At my CEF Insider service, a fund’s discount to net asset value (NAV, or the value of its underlying portfolio) is one of the first things we look at when deciding whether to issue a buy call. That’s because it can tip us off to a bargain-priced CEF , just like price-to-earnings (P/E) ratios do for regular stocks. But as with P/E ratios, the discount to NAV is not the be-all and end-all when it comes to making a buy decision. The Discount to NAV Is Just the First Step in Our Research … It’s easy to see why some investors put too much weight on the discount to NAV, though.… Read more