Investing 102

[GregWeld]

Okay --- We'll use this Kinder Morgan Partners (KMP) as a good example today of how I work.

I owned 11,000 shares at a cost of $81.43 a share = $895,730

These shares paid me $15,290 per quarter. The dividend is already "X" for the period - so on August 14th I'll be paid.

I sold this morning - the entire lot - for $1,120,290 netting a nice $224,560K

Add in the dividend capture and it's $240,000 this quarter.


My point in all this is --- whenever I have an unexpected windfall like this -- I'm going to take that gain. I'll buy the new entity when and if it's approved and takes place if the new dividend meets my needs --- or I can buy something else. Nobody ever went broke taking a profit.

OKay -- but for "102" -- you guys should be longer term thinkers and your profits (actual real dollars) are probably not quite as large as mine. Nearly a quarter million dollars is real money. Not that $2500 isn't -- but I'm saying that you have to balance the gain against your total - and whether or not this is a taxable event for you (long or short term hold). And then make a judgement call. For me -- that gain pays for the Pinkee's build... so I'll take it and say thank you very much. If it was in a 401K or IRA or ROTH -- and was only a $200 or $1000 gain - I'd probably let it ride and pick up the dividend - and the cash that's going to get paid and the shares in the new entity. I still LOVE this company so will bet with them again.