ASG - CET: Very Attractive 18% Discount Variable Income And Excellent Past Performance

2024-06-09 09:00:00 ET

Summary

• Central Securities Corporation is a closed-end fund that primarily invests in a concentrated set of U.S. equities.
• The CET closed-end fund maintains a large exposure to a privately held insurance company, which investors should be aware of. CET uses zero leverage.
• CET's past performance has been excellent in almost all time-frames that we compared. In some ways, this is a combination of conventional and alternative investments that an investor can use with the goal of long-term capital appreciation with the benefit of significant income, though variable from one year to the next.

Introduction:

In the past few weeks, we have written articles on two other equity funds that have a very long history going back to 1929. They were Adams Diversified Equity Fund ( ADX ) and General American Investors ( GAM ), and you can read our articles here and here . This discussion of some of the nation’s oldest closed-end funds, or CEFs, would not be complete without covering the Central Securities Corporation (CET). We will refer to the company as "Central" or "CET" in the rest of the article....

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