Cincinnati Bell, Inc. Message Board

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Technology Stocks : Cincinnati Bell, Inc.

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To: Starowl who wrote (53)	1/16/2000 6:32:00 PM
From: Toby Zidle	Read Replies (2) of 86

If your mother truly doesn't need the income, why trade out of BRW and create a capital gain tax liability to boot? Unless you think BRW can't grow its market price at 5 3/4% per year, there's not much sense to that trade. If the income does help meet your mother's financial needs, then she can always sell a dollar-equivalent amount of BRW and probably have more capital at year-end than had she sold half her stake in BRW. Of course, a fixed income investment will be considerably less volatile than a tech stock, so that may be of some comfort to an aging person. The only real reason I see to sell BRW from long-term holdings is to achieve diversification. You didn't say whether these BRW shares are her ONLY stock holdings. If she isn't diversified, I'd swap off to about three stocks so that a one-day 30% loss [a la LU] doesn't devastate her portfolio value. The main reason to be holding 5 3/4% fixed income instruments is for a person who DOES need the income. Others can remain in appreciating stocks, but diversify to reduce the portfolio risk of loss.

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