Replies to post #3686 on NGL Energy Partners LP (NGL)

[jugs]

I'm not understanding why distributions aren't figured into the process when most of us buy the stock for BOTH distributions and an opportunity to gain thru appreciation. If I couldn't factor in distributions, I'd probably not be buying companies paying anything...I'd focus on the appreciation side only.

Buying into companies comes down to taking a stake in the future of the company. Figuring into the investment's success will be its ability to pay holders. If you're a smart investor, you'll look for such companies. As your wallet gets fatter, it represents your eye for wise investments. Your wallet demonstrates your gains basis, your individual stock cost basis has to reflect gains, whether thru appreciation, distributions or both.

It surprises me that this is even coming up. I don't recall coming up against the subject before.

Obviously it's for every investor to decide upon acceptable parameters when it comes to evaluating one's approach towards investing. So I wish everyone peace!

[pete807]

Semantics are just semantics. Our ego's need attention...

That said if you hold something long enough, ...and I have one other MLP, ALL your capital is returned to you. That is important to me because I use the distributions as untaxed income.

The bottom line for me is as long as the law stays the same all the actual gains in appreciation over my life will not be taxed as the dependents will get the CB stepped UP to the price of the stock the day they inherit it. Gains untaxed! The money was taxed before it was invested anyway!

This is why I tell others to park money in MLPs you hope you will not need. That is my very basic plan.

When I am up more than the amount I have collected... I kinda know it just by looking at the total value of my portfolio. The broker averages only the actual money I paid including commissions.

They do show the money I transfer out of the account as a reduction in invested money, so the net over the years is a fraction of the actual value of the account.

Good enough to see that performance in a graph they provide. The steady downward slope while the value remains steady on the top line...

-pete