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Just took another look. BIAWX is quite concentrated. 33 equity holdings, only. (Morningstar.) Plus ONE "other" holding. No bonds. I'm growing a still-small position in the fund, for the nephews and niece here in the apartment. Solid companies. American Tower: big dividends, right?
Plus it's easier to analyze things, vs a fund with 300+ positions of sub-1-percent amounts, which I consider pointless holdings anyway
American Tower (AMT) pays a dividend but dividend growth and/or dividend income is not a stated objective of BIAWX. From their website "The fund seeks long-term capital appreciation by investing in the common stock of mid- and large-cap companies that, in the manager’s view, effectively implement sustainable business strategies to drive their prospects for future earnings growth."
As David has mentioned, they just impress me as thoughtful and prudent advisors.
I forgot to mention that I only wish it was available NTF at Fidelity. However since it currently isn't that requires me to be thoughtful and prudent as well.
Alternatively, if you invested $20K in BIAWX and hold for a year, you would recoup the $49.95 transaction fee (vs. BAWAX). Going forward, you would pay lower expenses than buying the fund NTF. You could add to the fund for $5/buy.
Check it out, Derf
Apologies for taking this thread from its original destination.
Here's the key: fast-growing funds are always more tax-efficient than others because the tax cost gets spread out over more and more investors. So the fund might do something taxable in March but, by 12/31, there are a lot more people to share the cost so the average burden drops.
The sting comes when asset growth ends or reverses, sometimes because the fund closed to new investors. I have no particular reservation about the efficiency of BIAWX, just wanted to flag the unique circumstance that's making a good fund look even better.
23 stocks, or so
if I were still in it, and had only a few thou remaining or whatever, I would stick, just to see --- it ain't going to zero
I like concentrated funds, and one always hopes it will revert to a yacktman situation or similar
but he has sure screwed the pooch recently
I learned a few years ago that he and tillinghast live like a block or four apart, downtown, and I wondered if they ever met at the BPL or for coffee and eggs at a back bay eatery to chat