Thanks HC--Here's a quote that interested me--"Mr. Munger had mentioned during the annual meeting that some $120,000, apparently from a retirement-account distribution, had “floated” into his account earlier in the week. He sees nothing worth investing it in right now and hasn’t bought an investment in his personal accounts in at least two years, because he is waiting for an irresistible bargain."
Maybe it's time to buy farmland.
Correction-net cost per share of new shares is 59.01/share. Expected merger related return is about $1/share/month plus dividends.
Downside risk if deal doesn't go though is about $9/share but I'll still earn the dividend.
I plan to keep all new RAI shares.
Philip Morris International Inc. Increases Dividend by 6.4% to an Annualized Rate of $4.00 Per Share; Announces Elections to Board of Directors
Grandma thanks you------------
She was paid her first dividend for WFC PFD today and she bought back the LO shares she sold under 59.
Both investments are trading XD today.
LO will be held for the merger wherein she'll receive $50.5 per share in cash and .29 shares of RAI for each share of LO she owns. Grandma likes her risk arbitrage.
She bought back the shares she sold in June pre merger announcement over 61. Her cost was under 59 and upped her holdings by about 25%.
It's still her 3rd largest holding behind BRK and PM.
I also sold more put options against LO today in my other accounts.
Buy LO and sell it high is my middle name.
Bought more in IRA #1 using proceeds from $$ held for selling options. Paid-59.7934/share, increased my holding by about 15%.
In other news-off to pick hops.
Eats at BK? I do but it's usually take-home.
This is another great deal for BRK and I'm hoping the deal has a conversion feature.
If you need tax free income check out closed end muni bond funds that use a little leverage and sell at discounts. They're borrowing $$ for next to nothing and using the cash to buy minis that are tax free to their shareholders. Instead of earning 4% tax free you could safely earn 5-6% tax free but check with your accountant first to see if it works for you. It doesn't for me because I'd have to pay state income tax because I can't find a closed end fund that buys Oregon muni bonds.
Here's a fund that invests in CA-Nuveen California Municipal Value Fund 2
Grandma thanks you. It currently makes up 2.8% of her portfolio and is her 13th largest holding.
"Altria Group, Inc. (Altria) (MO) today announced that its Board of Directors voted to increase Altria’s regular quarterly dividend by 8.3% to $0.52 per common share versus the previous rate of $0.48 per common share. The quarterly dividend is payable on October 10, 2014 to shareholders of record as of September 15, 2014. The ex-dividend date is September 11, 2014."
For her, the dividend is federally tax free. So far this year, she's only taken long term gains so she'll be paying very little in federal taxes but Oregon will collect at least 5% of her gains.
About 60% of my equity value is in BRK but it only makes up 40% of all my liquid assets.
My IRAs are all in the 10-25% BRK range.
I'd still rather own BRK than the S&P 500 so that's where I'll stay.
Thanks HC, My interest in CEFs corresponds closely to my given cash on hand at a given time. So as my cash holdings rise so does my thirst for bargains.
So if my cash reserves are low I don't bother looking but now I'm on the hunt.
What do you think of these levered bond funds selling at a discount that Bill Gross talked up on CNBC last week I believe? I'm considering a small investment for my IRAs.
I'll be going to Vegas in October. I'll be sitting by a pool betting on football and relaxing. We're in the middle of a kitchen remodel and my wife and I could use one.
Also bought into a closed end fund today for IRA #4. I took a 2% position in ADX and will be adding more in other IRAs on any weakness. It trades at a 15% discount to net asset value so unless the discount narrows I'll continue to hold it.