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Pimco High Income Fund Pimco Hi Message Board

  • dan86droon dan86droon Oct 11, 2012 9:24 AM Flag

    Ponzi scheme--NOT!, but 13% return is based on ???

    "Just because you FAIL to grasp the way this fund continues paying those hefty dividends has squat to do with reality."--uk

    Yes, I fail to grasp how these "dividends" are paid. I guess you live in a world where you can get 13% on your money, reliably and safely, year after year in the past and into the future (after operating expenses), and anyone in treasuries has to settle for a 1% return. You must be buying "magic" investments which no one else has--lol

    Unlike a ponzi scheme, in this fund you know what you are buying--you are paying $12 for $8 worth of assets. In a ponzi scheme, the operator would TELL you a lie that you are paying $12 for $12 worth of assets which you can withdraw at fixed times.

    fyi--earlier in pre-market this was 1206 by 1215 and being traded in that range--now it is 1193 by 94 , size 1 by 14.

    I dont invest for return of the past four years but the next four years

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    • Kobayashi Maru... think of it as as annunity,, u want the yield and any principle is a bonus.. Remember Pimco is behind all insurance companies!

      Sentiment: Buy

    • A sane man WOULD conclude, after being WRONG for 4 years, that he was wrong.
      What seems to be your problem?
      Once again, you are NOT buying a bucket of bonds HERE.
      That is the parameter nav measures. You are buying the CONTINUING cash flow, above the alternatives. (By the way I totally agree that buying a mere bucket of bonds, above face, is foolish)
      Why can you not grasp that simple concept?????????
      That is the question.
      Don't look now kid. Get used to the pain though. It WILL get worse.

      Sentiment: Strong Buy

      • 2 Replies to ukcuh
      • Continuing cash flow, the only problem with that uck is that one is then married to the ticker and can not sell it because he is slowly having his investment reverse mortaged back to him. Such a drastic drop such as this one and when the laws of divergence and convergence occurs which they ALWAYS do in any cycle now how long that cycle is and where an investor enters into that cycle makes a huge difference.Take yourself for example at the pps you entered and the returns you have accumulated make you confident in picking up shares as opposed to an investor who just saw his Jan. 1, 2012 gains for the year just get wiped out in a week!!

        A good place to always enter into such a cycle is near NAV and not at a premium of NAV. Question is did PIMCO management actually purchase more of their own shares at such a large drop? What is the waiting period and time frame the insiders face to purchase shares?

        I picked up a batch, but not as much as I would have liked to just for the fact the premium is still very high. One can't invest on one factor such as "continous cash flow" is just not prudent especially when an enlightened investor has been constantly reminded of the corrupt aspect of Wall St.

        I hope you continue to be correct regarding PIMCO and keep collecting your "vig" with the pay out remaining constant, but obviously there are many investors out their who are not as confident in PIMCO or the house called Wall St. it lays in if they were we would have had a "DUMP" like we did.

      • "Once again, you are NOT buying a bucket of bonds HERE"--uk

        If you look at prespectus, thats all you are buying-- did they leave the magic beans out of the asset listing???

        as they say in pawn stars show introduction--"everything has a price" and the price here is $8 plus. --plus a management company for $4 extra that is selling for close to zero premium in other of its funds (pml for example which I am trading). In my experience with vanguard, most managements underperform indexes (over time) and and that is before they take their cut!!! This fund can also have derivatives, 23% leveraged with preferred shares which collect income from the pot, but there are lots of other similar funds, including pimco funds which are FAR cheaper.

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