20% gain virtually guaranteed for investing in BTF

Boulder Total Return Fund (BTF) is a closed-end fund. Basically there are types of mutual funds, open-end & closed-end. "Open-end" means the fund can issue as many shares as investors are willing to buy. So its "net asset value," or NAV, it always equivalent to the actual liquidated value of the underlying stocks in the fund. In other words, if you pay $10 per share for an open-end fund, you get what you should get for the value of the fund, no more & no less.

Closed-end funds work differently. The number of shares of such funds issued is limited. If you want to buy these shares, you must go into the stock market where they trade like a normal stock. In other words, to buy a closed-end fund, someone else must sell their shares. Because of this the value of a closed-end fund can fluctuate significantly, and does not necessarily reflect its NAV. Sometimes its share price is higher than the NAV of a closed-end fund, called premium (i.e. overpaid) or is lower than the NAV, called discount (i.e. underpaid). Generally speaking, the share price of a closed-end fund will always go back to its NAV sooner or later.

Right now, BTF is traded at around $17 per share, which is roughly 20% discounted from its NAV. While I don't know the exact timing, it is almost guaranteed that you will at least get a 20% gain at some point when BTF simply goes back to its NAV. If people like BTF, its share price often goes much beyond its NAV, i.e. you may get more gain than 20%. 

I like BTF also because of the stocks invested by the fund. About 50% of its shares are invested in the Bufett's company, Berkshire Hathaway. Additionally adding up its other top companies invested, Yum Brands, Wal-Mart, & Johnson & Johnson, 75% of the fund is tied up with the world best companies. I don't know how one can go wrong with such best class companies in the world.