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Strategies & Market Trends : Young and Older Folk Portfolio -- Ignore unavailable to you. Want to Upgrade?

To: chowder who wrote (629)	12/9/2021 3:32:56 PM
From: PJinny	Read Replies (1) \| Respond to of 21804

Hi Chowder .... I read your recent sells and buys for the Young Folk Portfolio TMO, TU, WSM, LYB, ASG (a CEF) and a different post you wrote about the purchase of GOF (a CEF yielding over 11%). Why would you not also buy a small position in GOF for the Young Portfolio? It's hard to reliably get 11% per year and GOF has an outstanding record of never reducing the distribution since inception (which predates the global financial crisis). In fact, it's raised the distribution. Whereas ROC is thought of as being bad, it's only bad if it's truly a return of invested capital. Getting to the bottom of ROC in any CEF is tough to do (for the lay person) but not all ROC is bad because not all ROC means you are getting your own capital back. ROC can be from pass-through (from master limited partnership investments, primarily), constructive (from unrealized capital gains), and destructive (investors are literally receiving their own capital, minus expenses). Said another way, it's complicated. From an accounting point of view, it lowers your cost basis regardless of the source of ROC so in a taxable account one day you will have a zero cost basis and from then on pay capital gains taxes. I read about GOF and like it. I bought small positions (0.5% each) in three IRA accounts: mine, someone in his early 40s, and someone in her 60s. I may never get to read your reply to be because I don't know how to find it on SI. I'll try to go back to my "sends" and hope your reply is linked. I'll also hunt on your profile page, here: Member 7630127 Thank you, Paul

To: chowder who wrote (629)	12/13/2021 6:00:05 PM
From: chowder	Respond to of 21804

Re: Young Folk Portfolio ... I have several CEF's in the Young Folk Portfolio and have them set up for dividend reinvestment. PTY had grown to nearly a 2x sized position so today I trimmed them back to a full position. With the proceeds from this sale, I added to AAPL and MSFT. With the remaining cash I established a new position in BST (another CEF). AAPL and MSFT were purchased for capital appreciation obviously, BST for its exposure to technology and a way to generate more cash to invest down the road when it too grows large enough to trim.