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  • Williams Partners: A Wise Purchase [View article]
    WPZ is NOT a Div&Dist grower, it ignores the 86% percent cut in shares when they reformed into a new MLP also named WPZ. I unfortunately had 50$ Puts that were cut to 86/100 and obviously I am hoping that price growth happens. Long since 2!011 WPZ.
    Apr 8, 2015. 03:40 PM | Likes Like |Link to Comment
  • Williams Partners: A Wise Purchase [View article]
    Well cost of Capital usually translates into buying somebody, which is good for smaller companies owners. To me it is about footprint and where you want to make money in this and next stage of energy macular sectors
    Apr 8, 2015. 03:34 PM | Likes Like |Link to Comment
  • Williams Partners: A Wise Purchase [View article]
    They will, the CEO said so on last earnings call, when questioned by an analyst.
    Apr 8, 2015. 03:31 PM | Likes Like |Link to Comment
  • Fundamentally Strong REIT Medical Properties Trust Sees Greater Growth And Dividends Ahead [View article]
    Thanks for the update, I bought and sold them years ago. I had them on watch and frankly forgot about them. I like the Euro move. Have to get a little due going now they have some DGR.
    Apr 8, 2015. 03:20 PM | 1 Like Like |Link to Comment
  • Back Away Slowly: The 7 Worst Investments A New Investor Can Make [View article]
    "---"5 times leverage"---what good is leverage if you get charged interest which cancels out any profit you gain from the leverage?"

    ok, you don't understand leverage. had that feeling in my comment above. First the way a fixed mortgage works is the "Interest" is only part of your payment, the rest is switching equity from the bank to you. In the beginning the payment is almost all all Interest, in the end it is merely switching equity.

    Again, assuming a mere inflation rate of appreciation on both the rent and the house, the rent rises while the payment stays the same. Also because the house price rises 5X equity inflation ( the leverage benefit of owning ).

    It is easier to see with a graph, strongly suggest you look up a graph that shows how interest declines and equity builds with each payment on a fixed mortgage. If you take that graph and if it shows the the rapidly compounding down Interest/up equity and add in the equity build from having 5X the initial dollars appreciating @ inflation, and remember that appreciation is 100% equity on a 20% down, it is easy to see why for most people the house is their greatest equity.

    I personally do not believe it is smart to believe that equity is good for much, but it is there. I use leverage extensively. It is the primary way I make money now- yield spread. Strongly suggest you spend some time understanding the value of compounding.
    Apr 8, 2015. 01:16 PM | Likes Like |Link to Comment
  • Back Away Slowly: The 7 Worst Investments A New Investor Can Make [View article]
    @jamie- first off, for most people, RE is a leveraged investment. It wins for that reason if you understand compounding. It certainly is not a renters market in Los Angeles, just raised one of mine 100$, double from when I bought in 99. The loan was paid off early from the rents. You have to understand leverage or the discussion is useless. More importantly it is stability of pricing and control of where you live and what you can do with it. I built a rental in the back of my first house, they pay the loans, it is triple what I first charged.

    Marriage is a partnership. Choice of who you partner with matters almost more than what you decide to do in all things. Partners mean diversification of views, and for my wife and I that is a very good thing. We simply are better together than alone in most things. We have had each others back through over 40 years and it is not until truly bad times that you appreciate a helping hand you can trust.

    Education in a skill set is critical to be competitive and marketable. I started college, did not like it, and switched to an apprentice program as an electrician. 4 year program. Later when I could no longer work construction for med reasons, I finished my biz degree and use those skills in my investing. Skill sets matter. Paying for the knowledge is not the problem.

    If anything your comment highlights the importance of careful decisions.

    Yes, sometimes people make bad choices on the implementation of using the three you mentioned, but that is a bed use of a good thing, not because the thing is bad.
    Apr 8, 2015. 12:36 PM | Likes Like |Link to Comment
  • BDC Total Returns Q1 2015: Part 1 [View article]
    Nah, I use my margin to "cover" the cash. Called being naked-LOL. Usually I have fun that way! But seriously, no Interest on Margin to just cover and i have enough flow that I can buy something every month.

    It is how I DRIP, using the Margin for free-most the time. My "unrealized" Premiums are roughly equal to my divs ( 16.9% on half the longs value or Margin amount), effectively doubling the amount of cash that comes in each month for DRIP and my long stock YOC is currently 8.3%. So buying Income at a much higher rate.

    Some of those Puts are "realized" losses". LOL, that is the good news. Many times I will "roll" at a "loss", then buy on the next strike, or three, and bury the Premium profit in the cost. So I get both a "taxable loss" ( to offset other Premium gains) and an even lower Net buy price/better YOC.

    Why I fret price less than others. Prices are for buying- not selling in my world. Flipping is not how I make money.
    Apr 8, 2015. 12:47 AM | Likes Like |Link to Comment
  • Quarterly Earnings And Portfolio Update [View article]
    I will take profits that early rarely, and usually only if I see a much better opportunity and I am out of bullets without the infusion of new Margin capability that buying something back gives.

    I prefer to wait out the time premium, look at the cash pool for how much I can have hit this month vs what maybe next will bring ( figuring the new cash divs and Premiums also bring), and how those fit in to my existing Income and where I want to emphasize future Income looking at macro.

    it ends up being a very flexible way to change % of Incomes, without much selling.
    Apr 8, 2015. 12:34 AM | Likes Like |Link to Comment
  • Income Investing Strategy: Are You A Closet Market Timer? [View article]
    du4sloop- why I have a credit line and use options. Many, many levers to pull when Income/yield spread is the key instead of price.
    Apr 8, 2015. 12:24 AM | Likes Like |Link to Comment
  • My Dividend Growth Journey Ep. 1 - Why You Should Never Chase Yield [View article]
    I mentioned the white paper link on pass through securities and their "Matrix" portfolio, constructed much like mine. Started in 2000 and back tested here is a snippet on that-
    "So what of 2008-09? This discussion must be prefaced by noting that all securities in the Matrix
    Income portfolios are listed on one of the three major U. S. exchanges. Thus, all prices are set
    by the customary mainstream market makers. During this period, the normal processes of the
    public markets broke down. After the collapse of Lehman Brothers, interbank lending ceased as
    fear of counterparty bankruptcy made lenders afraid to lend to anyone, even overnight. The
    practical effect of this in the securities market was that buyers of last resort—the brokers and the
    specialists—were unable to borrow overnight to finance their inventories. As a consequence, all
    publicly traded securities were sold out of inventories, and the usual “buyers of last resort” were
    unable to finance purchases even at distressed prices. As publicly traded securities, the passthroughs
    held in Matrix Income portfolios were caught in that downdraft despite the fact that
    their income distributions were never interrupted! That is to say, if an investor did not look at
    market values and was merely counting on receiving a check consisting of the income received,
    nothing unusual happened in these periods.
    When interbank lending was restored after TARP was initiated, this process reversed itself.
    Brokers and specialists were suddenly able to borrow large amounts of money at effectively zero
    interest rates, while pass-through securities were trading at low prices and very high yields.
    Because of the enormous carry on this trade and the reliable income from these securities,
    brokers and specialists took enormous volumes of pass-throughs into inventory. The
    consequence of this was that pass-throughs (measured by the Matrix Income composite) gained
    back in 2009 all of the value they lost in 2008 and a little more beside. (This was in contrast to
    capital gains oriented equity portfolios, which only recovered less than half of their losses.)"

    That is exactly what flow does. Income of what you invest in matters. If they HAVE to give you most of it, their is little reason to worry what others value it at. The worry is they can sustain THEIR Income. BIG difference in WHAT people should be looking at, especially retirees, IMO.

    And BTY, I am a big believer in the carry trade, or yield spread INVESTING. WHY I like leverage and can ignore pricing-after I have bought and locked down the yield spread/profit/Income. Why I like leveraged ETN's on the passthroughs. Get over the extra price gyrations of leverage and collect the checks. Reinvest most the checks. watch the Income and diversification grow. Not hard- if you look at the Income, instead of the price crap. Price is tail wagging a dog.

    I will not be stepping out of equities, because of pricing. I go into the leverage and buy.
    Apr 8, 2015. 12:20 AM | Likes Like |Link to Comment
  • My Dividend Growth Journey Ep. 1 - Why You Should Never Chase Yield [View article]
    I hope he listens. Why I like SA is the opinions are diverse. That link is also, as well as Darren, a professional adviser that does not do it the Wall St "unreal gains are the same as real " way. They concentrate on the Income-professionally for a fee.

    That said, I don't think the metrics understanding, for checking the flow, is the hard part. It is understanding your goals and sticking to the plan. The author did not have a bad plan in the begining of high Income. He simply failed to unferstand the flow and put an over emphasis on the NAV, IMO. A huge problem when you try to do two things at once.

    You simply do not need to IMO and I have been retired with/because of that opinion since 2000. Flow is what people should retire with. It is what you live on. Cap Gain pops are nice, they help grow Income, but it is like a sugar diet, hard to live off of. At least for me anyway. Why I hugely discount the value crap.
    Apr 8, 2015. 12:00 AM | 1 Like Like |Link to Comment
  • My Dividend Growth Journey Ep. 1 - Why You Should Never Chase Yield [View article]
    I agree with know the risks to the Income he will receive, and told him how to check it, and where to learn.

    Your point on pricing being hard for many to take is valid, but IMO it is because people do not define exactly what THEIR goal is and panic. He stated his goal very well, price had nothing to do with it.

    The real danger is trying to be a trader and over worrying price crap that has nothing to do with the flow, IMO. It is common IMO. It is also Wall St baloney, if wealth is not your goal. Read the white paper link, it is exactly how I feel.

    BTY, I also do my Real Estate the exact same way. It is a skill set to understand your renters important metrics. The price of the buildings simply does not matter after that. Stocks can, much easier IMO, be done the same way. Yes learn the Income checking metrics. But stop trying to do two things at once, it is MUCH harder.
    Apr 7, 2015. 10:07 PM | Likes Like |Link to Comment
  • Brookfield Infrastructure Announces $750.5 MILLION Equity Offering [View article]
    Love it, hope the price pops down to where I can sell some 40$ Puts. Bought some in Dec with those for 38.16$
    Sold the GEL June and Sept 45$ today because of their new shares price drop.
    Apr 7, 2015. 09:58 PM | Likes Like |Link to Comment
  • My Dividend Growth Journey Ep. 1 - Why You Should Never Chase Yield [View article]
    lobeta and mdwork- Your "risks" are different than USER. That is THE most important for him to understand. HIS "risk" is to the Income generated, you guys are talking price/NAV crud. VERY different meanings to that word.

    User- I had a link to a white paper above, use it and read the paper. Anything you do not get, look up at Investopedia. It simply is not that complicated if you do not try to do multiple things at once. Price and flow are VERY different things. YOU'RE risk is flow, so understand NII for BDC's and CEF's, AFFO for REIT's, and Funds Available for Distrib on MLP's. Or start with the leveraged ETN's on those sectors for high yields and buy diversity and safety with that flow.
    Apr 7, 2015. 09:41 PM | Likes Like |Link to Comment
  • My Dividend Growth Journey Ep. 1 - Why You Should Never Chase Yield [View article]
    Take a look at Darren Mc Cammon's YMBC portfolio update article, just out. Sounds like what you want. I run partly that and partly DG, all with Income growth as my main goal in my Taxable, and a great deal more YMBC in my Roth and IRA. Computer is not allowing me to paste the link now
    Apr 7, 2015. 09:29 PM | Likes Like |Link to Comment