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Originally Posted by ironworks
So I'm just a 39 Year old guy trying to set up his retirement. I don't have much in the pot, yet. But at what point might some one realize they are throwing good money after bad?
Example. I bought into BPT early last year. At like 85 bucks. Today its at 48. I bought a bunch more at like 59. I have had a nice dividend improvement. So when oil comes back it seems I will have more shares. I'm getting ready to buy some more shares this month with me monthly payroll contribution. And I wonder should I buy more shares or is there a point you hold out for what you have.
I live in oil country and it sucks here currently. So its not just BPT that is struggling. My KMI and NBR is struggling. They have not recovered and continue to drop.
Can you give us some more lessons on the different evaluation numbers you talk about? Where exactly to find them.
I know oil will come back, it has to. But is there a point of just waiting it out more even though you can't time the market. I know the previous high was alot higher then 85 I can get my money back and more some day maybe in a long long time. Which is the plan anyway. Right?
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Trying to help answer your question about adding more BPT shares. You don't say what percentage of holdings you have in BPT, but one guideline is to not have more than 5% of your portfolio in one name. It sounds like you have other holdings in the energy sector too, so you might want to look at how much of your total portfolio is in energy. To decrease the riskiness of your portfolio, it is important to be diversified, so one holding does not have a big impact should something go wrong. That also applies to being too heavily invested in one sector.
I don't know much about BPT but I just took a quick look at it and one thing that stands out to me is the current dividend yield is 15.16% according to Google. That alerts me to this being very high risk and if it was me I would not have anywhere near 5% of my portfolio in something like BPT. But I may be more risk averse than you.