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Jack,

Hi, Good Morning.

I think the shape of the distribution is incidental and irrelevant. But I was somewhat surprised to see that bonds bought at par were under-weighted (relative to the sample) and that I had bought so many bonds above par. That was truly surprising.

But as I look at the trade dates and try to remember what the market was like when the bond was bought, I doubt I could have done anything any differently. I had to put money to work, and what I bought was the best thing available at the time on a risk--adjusted basis. So that's a constant. If the purchase offers value, I do the trade. If it doesn't, I back away.

Obviously, sometimes, maybe even most times, the terms are stinky, if not nearly intolerable. But the future is impossible to predict. So you "average-in", knowing full well that you might be proven wrong in both directions: you got in too early, or too late, or you overlooked a better trade elsewhere, or should have backed away.

Nobody executes flawlessly. So what you hope for is "good-enough". That's all that portfolio represents, a couple hundred guesses among the thousands an investor will make over a lifetime.

Charlie
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