OK, clearly I'm the Forrest Gump of investing - not very smart - as I chose to invest in pipelines this past year. While I still don't know what I got wrong (earnings did go up, and valuations were cheap), I got it wrong in that I underperformed the SPY.
Investing is a contact sport.
I felt really bad when I see what apprear to be novice retail investors whooping me by the likes of NFLX and TSLA. But not too bad, I know how Mr Market works.
But two stories of PROFESSIONAL investors make my head explode.
1) WeWork - yes, a group of professional investors thought it was worth $47B. They chose that (and Uber) when they could have bought KYN. The story is not over for Softbank, as they have won this round more than they lost (at least I think so), so it will be interesting to see if owners of the Vision fund beat out KYN in the coming few years
2) Chewy.com also got my blood pressure up. These guys (BC Investors) bought a loser, Petsmart, shame on them, it seems a 3rd grader would have known better. The company tanked. To bail themselves out they bought a bigger loser (this one fortunately for them had buzzwords, an app, and made no money). Then they IPOed it and made more money than they lost in Petsmart! Or it least that seems to be how it is going (CHWY is going down every day now).
These are professionals, and they certainly taught me a lesson.
The other professionals, infrastructure managers, are buying pipelines in the private markets for 14x. Poor KYN holds them at 10x. Investors in the same assets of the former are doing great! Investors, with the same assets in KYN are suffering.
Head explosion. We can't win, it seems.
Disclosure: I am/we are long KYN.