GAIN Diversified BDC and the Coronavirus
GAIN (Gladstone Investment) is a Business Development Company (BDC) that was hammered by the doom and gloom of the coronavirus. One thing that many do not realize or understand is that a BDC can be a great diversification into small cap companies you might not otherwise be able to own.
Here are two things that cause me not to panic sell during market turmoil. The first is that influential GAIN management insiders were buying when the shares dropped to a crazy price. When insiders are buying, that can be an indication of confidence about the future of the company and a desire to own additional shares at silly low prices.
The second is that GAIN knows their shareholders wonder about the dividend, so they were proactive in talking about the company’s financial position and their portfolio of companies. This is a sign of good and proactive management.
I own 3,300 shares of GAIN in my ROTH and traditional lRA accounts. In addition, Cindie’s mom owns shares of GAIN and does my wife Cindie. That doesn’t mean GAIN is without risk. All investments have risk. But without risk there can be little reward.