02/24 12:46 PM
Post New | Post Reply | Report Post | Recommend It!
No. of Recommendations: 4
I was asked "the name of that service?"

It is Douglas Albo CEFs: Income + Opportunity
seekingalpha.com - Douglas albo
Seeking Alpha: CEFs: Income + Opportunity | Investing Group Checkout

I followed his free posts for a long time, and finally bit the bullet and subscribed a few years ago, when Preferred stocks basically quit working.

I believe it is important to "diversify strategies within a portfolio, and not just securities." Growth & value strategies are well covered here. But income(-ish) strategies are not. I reject Dividend Strategies as just stupid, and I don't much like bonds.
So income(-ish) strategy using CEFs filled that segment in my portfolio.

One thing he keeps pounding the table for is that in CEFs you need to focus on NAV performance & yield, not price performance & yield. Most small investors focus on the latter, which is why you see such things as GGT paying 17% yield at a premium of +85% while bleeding NAV.
Or CLM, paying 19.5% while NAV has gone from 22 to 7 in the last 10 years.
$10,000 initial investment went to $3,846 while collecting $12,229 dividends.

Like Wile E. Coyote running off a cliff, works
great until he notices that there is nothing holding him up.

One of my notes:
"Doug Albo (3/26/20): ETJ is really not a bull market fund even though investors will bid it up like one. It's more for protecting your capital in a deep bear market since investors will panic and drop the market price to a -20% discount. That's where you want to buy because your financial interest in the fund in a worst case scenario is NOT the market price, its the NAV."

FWIW, ETJ is currently at -9.8% discount and 8.9% yield.
$10,000 initial investment went to $8,424 while collecting $8,286 dividends, the last 10 years.

Eh, sorry I rambled on so long, I easily get carried away.
Post New | Post Reply | Report Post | Recommend It!
Print the post
Members reply directly to rayvt here — and replies get answered. Reading is free; so is joining the conversation. Join Shrewd'm »
This community has written 6,115 posts about Mechanical Investing. The article-length ones it recommended most:
Dividend investing · 52 recs · 2025
Non-Mag7 screen · 34 recs · 2025
OT - Div yields and returns · 32 recs · 2024
Using AI to generate backtesting programs · 30 recs · 2025
Rankings for 19Dec2022 · 29 recs · 2022
Unthreaded | Threaded | Whole Thread (19) |


Announcements
Mechanical Investing FAQ
Contact Shrewd'm
Contact the developer of these message boards.

Best Of MI | Best Of | Favourites & Replies | All Boards | Followed Shrewds | Open Questions | Moving a community