Investing 102

[GregWeld]

Always glad to see people are still reading. Just not much to post about right now. We've covered most all of the basics and I don't want this to turn into a "about Greg" thread because that's not what it's about. Every day I think about something to post --- but then it's not pertinent to 102 investing. So it's not that I'm not thinking about the thread -- it's just that there has to be a reason and something to post about that will HELP someone.

To post about daily ups and downs of the market is pretty pointless... and I personally never wanted the thread to be about which stock to buy or when to sell etc unless it's an example for the market in general (like the Facebook ordeal).

We're in a very unique position right now --- an election -- europe -- our own issues etc. My guess is - when we look back in a couple years - this will be viewed as an anomaly as markets go on a longer term basis. There is just so much uncertainty! I can't ever remember a stranger time for the WORLD. Politically and monetarily the world is really just a complete mess! In the meantime -- I've found plenty to be happy about and that for me is the focus. It's still a two year wait list for a Ferrari 458 Spider.... houses are selling... people around me are busy and doing "stuff" - going on trips etc.... so the take-away is that 80+% of the folks are what really count. They have jobs - they pay their mortgage - and life goes on. Invest in that... and let the rest of the stuff just be "news making headlines".

[Rybar]

How about talking about BPT and the hammering it took the last few days!!

I am trying to figure out why, it's on it's way back up a little. But I'm trying to figure out what happened.

[Bucketlist2012]

Seems to have something to do with future reports on the production decline and worry that it may be overvalued.

Talk of this pushed the trading and sell off up 20 fold..

There is a problem valuing future production and value.

I am still long on BPT.. If today is an indication , it should bounce back..

At 9% , it is a big payer, but also can go sideways quickly..

I use it as a small play in my mix, but I will hang on to it.

When it went down, the sell off accelerated, causing it to drop further..

Seeking Alpha has some info, and look up "blood in the bay".

[GregWeld]

Originally Posted by Rybar

How about talking about BPT and the hammering it took the last few days!!

I am trying to figure out why, it's on it's way back up a little. But I'm trying to figure out what happened.

Don't read anything into this response except as it pertains to ALL reading this thread... it's not really a response to YOU but a response to all.

I have said time and time again that it is up to YOU (all) to understand what it is you own and WHY you own it. Simply buying some name that "others" own or recommend is the surest way I know to loose your arse!

These "trusts" have all manor of tax considerations --- they're not just simple dividend payers! They pay outsized "dividends" but they're not just straight dividends - the dividend is used to reduce your share cost and blah blah blah... so they get different treatment. Master Limited Partnerships (MLP's) are similar --- such as Kinder Morgan Partners (KMP).... Unlike straight up dividends -- you're going to get a bunch of tax forms mailed to you - and your accountant is going to have to deal with them!

PLEASE PLEASE PLEASE GUYS ---- Do some research and or ask some questions before buying some of this stuff. These are different than just buying shares in a "normal" company.


Nothing wrong with owning them! I'm just saying that when you're investing your hard earned money -- you've got to understand what you're buying! If you were buying a car -- you'd know every damn detail! Don't treat investing any differently. If you don't understand it --- move on --- or keep working on the details until you really "get it".

It's like the LLC's I'm invested in for apartments.... you don't want to put your money in them and then 3 or 4 years from now call the management up and say -- "hey dude! I need 100K from this investment will you send me a check?"..... UH..... NO!! That ain't how they work. You don't want to find that out AFTER you've put in your money!

These trusts and MLP's have been absolute cash cows.... but right now we have "UNCERTAINTY" over the tax treatment with the current administration talking big about how they plan to rob the rich to feed the poor etc..... so there's lots of movement of money in this stuff. People don't like standing in front of a freight train - so the big money just chooses to move it. When that happens --- you've got more sellers than buyers and bada bing bada boom - you get a decline in the price. The good news is -- that as the price goes down - the new buyers (at the lower price) get a better percentage dividend!

These trusts and MLP's are energy price sensitive! They are - after all - energy plays. If the price of oil is high -- they'll get a bigger check and their costs pretty much stay the same (the spread) -- so the payout will be bigger.... conversely as oil declines so does the payout. When you look at the dividend payout of BPT it's all over the board... it's always decent as a percentage - but it's all over the board as a dollar amount.

[Bucketlist2012]

As Greg said, everyone has to do their research.

I apologize for recommending something. Right after I did, it turned south..

So i will stick to general Information on Investing and not specific Investments.

[GregWeld]

Originally Posted by Bucketlist2012

As Greg said, everyone has to do their research.

I apologize for recommending something. Right after I did, it turned south..

So i will stick to general Information on Investing and not specific Investments.

It never fails Mike.... You can have a stock run to the moon... the minute you talk someone into buying it - DOWN SHE GOES!

I'd buy BPT in a heartbeat - and especially at these lower prices! Anybody that bought on my birthday (yesterday) is picking up an almost 12% dividend!


Sorry -- did the wrong math -- it's was a 12% dividend not a 14%

[Rybar]

Thanks you guys, I appreciate the lesson. Although I bought to hold so I'm not all that worried as Mike said. Even at the high price it was still a very good yeild for the dividend.

I have now gotten my wife to invest and am going to invest savings for my 3 kids now as well.

[Bucketlist2012]

Happy Birthday Greg...

[GregWeld]

Originally Posted by Bucketlist2012

Happy Birthday Greg...

Thanks Mike! I made it all the way to 59 so far!


EEEEEEEHHHHHHHHAAAAAAAA

[Sieg]

Happy Birthday Greg!