MLP investing
Just a bit of data.
I own 6 MLP's.
My worst performer is APL.
However consider this
It had an IPO on 1-28-00 at $12 but that is not relevant since I do not do IPO's.
Now, go one year later to 8-29-01 and that APL is $19.80
If you bought then, your distributions over the period = $21.72 so your cost basis is now zero and you have $1.92 in the pocket.
Your capital is now worth $34.13 or 72% more than you paid just over 7 years prior.
Note: this is the worst of the lot. THE WORST ONE.
I have been in this type of investing for 8 years but do not have any of the original holdings.
You might see why I invest where the crowd does not go.
Now consider this.
Do 10 years to date, total return. KMP and EPD. (they are more than 10 years old so a nice pair)
Their average annual performance is +22% per year for the period of 10 years.
At the same time Buffett's BRK.A averaged +6.2% per year.
(oh yes, I own them also, Kinder and Duncan look to be the best in the business)
So for an old coot, spending my distributions, and some of mine near zero cost basis, Wheeeeee!
Have a nice weekend.
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