When R, like Christopher Robin, kneels by his bed to say his prayers he always includes “Dear Lord, may I never buy an investment trust at a premium”.
Today there is a lot of bollocks about the huge discounts at which investment trusts trade. I do not see a problem, actually there is maybe an opportunity. I have just added to my holding in Manchester & London although I could have added to my position in RIT. An interesting interview with the new manager at RIT in The Times today. She doesn’t rubbish her predecessor – although she could – and she eats fish for lunch, so good for brain power as Bertie opines – the Wodehouse Bertie, not my in-house, philosopher beagle.
If you can buy an investment trust at a hefty discount it may stay that way while performing like Marianne Faithfull, whose obit I read today. On the other hand the discount might narrow. Greedy Americans think they can steal this unlocked value using derivatives. Prenez garde as the redoubtable Aunt Abbie was so fond of saying.
I have no hesitation in recommending investment trusts to any rational saver looking for long term capital appreciation or high yields, or both.
Today’s post is dedicated to The Hon Hector Floodgate, whose wit, wisdom and sagacity is much missed in clubs, or should that be spades?
And an educational video.