America in Florence
I realize that we are here to talk about finance, that is, about money and how to invest it, but I love to begin each conversation with a personal anecdote about my life in Tuscany to
A Rule Of Thumb For Long-Term CEF Investing
Summary
- In the years since I first discovered CEFs, I have focused on formulating the best selection criteria for building a portfolio of reliable securities over time.
- I have developed a personal rule of thumb for long-term CEF investing, obtained by the flexible combination of three basic parameters: positive NAV since inception, discount on NAV, and leverage.
- Following this rule, the amount of distribution should only be considered after meeting the first three criteria.
I graduated in Languages in 1988, and then worked for 25 years as an editor at various publishing houses. In 2005, fate turned my attention to the world of finance, and when I lost my job in 2013, I decided to dedicate myself to it. In particular, I focused on building an income portfolio based on ETFs and CEFs. Although I have never worked as a Financial Advisor, I believe that sharing my experiences with managing my own income portfolio can provide others with helpful insights for their own portfolios.
Analyst’s Disclosure: I/we have a beneficial long position in the shares of DSL, ETO, EVT, GGM, HTD, PCN, PDI, PDT, PTY, RQI, UTF, UTG either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
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