Thanks for the nod from you, WSR.
You know the headlining picks I'm accumulating in my portfolios---the keys to my kingdom as it were. But I've got to say something here, picking up on your remark to the effect that you find a yield irresistible.
So I looked up the yield and find it's just a hair under 15%.
Is that good? Darned straight it is!
Would it be enough for me---if guaranteed until such time as I elect to sell the position---to keep me from looking at other pretty ladies out there on the Street?
ABSOLUTELY NOT!!!!!
I just ran the numbers and find I'm ahead YTD by 26%. I believe there's very good reason to expect to exceed 30% by the end of the year. Knowing a bit of how you aggressively pursue NGL and some others we hold in common, I can't imagine that your percentage is less pleasing. So a simple exercise may be in order:
How much of your gains YTD are due to distributions? Mind you, I do not factor in profits gained through sales. I do, however, back out distributions from my purchases price so as to reflect an accurate cost basis.
What I'm thinking here is that the really impressive gains don't come from yield, but, rather, from the art of launching sizable positions at the earlier moments in a stock's resuming the next leg up. DK certainly fit this and I see others we discuss daily doing much the same thing. And NGL is clearly in full-strike mode as we speak---ready to uncoil with blinding authority. And this is why I'm willing to use margin so casually as I add to my NGL positions.
Where are your profits coming from? Is it yield mostly or appreciation? I understand it's going to be a combination of the two as it must be but the time to capitalize on opportunity is when the comet is towards the beginning of is upwardly focused trajectory. Going after yield first and foremost is tantamount to going to jail to guarantee a warm cot and three squares a day---but little else.
15% is sweeter than what you'll get at the bank but only a fool puts his money in a bank so it's hardly a formula for increasing wealth.
Tell us where your gains are coming from, won't you?
