Hardly please show the post....
I'll paraphrase...
Trust buys another trust with a 10% payout for $1000
Payout = $100 - $30 (3% management fee)= $70
$70 is less than $100
Trust issues rights
1 Right + $10 gets a share
$10 goes to fund, they give $0.50 to underwriter, they have $9.50 to invest
$9.50 is less than $10.00
This is basic accounting............
Your total argument is "Look at me, my trust is going up, everything is great"
This is what reminds me of NTel buyers, they ignored the basic laws of accounting, its like someone jumping out a window where there is a strong blast of upward air and they are pushed up..."look at me, gravity doesn't exist"
All I said was, you are making money great, I would rather not invest in a fund of fund because there are fixed costs that subtract from the return, I also said if you think that management can bring value by stock selection, fine. But they can not CREATE value by issuing shares, warrants, rights, convertible prefers, LYONS, etc etc.. Maybe by deploying some...
All you say, is "Look at me, my boat is rising!!!!"
And since trusts have been doing so well, is it just the tide coming in? |
