Ann: Response to Bonitas Research report, page-285

it can be difficult to manage cap gains and divs over a year. But i have 3 guiding principals:
1. Maximum exposure to any 1 stock is 5%
2. Make the income that i need to do whatever i want
3. Never pay tax ( i have paid my share and a bit more over the years).

Sometimes i have to make a cap gain to maintain my 5% rule. I have 50+ stocks because i run a diverse portfolio, bit like a managed fund does.
I have been through the GFC and a few recessions before that and i have never had to panic sell or be forced to sell. Call it luck or experience.