Cornerstone Strategic Value Fund (CLM)

[bar1080]

Damn, it was nice waking up to appreciating stocks most mornings for the past decade, but I've known the flip side. The normal state of CEFs over the past century is they sell at discounts. That's when to start shopping.

One of the first stocks I did well with was a CEF that was eventually liquidated at face value after I bought it at a 1/3 discount! I currently have a small amount of ASX in my kids' accounts, the Adams Diversified Equity fund [ADX] which used to be known as Adams Express. Pretty much a closet indexer but it trades at a 13% discount. It almost always trades at that discount, but there's some slight chance it could be liquidated one day.

As I've often said, I'd never pay a premium for a CEF, especially a gimmicky one like CLM. In fact I don't advise buying ADX, which has an expense ratio of about 0.60%.... high by modern standards.

Don't buy ADX unless you can get it for >15% under NAV.