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CGM Realty Message Board

  • oilspot_99 oilspot_99 Nov 1, 2007 4:15 AM Flag

    Advice for prospective investor

    I often wondered why this fund was advertised on financial television shows both during good and bad times. Finally I am retired and started to look around for some mut funds to round out my divy weighted portfolio. It sure looks like this would have been a good bet to be in. But should I consider now or wait until after div pay out in Dec? Just curious to get board's opinion.

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    • I don't think it makes much difference when you get in, but keep in mind Heebner's style is to jump on the best companies in hot industries and sell when the momentum is gone--so he has a high turnover rate which generates a lot of taxes(something to consider if this is going to be in a non retirement account). Also, he takes great liberties with what he considers falls under the definition of a real estate holding. Right now this fund is more of a metals and mining fund than a real estate fund. If you are looking for a good, stable, well diversified true real estate fund then I'd recommend the Third Ave Real Estate fund(TAREX). If you just want great returns and don't care what's in the fund, then CGM Realty is an excellent pick.

    • I own a lot of both of them, Ken is the sharpest stick in the pile, but if you buy in now in a taxable account you will pay a big tax bill at the end of the year and may not generate anywhere near enough return to pay it, his turnover is so great he generates a lot of short term cap gains and if you buy in now you are buying into a lot of realized but undeclared short term cap gains, love the funds and the guys but am shuttering at my tax bill this year,

    • you know, ultimately the decision will be yours; consider the choices on your past investments and whether you made the correct ones or not; sometimes on these boards you will get people ruled by greed and jealousy who just want to see the next person be as miserable as they are; be careful; but, for my money, I would invest one third of your excess funds now, then wait until after the dividend payout in December, then invest the other two-thirds. I have been in the fund, as a retirement sep-ira acount, which I can't touch for another 5 years due to the tax laws, as a small 25k investment a short while ago, and has grown to almost 200k; no taxes paid yet, until I start withdrawing it; but you're in a different situation, as you are already retired; check with a tax advisor, BUT don't listen to him if he tries to sway your choice of investment. CGMRX is the ONLY WAY TO GO ; in January, I will be ridding myself of 5,000 shares of Ford and replacing it with CGMRX...maybe I'll make my losses from that other pig by then...GOOD LUCK and HAPPY PROSPERITY...

      • 1 Reply to altommaso
      • altommaso,
        Great advice! Wow, I have a position in F also and should have sold on last run-up now we crap out again on market going neg. I am moving most of my portfolio to div producing since I need monthly income to support a family. On the oil side, I am in AAV and am thinking of HTE as well. I read your posts and intend to do a similar thing, put 1k shares away for appreciation on a five year horizon. I figure that will get us away from this credit market problem, now the price of oil is another thing.

    • If you planning to invest in tax advantage account you can buy now. If not wait till distribution. How long are you going to hold CGMRX?

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