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  • Kinder Morgan: The Worm Has Definitely Turned [View article]
    emac99

    Good points.

    I have owned & been acquiring KMP since 1999 & gotten all my investment back, & then some.

    Tax basis is zero, so to sell means max cap gains tax. Current distribution is very very nice indeed. Bruce is correct that other MLPs have performed much better the last few years, and may have better cap gains prospects because of the lack of a GP. But the future has a way of being uncertain.

    Like Bruce I took note when EPD took out their GP (I was acquiring it at the time), and have been further buys along the way, to the point, with appreciation, it is my largest holding. Though I felt it was a good investment- I bought it 14 times- I had no idea it would do as well as it has.

    I'm not buying more EPD here but instead have been buying KMR, KiMI, and long dated options on KMI because I thought they were good value.
    KMR in my view is better now than KMP as it sells at a discount to KMP and owns equivalent assets, no k1's, and has a higher yield. There is an argument that KMR is a way of "self funding" for the pipeline Co that may partially offset the payments KMP makes to KMI. Also investors in KMI don't mind so much the GP rake off as they ARE the GP.

    The KMP distributions have grown nicely and form a fair chunk of my investment income. I don't own any bonds so for me KMP is throwing off bond-like income, and with a zero tax basis I have no incentive to sell.

    And since I believe the assets in place produce a relatively secure (& growing) income (unlike bonds) there is no reason to sell anyway.
    Jun 5, 2014. 12:44 PM | 3 Likes Like |Link to Comment
  • 3 Reasons The Current Equities Market Is Exhausted [View article]
    The market makes the majority of its gains in a relatively few days a year.

    Jumping in & out is not advised.

    Obviously one is cautious when new highs are being made, and buying when blood is in the streets is much safer.

    Buy value, don't get excited.

    Have a sandwich, glass of milk.
    May 31, 2014. 10:38 AM | 1 Like Like |Link to Comment
  • Time To Sell Enterprise Products [View article]
    Re: selling EPD, after a substantial gain, and a greatly lesser tax basis, one would have to weigh how much he would be left with after taxes on the sale, and what a likely return on that might be, versus keeping EPD and collecting the future distributions, which are pretty assured and increasing somewhat, given that the future capital gains are likely to be less robust than in the past.

    Whether you concur with me or not on the above, I think you will agree that it was a very long sentence.

    EPD is my largest holding as well, and I'm holding on, FWIW.
    May 30, 2014. 03:41 PM | Likes Like |Link to Comment
  • If I Were Starting All Over Again [View article]
    I wish to applaud the author.

    It is his decision to make and his life to live and he is happy with it. It is not for us to comment, other than to congratulate him for finding a purpose and sticking to it.

    I say Bravo!
    May 21, 2014. 05:50 AM | 2 Likes Like |Link to Comment
  • Kinder Morgan: Rich Kinder Backs Up The Truck [View article]
    Since Kinder already has $7.5 B in KMI he likely is putting his dividend income back in rather than the recent (small) amount indicating much of anything else.
    Even billionaires can have a relatively small amount of cash, like the rest of us.
    His incremental investment will return 5.2% and growing and he likes the valuation.
    May 13, 2014. 03:54 PM | 2 Likes Like |Link to Comment
  • Why Selling A Few Shares Is Not The Same As Getting A Dividend [View article]
    Excuse me, pardon me, but this discussion is like arguing about gravity, or plumbing.
    This is 5th grade math.
    Clear up compounding and tax efficiency along with the meaning of book value and you will have no confusions as to the effect a dividend has on the intrinsic value and long term price appreciation of a stock.
    May 9, 2014. 12:44 PM | 2 Likes Like |Link to Comment
  • Why Selling A Few Shares Is Not The Same As Getting A Dividend [View article]
    "You're confusing stock price with intrinsic value.."
    Precisely...
    May 9, 2014. 12:39 PM | 1 Like Like |Link to Comment
  • Why Selling A Few Shares Is Not The Same As Getting A Dividend [View article]
    @ Frog
    Great comment, timeless view.
    May 9, 2014. 12:33 PM | 2 Likes Like |Link to Comment
  • Clouds Over Omaha - Time To Sell Berkshire Hathaway [View article]
    Many were surprised & critical when Buffett bought Coke in '89. He's made $15 billion on the stock, hundreds of millions or billions more in dividends. He drinks 4-5 cherry Cokes a day. As a kid he'd buy a six pack for $.25 & sell bottles for a nickel each.
    How pissed off should he be?
    May 8, 2014. 09:56 PM | 2 Likes Like |Link to Comment
  • Clouds Over Omaha - Time To Sell Berkshire Hathaway [View article]
    Buffett's quiet way (abstaining) of objecting to the Coke compensation plan makes perfect sense to me. He also met with the CEO and has made very clear his views
    in the media.
    He knows better than to catch butterflies with a baseball bat.
    May 6, 2014. 04:03 AM | 5 Likes Like |Link to Comment
  • Warren Buffett, Berkshire Hathaway, And Dividend Growth Investing [View article]
    Yes, Lynch had an interesting style, and great timing on retiring from managing funds. Went out at the top...

    I remember he would open savings accounts in different private thrifts so he would be among the first notified & then able to get in first when they went public.
    Reading his books got me over the fear of investing in stocks.
    Apr 29, 2014. 12:12 PM | Likes Like |Link to Comment
  • Warren Buffett, Berkshire Hathaway, And Dividend Growth Investing [View article]
    Gerald Loeb believed in concentrating money in deserving stocks, might've said it or something similar.
    Peter Lynch also used the quote in I think his first book.
    Apr 28, 2014. 11:05 AM | Likes Like |Link to Comment
  • Norfolk Southern misses on revenue [View news story]
    $50 million, why that's...2%...
    Pass the salt.
    Apr 23, 2014. 11:44 AM | Likes Like |Link to Comment
  • Starbucks' Growth: A 20-Year Review [View article]
    You really have to wonder what barriers to entry exist with something so simple as coffee shops.
    How hard can it be?
    But Shultz is apparently a genius and continues to do everything right, and no one has risen as a serious challenge, at least on anywhere near the scale of Starbucks' massive footprint & product lines.
    Apr 22, 2014. 03:01 PM | Likes Like |Link to Comment
  • Warren Buffett, Berkshire Hathaway, And Dividend Growth Investing [View article]
    Interesting, didn't know that.
    Apr 17, 2014. 06:44 PM | Likes Like |Link to Comment
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